LHM(SZ:002535)2021-06-22 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, 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 achieved total revenue of CNY 904.97 million in 2020, a decrease of 13.53% year-on-year[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 military products business generated revenue of CNY 32.03 million, with a gross margin of 33.70%, indicating a foundation for future growth despite its current small contribution[42]. - The coal mining comprehensive service segment reported revenue of CNY 14.39 million, a year-on-year increase of 4.65%, with a gross margin of 31.32%, up 19.47 percentage points[42]. - The company's operating revenue for the coal mining machinery segment was approximately ¥836.39 million, representing a year-on-year increase of 20.99%[49]. - The gross profit margin for the coal mining machinery segment was 18.71%, which is a decrease of 9.78% compared to the previous year[49]. - The company's gross profit margin for military products was 33.70%, reflecting a decrease of 9.31% year-on-year[49]. Audit and Compliance - The company faced a qualified audit opinion from Beijing Xinghua Accounting Firm for the 2020 annual report, highlighting certain risks[7]. - The company reported a significant decline in pig iron sales, with a decrease of 99.98% to 15.8 tons, as the business was transferred[51][58]. - The company has faced 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 Accounting Firm for the 2020 financial report, highlighting potential risks[115]. - The company has acknowledged the need to control production costs and reduce expenses to improve profit margins[118]. Governance and Management - The company has established a relatively complete governance structure but faces management risks due to the cyclical nature of the industry[11]. - The company emphasizes the importance of internal control management to ensure compliance and improve operational standards[97]. - The company has committed to avoiding competition with its controlling shareholders and related parties[110]. - The company has maintained a consistent approach to profit distribution, adhering to legal and regulatory requirements[106]. - The company has established and implemented a system for managing insider information, ensuring strict supervision and compliance during the reporting period[197]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, institutions, and finances, demonstrating complete operational autonomy[199]. - The company possesses a complete and independent business structure, with its own R&D, production, procurement, and sales systems, without reliance on the controlling shareholder[200]. Shareholder and Dividend Policy - The company did not declare any cash dividends or stock bonuses for the year[8]. - The company has a profit distribution policy that mandates a minimum cash dividend of 20% of the distributable profit each year, subject to certain conditions[101]. - The company will consider stock dividends if revenue and net profit grow rapidly, alongside maintaining a reasonable capital structure[102]. - The company has not proposed any cash dividend distribution plan despite reporting a profit for the year, with a net profit available for distribution to ordinary shareholders being positive[108]. - The cash dividend amount in 2020 was 0, representing 0% of the net profit attributable to ordinary shareholders[108]. - The company has not conducted any cash dividend distribution in the past three years, nor has it increased capital through capital reserves[106]. Operational Highlights - The company operates primarily in the coal mining machinery and comprehensive service sector, with a focus on order-based production and specialized after-sales service[32]. - The company has advanced production equipment, including over 100 high-precision CNC processing machines, significantly improving production efficiency and product quality[39]. - The company has built a stable customer base, including major state-owned coal enterprises, and established a sales network covering over 20 key coal-producing provinces[38]. - The company has developed over 100 types of hydraulic supports and other mining equipment, with key technical performance indicators at a leading level domestically[37]. - The company plans to enhance its coal machinery manufacturing by increasing R&D investment and improving production efficiency, aiming for a 90% mechanization rate in coal mining by 2030[96]. Strategic Initiatives - The company aims to establish itself as a leading comprehensive service provider in energy equipment, focusing on coal mining machinery and military-civilian integration[95]. - The company is targeting the development of military business as a new growth point, seeking to expand market opportunities and improve order quality[96]. - The company plans to invest up to 51 million CNY in the commercial factoring project while using the remaining funds for working capital[80]. - The company aims to enhance the efficiency of fundraising usage and reduce financial costs by reallocating terminated project funds[80]. - The company plans to reduce the number of coal mines from approximately 4,700 to around 4,000 by the end of the 14th Five-Year Plan[94]. Employee and Workforce Management - The total number of employees in the company is 1,515, with 1,075 in the parent company and 440 in major subsidiaries[189]. - The professional composition includes 1,096 production personnel, 31 sales personnel, 139 technical personnel, 29 financial personnel, 183 administrative personnel, and 37 quality inspection personnel[189]. - The total remuneration for directors and senior management during the reporting period amounts to CNY 331.57 million[188]. - The company has established a training plan for 2020 to enhance employee skills and management capabilities, focusing on improving product quality and market competitiveness[192]. - The company has a remuneration policy aimed at motivating employees and enhancing loyalty, with adjustments based on job responsibilities and future development prospects[191]. Legal and Regulatory Matters - The company is currently involved in a significant lawsuit with a claim amounting to CNY 36,975.37 million, which is under execution[125]. - Another lawsuit involves a claim of CNY 12,878.67 million, which has been adjudicated, and the company is in the process of pursuing recovery[126]. - The company has been subject to regulatory penalties related to violations of the Securities Law, with investigations ongoing[127]. - The company has not faced any bankruptcy reorganization matters during the reporting period[124]. Social Responsibility - The company has actively participated in social responsibility initiatives, including funding 8 impoverished university students with a total of 8.31 million[148][149]. - The company plans to continue promoting social responsibility in 2021, focusing on shareholder, employee, supplier, customer rights, and environmental protection[151].