LONTRUE(SZ:300175)2024-04-26 11:44Financial Performance - In 2023, the company achieved operating revenue of RMB 220,239,975.13, while the net profit attributable to shareholders was a loss of RMB 53,625,494.75[3]. - The company's operating revenue for 2023 was ¥220,239,975.13, representing a 2.14% increase compared to ¥215,628,861.10 in 2022[27]. - The net profit attributable to shareholders for 2023 was ¥53,625,494.7, a significant decrease of 93.21% from ¥93,226,923.6 in 2021[25]. - The net cash flow from operating activities for 2023 was ¥5,841,595.09, reflecting a decline of 114.71% compared to ¥30,282,777.2 in 2022[25]. - The total assets at the end of 2023 were ¥662,488,290.76, down 7.02% from ¥712,114,134 in 2022[25]. - The company's basic earnings per share for 2023 was -0.11, a decrease of 83.33% from -0.20 in 2021[25]. - The net profit after deducting non-recurring gains and losses was negative for the last three accounting years, indicating ongoing financial challenges[26]. - The company reported a total of ¥2,135,913.19 in non-recurring gains for 2023, a decrease from ¥10,262,393.47 in 2022[34]. - The company experienced a significant drop in net profit attributable to shareholders in the first quarter of 2023, with a loss of ¥709,870.73[29]. Business Operations - The primary reason for the loss was the stagnation of the subsidiary Youxi United's business, leading to a credit impairment loss of approximately RMB 57,213,100[3]. - The company plans to continue focusing on its core business while managing non-core income sources effectively[27]. - The company has established partnerships with well-known brands such as Starbucks and Three Squirrels, enhancing its market presence[42]. - The company aims to accelerate domestic market development and explore new product innovations to capitalize on the growing demand for baked goods[42]. - The company has invested in advanced cold chain technology to ensure product quality and competitiveness[42]. - The company has a cold storage capacity of over 70,000 tons, enhancing product quality and storage duration[50]. - The company sourced agricultural products worth ¥113,441,000 from farmers, accounting for 65.64% of total procurement[46]. - The manufacturing sector contributed ¥185,609,786.41, accounting for 84.28% of total revenue, with a year-on-year growth of 2.55%[54]. - The revenue from dried fruits increased by 33.79% to ¥100,193,258.91, while fresh fruit revenue decreased by 17.54% to ¥59,728,273.33[54]. - The company achieved a gross margin of 7.48% in the manufacturing sector, a slight increase of 2.62% year-on-year[56]. Risk Management - The company faces potential risks including cyclical risks in the agricultural market and trade barriers, which are detailed in the management discussion section[6]. - The company does not foresee major risks to its ongoing operations[3]. - The company has acknowledged uncertainties regarding its ability to continue as a going concern, as indicated in the recent audit report[26]. - The company recognizes the cyclical risks in the agricultural market and plans to utilize its cold chain storage and production technology to mitigate these impacts[85]. - The company faces risks related to trade barriers, particularly in the Indonesian market, and is strengthening its market development efforts in Southeast Asia[85]. Corporate Governance - The company has maintained a stable management team with no changes in shareholding among key executives during the reporting period[99]. - The chairman and general manager, Qi Yongmang, has been with the company since April 2012 and has held multiple positions[101]. - The financial director, Zhang Lina, has been with the company since July 1999, indicating strong internal continuity[102]. - The independent director, Liu Jiahou, has extensive experience in finance and has served in various capacities since 2009[102]. - The company is focused on maintaining governance structures and ensuring the stability of its board members[99]. - The company’s board of directors held four meetings during the reporting period, with all members attending[110]. - The company received a warning letter from the Shandong Securities Regulatory Bureau on April 26, 2023, regarding the chairman and financial director[105]. - The company’s independent directors and supervisors have been in their positions since 2009 and 2011 respectively, ensuring continuity in governance[104]. - The company has established a framework for corporate governance that is effectively executed, ensuring the proper functioning of the general meeting of shareholders, board of directors, and supervisory board[127]. Shareholder Engagement - The annual shareholders meeting had a participation rate of 24.06% on May 19, 2023[97]. - The first extraordinary shareholders meeting had a participation rate of 24.01% on November 13, 2023[98]. - The company continues to emphasize the importance of shareholder engagement through its meetings[97]. - The total number of ordinary shareholders at the end of the reporting period was 18,269, while it was 19,027 at the end of January[191]. - The report indicates that there are no shareholders participating in margin trading or securities lending[192]. Audit and Compliance - The financial report received a qualified audit opinion from Zhongxing Caiguanghua Accounting Firm, with detailed explanations provided in the report[3]. - The company has acknowledged the non-standard audit opinion and is committed to implementing effective measures to mitigate its impact on financial performance[152]. - The audit report highlighted that the issues identified do not affect the overall fairness of the financial statements, except for the matters leading to the qualified opinion[149]. - The company has taken measures to address the issues raised in the audit report, including sending lawyer letters to debtors for collection and organizing litigation materials[154]. - The company has identified accounting errors leading to inflated financial reports from 2018 to 2021, resulting in a correction of 36.64 million CNY in accounts receivable and 42.16 million CNY in revenue[164]. Employee Management - The total number of employees at the end of the reporting period is 276, with 263 from the parent company and 13 from major subsidiaries[117]. - The employee composition includes 166 production personnel, 28 sales personnel, 28 technical personnel, 10 financial personnel, and 44 administrative personnel[117]. - The company has established a differentiated compensation policy to enhance competitiveness in the industry and region, focusing on performance incentives[118]. - A comprehensive training plan has been implemented, covering various aspects such as company regulations, employee professionalism, and marketing skills[119]. - The company is committed to continuous improvement and optimization of its compensation system to motivate employees and enhance their sense of belonging[118]. Legal Matters - The company has not received the remaining performance compensation payments for the years 2019, 2020, and 2021, as the net profit attributable to the parent company after deducting non-recurring gains and losses was below the performance commitment[87]. - The company has initiated legal proceedings to recover the performance compensation for 2019, but there is uncertainty regarding the recovery due to the insufficient compensation ability of the obligated parties[87]. - There is a significant risk regarding the recovery of funds occupied by Zhang Tao due to suspected false transactions, with no clear timeline for recovery[87]. - The company has sent a lawyer's letter to Zhang Tao and may file a lawsuit based on its financial situation in the future[87]. - The company plans to accelerate the disposal of its assets to mitigate negative impacts on the consolidated financial statements[87]. Environmental and Social Responsibility - The company has implemented measures to reduce carbon emissions, including promoting paper-saving practices and encouraging energy conservation among employees[131]. - The company has not conducted any targeted poverty alleviation work during the reporting period and has no subsequent plans[135]. - The company emphasizes employee rights protection by adhering to labor laws and fostering a harmonious labor relationship[132]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[130].