LHM(SZ:002535)2022-04-29 16:00Financial Performance - The company reported a total revenue of approximately RMB 1.5 billion for the reporting period, reflecting a year-on-year growth of 10%[21]. - The company's operating revenue for 2021 was ¥454.35 million, a decrease of 49.79% compared to ¥904.97 million in 2020[26]. - The net profit attributable to shareholders was -¥428.76 million in 2021, compared to a profit of ¥37.26 million in 2020[26]. - The comprehensive gross margin was 6.11%, down 14.16 percentage points year-on-year[43]. - Revenue from coal mining machinery and comprehensive services was CNY 424.13 million, a decline of 49.29%[51]. - The coal machinery segment generated revenue of CNY 272.93 million, down 60.59% year-on-year, with a gross margin of -5.58%[43]. - The coal mining comprehensive service segment saw revenue of CNY 151.20 million, an increase of 5.11% year-on-year, with a gross margin of 20.97%[43]. - The net cash flow from operating activities increased by 283.45% to ¥378.36 million in 2021, up from ¥98.67 million in 2020[26]. - The basic and diluted earnings per share were both -¥0.53 in 2021, down from ¥0.05 in 2020[26]. - Total assets decreased by 17.22% to ¥3.97 billion at the end of 2021, compared to ¥4.80 billion at the end of 2020[26]. - The net assets attributable to shareholders decreased by 52.09% to ¥394.31 million at the end of 2021, down from ¥823.07 million at the end of 2020[26]. Governance and Compliance - The company has established a comprehensive governance structure, but faces management risks due to the cyclical nature of the industry[11]. - The audit report for the fiscal year 2021 was issued with a qualified opinion, highlighting uncertainties regarding the company's ability to continue as a going concern[6]. - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and maintaining the rights of shareholders[95]. - The company has established a complete and independent financial management system, ensuring no interference from the controlling shareholder in financial decisions[99]. - The company has implemented strict insider trading management, ensuring no leakage of confidential information during reporting periods[96]. - The company has a complete organizational structure with clear divisions of responsibilities, ensuring independent operation of various departments[98]. - The company has no significant discrepancies in governance practices compared to regulatory requirements set by the China Securities Regulatory Commission[96]. - The company has established a robust internal control system to safeguard the interests of all shareholders and maintain operational integrity[98]. - The company completed the self-inspection of corporate governance issues and implemented corrective measures, including amendments to the Articles of Association and changes in executive positions[137]. Market and Industry Outlook - The coal machinery industry is expected to see stable growth in demand in 2022, driven by an increase in coal demand and mechanization in coal mining[38]. - The company anticipates that the market for coal machinery will maintain a "steady increase" in demand due to the recovery of the coal industry[39]. - The company has identified a significant potential for intelligent demand in the coal machinery industry, supported by national policies and market drivers[39]. - The company aims to enhance profitability in the coal machinery sector by focusing on automation, intelligence, and digitalization in 2022[89]. - The company plans to accelerate the development of its military industry business, seeking new partnerships and market opportunities in 2022[90]. - The company will strengthen product quality and enhance core competitiveness by improving management and fostering a strong corporate culture in 2022[90]. Risks and Challenges - The main raw material, steel, poses a risk due to potential price fluctuations, which could significantly affect production and operational results[12]. - The company faces risks related to industry fluctuations, management challenges, and raw material price volatility, particularly concerning steel prices[91]. - The company has reported a significant increase in non-operating losses, with a total of -¥9.20 million in 2021 compared to a gain of ¥89.89 million in 2020[31]. - The company has faced administrative penalties from the China Securities Regulatory Commission for violations of the Securities Law and information disclosure regulations in 2020 and 2021[112][114]. Strategic Initiatives - The company has plans for market expansion and potential mergers and acquisitions to strengthen its position in the coal machinery sector[10]. - The company is focusing on enhancing its management framework to adapt to industry changes and improve market competitiveness[11]. - The company aims to consolidate its market position and expand into new markets to increase market share and sales revenue[160]. - Linzhou Heavy Machinery intends to increase R&D investment to support the development of new customers and markets[160]. - The company has established various subsidiaries and partnerships to expand its market presence and operational capabilities[112]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[7]. - The company reported a total shareholding of 309,839,096 shares at the beginning of the period, with a reduction of 2,118,400 shares, resulting in an ending total of 307,720,696 shares[102]. - The current chairman, Guo Xiansheng, holds 236,852,614 shares after a passive reduction of 2,118,400 shares during the reporting period[102]. - The company has a total of 7 board members, with the majority being male and an average age of 56 years[104]. - The company has not experienced any resignations or dismissals of directors, supervisors, or senior management during the reporting period[103]. - The company has a diverse board with members having backgrounds in economics, engineering, and management[105]. - The total number of ordinary shareholders at the end of the reporting period was 37,703, an increase from 35,600 at the end of the previous month[197]. Environmental Responsibility - The company is classified as a key pollutant discharge unit by the environmental protection department, with total emissions of 156 kg for particulate matter and 256 kg for VOCs[140]. - The company has established pollution prevention facilities that comply with management regulations, ensuring all pollutants are discharged within standards[140]. - The company conducts regular emergency drills for environmental incidents to enhance risk management and response capabilities[141]. - The company has implemented a self-monitoring plan for pollution sources, ensuring compliance with national environmental monitoring standards[142]. - There were no administrative penalties due to environmental issues during the reporting period[143]. Financial Management - The company has established a salary policy to enhance employee loyalty and motivation, adhering to principles of performance assessment and legal incentives[127]. - The company has maintained a stable number of R&D personnel at 138, with a slight decrease of 0.72% from the previous year[64]. - The company has faced delays in the "Industrial Robot Project" due to prior R&D and workshop renovations, impacting project progress[82]. - The company aims to enhance the efficiency of fund utilization and reduce financial costs by reallocating funds from terminated projects[83]. - The company has confirmed a contingent liability of 369,753,705.34 yuan related to guarantees provided to Shanxi Meiyuan Huasheng Energy Development Co., Ltd., with a remaining balance of 362,253,705.34 yuan after repayment of 7,500,000.00 yuan in 2021[156].