Gifore(SZ:300022)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,295,229,258.90, a decrease of 22.80% compared to CNY 2,972,935,403.17 in 2018[19] - The net profit attributable to shareholders was a loss of CNY 142,911,349.25, representing a decline of 1,465.52% from a profit of CNY 10,465,679.14 in the previous year[19] - The net cash flow from operating activities was negative CNY 96,294,654.06, a decrease of 401.69% compared to a positive cash flow of CNY 31,918,630.37 in 2018[19] - The total assets at the end of 2019 were CNY 1,755,253,830.20, down 7.42% from CNY 1,895,870,012.32 at the end of 2018[19] - The net assets attributable to shareholders decreased by 61.73% to CNY 82,831,439.63 from CNY 216,463,317.88 in 2018[19] - The weighted average return on net assets was -93.03%, a decrease of 98.01% from 4.98% in 2018[19] - The company reported a non-recurring loss of ¥37,392,397.55 in 2019, compared to a gain of ¥17,759,508.93 in 2018[25] - The agricultural machinery industry experienced a revenue decline of 4.43% year-on-year, totaling ¥246.467 billion in 2019[32] - The agricultural machinery segment accounted for 91.67% of total revenue, generating CNY 2,104,130,101.70, down 15.53% year-on-year[47] - The company reported a gross margin of 16.39% for the agricultural machinery sector, reflecting a decrease of 2.43% compared to the previous year[50] Business Strategy and Operations - The company plans to enhance its business expansion efforts in response to the rural revitalization strategy, focusing on mechanization projects[6] - The company aims to adapt to the modern agricultural development needs and improve capital operation efficiency[6] - The company focuses on providing comprehensive mechanization solutions for agricultural production, enhancing efficiency and user benefits[30] - The company is focusing on expanding its high-tech agricultural machinery offerings and enhancing its service network to adapt to market changes[39] - The company plans to optimize resource integration and enhance risk control through strategic partnerships and brand restructuring[39] - The company aims to develop a network of chain enterprises, focusing on flagship stores as the core of management and expanding franchise stores[81] - The company intends to restructure operational resources to improve cash flow and reduce inventory risks through centralized procurement and product catalog management[82] - The company recognizes risks from market and policy changes that could adversely affect sales revenue and profitability if products do not align with national policy directions[86] - The company faces challenges from a prolonged industry downturn since 2015, which may hinder business expansion efforts[87] - The company plans to leverage opportunities from the national rural revitalization strategy to increase its market presence in mechanization projects[87] Cash Flow and Investments - The net cash flow from investment activities increased by 541.08% to 21,313,247.51 CNY due to the purchase of financial products and the transfer of equity[63] - The total cash and cash equivalents decreased by 130,427,873.89 CNY, a decline of 256.55% year-on-year[63] - The company did not engage in any significant equity investments during the reporting period[70] - The company did not report any fundraising activities during the reporting period[70] - The company did not engage in any asset or equity acquisitions or sales during the reporting period[115] Shareholder and Governance - The company will not distribute cash dividends or issue bonus shares for the year[7] - The company reported a total cash dividend of 0.00 yuan for the year 2019, with a distribution ratio of 0.00% of the total profit distribution[92] - The company has not proposed any profit distribution or capital reserve transfer to share capital for the years 2017, 2018, and 2019 due to negative distributable profits[92] - The company emphasizes the protection of investors' rights, particularly for small and medium investors, through effective communication channels[132] - The company is committed to improving investor relations management to enhance information transparency and protect shareholder rights[194] - The company maintains independence from its controlling shareholder in business, personnel, assets, institutions, and finance[198] - The company has established a comprehensive internal control system to enhance governance and ensure the achievement of operational goals[195] Market and Industry Trends - The company experienced a significant decline in user purchasing power due to factors such as falling grain prices and reduced subsidies[5] - The agricultural machinery market is currently in a deep adjustment phase, with traditional market demand remaining sluggish[32] - The number of agricultural machinery enterprises with revenues exceeding ¥20 million decreased from 2,236 in 2018 to 1,892 in 2019[32] - New emerging markets in agricultural machinery, such as livestock machinery and precision farming equipment, are rapidly developing[33] - The mechanization rate of agriculture in China reached approximately 69% in 2019, indicating significant growth potential compared to developed countries where rates are around 90%[78] - The total grain production in China was 66,384 million tons in 2019, an increase of 594 million tons or 0.9% from 2018, highlighting the importance of agricultural machinery in enhancing productivity[79] Employee and Training - The total number of employees in the company is 1,153, with 1,135 in major subsidiaries[180] - In 2019, the company conducted 3,306 internal training sessions and 368 external training sessions, totaling 5,200 hours of online training[183] - The company has implemented a comprehensive welfare system, including social insurance and commercial insurance, reflecting its corporate values[182] - The company has established a performance evaluation and incentive mechanism for senior management, combining base salary with performance assessments[192] Research and Development - Research and development expenses increased by 289.34% to 2,662,635.68 CNY, reflecting a significant rise in investment in R&D[60] - The company has invested 50 million yuan in research and development for new technologies aimed at improving agricultural efficiency[175] Corporate Social Responsibility - The company has committed to fulfilling its social responsibilities while pursuing economic benefits, focusing on sustainable development[134] - The company is not classified as a key pollutant discharge unit by environmental protection authorities[140] Miscellaneous - The company has not reported any significant litigation or arbitration matters during the reporting period[111] - There were no penalties or rectification situations reported during the period[112] - The company has not engaged in any related party transactions that would harm the interests of shareholders[188] - The company has not made any changes to its listing status and is not facing any suspension or termination of listing[110]