NEW JCM(SZ:300157)2021-06-16 16:00Financial Performance - The company reported a significant amount of goodwill from acquisitions since its listing in 2011, which requires annual impairment testing under accounting standards [12]. - The company's operating revenue for 2019 was ¥1,064,171,650.10, a decrease of 28.50% compared to ¥1,488,450,311.14 in 2018 [30]. - The net profit attributable to shareholders was -¥1,207,531,281.10, representing a decline of 4709.76% from ¥26,195,080.58 in the previous year [30]. - The net cash flow from operating activities was -¥46,771,618.72, a decrease of 135.76% compared to ¥130,786,883.93 in 2018 [30]. - The total assets at the end of 2019 were ¥4,555,030,571.32, down 17.73% from ¥5,536,392,601.60 at the end of 2018 [30]. - The net assets attributable to shareholders decreased by 33.39% to ¥2,201,678,818.19 from ¥3,305,427,068.34 in 2018 [30]. - The basic earnings per share for 2019 was -¥1.70, a decline of 4350.00% from ¥0.04 in 2018 [30]. - The weighted average return on equity was -44.70%, down 45.50% from 0.80% in the previous year [30]. - The company reported a significant decline in net profit excluding non-recurring gains and losses, with a total of -¥1,212,218,337.32 for 2019 compared to ¥1,596,140.50 in 2018, a drop of 76046.84% [30]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2019, representing a year-over-year increase of 12% [61]. Business Development and Strategy - The company completed acquisitions of several key firms, including Langfang New Saipu and Xian Aohua, enhancing its position as a comprehensive energy service provider [10]. - The company aims to expand its business into high-end equipment fields and oil and gas pipeline transportation [43]. - The company has initiated the establishment of merger and acquisition funds and industrial investment funds to optimize investment management and expand its industrial chain construction advantages [50]. - The company is actively developing and introducing innovative products to enhance its military equipment manufacturing capabilities [41]. - The company is exploring potential acquisitions in the software sector to enhance its product offerings and market presence [64]. Research and Development - The company has established a postdoctoral workstation and an academician expert workstation to foster talent development in a highly technical industry [8]. - The company plans to invest 200 million RMB in R&D for new technologies over the next three years [61]. - The company is investing in R&D for advanced seismic data processing technologies, with a budget allocation of 200 million RMB for the next fiscal year [64]. - The company has made significant investments in research and development, as evidenced by the introduction of new software and systems aimed at optimizing exploration and production processes [67]. - The company is actively pursuing research and development in oil and gas exploration technologies, with several patents pending in this area [84]. Software and Technology - The company has developed the EPoffice integrated research platform software, which is a customized technical solution for the oil and gas exploration and development industry, enhancing its market position in unconventional oil and gas prediction technologies [45]. - The company’s software segment is recognized as a pioneer in seismic data processing systems, with a high level of commercialization and advanced technology [44]. - The company has developed multiple software solutions for oil and gas exploration, including EPoffice Image+ (V5.3) and EPplatform (V2.3) [66]. - Hengtai Aipu's software solutions are designed to optimize resource evaluation and economic assessment in oil and gas projects, contributing to better investment decisions [70]. - The company has established a comprehensive software development framework, which includes various specialized applications for different aspects of oil and gas engineering [69]. Market and Revenue Trends - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2022 [61]. - The company provided a future outlook projecting a revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion [61]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2019, representing a year-over-year increase of 15% [64]. - The company aims to reduce operational costs by 10% through efficiency improvements in the next fiscal year [61]. - The company reported a significant increase in receivables due to the rise in bank acceptance bills during the reporting period [53]. Financial Management and Governance - The company plans not to distribute cash dividends or issue bonus shares for the 2019 fiscal year [18]. - The company has a profit distribution policy emphasizing stable returns to investors, with a minimum cash dividend of 10% of the annual profit if conditions are met [162]. - The company’s cash dividend distribution is contingent on achieving an average distributable profit of at least 30% over the last three years [163]. - The company ensures that minority shareholders have opportunities to express their opinions during shareholder meetings [166]. - The company has a structured decision-making process for profit distribution, ensuring transparency and compliance with regulations [165]. Risks and Challenges - The company acknowledges the potential impact of external factors such as political and economic changes on its operations [17]. - The company faces risks related to intellectual property infringement due to the high market value and application of its proprietary technologies [9]. - The company has recognized impairment provisions for long-term equity investments and construction in progress during the reporting period [53]. - The company reported an asset impairment loss of ¥1,066,529,568.75, which accounted for 91.91% of total profit [133]. - The company has experienced a significant change in the proportion of major suppliers and customers due to a reduction in trade business scale [124]. Subsidiaries and Investments - The company’s Hong Kong subsidiary has a total asset scale of approximately 459.52 million, accounting for 14.77% of the company's net assets [55]. - The company has ongoing non-equity investments, but no significant equity investments were reported during the period [146]. - The company has established several new subsidiaries, which are not expected to significantly impact overall performance [155]. - The company has a long-term investment strategy, focusing on self-owned capital management [145]. - The company has a non-operating related party receivable from its wholly-owned subsidiary Chengdu Xiyou United Petroleum and Natural Gas Engineering Technology Co., with a year-end balance of approximately 421.77 million RMB [193].