LHM(SZ:002535)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was ¥904,974,628.02, a decrease of 13.53% compared to ¥1,046,576,211.57 in 2019[24]. - The net profit attributable to shareholders was ¥37,259,642.86 in 2020, recovering from a loss of ¥1,991,331,758 in 2019[24]. - The net cash flow from operating activities was ¥98,672,725.32, compared to a negative cash flow of ¥976,117,433.2 in the previous year[24]. - The basic earnings per share for 2020 was ¥0.05, a significant improvement from a loss of ¥2.48 per share in 2019[24]. - Total assets at the end of 2020 were ¥4,797,955,478, reflecting a decrease of 3.25% from ¥4,958,920,538 at the end of 2019[24]. - The company reported a net profit of ¥89,890,561.19 from non-recurring gains in 2020, compared to a loss of ¥579,576,895.91 in 2019[29]. - The company achieved total revenue of CNY 904.97 million, a year-on-year decrease of 13.53%[42]. - Revenue from coal mining machinery and comprehensive services reached CNY 836.39 million, an increase of 26.37% year-on-year, with a gross margin of 18.71%, up 9.78 percentage points[42]. - The coal mining machinery segment generated CNY 692.54 million in revenue, a 21.72% increase year-on-year, with a product gross margin of 16.09%, up 7.76 percentage points[42]. - The military products segment reported revenue of CNY 32.03 million, with a gross margin of 33.70%[42]. Governance and Management - The company has established a comprehensive governance structure but faces management risks due to the cyclical nature of the industry[11]. - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts[7]. - The company has a structured governance framework with a dedicated supervisory board to oversee management activities[181]. - The financial management is led by a qualified professional, Cui Puxian, who has a background in accounting and finance[182]. - The company is committed to maintaining strong corporate governance and transparency in its operations[182]. - The company has communicated with shareholders, especially minority shareholders, to gather their opinions and concerns regarding the cash dividend plan[104]. - The independent directors have fulfilled their responsibilities and played a significant role in the decision-making process regarding the cash dividend policy[106]. - The company has established a training plan for 2020 to enhance the skills and capabilities of its employees, focusing on management and technical training[192]. Risks and Challenges - The company reported a significant impact from the coal industry, which is crucial for its operations, indicating potential risks due to industry fluctuations[10]. - The company has experienced uncertainty regarding its ability to continue as a going concern, as indicated by its recent audit reports[23]. - The company received a qualified audit opinion from Beijing Xinghua Certified Public Accountants for the 2020 financial report, indicating potential risks in its operations[119]. - The company reported a significant amount of overdue borrowings, which raises concerns about its financial stability[117]. - The company has a commitment to recover funds amounting to CNY 130,000,000.00 from the acquisition of a 29.20% stake in Beijing Zhongke Hongba Technology Co., Ltd.[115]. - The company is involved in a major lawsuit with a claim amounting to 369.75 million yuan, which is currently in execution[125]. Investment and Funding - The company plans to invest in projects including "Coal Machinery Equipment Technology Upgrade" and "Permanent Supplement of Working Capital" with the raised funds[76]. - The company has terminated the "Coal Machinery Equipment Technology Upgrade and Transformation Project" and redirected the remaining raised funds to permanently supplement its working capital[77]. - The total amount of raised funds that will be redirected is 987.55 million yuan, excluding interest income, with a maximum of 510 million yuan allocated for the "Commercial Factoring Project" and the remainder for working capital[80]. - The company aims to improve the efficiency of raised fund utilization and reduce financial costs to maximize shareholder interests[80]. - The company has successfully returned CNY 50 million of raised funds to the fundraising account as of January 23, 2020[82]. Shareholder Information - The total number of shares is 801,683,000, with 28.99% being restricted shares and 71.01% being unrestricted shares[157]. - The largest shareholder, Guo Xiansheng, holds 29.81% of the shares, totaling 238,970,600 shares, with 59,742,654 shares pledged[160]. - The second-largest shareholder, Han Luyun, owns 8.80% of the shares, amounting to 70,550,740 shares, with 17,637,685 shares pledged[160]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[161]. - The shareholder structure indicates a significant concentration of ownership, with the top three shareholders holding over 38% of the total shares[160]. Social Responsibility - The company has actively participated in social responsibility initiatives, including funding 8 impoverished university students in 2020[148]. - The total funding for social responsibility initiatives in 2020 amounted to 8.31 million[149]. - The company plans to continue promoting social responsibility in 2021, focusing on stakeholder protection and environmental conservation[151]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[152]. Research and Development - The company plans to increase its research and development investment to improve production efficiency and reduce costs[96]. - The company aims to enhance its coal machinery manufacturing and related services, focusing on product innovation and new technology development in 2021[96]. Operational Efficiency - The company is focused on controlling production costs and reducing period expenses to improve profit margins[118]. - The company aims to increase the production of its main coal machinery products to boost sales revenue[118]. - The company intends to enhance the production of military products to improve overall profitability[118].