Lingda Group(SZ:300125)2020-05-10 16:00Financial Performance - The company reported a total revenue of 110.93 million yuan, a decrease of 27.14% year-on-year[41]. - Operating profit was 19.05 million yuan, down 49.36% compared to the previous year[41]. - Net profit attributable to shareholders was 16.14 million yuan, reflecting a 56.01% decline year-on-year[41]. - The company's operating revenue for 2019 was ¥110,927,501.98, a decrease of 27.14% compared to ¥152,256,568.07 in 2018[22]. - The net profit attributable to shareholders for 2019 was ¥16,139,653.56, representing a decline of 56.01% from ¥36,688,474.98 in 2018[22]. - The revenue from the waste heat power generation business decreased by 61.37% to 36.86 million yuan, accounting for 33.23% of total revenue[46]. - The photovoltaic power generation business generated 50.48 million yuan, a decrease of 4.79%, representing 45.51% of total revenue[46]. - The net profit from non-recurring gains and losses for 2019 was ¥11,705,495.41, a significant decrease from ¥46,104,940.69 in 2018[27]. - The company reported a basic earnings per share of ¥0.06 for 2019, down 57.14% from ¥0.21 in 2018[22]. - The weighted average return on equity for 2019 was 2.10%, down from 4.71% in 2018[22]. Business Operations and Strategy - The company is actively seeking new business opportunities and industries to ensure sustainable growth, facing challenges in successfully implementing new profit models[5]. - The company emphasizes the need for effective implementation of strategic development plans to create new profit patterns[8]. - The company is closely monitoring policy changes related to industrial hemp to mitigate investment risks and ensure project viability[11]. - The company has no plans to expand its existing waste heat power generation business, which is currently limited to one operational plant[8]. - The company is focusing on mergers, acquisitions, and equity investments to expand into new industries and fields[99]. - The company plans to invest 200 million yuan in a joint venture for industrial hemp-related projects[40]. - The company has initiated a joint venture with Hanma Investment Group for the production of industrial hemp products, with a registered capital of 20 million RMB[57]. - The company is exploring new industries and fields to establish a sustainable group management model amid uncertainties in revenue and profitability[102]. - The company plans to enhance group management functions and optimize control policies for subsidiaries to ensure healthy development[100]. Acquisitions and Investments - The acquisition of Shanghai Yiwishi Technology Co., Ltd. resulted in a goodwill of CNY 84.9496 million, with performance expectations not being met due to economic downturns and market challenges[9]. - The company completed the acquisition of a 51% stake in Shanghai Yiwishi Technology Co., Ltd. for up to 108 million RMB, which was included in the consolidated financial statements from March 6, 2019[56]. - The company holds 51% equity in Shanghai Yiwishi Technology Co., Ltd. after investing 107.75 million RMB, which is currently operational[87]. - The company established a joint venture, Woda Industrial Hemp (Yunnan) Co., Ltd., with a registered capital of ¥200 million, responsible for the investment and operation of industrial hemp projects[163]. - The company and Hanma Investment Group agreed to jointly invest ¥400 million in the industrial hemp base material production project, with each party contributing ¥200 million[160]. Operational Risks and Challenges - The company reported a significant uncertainty in future revenue and profitability stability, primarily due to external factors affecting the photovoltaic power station business and the nascent state of the industrial hemp sector[8]. - The operational risks associated with the Yunnan Woda industrial hemp project are heightened due to regulatory uncertainties and the impact of the COVID-19 pandemic on business operations[10]. - The performance of the wholly-owned subsidiary's grid-connected photovoltaic power stations has shown instability due to various external factors, including weather and design flaws[6]. - The advertising and media market for Yiwishi has been adversely affected, leading to significant uncertainty regarding its future profitability and performance commitments[9]. - The company faced significant operational risks in its photovoltaic power station business due to weather factors and high loan burdens, leading to unstable performance[102]. Financial Management and Cash Flow - The net cash flow from operating activities improved significantly to ¥26,455,761.22, an increase of 272.53% compared to -¥15,334,006.10 in 2018[22]. - The company utilized up to 300 million yuan of idle raised funds for financial products to enhance the efficiency of idle funds[40]. - The company reported a cash balance of 106.08 million yuan under the new financial instrument standards, compared to 103.11 million yuan under the previous standards[120]. - The company has a total guarantee amount of 50,000,000 CNY, with an actual guarantee balance of 36,500,000 CNY, representing 47.09% of the company's net assets[142]. - The company has entrusted financial management with a total amount of 41,820,000 CNY, including 14,600,000 CNY from idle raised funds and 20,000,000 CNY from idle self-owned funds[145]. Shareholder and Equity Structure - The company has not distributed any cash dividends or bonus shares for the year 2019, with a total cash dividend amount of 2,100,453.41 yuan representing 1.60% of the total distributable profit[107][112]. - The company has been actively repurchasing shares, with a total of 3,215,100 shares repurchased, accounting for 1.82% of the total share capital[110]. - The company’s unallocated profits as of December 31, 2019, stood at -150,926,761.26 yuan, indicating financial challenges[108]. - The company’s total equity capital structure has changed significantly due to the profit distribution and share repurchase activities[173]. - The company reported a total of 5,696 shareholders at the end of the reporting period, with the largest shareholder holding 22.02% of the shares[174]. Research and Development - Research and development expenses increased by 100% due to the consolidation of Shanghai Yiwei[41]. - The company plans to develop a 32-inch naked-eye 3D medical display, which is currently in the trial production stage[63]. - The N090 series product is in the incremental trial production phase, focusing on ultra-high-definition 4K resolution and multi-view naked-eye 3D technology[63]. - The company aims to form multiple patents from its R&D projects, including two invention patents for the 32-inch naked-eye 3D medical display[63]. - The number of R&D personnel increased to 20, accounting for 13.61% of total employees, with R&D investment amounting to ¥3,884,622.62, representing 3.50% of operating revenue[65]. Corporate Social Responsibility - The company actively fulfills its corporate social responsibility by establishing a management system for quality, environment, safety, and employee rights protection[153]. - The company and its subsidiaries have complied with environmental protection laws and regulations, with no penalties reported during the period[155]. - The company has not initiated any targeted poverty alleviation work during the reporting year[154].