SHUNHO STOCK(SZ:002565)2020-04-27 16:00Financial Performance - The company reported a revenue of RMB 1.2 billion for the year 2019, representing a year-on-year increase of 15% compared to 2018[13]. - The net profit attributable to shareholders was RMB 150 million, an increase of 20% from the previous year[13]. - The company's operating revenue for 2019 was ¥1,734,366,846.10, a decrease of 15.60% compared to ¥2,054,860,822.93 in 2018[18]. - The net profit attributable to shareholders was -¥198,378,903.28 in 2019, representing a decline of 295.68% from ¥101,377,367.95 in 2018[18]. - The company achieved operating revenue of CNY 173,436.68 million and a net profit attributable to the parent company of CNY -19,837.89 million for the reporting period[48]. - The company reported a significant increase in non-operating income from government subsidies, totaling ¥7,983,965.63 in 2019[24]. - The company reported a total revenue of 73,394,042.35 yuan, with a net loss of 9,771,000 yuan for the reporting period[92]. Investment and R&D - The company plans to invest RMB 200 million in R&D for new product development in the upcoming year[13]. - The company's R&D investment amounted to ¥82,198,248.57, representing 4.74% of operating revenue, a slight increase from 4.30% in the previous year[76]. - The company has established a strong research and development base in multiple provinces, including Shanghai, Hubei, Anhui, Fujian, and Yunnan, to support its product innovation and quality assurance efforts[50]. - The company has launched innovative industrial hemp products in the U.S. market, including the Elon CBD Awakener and Stem Full Spectrum CBD Awakening Stick, which are now being sold through legal channels[55]. - The company is actively seeking innovative applications for its environmentally friendly packaging in industries such as food and cosmetics[29]. Market Strategy and Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share by 2021[13]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market presence[13]. - The company is expanding its overseas market presence, particularly in Cambodia, to produce and sell low-temperature heating non-combustible tobacco products legally[33]. - The company aims to enhance its international market presence in the new tobacco sector, particularly in markets like South Korea, India, Russia, and Europe[119]. - The company plans to focus on expanding its special environmental paper and printing business while actively participating in bidding processes to capture market opportunities[117]. Risks and Challenges - Risks associated with market fluctuations and regulatory changes have been identified, with strategies in place to mitigate these risks[5]. - The company is heavily reliant on the tobacco industry, which may be negatively impacted by national anti-smoking policies and public awareness of tobacco hazards[105]. - The company faces risks in the industrial hemp sector due to strict regulatory requirements and potential policy changes affecting its operations[129]. - The company will adhere to international conventions and local regulations regarding industrial hemp, ensuring compliance in its operations[129]. Shareholder Returns and Dividends - The company has no plans to distribute cash dividends or issue bonus shares for the fiscal year 2019[6]. - The company has not distributed cash dividends or bonus shares in 2017, 2018, and 2019, with a total cash dividend of 0.00 in 2019, indicating no return to shareholders during this period[136]. - The company’s profit distribution policy emphasizes cash dividends while considering the sustainable development of the company[134]. - The company has not proposed any cash dividend distribution plan for the reporting period, despite having positive distributable profits[139]. Legal and Compliance Issues - The company is currently involved in legal proceedings related to disclosure violations, with potential liabilities being assessed[171]. - The company has provisioned 80% of the litigation claims amounting to RMB 10,358.84 million, ensuring no economic loss from these matters[172]. - The company has faced litigation involving a total amount of ¥10,358.84 million, with ongoing appeals and potential impacts on financial performance[171]. - The company has established a special task force to address environmental compliance issues, demonstrating proactive management of regulatory challenges[175]. Subsidiaries and Acquisitions - The company has established several subsidiaries, including Yunnan Green New Biological Pharmaceutical Co., Ltd. and LUXIN HEMP GROUP INC., to explore new business areas[111]. - The company disposed of three subsidiaries during the reporting period, including Shanghai Runtong New Materials Technology Co., Ltd.[167]. - The company appointed Lixin Accounting Firm as its auditor, with an audit fee of ¥1,200,000 and a continuous service period of 11 years[168]. Financial Position and Assets - The total assets at the end of 2019 were ¥3,057,130,864.56, down 15.31% from ¥3,609,936,282.09 at the end of 2018[19]. - The company’s total equity reached CNY 2,277,061,887.64, including CNY 478,882,409.11 in undistributed profits[155]. - The company’s total liabilities amounted to CNY 1,332,874,394.45, with non-current liabilities totaling CNY 362,293,656.44[155]. - The company has maintained a stable cash position with cash and cash equivalents at ¥746,098,486.64[153].