Gifore(SZ:300022)2020-05-21 16:00Financial Performance - The company's operating revenue for 2019 was ¥2,295,229,258.90, a decrease of 22.80% compared to ¥2,972,935,403.17 in 2018[17]. - The net profit attributable to shareholders was -¥142,911,349.25, representing a decline of 1,465.52% from a profit of ¥10,465,679.14 in the previous year[17]. - The net cash flow from operating activities was -¥96,294,654.06, a significant drop of 401.69% compared to ¥31,918,630.37 in 2018[17]. - The total assets at the end of 2019 amounted to ¥1,755,253,830.20, down 7.42% from ¥1,895,870,012.32 at the end of 2018[17]. - The net assets attributable to shareholders decreased by 61.73% to ¥82,831,439.63 from ¥216,463,317.88 in 2018[17]. - The weighted average return on net assets was -93.03%, a decrease of 98.01% from 4.98% in 2018[17]. - The company reported a net profit difference of CNY -37,392,397.55 for the year 2019, compared to CNY 17,759,508.93 in 2018 and CNY 8,751,272.42 in 2017, indicating a significant decline in profitability[23]. - The total operating costs were ¥2,378,456,975.07, down 18.34% year-on-year[36]. - The company reported a total grain production of 66,384 million tons in 2019, an increase of 594 million tons or 0.9% compared to 2018[72]. - The company reported a total sales revenue of 152,100,662 for one of its subsidiaries, indicating strong performance in agricultural machinery sales[70]. Market Conditions - The agricultural machinery industry experienced a revenue decline of 4.43% in 2019, with total revenue for large-scale agricultural machinery enterprises at CNY 246.467 billion[29]. - The company faced significant challenges due to macroeconomic downturns and a prolonged low point in the agricultural machinery industry[5]. - The agricultural machinery market is currently in a deep adjustment phase, with traditional market demand remaining sluggish while emerging markets are beginning to rise[30]. - The southwestern region saw a significant revenue drop of 72.91%, contributing only ¥704,232,266.41 to total revenue[43]. - The sales volume of agricultural machinery decreased by 60.16% from 119,352 units in 2018 to 47,551 units in 2019, with revenue dropping from 2.491 billion yuan to 2.104 billion yuan, a decline of 15.53%[47]. Business Strategy - The company plans to enhance its business expansion efforts in response to the opportunities presented by the national rural revitalization strategy[5]. - The company aims to transform into a comprehensive technology service provider for modern agricultural equipment[5]. - The company operates three main business segments: agricultural machinery circulation and services, high-end specialized agricultural machinery and core components, and rural revitalization and smart agriculture solutions[27]. - The company aims to optimize resource integration and promote sustainable development through strategic adjustments[67]. - The company is focusing on upgrading traditional agricultural machinery to intelligent, multifunctional, and environmentally friendly models, seizing opportunities in smart agriculture[74]. Operational Changes - The company implemented a centralized procurement model, transitioning from decentralized payments to centralized payments[37]. - The company’s flagship stores are being optimized, focusing on product catalog management and centralized inventory allocation[37]. - The company plans to close approximately 20 underperforming direct stores to reduce operational losses[87]. - Measures to improve cash flow include increasing sales efforts, optimizing procurement, and accelerating receivables collection[88]. - The company aims to lower financial expenses by increasing self-financing and reducing high-interest financing[88]. Financial Management - The company has established a mechanism for strict management of receivables and inventory to mitigate financial risks[75]. - The company has not engaged in any significant asset or equity sales during the reporting period[65]. - The company has not reported any non-operating fund occupation by controlling shareholders during the reporting period[86]. - The company has not faced any situations that would lead to suspension or termination of listing[97]. - The total approved external guarantee amount during the reporting period was CNY 11,000 million, with actual guarantees amounting to CNY 17,550 million[113]. Governance and Compliance - The company has implemented a governance structure to ensure alignment between regional subsidiaries and the headquarters in terms of operational strategies and risk management[75]. - The company has established specialized committees within the board, including a strategy committee, compensation and assessment committee, and audit committee, to provide professional advice for decision-making[169]. - The company has not encountered any unresolved governance issues and complies with the relevant laws and regulations regarding corporate governance[167]. - The audit report issued by the accounting firm indicated a "clean" opinion with no major issues identified[189]. - The independent directors' suggestions were fully adopted, enhancing the company's governance and operational oversight[178]. Employee Management - The total number of employees in the company is 1,153, with 1,135 in major subsidiaries and 18 in the parent company[161]. - The company has a professional composition of 355 sales personnel, 299 technical personnel, 163 financial personnel, 179 administrative personnel, and 157 production personnel[162]. - The total remuneration for directors and senior management during the reporting period amounts to 1.92 million yuan[160]. - The company has a comprehensive welfare system that includes social insurance, housing funds, commercial insurance, and union benefits[163]. - The company has trained over 20,000 users in the Sanzhou region through its agricultural machinery skills training program since 2003[122]. Risks and Challenges - The company is facing risks from market and policy changes, particularly in the agricultural machinery sector, which could significantly impact sales revenue and profitability[76]. - The company has faced continuous losses since 2015, with the agricultural machinery market in a downturn, affecting its business development[76]. - Jifeng Technology reported a net loss of ¥136,103,449.20 for the year 2019, indicating significant uncertainty regarding its ability to continue as a going concern[191]. - As of December 31, 2019, Jifeng Technology's current liabilities exceeded current assets by ¥25,216,016.42, raising concerns about liquidity[191]. Social Responsibility - The company is committed to social responsibility and actively supports public welfare initiatives[118]. - The company emphasizes building long-term partnerships with suppliers and customers, focusing on mutual growth and social responsibility[120]. - The company is committed to sustainable development, balancing economic benefits with social and environmental responsibilities[120]. - The company will adjust its poverty alleviation strategies based on actual conditions in the future[124].