TMMT(SZ:300334)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was ¥516,341,745.16, a decrease of 24.77% compared to ¥686,359,697.96 in 2018[22]. - The net profit attributable to shareholders was -¥833,095,593.05, representing a decline of 7,125.95% from a profit of ¥11,857,416.70 in the previous year[22]. - The total profit for 2019 was CNY -823,210,081.12, representing a decline of 4,726.24% compared to the previous year[42]. - The company's equity assets increased by CNY 36,794,800, a year-on-year growth of 54.80% due to profit growth from joint ventures[35]. - The company reported a basic and diluted earnings per share of -¥2.750, a decrease of 6,975.00% from ¥0.040 in 2018[22]. - The weighted average return on net assets was -65.97%, down 66.69% from 0.72% in the previous year[22]. - The company reported a net profit of -833,095,593.05 CNY for 2019, representing a significant decline compared to a profit of 11,857,416.70 CNY in 2018[96]. Revenue and Sales - Revenue from water treatment engineering dropped by 43.05% to ¥246,996,519.23, down from ¥433,672,874.89 in the previous year[51]. - Sales of membrane products increased by 19.43% to ¥151,813,492.44, compared to ¥127,111,552.38 in 2018[51]. - Domestic revenue accounted for 98.04% of total revenue, totaling ¥506,247,162.38, a decrease of 25.35% from the previous year[51]. - The company aims to enhance its market competitiveness by increasing marketing efforts and expanding external collaborations to boost membrane product sales significantly in 2020[86]. - The company plans to focus on membrane system integration projects, particularly in municipal water supply and wastewater reuse, to maintain contract growth and stable operational scale[87]. Research and Development - The company has developed hundreds of patents and non-patent technologies, achieving domestic leading and internationally advanced levels in ultrafiltration and microfiltration membrane products[8]. - Research and development expenses increased by CNY 1,702,600, a growth of 80.93% year-on-year, driven by internal development expenditures for seawater utilization projects[36]. - The company's R&D investment in 2019 amounted to approximately ¥65.21 million, representing 12.63% of total revenue, an increase from 9.15% in 2018[66]. - The company is developing two types of membrane materials for seawater desalination and comprehensive utilization, aiming to enhance domestic membrane product industrialization[64]. - The company has completed the development of high-efficiency oil-water separation materials and equipment for emergency response to oil spills[63]. Competition and Market Environment - The company faces intensified competition from international firms entering the Chinese market, prompting increased R&D investment and market expansion efforts[5]. - The water treatment industry is expected to experience rapid growth due to increasing government support and policies aimed at addressing water resource shortages and pollution[85]. - The company is committed to maintaining its competitive edge in the membrane technology sector through continuous innovation and strategic initiatives[5]. Asset Management and Financial Health - The total assets at the end of 2019 were ¥2,020,568,158.97, down 31.84% from ¥2,964,451,122.08 in 2018[22]. - The net assets attributable to shareholders decreased by 50.43% to ¥832,482,436.67 from ¥1,679,446,069.17 in 2018[22]. - The company has implemented strict accounts receivable management policies and established a dedicated team to address large or overdue receivables[6]. - The company is focusing on improving financial and capital management to enhance asset liquidity and quality amid challenging external economic conditions[47]. - The company has reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[104]. Shareholder and Governance Issues - The board approved a profit distribution plan, proposing no cash dividends or bonus shares for shareholders, with a base of 302,065,356 shares[9]. - The company has not distributed any cash dividends or stock bonuses in the past three years, including the current reporting period[93]. - The company has commitments related to performance guarantees, with net profit commitments for the target company set at no less than 25 million CNY, 32.5 million CNY, and 42.25 million CNY for the years 2016, 2017, and 2018 respectively[96]. - The restructuring will enhance the governance mechanism of Tianjin Membrane Technology Co., Ltd., increasing its independence and aligning with the interests of all shareholders[97]. - The company has committed to maintaining independence in business, assets, finance, personnel, and institutions post-restructuring[97]. Legal and Compliance Matters - The company has ongoing litigation involving a construction contract dispute with Wangneng Environment Co., Ltd., with an involved amount of RMB 17.30 million[131]. - Another litigation regarding a loan dispute with Jiangsu Mountain Spring Membrane Environmental Engineering Technology Co., Ltd. has an involved amount of RMB 24.43 million, which is currently awaiting trial[132]. - The company has not faced any situations that could lead to suspension or termination of listing[130]. - There are no significant penalties or rectification measures applicable to the company during the reporting period[133]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[104]. - New product development includes the launch of a next-generation membrane technology, expected to enhance efficiency by 25%[105]. - The company is investing 100 million RMB in R&D for innovative membrane solutions over the next three years[104]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of $100 million allocated for potential deals[199]. - Future outlook remains positive, with a focus on innovation and market leadership in the industry[200].