ZJR(SZ:002021)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥525,535,334.50, a decrease of 25.64% compared to ¥706,762,459.09 in 2019[18]. - The net profit attributable to shareholders was -¥78,550,247.21 in 2020, representing a decline of 865.80% from a profit of ¥10,257,273.01 in 2019[18]. - The net cash flow from operating activities was -¥36,379,808.00, a decrease of 216.84% compared to ¥31,137,146.34 in 2019[18]. - The total assets at the end of 2020 were ¥861,860,219.59, down 25.98% from ¥1,164,437,531.54 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 11.06% to ¥630,400,430.67 at the end of 2020 from ¥708,764,994.72 at the end of 2019[18]. - The company reported a basic earnings per share of -¥0.11 in 2020, a decline of 1,200.00% from ¥0.01 in 2019[18]. - The weighted average return on equity was -11.73% in 2020, a decrease of 13.19 percentage points from 1.46% in 2019[18]. - Total profit and net profit attributable to shareholders decreased by 764.47% and 865.80% respectively, primarily due to the absence of gains from trust beneficiary rights transfer in the current period[40]. - Total revenue for 2020 was CNY 525,535,334.50, a decrease of 25.64% compared to CNY 706,762,459.09 in 2019[49]. - Revenue from the sewing machine business was CNY 522,932,632.09, down 25.89% from CNY 705,635,750.04 in the previous year[52]. - Operating profit for 2020 was CNY -75,525,259.17, compared to CNY -70,417,838.81 in 2019, reflecting a 7.25% increase in losses[49]. - The company reported a significant decrease in operating cash inflows due to reduced sales and export tax refunds[53]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the 2020 profit distribution proposal[5]. - The company has not distributed cash dividends for the past three years, with a total cash dividend amount of 0.00 for 2020, 2019, and 2018[139]. - The company reported a net profit attributable to ordinary shareholders of -78,550,247.21 in 2020, with a cash dividend payout ratio of 0.00%[139]. Legal and Compliance Issues - The company is currently involved in a legal dispute with Guangzhou Rural Commercial Bank, with the claimed amount being 3.582 billion yuan, which raises concerns about the company's ongoing viability[144]. - The company has received a non-standard audit report indicating significant uncertainties regarding its ability to continue as a going concern[144]. - The board of directors acknowledges the audit report's emphasis on the uncertainties and believes it accurately reflects the company's financial condition and operating results[147]. - The company received a letter from Guangzhou Rural Commercial Bank regarding a 2.5 billion RMB trust loan, claiming a shortfall obligation under an agreement that the company could not find in its records[148]. - The company is currently involved in a lawsuit with Guangzhou Rural Commercial Bank, with the case accepted by the Guangzhou Intermediate People's Court, and the company has received a summons but has not yet gone to trial[149]. - The company has engaged a lawyer to analyze the case and prepare for litigation, indicating proactive measures in response to the legal situation[149]. - The company has faced penalties for failing to disclose certain matters in a timely manner, resulting in warning letters issued to its executives[158]. Operational Performance - The company has an annual production capacity of approximately 800,000 industrial sewing machines, making it one of the largest production bases globally in this sector[30]. - The company reported a 100% increase in construction projects, primarily due to investments in the No. 1 factory, SAP upgrade, and waste gas treatment projects[33]. - Cash and cash equivalents decreased by 77.54% compared to the beginning of the period, mainly due to investments in production operations and loan repayments[33]. - Inventory increased by 35.35 million yuan compared to the beginning of the period, as the company increased stock to meet customer demand during the peak sales season[33]. - The company has established a marketing network consisting of over 400 primary distributors, enhancing brand visibility and market reach[34]. - The company’s market demand is influenced by the production conditions and economic health of downstream industries such as textiles and apparel[32]. - The company has a strong competitive advantage in scale, marketing, brand recognition, and technology, positioning it favorably in the industrial sewing machine market[34]. - The company implemented a series of marketing activities and online promotions, leading to a recovery in sales channels[42]. - New product quality improvements were made, focusing on noise reduction, appearance, stitch quality, and functionality for new models of sewing machines[43]. - The company completed the development of new products and received two "Zhejiang Manufacturing" product certifications[44]. - The company maintained stable operations and sustainability despite the challenges posed by the pandemic[40]. - The company focused on enhancing employee satisfaction and well-being during the pandemic[44]. Research and Development - The company holds 371 valid patents, including 29 invention patents, 288 utility model patents, and 54 design patents, with 18 new patents filed in 2020[35]. - Research and development expenses decreased by 40.17% to CNY 16,070,947.57 from CNY 26,860,989.48 in 2019[52]. - The number of R&D personnel decreased by 16.26% to 103, with R&D expenses accounting for 3.06% of total revenue[74]. - The company has 10 ongoing R&D projects, with total R&D expenditures for these projects amounting to approximately 1.12 million yuan[73]. Environmental Compliance - The company is listed as a key pollutant discharge unit by the Taizhou Ecological Environment Bureau[184]. - The company has established a wastewater treatment station with a processing capacity of 50 tons per day, operating normally[190]. - The company obtained a pollution discharge permit valid from June 3, 2020, to June 2, 2023[191]. - The company has developed an emergency response plan for environmental incidents, including a comprehensive emergency management structure[192]. - The company has installed an online monitoring system for environmental self-monitoring, which has passed inspection by environmental authorities[193]. - The company has a commitment to ensure compliance with environmental monitoring standards and regulations[196]. Investment and Financial Management - The company has not engaged in any significant equity or non-equity investments during the reporting period[92][93]. - The company has not made any securities or derivative investments during the reporting period[92][93]. - The company has a remaining balance of 134,046.73 CNY in its fundraising special account as of December 31, 2020, which consists of interest accrued from the raised funds[95]. - The company has committed a total investment of RMB 88,535 million, with a cumulative investment of RMB 91,323.69 million, achieving a completion rate of 97.08%[99]. - The company has utilized RMB 4,000 million of idle raised funds to supplement working capital multiple times, all of which have been returned[100]. - The company has shifted the implementation of the embroidery machine project to its wholly-owned subsidiary to streamline operations and improve efficiency[100]. - The company has approved a guarantee limit of 20 million yuan for its subsidiary, with actual guarantees amounting to 487,000 yuan during the reporting period[172]. - The company has invested 41.4 million yuan in bank wealth management products using idle self-owned funds, with a remaining balance of 7.28 million yuan[175]. Future Outlook and Strategy - For 2021, the company plans to achieve a revenue target of RMB 10 billion, focusing on governance, technical R&D, and market strategies[124]. - The company aims to enhance its technology development by focusing on "fast response" and optimizing standard components to reduce costs[124]. - The company anticipates increased market consolidation and competition in the sewing machine industry, leading to potential mergers and acquisitions[123]. - The company plans to optimize its supply chain and implement electronic procurement to manage costs effectively[127]. - The company will focus on quality and quantity for mid-to-low-end products while enhancing high-end product quality to avoid price wars[133]. - The company will adjust sales prices and settlement methods to mitigate risks from currency fluctuations[133].