Zodi Investment(SZ:000609)2021-04-28 16:00Financial Performance - The company's net profit for 2020, after deducting non-recurring gains and losses, was negative, with total operating revenue below 100 million yuan [4]. - The company's operating revenue for 2020 was ¥106,197,699.50, a decrease of 80.62% compared to ¥547,908,255.05 in 2019 [18]. - The net profit attributable to shareholders for 2020 was -¥299,164,835.56, representing a decline of 1,124.16% from ¥29,210,658.07 in 2019 [18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥319,160,423.16, down 1,232.45% from ¥28,183,298.32 in 2019 [18]. - The net cash flow from operating activities for 2020 was -¥74,367,482.11, an improvement of 16.58% compared to -¥89,152,280.59 in 2019 [18]. - The total assets at the end of 2020 were ¥3,882,019,069.94, a decrease of 7.62% from ¥4,202,210,104.80 at the end of 2019 [18]. - The net assets attributable to shareholders at the end of 2020 were ¥1,249,191,673.41, down 19.14% from ¥1,544,809,700.19 at the end of 2019 [18]. - The basic earnings per share for 2020 was -¥1.00, compared to ¥0.10 in 2019, reflecting a decline of 1,100.00% [18]. - The weighted average return on net assets for 2020 was -21.40%, a decrease of 23.31% from 1.91% in 2019 [18]. - The company reported a significant loss of CNY 299,164,835.56 in 2020, indicating a challenging financial environment [86]. - The company is at risk of being delisted due to financial indicators that trigger mandatory delisting warnings as per the Shenzhen Stock Exchange regulations [92]. Business Strategy and Operations - The main business during the reporting period was direct investment, with real estate investment being one of the key areas [4]. - The company decided to phase out existing real estate investment projects and will no longer acquire new real estate development projects as of November 2020 [16]. - The company plans to adjust its future development strategy by maintaining and gradually disposing of real estate investment projects in response to market conditions [28]. - The company aims to enhance its core competitiveness by optimizing resource allocation and promoting new business initiatives [30]. - The company plans to focus on controlling development costs and adjusting sales strategies to improve project sales levels during the relatively stable period of the pandemic [39]. - The company plans to continue promoting real estate investment projects in 2021 despite strict macro-control policies, aiming to improve the revenue levels of unsold projects [79]. - The company will explore new investment projects aligned with national "14th Five-Year Plan" policies to achieve sustainable development [80]. - The company aims to reduce operational costs and improve profitability by strengthening budget management and controlling expenses [94]. Governance and Compliance - All directors attended the board meeting to review the annual report, ensuring governance compliance [4]. - The company has received an unqualified audit report with a paragraph on significant uncertainties regarding its ability to continue as a going concern [4]. - The board of directors has evaluated the company's ability to continue as a going concern and believes that strategic adjustments can improve operational conditions and reduce losses [94]. - The company has maintained its commitment to ensure the independence of the listed company and reduce related party transactions [88]. - The company engaged in 26 investor communications throughout 2020, focusing on operational performance and stock price trends [83]. - The company has established a robust governance structure with clear roles for its board members and management team [168]. - The independent directors participated in all board meetings and did not raise any objections during the reporting period [182]. Real Estate Market Conditions - The real estate market in 2020 was characterized by a tightening of policies, with a focus on stabilizing land prices and housing prices, impacting the company's project completion and sales [35]. - The company experienced a decrease in equity assets compared to the previous year, primarily due to a reduction in equity investments [29]. - In 2020, the company faced challenges in its real estate investment due to policy adjustments and market changes, leading to unsatisfactory performance in this sector [33]. - Revenue from real estate sales amounted to 82,321,630.87 yuan, accounting for 77.52% of the total operating revenue for 2020 [198]. Financial Management and Risks - The company has a total bank loan balance of RMB 609.53 million, with an average financing cost ranging from 7.105% to 9% [38]. - The company provided guarantees for stage mortgage loans totaling RMB 673.46 million, representing 53.91% of the latest audited net assets [39]. - The company has ongoing real estate projects with total investments of approximately 3.37 billion yuan, with some projects partially completed and delivered [68]. - The company reported a total of 4,673,110 shares held by major shareholder Huang Chaojiang, with 2,896,610 shares held through a margin account and 1,776,500 shares through a regular account [152]. - The actual controller of the company, Mr. Li Qin, is under investigation for suspected illegal activities, and his shares (23.77% of total shares) are frozen due to related debt issues [106]. - The company has applied for a total of CNY 800 million in merger and development loans, guaranteed by its actual controller and related parties [112]. Shareholder Structure and Changes - The total number of shares is 299,265,522, with 97.57% being unrestricted shares (292,002,672) and 2.43% being restricted shares (7,262,850) [148]. - The largest shareholder, Chengdu Zhongdi Chanquan Investment Group Co., Ltd., holds 23.77% of the shares, totaling 71,144,800 shares, which are currently frozen [150]. - The second-largest shareholder, Beijing Yanhua Joint Development Co., Ltd., holds 4.55% of the shares, totaling 13,613,503 shares, which are also frozen [150]. - The company has not engaged in any share repurchase activities during the reporting period [149]. - The company has not disclosed any plans for market expansion or mergers and acquisitions in the current report [149]. Personnel and Management - The total number of employees in the company is 179, with 29 in the parent company and 150 in major subsidiaries [170]. - The company has a diverse management team with backgrounds in finance, law, and engineering, enhancing its operational capabilities [165]. - The company reported a total compensation of 5.6702 million yuan for directors, supervisors, and senior management during the reporting period [168]. - The company established a performance evaluation and incentive mechanism for all employees, enhancing work motivation [177]. Audit and Internal Controls - The company maintained effective internal controls over financial reporting as of December 31, 2020, according to the internal control audit report [190]. - There were no significant deficiencies or material weaknesses identified in the internal control audit report [190]. - The audit opinion issued was a standard unqualified opinion with a paragraph on going concern uncertainty [194]. - The financial report was prepared in accordance with accounting standards and fairly reflects the financial position as of December 31, 2020 [194].