MKMCHINA(SZ:300195)2020-04-22 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,292,211,370, a decrease of 1.53% compared to ¥1,311,142,391 in 2018[20]. - The net profit attributable to shareholders was -¥702,490,788.7, representing a significant decline of 940.93% from ¥85,869,552.31 in 2018[20]. - The net cash flow from operating activities increased by 89.58% to ¥46,071,494.57 from ¥24,425,702.54 in 2018[20]. - Total assets at the end of 2019 were ¥5,248,850,304, down 11.18% from ¥5,884,629,305 at the end of 2018[21]. - The net assets attributable to shareholders decreased by 22.88% to ¥2,801,278,968 from ¥3,608,763,647 in 2018[21]. - The basic earnings per share for 2019 was -¥2.21, a decline of 1,104.55% from ¥0.23 in 2018[20]. - The weighted average return on equity was -22.04%, down from 2.29% in 2018[20]. - The company achieved a total revenue of CNY 1.29 billion in 2019, a decrease of 1.53% compared to CNY 1.31 billion in 2018[56]. - The overall revenue for the year was reported at 2,776 million CNY, reflecting a decrease of 72.53% compared to the previous year[120]. - The total revenue for Tianjin Changrong Technology Group in 2019 was approximately 1.261 billion RMB, representing a year-on-year increase of 6.89%[125]. - The company reported a net profit of approximately 14.69 million RMB, with a decrease of 3.91 million RMB compared to the previous year[125]. - The total revenue for Tianjin Changrong Technology Group in 2019 reached RMB 422.07 million, a year-on-year increase of 26%[127]. - The company reported a net profit of RMB 56.11 million, representing a growth of 99% compared to the previous year[127]. Investments and Acquisitions - The strategic investment in Heidelberg amounted to 68.99 million euros, making the company the largest shareholder with approximately 8.46% of shares[38]. - The company completed a strategic investment in Germany's Heidelberg, becoming its largest shareholder, which is expected to enhance digital and intelligent transformation efforts[48]. - The company has established a joint venture with Germany's Marbach, successfully launching some products into the market[49]. - The company acquired and relocated Beijing Beiying New Materials Technology Co., Ltd., which has begun production and generated good economic benefits[46]. - The company has invested in cloud printing technology through Tianjin Longrong Cloud Printing Technology Co., Ltd., which has a registered capital of 20 million yuan[140]. - The company has established a wholly-owned subsidiary for printing equipment manufacturing with an investment of CNY 5,000 million, achieving 100.10% of the planned investment[102]. - The company has established subsidiaries in Germany and Slovakia through its Hong Kong subsidiary, which holds 15.98% of a downstream client[133]. - The company has invested 100 million RMB in permanent working capital, fully implemented by December 31, 2019[105]. - The company has established a wholly-owned subsidiary, Tianjin Changrong Zhend Machinery Co., Ltd., with an investment of 50 million RMB for the construction of a printing equipment remanufacturing base, utilizing 50.05 million RMB of excess funds by December 31, 2019[105]. Research and Development - The company achieved a research and development investment ratio of 6.74% in 2019, maintaining a trend of high R&D investment for several consecutive years[42]. - A total of 44 new patents were applied for in 2019, including 13 invention patents, and 50 patents were granted, with 23 being invention patents[44]. - The company's R&D expenses increased by 46.77% to CNY 81,802,289.74, focusing on new models of die-cutting and hot stamping machines[68]. - The total R&D investment for 2019 was CNY 87,047,752.51, representing 6.74% of operating revenue[69]. - The company is focusing on the development and sales of digital printing equipment and related technologies, with an investment of 100 million RMB planned for research and development[126]. - Research and development investments amounted to 30 million RMB, focusing on innovative printing technologies and smart equipment[132]. Market Expansion and Sales - The company’s overseas market expansion is a key focus, with successful product entries into the German market[32]. - The company’s cloud printing business generated a revenue of 53.25 million yuan, reflecting adjustments in its operational model[34]. - The company plans to expand its market presence by entering three new regions in 2020, aiming for a 20% increase in market share[90]. - The company plans to expand its market presence through strategic acquisitions and partnerships in the printing technology sector[126]. - The company aims to enhance its market share in the printing and packaging industry by strengthening brand recognition and technological innovation[158]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2022[131]. - The company is focusing on expanding its customer base in new sectors, including food and high-end cosmetics, while managing associated market development costs[164]. Risk Management - The company has identified key risk factors including industry and operational risks, detailed in the future development outlook section[5]. - The company faces risks from product price declines due to intensified competition and global pandemic impacts[163]. - The company is addressing raw material price risks by improving supply chain management and leveraging its subsidiaries' advantages[164]. - The company is focusing on talent development to address shortages in R&D, marketing, and after-sales service[166]. Corporate Governance and Compliance - The company has committed to reducing and regulating related party transactions to protect the interests of shareholders[178]. - The company has established a compensation responsibility structure where Wang Jianjun and Xie Liangyu will bear 62.00% and 38.00% of any economic losses incurred by LQ Group, respectively[180]. - The company has committed to avoiding any business activities that may compete with its own operations, ensuring a clear competitive landscape[183]. - The company has pledged to not provide any sales channels or customer information to competitors, safeguarding its business secrets[192]. - The company has reiterated its commitment to maintaining transparency and integrity in its financial reporting and operations[194]. Financial Reporting and Accounting - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The company underwent accounting policy changes and restated previous years' financial data due to mergers under common control[20]. - The company has made significant changes to its accounting policies, including the adoption of new financial instrument standards effective from January 1, 2019[197]. - The company’s financial statements were prepared in accordance with the revised formats issued by the Ministry of Finance[198]. - The adjustments made to the financial statements did not have a significant impact on the company's financial reports[197]. Subsidiaries and Operations - The company has a comprehensive range of subsidiaries, including Tianjin Oufrei International Trade Co., Ltd. and Tianjin Changrong Laser Technology Co., Ltd.[11]. - The subsidiary Changrong Huaxin reported a revenue of 72.21 million yuan and a net profit of 17.28 million yuan in 2019[34]. - The subsidiary Tianjin Changrong Zhendai Machinery Co., Ltd. reported a net profit of 41,342,468.8 CNY, contributing positively to the overall performance[123]. - The subsidiary Tianjin Changrong Cloud Printing Technology Co., Ltd. reported a revenue of 151.22 million RMB, with a net loss of approximately 47.92 million RMB[124]. - The company holds a 71% stake in Tianjin Rongcai Technology Co., Ltd., which focuses on software development and related technical services[134]. Strategic Partnerships - The company’s strategic cooperation with Heidelberg is expected to provide sustainable development momentum for both companies[30]. - The strategic partnership with Heidelberg aims to deepen global post-press market penetration, targeting a market exceeding 10 billion[159]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[129]. Future Outlook - The company has set a performance guidance for 2020, projecting a revenue growth of 10% and a net profit increase of 15%[90]. - Future outlook includes a projected revenue increase of 20% for 2020, driven by new product launches and market expansion strategies[131]. - The company aims to achieve a revenue target of RMB 500 million in the next fiscal year, reflecting a growth ambition of 18%[129].