LONTRUE(SZ:300175)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was ¥581,709,780.60, representing a 66.67% increase compared to ¥349,024,223.73 in 2018[17]. - The net profit attributable to shareholders decreased by 41.13% to ¥34,425,426.76 from ¥58,480,671.94 in the previous year[17]. - Basic earnings per share dropped by 41.67% to ¥0.07 from ¥0.12 in 2018[17]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which fell by 39.40% to ¥1,637,604.19 from ¥2,702,294.11 in 2018[17]. - The weighted average return on net assets decreased to 4.15% from 6.82% in the previous year, reflecting a decline of 2.67%[17]. - The company achieved a net profit of ¥2.63 million after deducting non-recurring gains and losses, with total revenue from the data center business reaching ¥20,645.95 million[37]. - The company reported a total of ¥2,181,165.21 in investment income, contributing 5.17% to total profit, while asset impairment losses amounted to -¥23,450,236.05, representing -55.54% of total profit[57]. - The actual net profit for 2019 was 26,300 RMB, significantly below the performance commitment of 30 million RMB, resulting in a goodwill impairment provision of 23.12 million RMB[94][93]. - The total profit decreased from 44,592,481.27 CNY to 15,066,030.72 CNY, reflecting a decline of 29,526,450.55 CNY[106]. Cash Flow and Investments - The net cash flow from operating activities improved significantly to ¥24,056,961.46, compared to a negative cash flow of ¥20,104,496.33 in 2018, marking a 219.66% change[17]. - Operating cash inflow totaled ¥590,269,302.90, a 70.67% increase from ¥345,849,192.18 in 2018, while cash outflow rose by 54.72% to ¥566,212,341.44[54]. - Investment cash inflow increased by 7.58% to ¥156,591,501.83, while cash outflow decreased by 67.11% to ¥113,036,655.16, indicating reduced external investments[54]. - Financing cash inflow rose by 33.01% to ¥198,190,000.00, while cash outflow surged by 2,977.67% to ¥216,570,166.09, primarily due to loan repayments[55]. - The company sold shares of Yonghui Supermarket for ¥45,964,679.5, with no impact on net profit[72]. - The company invested ¥50 million in Heilongjiang Fengyou, acquiring a 3.33% stake, subject to adjustments based on the final funding amounts[37]. Assets and Liabilities - Total assets increased by 7.23% to ¥1,512,261,202.60 at the end of 2019, up from ¥1,410,242,333.83 in 2018[17]. - The net assets attributable to shareholders rose by 2.70% to ¥835,192,697.53 from ¥813,264,437.29 in the previous year[17]. - Cash and cash equivalents amounted to ¥70,886,338.91, representing a 4.69% increase compared to the previous period[60]. - Accounts receivable reached ¥244,769,866.8, showing a 16.19% increase from ¥140,164,048.84[60]. - Inventory stood at ¥217,243,109.0, reflecting a 14.37% increase from ¥187,923,199.15[60]. - Fixed assets increased to ¥467,984,561.0, a rise of 30.95% from ¥344,939,290.03[60]. - Short-term borrowings were reported at ¥193,449,548.8, up by 12.79% from ¥149,223,898.13[60]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥0.1 per 10 shares, based on a total of 470,800,000 shares[5]. - The cash dividend distribution accounted for 13.68% of the net profit attributable to the company's ordinary shareholders, which was RMB 34,425,426.76 for the year 2019[88]. - The company maintained a consistent cash dividend policy over the past three years, with each year distributing RMB 4,708,000.00 in cash dividends[86]. - The cash dividend total, including other methods, was 100% of the profit distribution total for the year[85]. Business Operations and Market Performance - The company’s agricultural product processing business showed significant improvement, driven by a recovering market environment and increased consumer demand for high-quality snacks and baked goods[28]. - The company has established itself as a supplier for well-known snack brands and leading companies in the domestic baking industry, leveraging its reputation for product quality and safety[27]. - The company is focusing on developing a comprehensive solution for the data center ecosystem, integrating cloud computing and IoT resources to meet the demands of the 5G era[31]. - The company’s data center business has achieved an approximately 80% rack utilization rate, indicating rapid growth in this segment[28]. - The service industry contributed ¥241,089,660.09 to total revenue, marking a significant increase of 1,039.66% compared to the previous year[40]. - The company’s dried fruit segment saw a revenue increase of 32.23%, reaching ¥142,097,229.09, while the fresh fruit segment experienced a decline of 11.85%[40]. - The company’s revenue from the East China region surged by 244.23%, reaching ¥68,783,947.91, indicating strong market expansion efforts[40]. Risk Management and Compliance - The company faces risks related to the cyclical nature of agricultural markets, which can lead to price volatility[78]. - The company has implemented a risk control mechanism for its futures trading operations to mitigate potential losses[79]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and has resumed full production[80]. - The company has established a robust internal control system to enhance operational standards and management capabilities[130]. - The company has a dedicated audit committee to oversee internal and external audits, ensuring the integrity of financial information[178]. Governance and Management - The company has established a new subsidiary, Yantai Pinqiu Food Co., Ltd., on November 5, 2019[108]. - The company’s board appointed Zhang Tao as the new general manager following the resignation of the previous general manager, Qiyongmao[137]. - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to 2.3667 million yuan[167]. - The company has a structured process for determining the remuneration of its directors and senior management based on the company's profitability and individual performance[167]. - The independent directors include Zhang Dongming, Liang Kun, and Peng Jianyun, who have extensive backgrounds in their respective fields[164]. Audit and Financial Reporting - The audit report raised concerns regarding the adequacy of audit evidence for certain receivables totaling CNY 132.69 million[194]. - The audit identified key audit matters, including the recognition of revenue from agricultural products, which is a significant performance indicator[197]. - The audit firm expressed a qualified opinion due to the inability to obtain sufficient audit evidence regarding certain income and receivables[194]. - The company’s management is responsible for ensuring the financial statements are prepared in accordance with accounting standards and reflect a true and fair view[198]. - The independent directors agree that the audit report with a qualified opinion accurately reflects the company's financial status for 2019[99].