LHM(SZ:002535)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,046,576,210, a decrease of 49.26% compared to the previous year[23]. - The net profit attributable to shareholders was CNY -1,991,331,700, representing a decline of 1,495.26% year-over-year[23]. - The net cash flow from operating activities was CNY -976,117,433, a decrease of 294.41% compared to the previous year[23]. - The total assets at the end of 2019 were CNY 4,958,920,530, down 34.05% from the previous year[23]. - The company's net assets attributable to shareholders decreased by 71.69% to CNY 787,185,539[24]. - The first quarter of 2019 saw an operating revenue of CNY 181,354,644, while the fourth quarter reported a significant drop to CNY 109,147,111[28]. - The company reported a net profit of CNY -1,996,682,442.56 in the fourth quarter, indicating substantial losses[28]. - Non-recurring losses amounted to CNY -579,576,895.91 for 2019, highlighting significant financial challenges[30]. - The company achieved total revenue of CNY 1,046.58 million in 2019, a decrease of 49.26% year-on-year[44]. - The net profit attributable to shareholders was CNY -199.13 million, indicating a significant loss[44]. Business Operations - The company reported a significant reliance on the coal machinery sector, which is directly influenced by the coal industry's performance, posing a risk of operational fluctuations due to industry volatility[11]. - The coal mining machinery and comprehensive service business remains the core segment, with a focus on customized production based on client needs[33]. - The company has expanded its business model from equipment sales to providing comprehensive services, reducing reliance on coal machinery manufacturing[34]. - The company operates multiple wholly-owned subsidiaries, enhancing its operational capabilities across various sectors[17]. - The company has developed over 100 types of hydraulic supports and other comprehensive mining equipment, with leading technical performance indicators in the domestic market[40]. Governance and Management - The company has established a comprehensive governance structure and management system, but faces risks if its management cannot adapt to industry changes, potentially impacting market competitiveness[12]. - The company has not provided specific performance forecasts or commitments for future results, emphasizing the need for investors to recognize associated risks[6]. - The company has established strategic partnerships with several large military groups, enhancing its growth potential in military products[45]. - The company is focusing on core business areas by divesting non-core or low-profit subsidiaries to improve profitability[45]. - The company will continue to optimize its management system and improve management capabilities to achieve efficient management[91]. Cash Dividends and Profit Distribution - The company plans not to distribute cash dividends, issue bonus shares, or increase capital through reserves[7]. - The company did not distribute any cash dividends in 2019, 2018, or 2017, with cash dividends amounting to 0.00% of the net profit attributable to ordinary shareholders in these years[106]. - The company has a profit distribution policy that requires a minimum cash dividend of 20% of the distributable profit, but no dividends were proposed during the reporting period[99]. - The company has not conducted any profit distribution plans in the last three years, including the reporting period[104]. - The company emphasizes the importance of maintaining a continuous and stable profit distribution policy to ensure reasonable returns for investors[97]. Audit and Financial Reporting - The independent auditor issued a disclaimer of opinion on the financial report for the year 2019, indicating potential concerns regarding the accuracy of the financial statements[5]. - The company received a non-standard audit report from Beijing Xinghua Accounting Firm for the 2019 financial report, indicating an inability to express an opinion due to an ongoing investigation by the China Securities Regulatory Commission[112]. - The company reported a significant accounting error, leading to a restatement of financial statements, with a correction of prepayments amounting to 195,000,000 CNY that were incorrectly classified[124]. - The board of directors is committed to taking effective measures to address the issues highlighted in the audit report and to enhance the company's sustainable operational capabilities[119]. - The company has implemented changes in accounting policies in accordance with new financial reporting standards effective from January 1, 2019[120]. Environmental Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities[158]. - The company has implemented pollution control measures, including a desulfurization upgrade for sintering machines, reducing particulate matter concentration to below 20 mg/Nm3[159]. - The company has achieved a reduction of approximately 80 tons of unorganized particulate emissions annually through various pollution control measures[159]. - The company has installed 10 sets of automatic online monitoring systems for flue gas emissions, all connected to the environmental protection bureau[161]. - The company emphasizes green smelting and adheres to strict environmental protection standards to ensure compliance with organized and unorganized emissions[161]. Future Outlook - The company expects the coal machinery industry to face short-term pressure in 2020 but maintain stable demand in the medium to long term, with a projected global economic growth of 5.8% in 2021[86]. - The company aims to enhance its core business in coal machinery and accelerate the development of military-civilian integration business to create new profit growth points[90]. - The company plans to ensure profitability in 2020 by focusing on rapid growth in the coal machinery sector and increasing revenue from military products[90]. - The company will strengthen market development and ensure significant growth in military business by increasing personnel and establishing management mechanisms[91]. - The company is investing heavily in R&D, with a budget allocation of 100 million yuan for the development of new technologies and products in 2020[199].