NNCI(SH:600301)2018-02-09 16:00Financial Performance - The company's operating revenue for 2017 was approximately ¥214.16 million, representing a 198.51% increase compared to ¥71.74 million in 2016[20]. - The net profit attributable to shareholders for 2017 was approximately -¥32.48 million, a decrease of 640.05% from a profit of ¥6.01 million in 2016[20]. - The net cash flow from operating activities was approximately ¥55.48 million, a significant improvement from -¥74.24 million in 2016[20]. - The total assets at the end of 2017 were approximately ¥755.41 million, a decrease of 21.84% from ¥966.44 million at the end of 2016[21]. - The total liabilities amounted to ¥572.13 million, down 22.19% compared to the previous year[30]. - The company reported a weighted average return on equity of -12.85%, a decrease of 15.18 percentage points from the previous year[25]. - The company recorded a loss of RMB 72.90 million from its subsidiary, while the parent company achieved a profit of RMB 4.70 million through trade and inventory management[31]. - The company reported a total comprehensive income of -¥68,199,008.28 for the current period, compared to -¥19,559,606.14 in the previous period[140]. Assets and Liabilities - Total assets decreased from ¥966,437,931.49 to ¥755,408,587.95, a decline of approximately 22%[133]. - Total liabilities decreased from ¥735,321,542.33 to ¥572,133,207.07, a reduction of about 22%[133]. - The total current assets decreased from RMB 559,301,654.42 to RMB 398,778,380.25, a reduction of approximately 28.7%[132]. - The total non-current assets decreased from RMB 407,136,277.07 to RMB 356,630,207.70, representing a decline of about 12.4%[132]. - The total liabilities of the subsidiary were 480.47 million RMB, representing 83.98% of the consolidated total liabilities, with a net asset value of -119.33 million RMB[166]. Operational Challenges - The company has no production operating assets, and its subsidiary faced delays in construction due to land delivery issues, raising concerns about the company's going concern ability[4]. - The company has disclosed significant risks related to its operations, including the inability to resume normal production activities within three months[7]. - The construction of the Nanning Oasis Chemical project has been delayed due to land delivery issues, impacting the company's operational performance and future development[62]. - The company is facing significant uncertainty regarding its ability to continue as a going concern due to the financial condition of its subsidiary[120]. Business Strategy and Future Outlook - The company plans to gradually reduce its original business volume of liquid alkali and hydrochloric acid, focusing on recovering and reducing accounts receivable[30]. - The company intends to transfer 51% of its stake in Nanning Oasis Chemical Co., Ltd. to its controlling shareholder for RMB 1, although this transaction was not approved by the shareholders[30]. - The company plans to diversify its business structure from chemical product trading to a more diversified operation to enhance profitability and mitigate operational difficulties[62]. - Future guidance suggests a cautious but optimistic outlook for revenue growth in the next fiscal year[94]. Governance and Compliance - The company appointed Ruihua Certified Public Accountants as the auditor for the 2017 fiscal year, with an audit fee of RMB 230,000[67]. - The board of directors and management have adhered to legal and regulatory requirements, ensuring compliance with corporate governance standards[106]. - The company has not faced any penalties from securities regulatory agencies in the past three years[101]. - The financial statements prepared by the company comply with the requirements of the accounting standards and reflect the financial position as of December 31, 2017, and the operating results for the year[168]. Employee and Management Information - The total number of ordinary shareholders at the end of the reporting period was 10,621, an increase from 10,292 at the end of the previous month[83]. - The total number of employees in the parent company is 380, with a combined total of 386 employees including major subsidiaries[102]. - The company implemented training for 45 personnel in 2017, focusing on professional management and skills development[103]. - The company has established a performance evaluation and incentive mechanism for senior management, in accordance with its compensation plan[113]. Legal Matters - The company is involved in a significant lawsuit regarding a contract dispute, with a claim for RMB 13.64 million in unpaid goods, and a settlement amount of RMB 15,327,217.02[68]. - Another ongoing lawsuit involves a construction contract dispute, with a total claim amount of RMB 19,401,717.46 for overdue payments and penalties[69]. - The company has no major litigation or arbitration matters pending as of the report date[72]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the going concern assumption, adhering to the relevant accounting standards[164]. - The company uses RMB as its functional currency for accounting purposes[171]. - The company assesses financial assets for impairment at each reporting date, recognizing impairment losses when there is objective evidence of impairment[194]. - The company recognizes foreign exchange differences related to foreign currency monetary items in profit or loss, except for certain capitalized amounts[185].