BLIIC(SZ:300135)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,429,669,404.20, representing an increase of 18.53% compared to CNY 2,049,843,283.82 in 2018[16]. - The net profit attributable to shareholders decreased by 4.76% to CNY 39,502,649.46 in 2019 from CNY 41,477,564.22 in 2018[16]. - The net profit after deducting non-recurring gains and losses surged by 184.09% to CNY 3,931,158.55 in 2019, compared to CNY 1,383,760.19 in 2018[16]. - The net cash flow from operating activities was CNY 160,449,617.68, down 18.22% from CNY 196,187,581.14 in 2018[16]. - Total assets at the end of 2019 were CNY 2,899,484,688.89, a decrease of 1.95% from CNY 2,957,260,515.78 at the end of 2018[16]. - The company's total equity attributable to shareholders increased by 2.34% to CNY 1,260,510,497.46 at the end of 2019, compared to CNY 1,231,638,057.30 at the end of 2018[16]. - The company reported a total revenue of 1,200,000,000 RMB, with a net profit of -48,408,536 RMB, indicating a challenging financial year[77]. - The company reported a net profit of RMB 43,266,862.82 for the year 2019, with a total distributable profit of RMB 120,119,455.99[97]. Dividend and Shareholder Returns - The company reported a cash dividend of 0.1 CNY per 10 shares (including tax) based on a total share capital of 92.16 million shares as of December 31, 2019[6]. - The cash dividend proposed for 2019 is RMB 0.1 per share (including tax), totaling RMB 9,216,000, which accounts for 100% of the distributable profit[96][97]. - The company’s cash dividend for the past three years has consistently been RMB 9,216,000, representing 23.33% to 24.56% of the net profit attributable to shareholders[101]. - Shareholder returns are expected to increase by 15% as a result of improved financial performance and strategic initiatives[163]. Market and Operational Risks - The company highlighted a risk of bad debt losses due to the lengthy payment approval process from state-owned highway construction units, although historical data shows a low likelihood of such losses[5]. - The company faces risks from fluctuations in raw material prices, particularly asphalt, which is affected by crude oil price volatility[6]. - The company's operations are highly dependent on the planning and cycles of high-grade highway and bridge infrastructure projects, which are influenced by national infrastructure development plans[5]. - The company has implemented measures to reduce the risk of bad debts from accounts receivable by enhancing internal credit control and requiring asset guarantees from clients[90]. Research and Development - The company is actively engaged in research and development, including a project focused on high-performance modified road materials for extremely cold regions in Eastern Europe[38]. - The company is focusing on the research and development of high-performance asphalt for high-speed rail waterproofing layers, indicating a commitment to infrastructure projects[39]. - The total R&D expenditure for 2019 was ¥83,498,597.95, representing 3.44% of total revenue, an increase from 3.26% in 2018[60]. - The company has ongoing R&D projects focused on high-performance road materials and environmentally friendly asphalt, aiming for industrialization of innovative results[60]. - The company is enhancing its production capabilities with new patented equipment for modified asphalt production, which may improve operational efficiency[40]. Product and Market Development - The company has expanded its business into the general aviation industry, establishing Jiangsu Baoli Aviation Equipment Investment Co., Ltd. in 2015 to diversify its revenue streams[26]. - The company aims to enhance its profitability through strategic partnerships and participation in large-scale bidding for road projects in the asphalt sector[29]. - The company aims to meet the increasing demand for asphalt products driven by national infrastructure development and the "Belt and Road" initiative[33]. - The company is pursuing a strategy of expanding its product offerings through the development of high-temperature and low-temperature performance asphalt, which is expected to meet diverse market needs[40]. - The company plans to focus on expanding its market presence in the underdeveloped central and western regions of China, leveraging the "Belt and Road" initiative[91]. Governance and Management - The company's financial report was confirmed to be accurate and complete by its board and management, ensuring accountability for the information presented[4]. - The company has established a fair and effective performance evaluation and incentive mechanism for senior management[189]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal requirements[186]. - The company maintains a good relationship with investors and ensures timely and accurate information disclosure[189]. - The company has a diverse board with members having backgrounds in engineering, economics, and management[155][156]. Strategic Initiatives - The company has a clear development strategy and effective business practices, positioning itself favorably within the general aviation industry despite the challenges[35]. - Future development strategies include strengthening product promotion and improving product quality and after-sales service[86]. - The company plans to invest in research and development to optimize existing products and develop new offerings, enhancing market competitiveness[87]. - A talent management strategy will be implemented to build a talent reserve and improve overall employee quality, thereby increasing competitiveness[88]. Asset Management and Financial Position - The company’s financial assets decreased by 41.42% due to the reclassification and redemption of wealth management products under new financial instrument standards[37]. - The total cash and cash equivalents increased by 136.56% to ¥59,804,135.74, driven by improved financing cash flows[62]. - Accounts receivable increased to ¥458,603,446.80, representing 15.82% of total assets, up from 12.79% in the previous year[67]. - The total guarantee amount approved during the reporting period was CNY 16,450 million, with the actual guarantee amount also totaling CNY 16,450 million[124]. Employee and Organizational Structure - The total number of employees in the company is 423, with 122 in the parent company and 301 in major subsidiaries[177]. - The company has a professional composition of 158 production personnel, 53 sales personnel, 102 technical personnel, 49 financial personnel, and 52 administrative personnel[177]. - The company emphasizes employee training through a combination of internal and external training programs to enhance skills and management capabilities[180]. - The total remuneration for the board of directors and senior management during the reporting period is 270.3 million[176].