SMTCL(SZ:000410)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,002,138,346.66, a decrease of 80.02% compared to ¥5,014,891,507.55 in 2018[20]. - The net profit attributable to shareholders for 2019 was -¥2,988,269,764.45, representing a decline of 279.10% from -¥788,262,394.70 in 2018[20]. - The net profit after deducting non-recurring gains and losses was -¥4,944,411,233.16, a significant drop of 538.83% compared to -¥773,984,592.38 in 2018[22]. - The basic earnings per share for 2019 was -¥3.90, a decrease of 278.64% from -¥1.03 in 2018[22]. - The total assets at the end of 2019 were ¥7,212,131,114.02, down 64.63% from ¥20,392,382,497.07 at the end of 2018[22]. - The total profit for the year was a loss of CNY 3.088 billion[41]. - The company reported a net loss of approximately ¥2.99 billion in 2019, with no cash dividends distributed over the past three years[126]. Cash Flow and Investments - The net cash flow from operating activities improved by 33.74% to -¥37,709,280.92 from -¥56,913,955.87 in 2018[22]. - The net cash flow from investment activities increased significantly to ¥156,633,526.09, a 418.69% increase year-on-year due to the disposal of fixed assets and equity investments[81]. - The net cash flow from financing activities improved to ¥1,752,468,093.99, a 182.15% increase compared to the previous year, attributed to capital contributions and loans received[81]. - The company received a total of 1.8 billion yuan from China General Technology Group for its overall restructuring, including 1.2 billion yuan as capital contribution and 600 million yuan as a one-year shareholder credit loan[171]. Restructuring and Strategic Changes - The company has been under a delisting risk warning due to consecutive years of negative net profit[4]. - The company successfully completed its judicial reorganization in December 2019, reducing its debt burden and improving its capital structure[42]. - The company has undergone judicial restructuring, selling subsidiaries that do not align with its future business direction, which is not expected to significantly impact overall performance[111]. - The company’s restructuring plan was approved by the Shenyang Intermediate People's Court, concluding the restructuring process by December 31, 2019[152]. - The company completed its judicial reorganization in 2019, with the reorganization plan approved by creditors[150]. Operational Challenges and Market Conditions - The company faced significant operational challenges in 2019, leading to a judicial reorganization and a substantial decline in revenue and production[57]. - The machine tool industry is facing increased risks and a downward trend, with a notable expansion of losses in the metal cutting machine sector[33]. - The company anticipates significant risks due to the global economic downturn caused by the COVID-19 pandemic, which may severely impact market demand[112]. Research and Development - R&D expenses surged by 248.21% to ¥224,564,802.60 in 2019, reflecting increased investment in research and development[67]. - The implementation of R&D projects is expected to enhance the company's competitiveness in the domestic and international CNC machine tool markets[70]. - The company has four national-level major science and technology projects and two enterprise-level key technology projects underway in 2019[68]. Product Development and Market Strategy - The company developed and launched several new products, including the i5T1.1 CNC lathe and the i5M3.2 five-axis vertical machining center, with over 10 national patents approved[49]. - The company plans to focus on high-end precision machine tools and intelligent automation equipment to meet the needs of key national industries[115]. - The company aims to enhance its leading products, particularly CNC lathes and machining centers, by mastering key technologies and improving efficiency metrics such as processing accuracy and spindle speed[118]. Financial Management and Compliance - The company has not proposed any cash dividend distribution or capital reserve transfer to share capital for the reporting period[127]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders during the reporting period[136]. - The company reported no penalties or rectification measures during the reporting period, indicating a good integrity status for the company and its controlling shareholders[157]. Asset Management - The company plans to optimize asset allocation by disposing of non-core assets, which is expected to improve operational efficiency and reduce production costs[166]. - The company reported a significant reduction in short-term borrowings, which were previously ¥10,882,641,541.69, now showing a decrease of 53.35% due to debt-to-equity conversion during the restructuring period[82]. - The total investment during the reporting period was ¥29,500,000.00, a drastic decrease of 96.90% compared to ¥951,250,000.00 in the same period last year[86].