Sante(SZ:002159)2017-03-14 16:00Financial Performance - The company's operating revenue for 2016 was CNY 451.36 million, an increase of 5.30% compared to CNY 428.64 million in 2015[19]. - The net profit attributable to shareholders of the listed company for 2016 was a loss of CNY 53.94 million, a decrease of 225.42% from a profit of CNY 43.01 million in 2015[19]. - The net cash flow from operating activities was CNY 38.03 million, representing a 26.78% increase from CNY 30.00 million in 2015[19]. - The total assets at the end of 2016 were CNY 2.57 billion, an increase of 15.02% from CNY 2.24 billion at the end of 2015[19]. - The net assets attributable to shareholders of the listed company decreased by 14.11% to CNY 822.67 million at the end of 2016 from CNY 957.87 million at the end of 2015[19]. - The basic earnings per share for 2016 was -CNY 0.39, a decrease of 225.81% from CNY 0.31 in 2015[19]. - The weighted average return on net assets was -6.11% in 2016, down from 4.59% in 2015, indicating a significant decline in profitability[19]. Dividend and Financing - The company plans not to distribute cash dividends or issue bonus shares for the year[4]. - The company received a notice from the China Securities Regulatory Commission regarding the termination of the review of its administrative license application, which may impact future financing activities[6]. - There is uncertainty regarding the company's ability to turn a profit in 2017, with potential risks of stock delisting following the 2017 annual report disclosure[6]. Revenue Breakdown - In 2016, the company's total revenue for the four quarters was approximately CNY 451.37 million, with the highest revenue in Q3 at CNY 152.86 million[23]. - The net profit attributable to shareholders was negative in all quarters, with a total loss of approximately CNY 54.94 million for the year[23]. - The tourism segment accounted for 96.39% of total revenue, with a 6.40% increase year-on-year[46]. - The gross profit margin for the tourism segment was 50.55%, reflecting a decrease of 1.02% from the previous year[48]. Investments and Projects - The company aims to enhance its market competitiveness by integrating multiple projects into a brand chain, focusing on the "cableway + scenic area + camp" core product strategy[30]. - The company signed contracts for new projects, including Huayin Laoqiang and Yandang Mountain, to diversify its offerings[44]. - The company reported a total investment of 201,428,000 CNY in the Hubei Xianfeng Pingbaying Ecological Tourism Area, with a completion rate of 186.0%[71]. - The company is currently developing the Hubei Chongyang Junshui River Hot Spring Tourism Area, with an investment of 118,000,000 CNY and a completion rate of 62%[72]. Operational Challenges - The company faced ongoing losses in projects still in the market cultivation phase, such as the Keshiketeng project, which reported a net loss of -11.15 million yuan[43]. - Management and financial expenses increased due to consultancy fees related to fundraising termination, amounting to 9.30 million yuan[36]. - The company is facing increased competition from both domestic and international tourism operators, necessitating strategic adjustments to maintain its market position[89]. Employee and Management Structure - The total number of employees in the company is 2,036, with 1,963 from major subsidiaries and 73 from the parent company[186]. - The professional composition includes 1,157 production personnel, 118 sales personnel, 151 technical personnel, 120 financial personnel, 141 administrative personnel, and 349 management personnel[186]. - The company has a total of 12 directors and supervisors, with varying remuneration, including 0 RMB for some directors[183]. Regulatory Compliance and Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[114]. - The company has maintained a continuous relationship with its auditing firm for 26 years, with an audit fee of 800,000 yuan for the current period[113]. - The company has committed to not engaging in related party transactions that could conflict with its business operations[103]. Social Responsibility and Community Engagement - The company has helped 1,246 registered impoverished individuals achieve employment through its tourism projects, contributing to the local economy[138]. - The company has invested CNY 31,948.6 million in tourism poverty alleviation projects, with four projects initiated[140]. - The company allocated CNY 120 million for healthcare resources in impoverished regions and CNY 482.4 million for ecological protection projects[143].