*ST西发(000752) - 2019 Q4 - 年度财报

Financial Performance - The company reported a net profit of negative value for both 2018 and 2019, leading to a continued delisting risk warning according to the Shenzhen Stock Exchange regulations[5]. - The company's operating revenue for 2019 was ¥318,364,145.20, a decrease of 1.47% compared to ¥323,117,085.53 in 2018[18]. - The net profit attributable to shareholders was -¥333,414,403.65, an improvement of 20.08% from -¥411,969,131.10 in the previous year[18]. - The cash flow from operating activities decreased by 60.47% to ¥41,295,264.76 from ¥108,955,682.78 in 2018[18]. - Total assets at the end of 2019 were ¥903,065,183.89, representing a decrease of 20.43% from ¥1,142,311,742.90 at the end of 2018[19]. - The net assets attributable to shareholders dropped by 90.38% to ¥35,504,067.70 from ¥374,122,687.83 in 2018[19]. - The company reported a basic earnings per share of -¥1.2641, an improvement of 20.08% from -¥1.5619 in the previous year[18]. - The weighted average return on equity was -164.88%, a decline from -70.69% in 2018[18]. - The company reported a total of ¥12,906,061.05 in investment losses, accounting for 4.31% of total profit[54]. - The company reported a total debt of CNY 509.32 million as of December 31, 2019, due to legal issues involving former executives[91]. Internal Control and Governance - The company has significant internal control deficiencies, including the lack of an external investment management policy and inadequate supervision of joint ventures, resulting in substantial impairment of long-term equity investments[4]. - The audit report from Zhongxing Caiguanghua CPA indicated a qualified opinion, highlighting issues with internal controls[4]. - The company has not been able to effectively manage and supervise its subsidiaries, leading to governance issues[5]. - The company aims to enhance its product structure and optimize internal management to improve risk resilience and ensure stable operations[40]. - The company has committed to maintaining independence in personnel, assets, and finance, and avoiding any potential competition with its controlling shareholders[81]. - The company has established a commitment to not engage in any competitive activities with its controlled enterprises[83]. - The company is focused on ensuring that any related party transactions are conducted at fair market prices and in compliance with legal regulations[84]. Legal and Compliance Issues - The company faced significant legal challenges, with 16 economic lawsuits involving a total principal amount of ¥143,377.70 million, impacting financial stability[40]. - The company has been involved in multiple lawsuits since June 2018, with some bank accounts frozen, posing a risk to its financial stability[70]. - The company is involved in significant litigation, with a total claim amount of 450.28 million RMB related to a financial loan contract dispute[108]. - The company is also facing a lawsuit with a claim amount of 320 million RMB regarding another financial loan contract[109]. - The company has reported a potential risk of severe negative impact on its financial condition due to outstanding debts[114]. - The company is actively pursuing legal remedies to mitigate potential financial impacts from adverse court rulings[116]. - The company has been named in multiple lawsuits, reflecting potential financial and reputational risks[121]. Operational Challenges and Strategies - The company faced challenges in upgrading product structure to meet consumer demand for mid-to-high-end beer products[30]. - The company plans to expand product channels and optimize internal management to enhance risk resistance and achieve stable development[31]. - The company aims to enhance its market position in Tibet while expanding into the mid-to-high-end beer market in mainland China[69]. - The company is actively pursuing debt recovery and cleaning up financial discrepancies to protect shareholder interests[94]. - The company is focusing on enhancing management control and technological innovation to improve production management and sales performance[94]. Shareholder and Management Changes - The company reported a significant change in management, with multiple resignations including the chairman and general manager due to personal reasons[177]. - The current general manager, Chen Tingting, has a background in e-commerce and technology management, indicating a focus on digital transformation[178]. - The company has seen a turnover in its board members, with independent directors resigning for personal health and work reasons, which may impact governance stability[177]. - The total annual remuneration for directors, supervisors, and senior management in 2019 amounted to CNY 2,763,733.39[182]. - The company employed a total of 273 staff members, including 182 production personnel and 32 sales personnel[186][187]. Social Responsibility and Environmental Initiatives - The company has provided financial support of 504,000 RMB to help 101 registered poor households in poverty alleviation efforts[145]. - The company has established a wastewater treatment facility with a design capacity of 2,000 m³/d, achieving a 100% operational rate for pollution control equipment[148]. - The company has implemented strict monitoring systems for wastewater and air pollutants, with quarterly third-party testing[152]. - The company plans to continue supporting poverty alleviation efforts in specific villages until all registered poor households are lifted out of poverty[147].