BESTWAY(SZ:300008)2023-04-21 16:00Acquisitions and Business Development - The company acquired 100% equity of Taizhou Jinhai Marine Equipment Co., Ltd. in 2016 and Jiangsu Dajin Heavy Industry Co., Ltd. in 2017, establishing a comprehensive industrial chain in shipbuilding and defense equipment manufacturing [5]. - The company has not made any significant acquisitions or expansions reported in the financial statements for 2018 [26]. - The company plans to leverage domestic and international resources to create value for customers in the military auxiliary ship market, providing design, management consulting, and technical contracting services [124]. - The company aims to explore shareholding reform and introduce strategic investors to ensure sustainable development in viable business segments [123]. - The company is actively pursuing market opportunities in LNG applications, aiming for a 15% adoption rate in new public vessels by 2025 [122]. Financial Performance - The company's operating revenue for 2018 was ¥1,028,627,302.36, a decrease of 30.68% compared to ¥1,483,928,878.18 in 2017 [26]. - The net profit attributable to shareholders for 2018 was -¥1,878,411,487.24, representing a decline of 1,244.40% from ¥164,139,051.09 in 2017 [26]. - The total assets at the end of 2018 were ¥2,359,709,293.05, a decrease of 46.85% from ¥4,439,882,424.95 at the end of 2017 [26]. - The basic earnings per share for 2018 was -¥1.9566, a decline of 1,244.21% from ¥0.1710 in 2017 [26]. - The company reported a significant decline in performance due to tight cash flow, resulting in substantial goodwill impairment and asset impairment provisions [33]. Cash Flow and Liquidity - The company is experiencing cash flow pressures, leading to potential talent loss, particularly in core technology teams, which could impact product development and innovation capabilities [10]. - The net cash flow from operating activities improved by 84.05%, reaching -¥19,996,367.48 in 2018 compared to -¥125,373,123.94 in 2017 [26]. - Operating cash inflow decreased by 25.18% to ¥1,615,687,377.54 in 2018, while operating cash outflow decreased by 28.41% to ¥1,635,683,745.02 [103]. - The company has faced challenges in the clean energy business due to tight cash flow from end-users and difficulties in securing low-priced gas sources [69]. Risks and Challenges - The company faces significant accounts receivable and advance payment risks due to its development of EPC business and inventory disposal, necessitating strict credit assessments of partners [8]. - The company has received a reorganization application from creditors, indicating a risk of bankruptcy if the reorganization fails, which could lead to stock delisting [12]. - The actual controller of the company has attempted three times to transfer control in 2018, but these efforts have not succeeded, raising concerns about potential changes in control [11]. - The company incurred an asset impairment loss of ¥1,816,845,229.46, which constituted 96.92% of the total profit loss, primarily due to goodwill impairment [105]. Research and Development - The company has established 15 R&D projects focusing on core technologies in marine engineering and digital transformation [70]. - The company’s R&D expenditure reached ¥52,437,871.57 in 2018, representing 5.10% of total revenue, a significant increase from 2.76% in 2017 [101]. - The company has developed a range of new vessel types, including a new semi-submersible yacht transport vessel and a new multi-purpose cargo ship, with design orders anticipated in 2019 [45]. - The company has a robust supplier evaluation process to ensure the quality of materials and components used in production [36]. Market and Industry Trends - The Baltic Dry Index (BDI) remains low, indicating ongoing challenges in the international shipping market, which affects the company's shipbuilding and marine engineering business [7]. - In 2018, the national shipbuilding industry completed 34.58 million deadweight tons, a year-on-year decrease of 14%, while new ship orders increased by 8.7% to 36.67 million deadweight tons [118]. - The company is focusing on the development of environmentally friendly and high-end special ship types, particularly in clean energy applications and deep-sea engineering equipment [119]. Corporate Governance and Shareholder Relations - The company is actively enhancing investor relations through increased transparency and communication channels [74]. - The company has not proposed any cash dividend distribution plan for the reporting period, despite having positive distributable profits for ordinary shareholders [132]. - The company has a history of not distributing cash dividends in recent years, with the last cash dividend being distributed in 2017, amounting to RMB 17,280,291.33, which was 10.53% of the net profit attributable to ordinary shareholders [132]. - The company has not engaged in any investor relations activities during the reporting period [126]. Strategic Initiatives - The company aims to become a pioneer in the defense equipment market, focusing on military-civilian integration strategies amid a growing defense budget and a shift towards naval and air force equipment development [116]. - The company will strengthen its research capabilities and enhance project development to improve overall research levels [123]. - The company plans to enhance internal management and external market expansion, focusing on strategic military-civilian integration and investment management platform development [123].