BBL(SZ:002776)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was ¥723,203,586.99, representing a decrease of 24.74% compared to ¥960,995,679.79 in 2019[28]. - The net profit attributable to shareholders for 2020 was -¥317,331,107.5, a decline of 358.46% from ¥150,638,896.59 in 2019[28]. - The basic earnings per share for 2020 was -¥0.590, down 356.52% from ¥0.28 in 2019[28]. - The total assets at the end of 2020 were ¥3,046,501,328, a decrease of 3.94% from ¥3,142,124,011 at the end of 2019[29]. - The net assets attributable to shareholders decreased by 14.18% to ¥2,041,403,311 at the end of 2020 from ¥2,428,327,781 at the end of 2019[29]. - The company had a net cash flow from operating activities of ¥196,731,794.72 in 2020, an increase of 153.64% from ¥144,518,146.12 in 2019[28]. - The company reported a significant loss of ¥31,815.21 million during the reporting period, primarily due to decreased demand for clothing and misjudgment in the market for epidemic prevention products[60]. - The design revenue decreased by 22.68% to ¥114,530.75 million, while wholesale and retail revenue dropped by 52.38% to ¥121,352.01 million[63]. - The company’s operating income from organized production was ¥351,080.34 million, reflecting a 37.08% decline year-on-year[63]. - The company’s gross profit margin for the professional technical service industry was 29.13%, down 1.85% from the previous year[65]. Inventory and Assets - As of December 31, 2020, the company reported inventory of medical products valued at RMB 291,795,420.35, with a provision for inventory impairment of RMB 265,641,647.45[8]. - The company has a balance of other non-current assets amounting to RMB 386,150,000, which accounts for 12.50% of total assets, primarily consisting of prepayments for two fundraising projects that are currently stalled[10]. - The company’s financial statements have been audited with a qualified opinion due to concerns over inventory valuation and the existence of non-current assets[7]. - The company’s current assets decreased by 5.51% to ¥211,091.67 million, indicating a tightening liquidity position[59]. - The company’s inventory levels decreased significantly, with a sales volume of 10,704,490 units, down 21.71% from the previous year[67]. Corporate Governance and Compliance - The company has faced investigations by the China Securities Regulatory Commission for suspected stock price manipulation and information disclosure violations[13]. - The company received a non-standard audit opinion for the 2020 financial report, which the board understands and acknowledges[136]. - The board plans to take effective measures to eliminate the issues related to the non-standard audit opinion and improve operational and financial conditions[136]. - The company reported a commitment to fulfill legal and regulatory obligations, including public apologies and potential compensation for investor losses due to unfulfilled commitments[122]. - The company has a complete decision-making process and mechanism for cash dividend distribution[114]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[16]. - The company did not distribute any cash dividends in 2020, with a net profit of -317,331,107.5 CNY, resulting in a 0.00% dividend payout ratio[116]. - The largest shareholder, Chen Weixiong, holds 23.37% of the shares, totaling 125,751,292 shares, with 1,649,497 shares pledged[176]. - The second largest shareholder, Chen Nana, holds 14.75% of the shares, totaling 79,343,925 shares, with 4,820,832 shares pledged[176]. - The total number of shareholders at the end of the reporting period was 31,370[176]. Strategic Initiatives and Market Position - The company is focused on creating a "global fashion design ecosystem" through O2O designer brand sales platforms and other channels[38]. - The company aims to enhance its market position by integrating upstream resources and expanding its designer brand clothing sales[38]. - The company aims to leverage the rapid growth of the fashion design industry in China, integrating resources to fill gaps in the industry chain and create a global fashion design ecosystem[54]. - The company is expanding its design offerings to other clothing categories to mitigate risks associated with T-shirt sales concentration[105]. - The company plans to enhance its design and development capabilities in the apparel value chain and expand its market presence by targeting more domestic and international brand clients[99]. Risks and Challenges - Rising raw material prices and labor costs pose a risk to the company's operating performance if not managed effectively[108]. - The company faces risks related to production organization, especially in meeting the fast fashion industry's demand for reduced lead times[105]. - The company is investing in projects that may not meet expected returns due to macroeconomic fluctuations or adverse market conditions[109]. Investment and Capital Management - The company has not engaged in any securities or derivative investments during the reporting period, focusing solely on its core projects[84][85]. - The total amount of cash and cash equivalents decreased by 66.04%, from -426,598,925.53 to -144,866,134.53[76]. - The company’s total investment in the reporting period was 4,270,367.59, a drastic reduction of 93.96% compared to the previous year[80]. - The company temporarily supplemented working capital with idle raised funds amounting to CNY 129 million, exceeding the board's approval limit by CNY 29 million[91]. - The company has established a modular design system with specialized divisions for information collection, printing, embroidery, color trends, style, and fabric research, enhancing design efficiency[50]. Employee and Management Information - The company employed a total of 648 staff, with 310 in production, 37 in sales, 210 in technical roles, 27 in finance, and 64 in administration[197]. - The educational background of employees includes 331 with below college education, 178 with college degrees, and 139 with bachelor's degrees or higher[197]. - The total remuneration for the board of directors, supervisors, and senior management during the reporting period amounted to 1.3895 million yuan[196]. - The management team includes professionals with backgrounds in finance, design, and project management, enhancing the company's operational capabilities[191].