DFGC(000679)2024-04-17 11:18Revenue and Financial Performance - Retail revenue in 2023 was RMB 155.5394 million, accounting for 95.23% of total revenue, making it the main component of the company's operating income[32] - The company's total revenue in 2023 was RMB 163.3365 million[32] - The company's retail revenue accounted for 95.23% of total revenue in 2023[32] - The company's retail revenue was RMB 155.5394 million in 2023[32] - The company's total revenue was RMB 163.3365 million in 2023[32] - The company's retail revenue was the main component of its operating income in 2023[32] - The company's retail revenue accounted for 95.23% of total revenue in 2023[32] - Revenue for 2023 was 155,705,602.28 RMB, an increase from 146,237,442.19 RMB in 2022[132] - Total operating revenue for 2023 was RMB 163.34 million, an increase from RMB 149.46 million in 2022[175] - Total operating costs for 2023 were RMB 190.14 million, a decrease from RMB 213.87 million in 2022[175] - Company's operating profit for 2023 was -35,553,940.56 RMB, a decrease from -59,774,500.90 RMB in 2022[129] - Company's net profit for 2023 was -45,350,935.11 RMB, compared to -59,797,554.10 RMB in 2022[129] - Operating costs for 2023 were 119,351,705.00 RMB, slightly higher than 116,433,094.55 RMB in 2022[132] - Sales expenses decreased to 18,846,191.12 RMB in 2023 from 23,889,032.70 RMB in 2022[132] - Management expenses decreased to 26,562,424.44 RMB in 2023 from 27,642,092.93 RMB in 2022[132] - Financial expenses decreased to 1,093,704.11 RMB in 2023 from 1,831,744.94 RMB in 2022[132] - Basic and diluted earnings per share for 2023 were -0.10 RMB, compared to -0.14 RMB in 2022[132] - Interest expenses amounted to 1,658,745.11, while interest income was 2,326,916.51[136] - Other income increased to 221,456.25 from 25,767.17[136] - Credit impairment loss was -207,080.67, compared to a previous gain of 4,268,511.09[136] - Asset impairment loss was -20,249.71, compared to a previous gain of 134,088.78[136] - Operating profit showed a loss of -17,574,367.45, compared to a previous loss of -25,747,629.92[136] - Total comprehensive income for the period was -17,559,433.41, compared to a previous loss of -25,727,360.54[138] - The company reported a net loss of -17,559,433.41 for the period[136] - The company reported a net loss of RMB 45.35 million for the current period and a cumulative loss of RMB 291.40 million as of December 31, 2023[152] - The company's operating cash flow for 2023 was negative RMB 5.62 million[152] - The company's current liabilities exceed current assets by RMB 411.63 million[152] - The company owes RMB 272.77 million and RMB 57.50 million to its related parties, Wuhan Credit Investment Group Co., Ltd. and Wuhan Credit Risk Management Financing Guarantee Co., Ltd., respectively[152] - The company's financial statements are prepared on a going concern basis, supported by continued financial assistance from its parent company and related parties[152] - The company's total equity at the end of the period was 275,213,918.69[147] - The company's total equity at the beginning of the period was 362,407.90[148] - The company's total equity decreased by -59,700 during the period[148] - Total liabilities for 2023 were RMB 1.30 billion, compared to RMB 1.25 billion in 2022[175] - Total owner's equity for 2023 was RMB 236.60 million, a decrease from RMB 254.16 million in 2022[175] Assets and Liabilities - The company's monetary funds increased to 1.242 billion yuan, accounting for 13.00% of total assets, up by 1.89% compared to the beginning of the year[39] - Accounts receivable rose to 8.503 million yuan, representing 0.89% of total assets, an increase of 0.59% from the start of the year[39] - Short-term loans surged to 38.465 million yuan, making up 4.02% of total assets, a significant increase of 3.15% compared to the beginning of the year[39] - The company's fixed assets decreased to 184.563 million yuan, accounting for 19.30% of total assets, down by 0.91% from the beginning of the year[39] - Construction in progress amounted to 371.244 million yuan, representing 38.82% of total assets, a slight decrease of 0.35% compared to the start of the year[39] - The company's total current assets reached 263.783 million yuan, up from 244.237 million yuan at the beginning of the year[48] - The company's inventory remained stable at 37.014 million yuan, accounting for 3.87% of total assets, with no change from the beginning of the year[39] - The company's contract liabilities decreased to 43.773 million yuan, representing 4.58% of total assets, down by 0.24% from the start of the year[39] - The company's use rights assets decreased to 5.331 million yuan, accounting for 0.56% of total assets, down by 0.52% from the beginning of the year[39] - Fixed assets decreased from 195,846,688.23 to 184,563,043.06, a decline of 5.76%[51] - Construction in progress decreased from 379,528,066.53 to 371,243,766.53, a decline of 2.18%[51] - Total non-current assets decreased from 724,751,345.01 to 692,538,202.91, a decline of 4.45%[51] - Short-term borrowings decreased from 8,400,000.00 to 38,464,533.33, an increase of 357.91%[51] - Accounts payable decreased from 46,861,083.69 to 52,920,543.92, an increase of 12.93%[51] - Contract liabilities decreased from 46,686,943.80 to 43,772,846.44, a decline of 6.24%[51] - Total current liabilities increased from 642,501,464.51 to 675,413,643.23, an increase of 5.12%[54] - Total liabilities increased from 648,423,194.44 to 681,107,408.04, an increase of 5.04%[54] - Retained earnings decreased from -254,232,166.01 to -291,399,101.89, a decline of 14.62%[54] - Total assets decreased from 968,988,048.24 to 956,321,326.73, a decline of 1.31%[51] - The company's total assets as of the end of the period were RMB 356,400,000.00, with total equity of RMB 254,161,548.76[111] Business Structure and Strategy - The company's main business structure was adjusted in 2004 to focus on retail, hotel, and real estate industries, supplemented by other strategic investments[14] - The company's retail business plans to optimize product categories and expand sales channels in response to changing consumer trends and local government consumption promotion policies[88] - The company's real estate business will focus on the transformation and development of the Dalian Jinshigu project, seeking opportunities for cooperative development[88] - Retail industry in 2024 will focus on expanding consumption, improving market and circulation systems, and promoting the integration of online and offline retail to enhance efficiency and customer experience[121] - Real estate market in 2024 faces both opportunities and challenges, with policy adjustments expected to support reasonable financing needs for real estate enterprises and promote the construction of affordable housing and urban village renovation[121] Subsidiaries and Investments - The company invested 5 million yuan in establishing a new subsidiary, Dalian Yingchi Trading Co., Ltd., with a 100% ownership stake[44] - Dalian Friendship Hesheng Real Estate Development Co., Ltd., a subsidiary, reported a net loss of RMB 2,033,813.71 for the year[117] - Jiangsu Friendship Hesheng Real Estate Development Co., Ltd., another subsidiary, achieved a net profit of RMB 14,614,011.82[120] - Dalian Friendship Jinshigu Club Co., Ltd., a subsidiary, reported a significant net loss of RMB 39,609,629.51[120] - Suzhou Huiyin Hesheng Real Estate Investment Fund Partnership (Limited Partnership), a subsidiary, reported a minor net loss of RMB 1,543.72[120] - Dalian Yingchi Trading Co., Ltd., a wholly-owned subsidiary, reported a net loss of RMB 247,994.46[120] - The company consolidates financial statements based on control, including all subsidiaries within the consolidation scope[189] - For non-common control acquisitions, the company adjusts the subsidiary's financial statements based on the fair value of identifiable net assets at the acquisition date[189] - Subsidiaries added during the reporting period due to non-common control acquisitions are included in the consolidated financial statements from the acquisition date to the end of the reporting period[190] - The company re-measures the fair value of previously held equity in non-common control acquisitions, with any difference between fair value and book value recognized as investment income[193] - When disposing of subsidiaries, the company includes the subsidiary's income, expenses, and cash flows from the beginning of the reporting period to the disposal date in the consolidated financial statements[193] - The company classifies joint arrangements as either joint operations or joint ventures based on structure, legal form, and contractual terms[196] - For joint operations, the company recognizes its share of assets, liabilities, revenues, and expenses[197][199] Corporate Governance and Compliance - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[6] - The company's registered address was changed in January 2023 from "No. 1, Qiyi Street, Zhongshan District, Dalian City, Liaoning Province" to "No. 5, Qiyi Street, Zhongshan District, Dalian City, Liaoning Province"[23] - The company's internal control evaluation report was fully disclosed on April 18, 2024, covering 100% of the total assets and operating income of the consolidated financial statements[61] - The quantitative criteria for significant deficiencies in financial reporting include potential misstatements exceeding 1% of operating income, 5% of total profit, or 1% of total assets[61] - The company and its subsidiaries do not belong to industries classified as heavily polluting by national environmental protection authorities[64] - The company held its 2023 Annual General Meeting on May 5, 2023, with a 28.26% investor participation rate[182] - The company held its 2023 First Extraordinary General Meeting on January 20, 2023, with a 28.41% investor participation rate[182] - The company maintains strict compliance with information disclosure regulations and ensures transparency through designated media and websites[176] - The company has independent operations in business, personnel, assets, organization, and finance, ensuring no reliance on controlling shareholders[180][181] - The company has no significant differences in corporate governance compared to legal and regulatory requirements[177] - The company respects the rights of stakeholders, including customers, employees, suppliers, and partners, and collaborates for sustainable development[176] Accounting Policies and Financial Reporting - The company's investment properties are measured using the cost model, with depreciation calculated based on expected useful life and residual value rate[86] - The company's fixed assets are recognized when economic benefits are likely to flow in and costs can be reliably measured[86] - The company uses the accrual basis of accounting and historical cost as the measurement basis for its financial statements, except for investment properties and certain financial instruments measured at fair value[153] - The company's accounting policies and estimates are detailed in specific sections of the financial report, including financial instrument impairment, receivables, fixed assets, intangible assets, and revenue recognition[154] - The company's financial statements comply with Chinese Accounting Standards and accurately reflect its financial position, operating results, and cash flows[155] - The company's fiscal year runs from January 1 to December 31[156] - The company uses RMB as its functional currency[158] - Cash and cash equivalents are defined as cash on hand, demand deposits, and short-term investments with maturities of three months or less[200] Risks and Challenges - The company faces macroeconomic risks, including potential consumer confidence decline and income growth uncertainty, which may impact its retail performance[89] - Intense market competition and the rise of online retail channels pose significant risks to the company's retail operations[89] - The company's real estate development and self-owned property operations face liquidity risks due to prolonged project cycles and delayed fund returns[89] - The company's control rights are pending due to unresolved litigation issues related to share freezing[113]