BLIIC(SZ:300135)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,018,394,403.25, a decrease of 16.93% compared to ¥2,429,669,404.20 in 2019[21]. - The net profit attributable to shareholders was ¥3,948,755.22, reflecting a significant decline of 90.00% from ¥39,502,649.46 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was -¥16,407,276.99, a decrease of 517.36% compared to ¥3,931,158.55 in 2019[21]. - The net cash flow from operating activities was ¥64,506,679.49, down 59.80% from ¥160,449,617.68 in 2019[21]. - The total assets at the end of 2020 were ¥2,621,243,301.85, a decrease of 9.60% from ¥2,899,484,688.89 at the end of 2019[21]. - The company reported a basic earnings per share of ¥0.0040, down 90.70% from ¥0.0430 in 2019[21]. - The weighted average return on equity was 0.31%, down from 3.19% in the previous year[21]. - The company faced significant challenges in 2020, including a substantial drop in both revenue and profit margins, indicating potential operational difficulties[21]. - The company's asphalt business revenue for the year was CNY 186,931.60 million, a decrease of 16.83% compared to the previous year[40]. - In Q1, the company's revenue dropped by 30% year-on-year, resulting in a net loss of approximately CNY 16 million attributable to shareholders[40]. - The general modified asphalt revenue was CNY 20,707 million, down 48.08% year-on-year, failing to reverse the loss situation[40]. - The company achieved a net profit of CNY 0.8958 million in Q4, indicating a turnaround after losses in earlier quarters[40]. - The company reported a net profit of -10,616,523.00 RMB from its subsidiary Shaanxi Baoli, indicating a significant loss[74]. - The total revenue from the subsidiary Jiangsu Baoli was 29,320,263.20 RMB, with a net profit of 1,254,941.28 RMB[74]. - The company reported a total shareholding of 282,440,900 shares at the end of the reporting period, unchanged from the beginning of the period[134]. Market and Demand Outlook - The company anticipates a substantial long-term demand for professional asphalt in China, driven by national policies encouraging infrastructure development, with a vision to build a "transportation power" by 2050[5]. - The demand for specialized asphalt in China is expected to grow significantly over the next 30 years, driven by national infrastructure development plans[31]. - The company is committed to sustainable development in the asphalt industry, aligning with national policies and long-term infrastructure goals[5]. - The company is actively developing ten innovative asphalt products, focusing on environmental sustainability and performance enhancement[36]. - The company has a diversified product line, including 18 grades of specialized asphalt products, which are essential for various infrastructure projects[29]. - The company has established a diverse product line with 18 different grades of asphalt, catering to various market needs[36]. Operational Challenges and Risks - The company reported a significant impact from the COVID-19 pandemic in the first half of 2020, leading to a drop in international crude oil prices and a corresponding decline in asphalt product prices, resulting in losses on some orders[5]. - The company faces risks related to accounts receivable due to lengthy payment approval processes from state-owned highway construction units, although historical data shows a low likelihood of bad debt losses[7]. - Fluctuations in raw material prices, particularly asphalt derived from crude oil, pose a risk to the company's cost control and profit margins, as significant price changes can affect procurement costs[9]. - The company's operations are highly dependent on the planning and cycles of new construction projects for high-grade highways and bridges, which are influenced by national infrastructure development plans[8]. - The company is facing challenges from international crude oil price fluctuations, which impact the cost of raw materials for modified asphalt[33]. - The company recognizes potential risks related to accounts receivable due to lengthy payment cycles from state-owned highway construction units[79]. Cash Flow and Investment - The net cash flow from operating activities decreased by 59.80% to ¥64,506,679.49, primarily due to a reduction in cash received from sales[58]. - The net cash flow from investment activities increased by 652.45% to ¥285,871,575.08, attributed to a decrease in investment in financial products[58]. - The net cash flow from financing activities decreased by 784.30% to -¥429,411,754.63, mainly due to a reduction in bank loans received[58]. - The company's research and development investment accounted for 2.63% of operating revenue, down from 3.44% in the previous year[58]. - The total amount of investment income was ¥8,874,811.72, contributing 430.70% to the total profit[61]. Corporate Governance and Management - The company has a diverse board with members holding various professional backgrounds, including finance, engineering, and law[137][138]. - The company has established a performance evaluation and incentive mechanism for senior management, ensuring accountability for any legal violations[152]. - The audit committee supervises the implementation of internal audit systems and reviews financial information[153]. - The company emphasizes investor relations management, ensuring timely and accurate information disclosure through multiple channels[152]. - The company has a dedicated investor hotline and conducts online performance briefings to enhance transparency[152]. - The company maintains absolute independence from its controlling shareholder in business, personnel, assets, institutions, and finance[155]. Employee and Labor Relations - The company has a total of 401 employees, with 119 in the parent company and 282 in major subsidiaries[145]. - Employee training programs are implemented to enhance skills and management capabilities, utilizing both internal and external resources[147]. - The company adheres to national labor laws and provides various insurance and benefits to employees[146]. - The remuneration for the board of directors and senior management is determined based on the company's profitability and individual performance[142]. - Total remuneration for the chairman is 29.71 million CNY, while the general manager receives 53.2 million CNY[144]. Audit and Compliance - The company received a standard unqualified audit opinion for its financial statements for the year ended December 31, 2020[170]. - The internal control evaluation report was disclosed on April 26, 2021, indicating that all units within the evaluation scope accounted for 100% of the company's consolidated total assets and revenue[164]. - The company reported zero significant defects in internal control for both financial and non-financial reports during the reporting period[165]. - The management's assessment of the bad debt provision for accounts receivable was deemed reasonable based on the audit procedures performed[173].