ZHONGYINCASHMERE(SZ:000982)2020-04-28 16:00Financial Performance - The company reported a net profit of negative value for both 2018 and 2019, leading to continued delisting risk warnings on its stock [7]. - The company's operating revenue for 2019 was ¥714,586,655.30, a decrease of 64.62% compared to ¥2,019,728,751.29 in 2018 [26]. - The net profit attributable to shareholders for 2019 was -¥2,731,990,945.60, representing an 8.42% improvement from -¥2,983,039,111.45 in 2018 [26]. - The net cash flow from operating activities was -¥431,969,806.83, a significant increase of 780.00% from -¥49,087,690.64 in 2018 [26]. - Total assets at the end of 2019 were ¥1,264,636,101.23, down 84.90% from ¥8,376,049,962.52 at the end of 2018 [29]. - The net assets attributable to shareholders were ¥1,100,961,799.50 at the end of 2019, a decrease of 203.24% from -¥1,066,432,993.23 at the end of 2018 [29]. - The company reported a basic and diluted earnings per share of -¥1.5135 for 2019, an 8.42% improvement from -¥1.6526 in 2018 [26]. - The company achieved operating revenue of CNY 714.59 million in 2019, a significant decrease of 64.62% compared to the previous year [52]. - Operating costs amounted to CNY 803.28 million, down 59.55% year-on-year, primarily due to reduced sales volume [52]. - The gross profit margin for the main business was -12.41%, a decline of 14.08% from the previous year [52]. - The total profit for the period was CNY -273.23 million, an increase in loss of 7.59% compared to the previous year [52]. Restructuring and Business Strategy - The company underwent a restructuring process, with a court ruling on July 9, 2019, to accept the application for reorganization [24]. - On December 24, 2019, 恒天金石投资管理有限公司 became the controlling shareholder following the implementation of the court-approved reorganization plan [24]. - The company underwent a restructuring process approved by the court in November 2019, aiming to return to its core cashmere business and enhance its supply chain services [41]. - The company plans to focus on high-end cashmere raw materials, yarn, and fabric branding post-restructuring [41]. - The company has shifted to a light-asset operation model, providing supply chain services for the cashmere textile industry [41]. - The restructuring plan was completed in December 2019, with all production facilities and equipment divested [41]. - The company retained two trading subsidiaries, Dongfang Cashmere and Jiangyin Rongyao, focusing on supply chain services in the cashmere textile industry [47]. - The company plans to leverage its international sales network to enhance supply chain services for cashmere enterprises [47]. - Following the reorganization, the company has transitioned to a light-asset operation model, focusing on supply chain services for the cashmere textile industry [107]. - The company aims to establish a stable and diversified customer base and build a competitive modern trading team to expand its cashmere trading business [110]. Legal and Debt Obligations - The company has ongoing litigation involving a loan dispute with Huaron West Development Investment Co., with a claim amount of 74.22 million RMB, which has been settled [154]. - Another loan dispute with China Agricultural Bank involves a claim of 90.39 million RMB, with the court ruling requiring the company to repay the principal and interest [157]. - The company is required to repay a principal amount of 210 million CNY and a penalty of 12,989,550.21 CNY, totaling 222,989,550.21 CNY to Huaron West Development Investment Co., Ltd. [160]. - The company has a debt repayment plan in place, with specific payments of 111,494,775.11 CNY due by December 31, 2018, and June 30, 2019, respectively [160]. - The company is obligated to pay 10,462,926 USD for unpaid goods and penalties as per the arbitration ruling from the China International Economic Trade Arbitration Commission [163]. - The company has been ordered to pay 3,714,055 CNY to Zhenjiang Changjiang Electric Power Equipment Co., Ltd. along with interest and legal fees [166]. - The company must repay a loan principal balance of 13.9 million EUR to the China Development Bank, along with interest and penalties [166]. - The company has incurred a total of 553,000 CNY in legal fees and related costs in various lawsuits [165]. - The company is under a restructuring process to address its debt obligations as per the established repayment plan [160]. - The company has faced multiple legal disputes, including a significant arbitration case regarding unpaid goods and penalties [163]. Audit and Compliance - The company’s financial report was audited by 立信会计师事务所, which issued an unqualified opinion with emphasis on certain matters [5]. - The audit report for 2019 included an emphasis on matters related to the impact of the COVID-19 pandemic on asset transfer and ownership changes during bankruptcy restructuring [129]. - The board of directors agreed with the audit report from Lixin, which objectively reflects the company's actual situation [132]. - The current auditor is Lixin Certified Public Accountants with an audit fee of 1.6 million RMB, and they have been serving for 4 consecutive years [148]. - The company has faced continuous negative net profits for two consecutive years (2018 and 2019), leading to a delisting risk warning from the Shenzhen Stock Exchange [149]. - The company has been penalized for failing to disclose debt waiver matters in a timely manner, leading to supervisory measures and inclusion in the securities market integrity record [200]. - The actual controller of the company, Ma Shengguo, was held responsible for inaccurate disclosures related to 510 million yuan in prepaid accounts in the 2017 annual report [200]. - The company is currently involved in multiple lawsuits, with significant amounts under dispute, including a case with a claim of 7,638.99 million yuan [197]. - The company has not yet resolved several ongoing legal disputes, which may impact its financial stability [197]. - Future financial performance may be affected by the outcomes of ongoing litigation and regulatory scrutiny [200]. Operational Changes and Market Strategy - The company has taken measures to address the impact of the COVID-19 pandemic on its operations and financial performance [94]. - The company is focused on expanding its market presence and enhancing product development strategies [94]. - The company reported a significant impact on its financial results due to the ongoing restructuring process [94]. - The company is actively pursuing new strategies for market expansion and technological innovation [94]. - The company has successfully completed a bankruptcy reorganization, resolving a severe debt crisis and turning its net assets from negative to positive, significantly reducing its debt ratio [107]. - The company introduced strategic investors during the reorganization, improving liquidity and addressing previous funding shortages [107]. - The company plans to continue its restructuring efforts to stabilize its financial position and improve operational efficiency [82]. - The company has committed to maintaining independence in assets, personnel, finance, and operations during the control period [126]. - The company has ongoing commitments to avoid competition with related parties and ensure fair and compliant related transactions [126]. - The company is focusing on maintaining its financial health through strategic debt management and restructuring efforts [182].