HMJT(SZ:002356)2021-04-29 16:00Financial Performance - The company reported a net asset deficit at the end of the most recent audited fiscal year, which may lead to delisting risk warnings from the Shenzhen Stock Exchange[3]. - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital[4]. - The company has acknowledged the uncertainty in achieving its future development strategies and performance plans due to market conditions[4]. - The company has not disclosed specific financial performance metrics in the provided documents[15]. - The company's operating revenue for 2020 was ¥466,537,017.16, a decrease of 45.01% compared to ¥848,393,525.78 in 2019[25]. - The net profit attributable to shareholders for 2020 was -¥503,997,729.76, an improvement of 73.17% from -¥1,878,513,883.48 in 2019[26]. - The net cash flow from operating activities was ¥37,055,705.99, representing a 101.58% increase from ¥18,382,561.90 in 2019[26]. - The total assets at the end of 2020 were ¥1,131,023,675.20, a decrease of 50.99% from ¥2,307,540,469.33 at the end of 2019[26]. - The company reported a basic earnings per share of -¥0.9549 for 2020, improving from -¥3.5591 in 2019[26]. - The weighted average return on net assets was 0.00% for 2020, indicating a significant decline from -172.37% in 2019[26]. - The company reported a significant decrease in equity assets by 44,741.46 million RMB, a decline of 97.65%, primarily due to the exclusion of Hemei Zhike from the consolidation scope[42]. - Fixed assets decreased by 3,926.98 million RMB, down 26.48%, mainly due to the judicial forced auction of six industrial properties[42]. - The company experienced a reduction in cash and cash equivalents by 29,455.79 million RMB, a decline of 71.38%, as a result of the exclusion of Chengdu Hemei Wanhong Fund from the consolidation scope[42]. - The company achieved operating revenue of RMB 466.54 million, a decrease of 45.01% compared to the same period last year, primarily due to overdue debts and tight funding conditions[60]. - Operating costs for the reporting period were RMB 302.87 million, down 38.70% year-on-year, attributed to a reduction in sales scale[60]. - The company reported a net profit attributable to shareholders of RMB -503.99 million, an increase of 73.17% year-on-year, mainly due to reduced asset impairment losses and gains from the sale of subsidiaries[62]. - The company’s R&D investment was RMB 12.97 million, a decrease of 28.51% year-on-year, reflecting reduced funding availability[62]. - The company’s net cash flow from operating activities was RMB 37.06 million, an increase of 101.58% year-on-year, due to decreased sales and procurement expenses[62]. Sales and Market Trends - The total retail sales of consumer goods in China for 2020 decreased by 3.9% year-on-year, reflecting the impact of the pandemic on the retail sector[36]. - The company capitalized on the opportunity of high-end consumer goods returning to the domestic market, increasing online sales channels and enhancing customer engagement through live streaming[41]. - The company aims to strengthen its cooperation with duty-free businesses and innovate its business development model to improve profitability[41]. - The company reported that the sales amount for duty-free purchases in Hainan reached 120.1 billion RMB from July 1 to October 31, indicating a strong recovery in tourism consumption[39]. - The company has established a robust offline and online sales channel network, covering major first, second, and third-tier cities in China[44]. - The company operates several well-known international brands, including MCM and FURLA, enhancing its market influence and brand ecosystem[45]. - The company plans to develop a comprehensive membership system to bridge the price gap between domestic and international brands, encouraging domestic consumption[49]. - The company is focused on digital transformation and improving supply chain capabilities to enhance inventory turnover rates and operational efficiency[41]. Legal and Financial Challenges - The company is undergoing a pre-restructuring process initiated by the Shenzhen Intermediate People's Court due to insolvency concerns, with creditors citing inability to repay debts[147]. - The court's decision to start pre-restructuring does not confirm the acceptance of the company's restructuring application, indicating ongoing financial risks[148]. - If the restructuring is successfully implemented, it could improve the company's asset-liability structure and promote sustainable development[148]. - The company faces bankruptcy risks if the restructuring process is not successfully executed[148]. - The company has ongoing litigation involving financial disputes with various banks, with amounts in dispute totaling approximately 24,701.54 million yuan across multiple cases[153]. - The company has settled a financial dispute with Ningbo Bank, agreeing to repay 10 million yuan in installments[153]. - The company is also involved in a judgment requiring it to pay 2,851.54 million yuan to Guangda Bank, with ongoing enforcement actions[153]. - A separate judgment mandates the company to pay 2,100 million yuan to Guangda Bank, with enforcement proceedings currently active[153]. - The company has a significant arbitration ruling requiring it to repay 16,650 million yuan to Industrial Bank, with partial payments already executed[153]. - The company has ongoing execution processes for various loan disputes, indicating active legal and financial management of its obligations[164]. - The company has a structured repayment plan in place for its loan obligations, demonstrating a commitment to resolving financial disputes[164]. - The company is required to repay RMB 2,852.24 million and compensate for interest losses of RMB 141.51 million within 10 days from the effective date of the judgment[164]. - The company has ongoing legal proceedings related to various financial obligations and disputes[186]. - The company is involved in multiple legal disputes, reflecting a complex financial and operational environment[199]. Corporate Governance and Compliance - The company has commitments from its actual controllers and shareholders to minimize and regulate related party transactions, which are being fulfilled normally[124]. - As of the report date, the company has outstanding non-operating fund occupation by related parties amounting to ¥75.93 million, with a repayment plan in place[131]. - The company has committed to maintaining the independence of its personnel, institutions, assets, and business operations[128]. - The company has not engaged in any competitive business activities that could harm its interests or those of its related parties[130]. - The company has a repayment plan for the outstanding funds occupied by related parties, expected to be settled by April 2021[131]. - The company did not experience any significant accounting errors requiring retrospective restatement during the reporting period[138]. - The company implemented new revenue recognition standards starting January 1, 2020, affecting the accounting policies and estimates[137]. - The company did not have any new major shareholders or non-operating fund occupation during the reporting period[135]. - The company confirmed that there were no new non-operating fund occupations by major shareholders during the reporting period[135]. Operational Adjustments and Future Plans - The company is actively pursuing judicial reorganization to improve its debt structure and achieve sustainable development, following a court decision to initiate pre-restructuring[104]. - In 2021, the company plans to enhance its brand portfolio by introducing various brands that cater to the preferences of the younger generation, aiming for diversified brand operations[105]. - The company aims to optimize its existing store structure and improve operational management to maintain stable revenue growth, focusing on cost reduction and enhancing customer service[106]. - The company is leveraging its operational management experience to address inventory issues caused by the pandemic, implementing discount and clearance plans to boost revenue[107]. - The company is collaborating with partners to penetrate second and third-tier markets through a "Hundred Cities, Thousand Stores" initiative, enhancing the shopping experience for consumers[108]. - The company is exploring opportunities in the duty-free market, anticipating significant growth potential as domestic duty-free policies evolve, targeting a market space worth hundreds of billions[108]. - The company is increasing its online presence through live streaming and online distribution, aiming to capture new consumer segments and enhance customer loyalty[109]. - The smart meter industry is expected to grow due to the rapid implementation of smart grid construction, with the company’s subsidiary already possessing a strong production and sales network[110]. Risks and Market Competition - The company faces risks from macroeconomic fluctuations, which could impact luxury goods consumption and overall financial performance[111]. - The company is under pressure from intensified market competition, particularly from international brands and domestic high-end brands gaining market traction[113]. - The company did not distribute cash dividends for the years 2018, 2019, and 2020, with net losses of approximately ¥1.65 billion, ¥1.88 billion, and ¥503.99 million respectively[121]. - The cash dividend payout ratio for the years 2018, 2019, and 2020 was 0.00%[121]. - The company plans to continue not distributing cash dividends, not issuing bonus shares, and not increasing share capital from capital reserves for the current fiscal year[122].