szclou(SZ:002121)2020-04-28 16:00Financial Performance - The company reported a negative net profit for both 2018 and 2019, leading to a risk warning for delisting after the 2019 annual report disclosure[14]. - The company's operating revenue for 2019 was CNY 3,195,325,075.74, representing a decrease of 15.72% compared to the previous year[32]. - The net loss attributable to shareholders for 2019 was CNY -2,375,936,436.52, a decline of 94.78% year-over-year[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -1,781,119,373.35, down 43.48% from the previous year[32]. - Basic earnings per share for 2019 were CNY -1.6871, a decrease of 94.75% compared to the previous year[32]. - The company reported a significant decline in the weighted average return on equity, dropping to -98.67% in 2019 from -29.63% in 2018[32]. - The company's net cash flow from operating activities decreased by 86.18% to CNY 55,137,462.44[32]. - The company did not declare cash dividends or bonus shares for 2019, indicating a focus on reinvestment[15]. Business Strategy and Focus - In 2019, the company focused on its core business of smart grid and renewable energy, selling multiple photovoltaic power station assets and divesting from unprofitable subsidiaries, which had a negative impact on performance but is expected to benefit long-term growth[5]. - The company plans to strengthen its core business in smart grids, energy storage, and charging piles, emphasizing product quality and service optimization[8]. - The company aims to improve risk management and ensure sustainable development by enhancing institutional frameworks and controlling major project risks[8]. - The company is committed to high-quality development and aims to address challenges head-on, maintaining a focus on green energy solutions[9]. - The company is focusing on expanding its new energy business, particularly in energy storage and electric vehicle charging solutions[46]. - The company has established a comprehensive energy service model that integrates electricity, cooling, heating, and gas to meet diverse customer energy needs[47]. Organizational Changes - In 2019, the company underwent organizational restructuring to enhance customer focus and improve operational efficiency, establishing a new international subsidiary to expand overseas business[5]. - The company has implemented a new governance structure with a clear separation of roles between the chairman and the president to enhance management efficiency[5]. - The company has established a subsidiary, Kelu International, to prioritize overseas business development as a key growth direction[63]. - The company has implemented organizational optimization and performance management systems to enhance operational efficiency and employee motivation[63]. Research and Development - The company applied for 94 patents and obtained 104 patents in 2019, with a total of 1,403 patent applications and 964 patents granted as of December 31, 2019[54]. - The company is actively developing new products such as a portable non-vehicle charging detection device and a smart circuit breaker switch[105]. - The company aims to enhance its competitive edge by focusing on R&D in energy management systems and battery health assessment methods[110]. - R&D investment amounted to ¥304,133,035.25 in 2019, a decrease of 16.56% compared to ¥364,480,744.38 in 2018[123]. - The company has a focus on automation and efficiency with new devices for meter calibration and testing[116]. Market Opportunities - The company anticipates significant market opportunities in the charging pile industry and energy distribution business due to new infrastructure initiatives and reforms in the electricity system[9]. - The company has successfully entered the North American energy storage market, meeting UL1971/UL9540 safety certification requirements[59]. - The company has expanded its charging cloud platform to cover 25 provinces and 128 cities in China, with a platform revenue of nearly ¥350 million in 2019[62]. - The company is exploring potential mergers and acquisitions to bolster its technology portfolio and market reach[110]. Asset Management - Significant asset changes include a reduction in equity assets due to the transfer of a 58.07% stake in Shanghai Karnai and a decrease in fixed assets from the impairment of photovoltaic power stations[50]. - The company has disposed of several non-core assets, including photovoltaic power station assets, to enhance liquidity and focus on core business operations[65]. - The company reported a total of approximately RMB 2.14 billion in contracts with Nengxi Technology, which has since been terminated[82]. Future Outlook - Future outlook includes expanding market presence through innovative energy storage solutions and charging infrastructure[110]. - The company is focusing on the integration of energy storage with renewable energy sources, with a requirement for 10% energy storage capacity for wind and solar projects to ensure grid connection[196]. - The company anticipates a rapid development phase for energy storage during the 14th Five-Year Plan, with a predicted scale of electrochemical energy storage reaching nearly 20GW by 2023[196]. - The competitive landscape in the smart grid sector is evolving, with a push towards building a leading energy internet enterprise by 2025[190].