HYM(SZ:002529)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥217.66 million, a decrease of 9.53% compared to ¥240.57 million in 2018[18]. - The net profit attributable to shareholders was approximately -¥535.49 million, representing a decline of 205.82% from -¥175.10 million in the previous year[18]. - The basic earnings per share for 2019 was -¥2.06, a decline of 205.81% from -¥0.67 in 2018[18]. - The weighted average return on net assets was -47.58%, down from -11.83% in the previous year[19]. - The company reported a total revenue of ¥89,635,870.48 in Q1, which decreased to ¥72,495,099.32 in Q3, and showed a significant loss of ¥26,518,250.91 in Q4[23]. - The net profit attributable to shareholders was negative across all quarters, with a loss of ¥489,010,198.14 in Q4, marking a substantial decline compared to previous quarters[23]. - The net cash flow from operating activities improved by 20.49%, amounting to -¥119.63 million compared to -¥150.46 million in 2018[18]. - The company reported a total of ¥807,287.67 in non-recurring gains for the year, a significant decrease from ¥15,824,663.99 in the previous year[25]. - The company reported a decrease in fixed assets by CNY 60.21 million, a reduction of 9.28%, primarily due to impairment losses recognized during the reporting period[35]. - The company's intangible assets decreased by CNY 19.04 million, a reduction of 19.05%, also due to impairment losses recognized[35]. - The company's cash and cash equivalents decreased by CNY 87.44 million, a reduction of 62.45%, mainly due to large procurement payments made during the reporting period[35]. Business Focus and Strategy - The company has shifted its main business focus from hydraulic forming equipment to the research, production, and sales of composite lightweight products and new intelligent machinery[17]. - The company has developed a complete industrial chain for composite materials, including production capabilities for LFT-D, SMC, and HP-RTM processes[28]. - The company has successfully established mass production capabilities for lightweight composite materials used in automotive applications, including battery boxes and exterior parts for new energy vehicles[29]. - The company has launched the first fully automated online long-fiber reinforced thermoplastic composite molding production line (LFT-D) in China, enhancing production efficiency and material recyclability[30]. - The HP-RTM technology developed by the company allows for low-cost, high-quality mass production of high-performance thermoset composite parts, meeting the automotive industry's demand for rapid production[32]. - The company is one of the global leaders in hydraulic forming technology and equipment, with a diverse range of products including LFT-D, SMC, and HP-RTM production lines[33]. - The company has established partnerships with major automotive manufacturers, including BMW and Geely, for the development and supply of lightweight composite parts[37]. - The composite materials business is focusing on lightweight applications in the automotive and construction sectors, with a strong push towards the new energy vehicle market supported by favorable government policies[92]. - The company aims to expand its supply to multiple automotive manufacturers, enhancing cooperation with upstream suppliers to establish long-term partnerships[98]. - The mechanical equipment business is focusing on automation and intelligent manufacturing, with a strategic emphasis on high-end mechanical products and exploring export opportunities in developed markets[100]. Market Performance - The revenue from composite materials business increased by 36.65% to ¥92.33 million, while the revenue from press and complete line equipment decreased by 37.41% to ¥96.68 million[55]. - The company's domestic revenue accounted for 93.32% of total revenue, amounting to ¥203.12 million, which represents a 12.72% decline year-on-year[55]. - The international revenue saw a significant increase of 84.92%, reaching ¥14.54 million, compared to ¥7.86 million in the previous year[55]. - The gross profit margin for the composite materials business decreased by 8.32% year-on-year, while the gross profit margin for the press and complete line equipment dropped by 18.93%[57]. - The company achieved a leading market share in the domestic market for its HC series refractory material hydraulic presses, with increasing sales in Japan, Eastern Europe, and the Middle East[34]. - The company faced challenges in the automotive lightweight business due to a decline in the production and sales of new energy vehicles, which fell by 2.20% and 3.98% respectively[48]. Research and Development - The company holds 308 valid patent applications, with 223 granted, including 138 invention patents, reflecting its strong R&D capabilities[41]. - The company has established a postdoctoral research workstation and a provincial-level technology center to enhance its talent pool and technological capabilities[44]. - Continuous investment in R&D will focus on optimizing production technology and developing new materials and processes to achieve high performance and low cost in composite materials[101]. - Research and development expenses decreased by 50.92% to 26,820,210.80 CNY, representing 12.32% of operating revenue[67]. - The company reduced its R&D personnel by 34.29% to 92, reflecting a strategic shift in cost management[67]. Risk Management - The company has acknowledged the risks it faces in its future development, as detailed in the annual report[5]. - The company has faced significant risks due to macroeconomic fluctuations, including impacts from the COVID-19 pandemic and global trade disputes, which may affect operational performance[103]. - There is a risk of delayed orders in the automotive lightweight business due to overall sales declines in the automotive industry, leading to uncertain sales volumes[104]. - The company is committed to enhancing its internal control management and risk management systems to maintain stable development[101]. Corporate Governance and Compliance - The company has not distributed cash dividends in the past three years, with net profits of -535.49 million in 2019, -175.10 million in 2018, and 7.01 million in 2017[112][113]. - The company’s board of directors pledged to comply with relevant laws and regulations, ensuring timely and accurate disclosure of significant information to investors[118]. - The company has made commitments to avoid any misleading public communications that could impact stock prices, ensuring transparency in its operations[118]. - The company confirmed that the lock-up period for shares subscribed by the asset management plan is 36 months from the date of listing of the newly issued shares[118]. - The company has ensured that its subsidiaries will also adhere to the non-competition commitments established with Haiyuan Machinery[116]. - The company has not reported any violations of its commitments regarding the non-competition clause with Haiyuan Machinery[116]. - The company reported no stock incentive plans or employee stock ownership plans during the reporting period[134]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[122]. Shareholder Information - The total number of shareholders at the end of the reporting period was 20,161, with 25,429 ordinary shareholders reported at the end of the previous month[186]. - The largest shareholder, Fujian Haicheng Investment Co., Ltd., holds 17.64% of shares, totaling 45,862,100 shares, with a decrease of 2,695,000 shares during the reporting period[187]. - The second-largest shareholder, Shanghai Bank - UBS, holds 12.32% of shares, totaling 32,021,889 shares, with a decrease of 7,978,111 shares during the reporting period[187]. - The third-largest shareholder, UBS - CITIC Bank, holds 7.08% of shares, totaling 18,412,100 shares, with a decrease of 1,587,900 shares during the reporting period[187]. - The actual controllers of the company are Li Liangguang, Li Xiangling, and Li Jianfeng, all of whom are natural persons from China[190]. Changes in Management and Structure - Several senior management personnel, including the general manager and financial director, have left the company for personal reasons in 2019 and 2020[200]. - The company aims to ensure business continuity and stability during the transition period of the board and management[199]. - The fourth board of directors and supervisory board's term expired on November 10, 2019, with the election of new candidates still pending[199]. - The management team remains committed to fulfilling their obligations and responsibilities until the new board is elected[199]. - The company has experienced a turnover in key management positions, which may impact operational stability[200].