FASTEN(SZ:000890)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,003,609,325.63, a decrease of 40.90% compared to ¥1,698,089,206.54 in 2018[17]. - The net profit attributable to shareholders was -¥777,563,777.57, representing a decline of 435.41% from -¥145,228,526.01 in the previous year[17]. - The basic earnings per share for 2019 was -¥2.05, compared to -¥0.38 in 2018, reflecting a significant decline[17]. - The company reported a net loss of approximately ¥777.56 million for 2019, compared to a loss of ¥145.23 million in 2018, indicating a significant decline in performance[68]. - The total comprehensive income for 2019 was also a loss of ¥777.56 million, compared to a loss of ¥320.60 million in 2018[192]. - The company's net loss for 2019 was CNY 725,681,927.86, compared to a profit of CNY 42,628,916.48 in 2018, indicating a significant decline in profitability[188]. Revenue Breakdown - The metal products segment generated ¥747.16 million, accounting for 74.45% of total revenue, down 11.50% from ¥844.24 million in 2018[35]. - The financial services segment saw a significant decline, with revenue of ¥256.45 million, representing a 69.97% drop from ¥853.85 million in 2018[35]. - Domestic sales accounted for 97.17% of total revenue, totaling ¥975.24 million, down 41.42% from ¥1,664.89 million in 2018[35]. - The company faced a 9.36% decrease in revenue from the metal products business, while the cost of goods sold decreased by 14.01%, resulting in a gross margin increase of 5.13%[32]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 28.25% to ¥1,675,805,917.45, up from ¥1,306,697,847.27 in 2018[17]. - The cash inflow from operating activities was ¥1,067.65 million in 2019, down from ¥1,761.19 million in 2018, representing a decline of about 39.4%[198]. - The net cash flow from operating activities for 2019 was ¥1,675,805,917.45, an increase from ¥1,306,697,847.27 in 2018[199]. - The cash and cash equivalents at the end of 2019 amounted to ¥208,939,253.42, up from ¥25,761,973.79 at the end of 2018[199]. Asset Management - Total assets at the end of 2019 were ¥4,788,102,718.79, down 36.29% from ¥7,515,634,522.99 at the end of 2018[17]. - The total current assets decreased from CNY 6,746,878,171.18 in 2018 to CNY 4,224,523,591.30 in 2019, representing a decline of approximately 37.3%[180]. - The company's inventory decreased from CNY 76,546,799.15 in 2018 to CNY 44,625,327.03 in 2019, indicating a decline of about 41.8%[181]. - The company's total equity as of December 31, 2019, was negative CNY 30,867,305.33, a significant drop from CNY 737,443,539.01 in 2018[188]. Strategic Initiatives - The company has adjusted its business structure by divesting from the factoring business to focus solely on metal products, aiming for long-term strategic development[26]. - The company plans to continue investing in environmental protection and production efficiency to ensure sustainable development[32]. - The company aims to enhance profitability in its metal products business and implement cost reduction measures to improve operational efficiency in 2020[61]. - The company plans to divest its wholly-owned subsidiary, Moshan Commercial Factoring, to mitigate the impact of its poor performance on overall operations[60]. Governance and Compliance - The company has established measures to address potential conflicts of interest arising from competition, including the option for the company to acquire competing assets if necessary[71]. - The company has committed to supervise and restrict the production activities of related enterprises to prevent competition with its own products[71]. - The company has a comprehensive internal control evaluation report, which was disclosed on April 25, 2020[158]. - The audit report issued by the auditing firm confirmed that the company maintained effective internal control over financial reporting as of December 31, 2019[160]. Shareholder Information - The largest shareholder, Farshun Hongsheng Group, holds 21.34% of the shares, totaling 81,030,118 shares, with 79,000,000 shares pledged[117]. - The total number of ordinary shareholders at the end of the reporting period was 49,077, an increase from 33,453 at the end of the previous month[117]. - The company did not engage in any repurchase transactions among the top 10 ordinary shareholders during the reporting period[119]. - The company has not issued any new shares or conducted any securities issuance during the reporting period[116]. Employee and Management Information - The total number of employees in the company is 414, with 290 in production, 21 in technical roles, 20 in finance, and 65 in administration[140]. - The company emphasizes employee training and has developed a comprehensive vocational training system to enhance talent cultivation and management team quality[143]. - The total remuneration of 254.13 million yuan for its directors and senior management during the reporting period[139]. - The independent directors receive an annual allowance of 60,000 yuan, paid monthly[137].