Securities code: 603169 securities abbreviation: Lanzhou Ls Heavy Equipment Co.Ltd(603169) Announcement No.: pro 2022-015 Lanzhou Ls Heavy Equipment Co.Ltd(603169)
With regard to the announcement that the outstanding loss reaches one-third of the total paid in share capital, the board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. The 27th meeting of the Fourth Board of directors of Lanzhou Ls Heavy Equipment Co.Ltd(603169) (hereinafter referred to as "the company") deliberated and adopted the proposal on making up losses up to one third of the total paid in share capital. According to the 2021 annual audit report (dhsz [2022] No. 001250) issued by Dahua Certified Public Accountants (special general partnership) for the company, as of December 31, 2021, the undistributed profit in the consolidated financial statements of the company was -979216700 yuan, of which the undistributed profit of the parent company was -899222100 yuan and the paid in share capital was 1306291800 yuan, The amount of the company's outstanding losses still exceeds one third of the total paid in share capital.
1、 Main reasons for losses
(I) main reasons for losses in 2018
First, affected by the decline of China's economic growth, the company's downstream industry investment slows down, the market capacity is insufficient, and the competition intensifies, resulting in the continuous decline of the order price signed in the early stage, and the rise of raw material prices, resulting in the rise of material costs in product costs. Second, with the completion of projects such as Lanzhou New Area going out of the city and entering the park, Qingdao nuclear power plant and Xinjiang plant, while the production capacity is improved, the fixed costs or relative fixed costs such as depreciation of fixed assets, kinetic energy and labor costs have increased significantly, which is affected by the increase of amortization expenses, The labor cost (labor cost, processing cost, depreciation cost and other manufacturing expenses) in the cost of products produced in the current year increased significantly. Under the comprehensive influence of the above factors, the company's main business suffered a large loss in 2018, and the net profit attributable to the shareholders of the listed company was -1510737700 yuan.
(II) main reasons for losses in 2020
First, affected by the epidemic, the sales volume of products of the company and its subsidiaries decreased, resulting in the decline of annual operating income. However, the fixed or relatively fixed costs such as depreciation of fixed assets, kinetic energy and labor cost of the company were relatively high, resulting in the loss of the company's main business; Second, according to the accounting standards and other relevant provisions, the company has made some impairment provisions for inventories, receivables and contract assets as of December 31, 2020; Third, affected by the epidemic, the acquisition of key projects followed up by the subsidiary Luoyang Ruize Petrochemical Engineering Co., Ltd. (hereinafter referred to as "Ruize petrochemical") in the early stage, especially overseas projects, the owner's investment progress slowed down, coupled with the impact of delayed resumption of work and production, Ruize Petrochemical's operating performance declined in 2020, and the company made provision for goodwill impairment. Under the comprehensive influence of the above factors, the net profit attributable to the shareholders of the listed company in 2020 was -284.7406 million yuan.
Due to the losses in 2018 and 2020, the amount of outstanding losses in previous years is large. Although the company's operating performance in 2021 has turned around losses and increased profits, the amount of outstanding losses still exceeds one-third of the total paid in share capital.
2、 Countermeasures
Up to now, the operation of the company and its subsidiaries is normal. The main measures for making up losses in 2022 are as follows:
First, innovate marketing concepts and enhance market competitiveness. Continue to promote the linkage between performance and contribution, and increase the incentive of "marketing revenue" sharing; Adhere to R & D leading sales, and constantly strengthen the linkage and synergy of sales and procurement; Set up a special market development team to seize the development opportunities of regional construction projects and energy agglomeration. Second, adhere to the benefit orientation and promote industrial value management. Continue to promote the vertical implementation of "amoeba" and constantly stimulate the business vitality of "amoeba" at all levels; Expand the market increment of photovoltaic polysilicon, nuclear energy, hydrogen energy equipment and military industry; Continuously break through the development mode of inspection and maintenance business; The subsidiary adheres to the development of "specialization and innovation" and promotes the transformation of its business to products with large market demand and considerable profit margin. Third, deepen the improvement of quality and efficiency and comprehensively improve the management level. Strengthen operation control and improve production and operation quality; Improve the supplier platform and strengthen material procurement management; Strengthen risk prevention and control and comprehensively improve the internal control system; Innovate production organization mode and strengthen quality control; Compact the main responsibility and improve the level of safety management; Accelerate the construction of "three modernizations" and improve operation efficiency; Increase the recovery of payment for goods and optimize the reward and punishment assessment system. Fourth, steadily promote the mixed reform and give full play to the efficiency of capital operation. Study and judge the development trend of upstream and downstream energy industry, deeply tap the resources of all parties, and select the target companies with competitive advantages in technology, market and other fields such as hydrogen energy, nuclear power and environmental protection to carry out investment and M & A. Fifth, promote scientific and technological innovation and plant industrial development advantages. Continuously strengthen the construction of scientific and technological R & D platform, build professional R & D departments such as new energy and new business by integrating design and manufacturing R & D resources, realize the transformation of achievements, accelerate the implementation of key projects with market core competitiveness, and continuously improve the profitability of the company.
It is hereby announced.
Lanzhou Ls Heavy Equipment Co.Ltd(603169) board of directors February 19, 2022
