中银绒业(000982) - 2018 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2018 was ¥2,019,728,751.29, a decrease of 27.78% compared to ¥2,796,575,173.98 in 2017[6]. - The net profit attributable to shareholders for 2018 was -¥2,983,039,111.45, representing a significant decline of 6,319.56% from a profit of ¥47,962,203.76 in 2017[6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥2,929,917,487.62, an increase of 309.85% compared to -¥714,874,197.48 in 2017[6]. - The company's total assets at the end of 2018 were ¥8,376,049,962.52, down 31.10% from ¥12,156,319,654.59 at the end of 2017[6]. - The net assets attributable to shareholders at the end of 2018 were -¥1,066,432,993.23, a decrease of 155.92% from ¥1,906,961,098.75 at the end of 2017[6]. - The basic earnings per share for 2018 was -¥1.6526, a drastic decline of 6,312.78% from ¥0.0266 in 2017[6]. - The weighted average return on equity for 2018 was -718.04%, a significant drop of 720.57% from 2.53% in 2017[6]. - The company reported non-recurring gains and losses totaling -¥53,121,623.83 for 2018, compared to a gain of ¥762,836,401.24 in 2017[6]. - The gross profit margin for the main business was 1.67%, down 8.50% year-on-year[51]. - The total profit was CNY -295,669.39 million, a decline of CNY 3,423.71 million from the previous year[51]. - The net profit attributable to the parent company was CNY -298,303.91 million, a decrease of CNY 6,319.56 million year-on-year[51]. Operational Challenges - The company faced a significant debt burden, leading to a liquidity crisis and operational difficulties[51]. - The company ceased production and sales of washed cashmere products, leading to a significant decline in related revenue[60]. - The company faced severe financial difficulties in 2018, with a near collapse of its cash flow and significant debt issues leading to the loss of major clients like Uniqlo[128]. - The company is facing significant debt risks, with overdue debts amounting to approximately 2.8 billion yuan, leading to lawsuits from creditors[100]. - The company has been in negotiations with creditors to resolve debt defaults, achieving some settlements while continuing to seek funds to repay overdue loan interests[128]. Internal Control and Governance - The company has reported significant internal control deficiencies in its financial reporting[6]. - The independent board members have urged the management to address issues raised in the audit report to ensure the company's stable development[131]. - The company has engaged an accounting firm for internal control audits, reflecting its commitment to improving financial governance[142]. - The company plans to enhance its internal management and expand processing services to maintain normal operations amid financial difficulties[104]. Shareholder and Dividend Policies - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital[7]. - The company has not proposed any cash dividend distribution for the past three years, including the current reporting period[111]. - The total cash dividends for the years 2016, 2017, and 2018 were all 0, with net profits of -1,060,214,058.73, 47,962,203.76, and -2,983,039,111.45 respectively[114]. Legal and Regulatory Issues - The company is involved in multiple lawsuits, with a total claim of 13.24 million CNY, with no trial results yet[18]. - The company is currently involved in multiple legal disputes, including a claim for RMB 187.64 million (approximately USD 16.91 million) related to equity transfer payments[170]. - The company is facing a guarantee contract dispute with Ningxia Guarantee Group, with no trial results yet[157]. - The company has ongoing litigation with a total claim of 13.24 million CNY, with no trial results yet[18]. - The company has received regulatory warnings from the Ningxia Securities Regulatory Bureau regarding compliance issues, with a report on corrective actions submitted[184]. Business Strategy and Future Outlook - The company has not provided specific future performance guidance or market expansion strategies in the report[7]. - The company aims to strengthen its own brand and expand domestic sales, with ongoing operations in overseas subsidiaries in the UK and Cambodia[104]. - The company is focusing on core business strengths and aims to optimize the cash flow and reduce ineffective production capacity[100]. - The company has adjusted its business model to include processing services to maintain factory operations[51]. Asset Management - The company recorded an impairment provision of CNY 72,941.85 million for long-term assets due to deteriorating operational conditions[51]. - The company has a total of 715,990,997.73 in accounts receivable, with a bad debt provision of 571,162,049.88, representing a ratio of 80%[123]. - The company has not resumed its export tax rebate business, with a cumulative unrefunded export tax amounting to 24,477.07 million[127]. - The company has committed to avoiding competition among its major shareholders, which is currently being fulfilled[119]. Subsidiaries and Investments - The company established two new subsidiaries during the reporting period, expanding its operational scope[67]. - The company confirmed the existence of non-operating related party receivables, with an opening balance of 43 million yuan[196]. - The company has a joint investment with Heng Tian Jin Shi Investment Management Co., Ltd., with a registered capital of 2.1 billion yuan and total assets of 146,752.5 million yuan, but it reported a net loss of 614,277.97 million yuan[195].