SG(SH:600734)2015-04-24 16:00Financial Performance - The company reported a net profit of -39,571,521.16 RMB for 2014, a decrease of 640.49% compared to the previous year[25]. - Total revenue for 2014 was 195,034,744.98 RMB, representing a 75.98% increase from 110,825,757.63 RMB in 2013[25]. - The company's total assets increased by 31.14% to 1,575,691,501.38 RMB compared to 1,201,490,974.10 RMB in 2013[25]. - The net assets attributable to shareholders decreased by 25.25% to 117,143,318.11 RMB from 156,714,839.27 RMB in 2013[25]. - The basic earnings per share for 2014 was -0.1126 RMB, a decline of 641.35% from 0.0208 RMB in 2013[26]. - The weighted average return on equity was -28.8993% in 2014, a decrease of 33.51 percentage points compared to 4.6096% in 2013[26]. - The company did not distribute profits for the year due to a negative profit allocation of -387,337,726.71 RMB[3]. - Cash flow from operating activities was -282,977,236.69 RMB, a significant decline of 642.98% from -38,086,938.27 RMB in 2013[25]. - The company reported a net loss attributable to ordinary shareholders of 39.57 million yuan in 2014, a decrease of approximately 4.69 million yuan compared to a net profit of 0.73 million yuan in 2013, mainly due to a significant reduction in investment income and increased financial expenses[31]. - The company reported a net loss of ¥456,637,570.78, worsening from a loss of ¥417,066,049.62 in the previous period, a decline of 9.49%[59]. Revenue Sources - The company achieved operating revenue of 195.03 million yuan in 2014, a 75.98% increase compared to 110.83 million yuan in 2013, primarily due to increased real estate sales revenue[31]. - The company reported a significant increase in real estate revenue, amounting to 178,032,063.00, compared to 18,735,472.61 in the previous year[54]. - The cost of real estate development was 110,992,097.35, representing 91.27% of total costs, a substantial increase from 8,340,705.92 the previous year[48]. - The company’s electronic business generated revenue of 11.96 million yuan but reported a net loss of 420.88 thousand yuan[40]. Expenses and Liabilities - The company’s sales expenses increased by 211.71% to 19.82 million yuan compared to 6.36 million yuan in the previous year[43]. - The company’s financial expenses surged by 191.09% to 55.79 million yuan from 19.17 million yuan in the previous year[43]. - The company’s other payables increased by 38.85% to ¥328,851,477.23, indicating a rise in payable transactions[58]. - The company has provided guarantees totaling ¥65 million to third parties, which represents 76.94% of the company's net assets[108]. Assets and Investments - Cash and cash equivalents increased to ¥72,039,793.68, representing 4.57% of total assets, up 48.43% from the previous period[58]. - Accounts receivable decreased significantly by 79.55% to ¥1,111,685.37, indicating a recovery of trade receivables[58]. - Inventory rose to ¥1,216,420,945.96, accounting for 77.20% of total assets, an increase of 40.94% due to increased real estate development products[58]. - Short-term borrowings reached ¥62,000,000.00, reflecting new loans in the real estate sector[58]. - Long-term borrowings increased by 83.50% to ¥367,000,000.00, indicating a rise in financing for real estate projects[58]. Strategic Plans and Future Outlook - The company plans to address future operational risks as outlined in the board report, indicating a focus on strategic adjustments[10]. - The company expects to achieve approximately CNY 52 million in revenue for 2015, with estimated expenses and costs around CNY 132 million[69]. - In the real estate sector, the company anticipates a signed area of approximately 67,000 square meters and a signed amount of about CNY 489 million for 2015[69]. - The company plans to resume construction on the Changchun Rongchuang project, with an expected signed area of about 17,000 square meters and a signed amount of approximately CNY 189 million[69]. - The company aims to explore investment opportunities in mining and emerging industries with growth potential and sustainable profitability[68]. Corporate Governance and Shareholder Engagement - The company held four shareholder meetings during the reporting period to ensure equal treatment of all shareholders and to uphold their rights[85]. - The company published four periodic reports and 63 temporary announcements throughout the year, adhering to information disclosure obligations[85]. - The company has established a comprehensive internal management and control system to protect shareholder rights and promote healthy development[85]. - The company emphasized a "people-oriented" human resources management approach, focusing on improving employee working conditions and providing development opportunities[86]. - The company has not proposed any cash dividend distribution for the years 2012, 2013, and 2014 due to negative net profits[86]. Legal and Compliance Matters - A significant legal dispute arose with Liaoning Lotte Supermarket regarding a lease contract, with the court ruling in favor of the company, dismissing the plaintiff's claims for a penalty of RMB 20 million[92]. - The court's decision was upheld in a subsequent appeal, confirming the company's position and relieving it of the financial liability[93]. - The company has implemented new accounting standards effective July 1, 2014, which include several key financial reporting guidelines[114]. - The company’s financial statements for 2013 were deemed to fairly reflect its financial position as of December 31, 2013[200]. Management and Leadership - The company has maintained a stable management structure with no major changes in the board of directors[140]. - The company appointed a new board of directors on May 20, 2014, including Mr. Jing Baifu as chairman and Mr. Wang Qing as executive president[142]. - The company reported a significant leadership change with Mr. Li Chunyu resigning from the board on December 10, 2014, due to personal reasons[143]. - The company has a diverse leadership team with extensive experience in finance and real estate, including Mr. Hou Jiwei, who previously served as CFO at Century Internet Data Center[142]. Employee and Community Engagement - The company has established a training plan requiring general employees to undergo at least 24 hours of training annually, while middle and senior management must complete at least 56 hours[152]. - The company has established a non-profit club for property owners in the "Rongchuang Shangcheng" project, promoting cultural exchange and community engagement[87]. - The company emphasizes the importance of providing a healthy and safe working environment for employees, organizing annual health check-ups and various cultural activities to enhance team cohesion[87]. Environmental Responsibility - In the real estate sector, the company integrates "energy-saving and environmental protection" concepts into project development, applying new materials and technologies to minimize pollution and energy consumption[88]. - The company has implemented an environmental management system since 2005 and has received ISO14000 certification, ensuring strict recycling and waste management practices[88]. - The company plans to continue enhancing its social responsibility management system and strengthen communication with stakeholders in 2015[89].