Gifore(SZ:300022)2020-06-21 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 were ¥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 in non-recurring gains and losses for the year 2019, compared to CNY 17,759,508.93 in 2018 and CNY 8,751,272.42 in 2017[23] - The company reported a net profit of -95,513,945.76 yuan for 2019, with cumulative distributable profits at -407,729,840.63 yuan[79] - The company did not distribute any cash dividends or capital reserve transfers in 2019 due to negative distributable profits[80] Business Strategy and Market Position - The company plans to enhance its business expansion efforts in response to the rural revitalization strategy, focusing on mechanization projects[5] - The company aims to transform into a comprehensive technology service provider in the modern agricultural equipment industry[5] - The company operates three main business segments: agricultural machinery circulation and services, high-end specialty agricultural machinery and core components, and rural revitalization and smart agriculture solutions[27] - The company aims to enhance agricultural production efficiency through a comprehensive service model that includes mechanization and smart agriculture solutions[28] - The company is focusing on promoting environmentally friendly and efficient machinery as part of the national policy to support innovative products in the agricultural sector[30] - The company plans to focus on the northern market's trend towards larger, multifunctional, and high-end intelligent products, which may lead to a shift in sales dynamics[47] - The company aims to optimize resource integration and promote sustainable development through strategic adjustments in its equity structure[66] - The company has a strategy to adapt to modern agricultural needs and improve capital operation efficiency[75] Operational Challenges - The agricultural machinery industry experienced a revenue decline of 4.43% in 2019, totaling CNY 246.467 billion, with industry profits decreasing by 0.25% to CNY 10.339 billion[29] - The agricultural machinery market is currently in a deep adjustment phase, with traditional market demand remaining sluggish while new markets are emerging but not compensating for the decline[30] - The company is facing risks from market and policy changes, including rising costs due to emission standards and fluctuations in raw material prices[74] - The agricultural machinery industry has been in a downturn since 2015, impacting the company's business development[75] Financial Management and Governance - The company has established a mechanism for internal inventory management to reduce excess stock and improve cash flow[74] - The company has implemented measures to address significant uncertainties regarding its ability to continue as a going concern[86] - The company has a governance structure that complies with relevant laws and regulations, ensuring that there are no unresolved governance issues and no administrative regulatory measures taken against it[164] - The audit report confirmed that the financial statements fairly present the company's financial position and results of operations in accordance with accounting standards[186] - The company has a comprehensive internal control system that effectively mitigates risks associated with financial reporting and operational activities[180] Shareholder and Stakeholder Relations - The company emphasizes the protection of investor rights and maintains effective communication channels with shareholders[115] - The company is committed to social responsibility and actively supports public welfare initiatives[115] - The company has established a strategic partnership with suppliers and customers, focusing on mutual growth and long-term cooperation[117] - The total number of ordinary shareholders at the end of the reporting period was 31,271, while the number of preferred shareholders was 28,739[133] Employee and Management Structure - The total number of employees in the company is 1,153, with 1,135 in major subsidiaries and 18 in the parent company[158] - The company has a diverse professional composition, with 157 production staff and 163 finance personnel[159] - The management team includes experienced professionals with backgrounds in agriculture and finance, contributing to strategic decision-making[152] - The company has established a comprehensive compensation system that includes competitive salary levels based on market and regional salary conditions, with various compensation structures for different employee roles[160] Subsidiary Performance - The total sales revenue of the subsidiary Sichuan Jifeng Ju Li Industrial Development Co. was 152.1 million, with a net profit of 671,543.16[69] - The total assets of the subsidiary Jilin Province Jifeng Golden Bridge Agricultural Machinery Co., Ltd. reached CNY 66,830,088.00, with a net profit contribution of CNY 4,343,741.26, accounting for over 10% of the company's net profit[67] - The subsidiary Liaoning Huifeng Agricultural Machinery City Co., Ltd. reported total assets of CNY 84,992,899.40 and a net profit of CNY 22,085,640.10[67] Audit and Compliance - The audit committee diligently performed its supervisory duties, ensuring the accuracy of the annual financial report and accounting statements[175] - The company maintained a zero count for significant deficiencies in both financial and non-financial reporting, demonstrating strong internal controls[180] - The board of directors held 14 meetings during the reporting period, ensuring compliance with regulations and maintaining accurate records[166] Future Outlook - The introduction of the "Northeast Black Land Conservation Tillage National Action Plan (2020-2025)" is expected to create new opportunities for the agricultural machinery industry[71] - The company plans to continue promoting high-tech agricultural machinery in the Sanzhou region, including hosting machinery exhibitions to help local farmers improve their production methods[118]