Baota Industry(SZ:000595)2020-04-27 16:00Financial Performance - The total revenue for Baota Industry in 2019 was ¥311,233,895.22, representing a decrease of 28.01% compared to ¥432,317,736.74 in 2018[18]. - The net profit attributable to shareholders was -¥315,215,411.93 in 2019, a decline of 221.01% from -¥98,194,424.06 in 2018[18]. - The net cash flow from operating activities was ¥10,694,160.70, down 62.83% from ¥28,770,727.10 in the previous year[18]. - The basic earnings per share were -¥0.41, a decrease of 215.38% compared to -¥0.13 in 2018[18]. - Total assets at the end of 2019 were ¥1,524,548,101.11, a reduction of 16.63% from ¥1,828,600,919.71 at the end of 2018[18]. - The net assets attributable to shareholders decreased by 49.58% to ¥315,387,424.74 from ¥625,504,054.15 in 2018[18]. - The company reported a significant decline in net profit due to a substantial drop in operating revenue, leading to a major difference between net profit and cash flow from operating activities[51]. - The company reported a net profit of -315,215,411.93 yuan for 2019, indicating a continued loss trend[69]. - The net loss for 2019 was CNY 765,155,945.36, compared to a loss of CNY 584,953,622.15 in 2018, indicating a worsening financial position[195]. - The company's equity attributable to shareholders decreased significantly to CNY 480,193,067.28 in 2019 from CNY 655,296,607.97 in 2018, indicating a decline in shareholder value[195]. Revenue Breakdown - The company achieved total operating revenue of CNY 311,233,895.22 in 2019, a decrease of 28.01% compared to the previous year[36]. - The bearing business generated revenue of CNY 201,325,597.91, remaining stable year-on-year, while the ship electrical business revenue dropped by 72.55% to CNY 23,215,753.10[36]. - The mechanical manufacturing sector contributed ¥264,711,974.30, accounting for 85.05% of total revenue, with an 18.36% increase year-on-year[38]. - The bearing industry generated ¥201,325,597.90, representing 64.69% of total revenue, with an 18.02% increase compared to the previous year[38]. - The company's other business revenue decreased by 60.78%, indicating challenges in diversifying income streams[36]. Operational Challenges - The company is currently facing a restructuring application due to inability to repay debts, which adds uncertainty to its future operations[6]. - The company anticipates a recovery in the bearing industry in 2020, driven by the stabilization of the economy and the implementation of new infrastructure strategies, despite challenges posed by the pandemic[61]. - The company reported a significant increase in non-recurring losses, with the net profit excluding non-recurring items at -¥301,263,535.34, a 172.08% decrease from -¥110,726,225.82 in 2018[18]. - The company has not engaged in any significant asset or equity sales during the reporting period[59]. - The company is currently facing a major uncertainty regarding its ability to continue as a going concern due to a bankruptcy reorganization application filed by creditors[174]. Management and Governance - The company experienced significant management turnover, with multiple executives, including the CFO and several vice presidents, resigning for personal reasons in March 2019[124]. - The current management team includes key figures such as the General Manager Du Jianwen, who has been in position since July 2016, and the new CFO Yao Zhanwen, appointed in July 2019[126]. - The company has implemented an employee stock option plan, with the first exercise period from March 22, 2019, to August 15, 2019[84]. - The company maintains a complete and independent governance structure, ensuring no significant discrepancies with regulatory requirements[148]. - The company has established a fully independent operational capability, with no business, personnel, asset, institutional, or financial overlap with its controlling shareholder[149]. Research and Development - The company has established a strong R&D capability, leveraging national-level research centers and partnerships with universities to enhance product development[31]. - Research and development expenses increased by 3.68% to ¥2,296,641.22 in 2019[46]. - The company has allocated 50 million for research and development in new technologies for the upcoming fiscal year[135]. Financial Management - The company’s foreign revenue rose to ¥2,797,567.41, representing 0.90% of total revenue, with a year-on-year increase of 0.69%[38]. - The company's R&D investment decreased by 13.06% to ¥14,000,120 in 2019, while the proportion of R&D investment to operating revenue increased to 4.50% from 3.72% in 2018[47]. - The total current liabilities amounted to CNY 823,619,402.61 in 2019, a decrease from CNY 864,696,473.59 in 2018, indicating improved management of short-term obligations[194]. - The total asset proportion of units included in the internal control evaluation was 100% of the consolidated financial statements[162]. Shareholder Information - The total number of shares for capital distribution was 765,185,250, with no cash dividends or stock dividends proposed for the reporting period[70]. - The company did not distribute any cash dividends in 2019, 2018, and 2017 due to negative distributable profits of -315,215,411.93 yuan, -98,194,424.06 yuan, and 18,742,523.49 yuan respectively[67][69]. - The company holds 398,415,924 shares, representing 52.13% of total shares, with 94,194,342 shares pledged[84]. - The total number of shareholders at the end of the reporting period was 57,965, compared to 53,690 at the end of the previous month[109]. Audit and Compliance - The audit report issued by the accounting firm was a standard unqualified opinion, indicating no significant issues were found[166]. - The company has established and effectively implemented internal controls in accordance with relevant regulations[165]. - The audit highlighted the inherent limitations of internal controls, which may not prevent or detect misstatements[165]. - There were no significant deficiencies or important deficiencies identified in the financial reporting internal controls[164].