AKCOME(SZ:002610)2020-04-29 16:00Financial Performance - The company reported a net loss of 1.6 billion RMB for the year 2019, with accumulated undistributed profits at the end of 2019 amounting to -1.2 billion RMB[5]. - The company's operating revenue for 2019 was ¥5,126,010,313.44, representing a 5.65% increase compared to ¥4,842,707,329.51 in 2018[29]. - The net profit attributable to shareholders was -¥1,611,705,676.59, a significant decrease of 1,494.96% from ¥125,342,472.05 in 2018[29]. - The net cash flow from operating activities was ¥825,310,241.67, down 3.79% from ¥868,538,493.18 in the previous year[29]. - The total assets at the end of 2019 were ¥11,645,285,537.56, a decrease of 18.16% from ¥14,056,677,310.68 at the end of 2018[33]. - The net assets attributable to shareholders decreased by 29.58% to ¥4,107,192,414.26 from ¥5,867,084,922.05 in 2018[33]. - The basic earnings per share for 2019 was -¥0.36, a decline of 1,385.71% from ¥0.028 in 2018[32]. - The diluted earnings per share also fell to -¥0.359, down 1,382.14% from ¥0.028 in the previous year[32]. - The company reported a significant non-recurring loss of -¥307,482,813.67 in 2019, compared to a profit of ¥106,053,496.84 in 2018[40]. Shareholder and Equity Information - As of December 31, 2019, 78.76% of the shares held by the controlling shareholder were frozen, totaling 53.14 million shares, which represents 11.84% of the company's total share capital[5]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the year 2019[7]. - The company has completed a capital increase of CNY 500 million, achieving 100% of the target[104]. - The company completed a significant equity investment of 108.62 million yuan in real estate development, acquiring 100% ownership[101]. - The company also made a capital increase of 121.09 million yuan in a photovoltaic manufacturing subsidiary, achieving 100% ownership[101]. Risks and Challenges - The company faces risks related to policy changes affecting grid connection and tariff subsidies, which could adversely impact its operating performance[5]. - The company has a significant external guarantee balance of 605.12 million RMB, which accounts for 147.21% of its net assets[5]. - The company is currently undergoing a process to address the issues raised in the audit report, which includes concerns about its ability to continue as a going concern[5]. - The company is facing a challenging external environment due to intensified market competition and the impact of the pandemic on global markets[126]. - The company has identified three core business areas to enhance competitiveness while managing risks[128]. Sales and Revenue Breakdown - The revenue from the solar battery frame segment was ¥2,209,232,412.07, accounting for 43.10% of total revenue, with a year-on-year growth of 17.53%[67]. - The company experienced a significant decline in electricity sales revenue, which dropped by 45.81% to ¥454,769,909.96, down from ¥839,266,983.90 in 2018[67]. - Domestic sales accounted for 39.90% of total revenue at ¥2,045,244,146.39, reflecting a decrease of 22.61% from the previous year[67]. - Export sales increased by 39.45% to ¥3,080,766,167.05, representing 60.10% of total revenue[67]. Asset Management and Investments - The company's equity assets decreased by 24.88% compared to the beginning of the year due to impairment provisions and dividends from associates[48]. - The company's fixed assets decreased by 23.56% compared to the beginning of the year, primarily due to increased depreciation and impairment provisions[48]. - The company's intangible assets increased by 14.74% compared to the beginning of the year, mainly due to the acquisition of land use rights[48]. - The company's construction in progress increased by 330.51% compared to the beginning of the year, driven by the investment in photovoltaic battery and component projects in Zhejiang and Ganzhou[48]. - The total investment amount for the reporting period is 1.271 billion yuan, a decrease of 67.87% compared to the previous year's investment amount of 3.957 billion yuan[101]. Research and Development - Research and development expenses totaled ¥40,773,967.70, accounting for 0.80% of operating income[87]. - The number of R&D personnel decreased by 8.91% to 92, while the proportion of R&D personnel increased to 4.90%[88]. - The company is investing in technological innovation for bracket products to ensure safety and reliability while meeting customer needs[130]. - The company has achieved a battery efficiency upgrade to 22.2% through SE technology and thermal oxidation improvements, with new capacity for high-efficiency PERC and HJT batteries[57]. Audit and Compliance - The company has received a qualified audit opinion from Zhongxinghua Accounting Firm regarding its financial statements for 2019[5]. - The company is actively monitoring the progress of eliminating the issues related to the qualified opinion in its financial reporting[5]. - The company appointed Zhongxinghua Accounting Firm as its auditor, with an audit fee of 2 million yuan for the year[192]. Market Outlook - The company anticipates a global photovoltaic market growth rate of 10%-15% over the next 2-3 years, with a projected global new installed capacity of 105-120 GW in 2020[123]. - The domestic photovoltaic installed capacity is expected to be between 35-45 GW in 2020[123]. - The photovoltaic industry is transitioning from policy-driven to market-driven growth, with a significant emphasis on cost reduction and efficiency[125]. Corporate Governance - The company has committed to not using its controlling position to harm the legitimate rights and interests of other shareholders and creditors[150]. - Aikang International Holdings Limited has committed to not engaging in any competitive business activities that conflict with the operations of Jiangsu Aikang Technology[156]. - The company has made commitments to avoid competition with its subsidiaries, ensuring no direct or indirect competitive activities will occur[148].