Sunasia(SH:600593)2018-03-28 16:00Financial Performance - The company's total revenue for 2017 was CNY 344,761,790.94, representing a 14.60% increase compared to CNY 300,836,319.98 in 2016[21]. - The net profit attributable to shareholders for 2017 was CNY 55,459,773.85, a significant increase of 65.31% from CNY 33,548,554.66 in 2016[21]. - The net profit excluding non-recurring gains and losses was CNY 48,622,857.13, which is a 25.43% increase from CNY 38,764,808.44 in 2016[21]. - Cash flow from operating activities for 2017 was CNY 104,964,173.45, an 18.82% increase compared to CNY 88,337,017.79 in 2016[21]. - Basic earnings per share increased by 65.29% to CNY 0.6028 in 2017 compared to CNY 0.3647 in 2016[22]. - The weighted average return on equity rose to 13.30% in 2017, an increase of 4.68 percentage points from 8.62% in 2016[22]. - The company reported a net profit attributable to shareholders of CNY 83,424,612.68 in Q3 2017, with a significant increase compared to previous quarters[24]. - The total operating revenue for Q2 2017 was CNY 88,433,849.53, showing growth from Q1 2017[24]. - The company reported a net loss of CNY 34,074,162.42 in Q4 2017, indicating challenges in the latter part of the year[24]. - Non-recurring gains and losses amounted to CNY 6,836,916.72 in 2017, contrasting with a loss of CNY 5,216,253.78 in 2016[27]. Assets and Liabilities - Total assets at the end of 2017 amounted to CNY 1,163,549,536.57, reflecting a 14.03% increase from CNY 1,020,392,402.41 at the end of 2016[21]. - The company's net assets attributable to shareholders increased to CNY 438,527,484.20, a 9.23% rise from CNY 401,467,710.35 in 2016[21]. - The total liabilities decreased by 73.41% for long-term borrowings, dropping to approximately ¥27.76 million from ¥104.41 million[4]. - The company reported a 501.67% increase in construction in progress, amounting to 229,750,883.77, due to project progress[79]. - The company's intangible assets increased by 188.58% to 202,430,225.09, mainly due to the acquisition of land use rights[79]. Capital and Dividend Policy - The company proposed a capital reserve conversion plan to increase share capital from 92,000,000 shares to 128,800,000 shares, with a distribution of 4 new shares for every 10 shares held[5]. - The company will not distribute cash dividends for the year, retaining profits for future development, despite having distributed CNY 36,800,000 in cash dividends over the past three years[5]. - The company proposed a profit distribution plan, including a 10% statutory surplus reserve of ¥6,885,057.55, and will not distribute cash dividends this year, retaining profits for future development[114]. - The independent directors expressed that the profit distribution and capital reserve transfer plan aligns with the long-term development of the company and protects the interests of all shareholders[115]. Strategic Development and Projects - The company has implemented the "Big White Whale Plan" since 2012 to drive its strategic development[29]. - The company is focusing on a full cultural industry chain development model, enhancing its competitive edge in the tourism sector[29]. - The company is developing the Zhenjiang Magic Ocean World project, with 100% completion of underground works and 80% completion of the second floor[52]. - The Kunming Big Whale Fantasy World project is in the planning stage, with land acquisition for 754 acres underway[52]. - The company plans to open several new projects, including the Zhenjiang Big Whale Magic Ocean World by summer 2019 and the Kunming Big Whale Fantasy World by 2020, with multiple other projects scheduled for completion between 2018 and 2021[94][95]. Market and Competition - The tourism industry is undergoing significant changes, with cultural tourism emerging as a new growth area, intensifying competition from both domestic and international brands[30]. - In 2017, 70% of domestic theme parks were operating at a loss, with only 10% achieving profitability; Dalian and Harbin projects were among the profitable ones[4]. - The company faced significant operational challenges due to market segmentation and competition, necessitating product upgrades and effective marketing strategies[69]. Marketing and Brand Development - The company's marketing strategy, "Big White Whale Plan," effectively combined online and offline marketing, contributing positively to brand promotion and customer traffic growth[61]. - The marketing strategy included over 40 exposures in central media and 3000+ reports in local media, significantly boosting brand awareness[41]. - The company has developed the "Whale MALL," a cultural and commercial complex in Dalian, expanding its audience reach[6]. Human Resources and Management - The company has implemented a strategic human resources system reform, linking employee compensation to performance metrics, enhancing overall performance management[46]. - The company has established a performance-based salary system, with annual salaries for senior management consisting of fixed and performance-based components[161]. - The company has a structured training system that includes various training programs tailored to different employee needs[163]. - The company has maintained strict independence from its controlling shareholder in personnel, assets, finance, and operations, ensuring independent accounting and risk management[167]. Governance and Compliance - The company has a comprehensive information disclosure system, ensuring timely and accurate communication with shareholders[168]. - The company adheres to legal and regulatory requirements in its governance practices, with no significant discrepancies noted[169]. - The board has held four meetings during the year, with all directors participating in accordance with company regulations[170]. - The company has established specialized committees within the board, including audit, strategy, nomination, and compensation committees, to enhance decision-making processes[170]. Social Responsibility - The company engaged in various social responsibility initiatives, including the rescue of two endangered sea lions, which were successfully rehabilitated[133]. - Over 10,000 students participated in educational programs and activities, including marine science classes and cultural events, promoting marine awareness[134]. - The company hosted multiple themed educational activities, reaching thousands of participants and providing free access to over 100 children with autism[134].