LAT(SZ:000697)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥1.98 billion, representing a 23.55% increase compared to ¥1.60 billion in 2018[17]. - The net profit attributable to shareholders for 2019 was approximately -¥1.55 billion, a significant decrease of 6,406.82% from ¥24.55 million in 2018[17]. - The net cash flow from operating activities increased by 55.82% to approximately ¥88.72 million in 2019, compared to ¥56.23 million in 2018[17]. - The total assets at the end of 2019 were approximately ¥3.64 billion, a decrease of 30.17% from ¥5.21 billion at the end of 2018[18]. - The net assets attributable to shareholders decreased by 50.29% to approximately ¥1.53 billion at the end of 2019, down from ¥3.07 billion at the end of 2018[18]. - The basic earnings per share for 2019 was -¥2.3056, a decline of 5,524.94% from ¥0.0425 in 2018[18]. - The company reported non-recurring gains of ¥22,358,419.38 in 2019, a significant decrease from ¥235,149,358.65 in 2018[24]. - The company incurred an asset impairment of CNY 36,391.79 million due to uncertainties in the operation of its mining business[48]. - The company reported a goodwill impairment provision of ¥1,121,000,000 due to the operational conditions of Gardner and potential impacts from the pandemic[90]. Operational Challenges - The company has faced significant operational challenges, as indicated by the drastic decline in net profit and net assets[17]. - The subsidiary Shaanxi Lianstone Mining's revenue contribution has been decreasing, with challenges in obtaining mining license renewals due to local regulations[29]. - The company faces risks including policy changes, exchange rate fluctuations, and reliance on a concentrated customer base, particularly Airbus[90]. Strategic Focus and Future Outlook - Future outlook and strategies are discussed in the report, highlighting potential risks and measures to address them[5]. - The company continues to focus on expanding its aerospace manufacturing capabilities following the acquisition of Gardner Aerospace Holdings Limited[16]. - The company aims to expand its market share and increase production and sales volume, particularly in the international market[89]. - The company is focused on expanding its aerospace manufacturing capabilities, including high-temperature alloy materials and single crystal turbine blades[36]. - The company is actively involved in the development of new technologies and products within the aerospace industry, aiming to capture a larger market share[167]. Revenue Sources and Client Relationships - The main business involves the production and sale of precision aerospace components, with significant revenue contributions from the subsidiary Gardner Aerospace[28]. - Gardner Aerospace has established long-term relationships with major clients such as Airbus and Rolls-Royce, focusing on precision parts for commercial aircraft[32]. - The aviation manufacturing segment contributed CNY 1,827,454,165.64, accounting for 92.30% of total revenue, with a slight decrease of 0.94% year-on-year[51]. - The company’s foreign revenue was CNY 1,863,724,983.95, representing 94.13% of total revenue, with a year-on-year decrease of 0.98%[51]. - The total sales amount from the top five customers reached ¥1,475,769,399.39, accounting for 74.54% of the annual total sales[61]. - Airbus was the largest customer, contributing ¥1,177,956,760.89, which is 59.50% of the annual sales[61]. Cash Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has not made any profit distribution or capital reserve transfer plans in the last three years due to operating losses, with net profits being negative in 2017, 2018, and 2019[96]. - The cash dividend amount for 2018 was ¥24.55 million, which represented 0% of the net profit attributable to shareholders[99]. - The cash dividend amount for 2017 was ¥57.89 million, also representing 0% of the net profit attributable to shareholders[99]. - The company’s cash dividend policy is clearly defined and compliant with regulations, ensuring the protection of minority shareholders' rights[96]. Governance and Compliance - The company has established a robust decision-making mechanism for profit distribution, ensuring transparency and compliance[96]. - The independent directors have fulfilled their responsibilities effectively in the decision-making process regarding cash dividends[96]. - The company has committed to avoiding competition with its subsidiaries and ensuring compliance with related commitments[100]. - The company guarantees the independence of its operations, including personnel, assets, finance, and business, to avoid conflicts of interest with its parent company[101]. - The company will maintain an independent financial accounting system and decision-making process, ensuring no interference from its parent company[101]. - The company has established a governance structure that allows for independent operation of its board and management, free from interference from controlling parties[103]. Environmental Management - The company achieved zero safety and environmental accidents during the reporting period, emphasizing its commitment to safety and environmental management[86]. - The company has implemented effective pollution control measures, achieving a dust removal efficiency of over 99% in its operations[139]. - The wastewater treatment system meets the "Comprehensive Wastewater Discharge Standards" after sedimentation and clarification[139]. - The company has no significant environmental violations or exceedances reported during the reporting period[139]. - The company’s major pollutants during mining operations are controlled, with no reported emissions of COD or ammonia nitrogen[138]. Employee and Board Structure - The company employed a total of 2,411 staff, with 1,648 in production, 40 in sales, and 338 in technical roles[175]. - The company has a total of 2 employees with a doctoral degree and 227 with a master's degree[176]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 5.5541 million[172]. - The company has a diverse board with members holding significant experience in various sectors, including aerospace and finance, enhancing its strategic capabilities[166][167][168]. - The average age of the current board members is approximately 56 years, indicating a mix of experience and potential for innovation[166][167]. Audit and Financial Reporting - The internal control audit report issued by Xinyong Zhonghe Accounting Firm confirmed that the company maintained effective financial reporting internal controls as of December 31, 2019[194]. - The audit opinion type was a standard unqualified opinion, indicating no issues with the financial statements[200]. - The company did not experience any major accounting errors requiring retrospective restatement during the reporting period[113]. - The company has no outstanding bonds that are due or have not been fully paid as of the annual report approval date[198]. - The internal control evaluation report was fully disclosed on April 29, 2020, and is available at www.cninfo.com.cn[196].