TMMT(SZ:300334)2020-05-07 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[23]. - 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[23]. - 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[23]. - The net assets attributable to shareholders decreased by 50.43% to ¥832,482,436.67 from ¥1,679,446,069.17 in 2018[23]. - The company reported a basic and diluted earnings per share of -¥2.750, a decrease of 6,975.00% from ¥0.040 in 2018[23]. - The total profit for 2019 was CNY -823,210,081.12, representing a decline of 4,726.24% compared to the previous year[43]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous year[106]. Accounts Receivable and Management - The company reported a significant increase in accounts receivable due to the long implementation cycle of membrane engineering projects, leading to a growing trend in absolute value[7]. - The company has established a strict accounts receivable management system and has made adequate provisions for bad debts in accordance with relevant accounting standards[7]. - The company faced liquidity issues due to a high volume of accounts receivable and slow project progress, prompting efforts to recover outstanding payments[48]. - Accounts receivable increased to ¥317,831,260.31, representing 15.73% of total assets, up from 14.48% at the beginning of the year, an increase of 1.25%[73]. Research and Development - The company has achieved a leading position in domestic membrane technology, with its ultrafiltration and microfiltration membranes reaching international advanced levels[9]. - The company has developed hundreds of patents and non-patent technologies, breaking the long-standing technological monopoly of developed countries[9]. - The company completed five research projects in 2019, including two national-level projects and three provincial-level projects[47]. - The company applied for 47 new patents in 2019, including 23 invention patents[47]. - Research and development expenses increased by 3.82% from ¥62,809,725.60 in 2018 to ¥65,207,624.59 in 2019[63]. - The company is developing large-scale equipment for seawater desalination and comprehensive utilization of water resources[65]. - The company has completed the development of high-efficiency oil-water separation materials and equipment for emergency response to thin oil films and hazardous materials[64]. 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[52]. - Sales of membrane products increased by 19.43% to ¥151,813,492.44, compared to ¥127,111,552.38 in 2018[52]. - Domestic revenue accounted for 98.04% of total revenue, totaling ¥506,247,162.38, which is a 25.35% decrease from the previous year[52]. - The company reported a significant increase in non-operating income from government subsidies amounting to ¥11,251,853.91 in 2019[29]. Corporate Governance and Restructuring - The company has established a complete corporate governance structure in compliance with the Company Law and Securities Law, ensuring no adverse effects from the restructuring[98]. - The actual controller, Tianjin University, commits to avoiding any direct or indirect competition with Tianjin Membrane Technology's main business post-restructuring[98]. - The restructuring is expected to strengthen the company's governance and operational independence, benefiting its overall strategic direction[98]. - The company has committed to maintaining independence in business, assets, finance, personnel, and institutions from Tianjin University and its affiliates[98]. Financial Instruments and Standards - The company has implemented new financial instrument standards effective from January 1, 2019, which require a shift to an expected credit loss model for impairment[113]. - The new financial instrument standards classify financial assets into three categories based on their cash flow characteristics and management business model[113]. - The impairment provision for accounts receivable increased from CNY 74,270,153.52 to CNY 75,179,677.04 due to remeasurement adjustments[119]. Environmental and Social Responsibility - The company has completed the construction of pollution prevention facilities, which are operating normally, and has reported the temporary suspension of wastewater treatment facilities to the ecological environment bureau[152][153]. - The company has established an emergency response plan for environmental incidents, which was filed with the Tianjin Economic and Technological Development Zone Environmental Supervision Team on May 29, 2019[155]. - The company conducts regular monitoring of wastewater discharge parameters through a third-party testing service[156]. Future Outlook and Strategy - The company aims to enhance its market competitiveness by increasing marketing efforts and expanding external collaborations to drive significant growth in membrane product sales in 2020[87]. - The strategic focus for 2020 includes concentrating on membrane system integration projects, particularly in municipal water supply and wastewater reuse sectors[88]. - The overall industry outlook is positive, driven by increasing government support and policies aimed at water resource protection and pollution control, creating a favorable environment for growth[86].