Yuancheng(SH:603388)2025-04-29 17:00Financial Performance - The net profit attributable to the parent company for 2024 is -325,030,861.71 RMB, indicating a loss [5]. - The operating revenue for 2024 is reported at 145,839,584.29 RMB, which triggers a delisting risk warning according to the Shanghai Stock Exchange regulations [8]. - The company will not distribute profits or increase capital reserves for the year 2024 due to its current operational and cash flow situation [5]. - The company has faced continuous net losses for three consecutive fiscal years, raising concerns about its sustainability [8]. - The company's revenue for 2024 was 145,839,584.29, a decrease of 46.79% compared to 2023's revenue of 274,086,337.82 [23]. - The net profit attributable to shareholders decreased by 100.95% to -325,030,861.71 in 2024, compared to -161,745,968.53 in 2023 [25]. - The basic earnings per share for 2024 was -1.00, reflecting a 100.00% decrease from -0.50 in 2023 [24]. - The weighted average return on equity dropped to -32.19% in 2024, a decrease of 19.28 percentage points from -12.91% in 2023 [24]. - The total assets at the end of 2024 were 2,405,306,578.91, down 28.58% from 3,367,716,668.60 at the end of 2023 [23]. - The company reported a net cash flow from operating activities of -31,714,734.73, an improvement of 67.16% compared to -96,574,892.63 in the previous year [23]. Operational Challenges - The company faced challenges in project funding, leading to slower payment collection and a decrease in revenue [25]. - The company experienced a significant reduction in new orders and slow implementation of existing orders in 2024 [25]. - The decline in revenue and net profit was primarily due to the macroeconomic downturn affecting the industry, leading to reduced investment and increased market competition [31]. - The new construction area in the real estate sector decreased by 23% year-on-year, significantly impacting demand in the landscaping sector [30]. - The landscaping market is facing challenges due to a prolonged downturn in the real estate sector, leading to reduced project demand and extended payment cycles [108]. Strategic Adjustments - The company adjusted its engineering business structure in response to market conditions, aiming for growth despite a decrease in revenue [25]. - The company adopted a cautious operational strategy, focusing on project profitability and risk balance amid slowing investment speeds from government and real estate sectors [32]. - The company plans to transfer its 51% stake in Silicon Electronic due to liquidity challenges and the inability to meet performance commitments for 2024, with the transfer expected to reduce operational risks [34]. - The company aims to enhance operational efficiency by optimizing construction plans and accelerating project implementation to improve business performance [34]. - The company is focusing on integrating its business model to enhance competitiveness amid increasing market pressures, with a strategic emphasis on technology innovation and resource integration [47]. Governance and Compliance - The company has received a qualified audit opinion from Zhongxing Caiguanghua Accounting Firm, highlighting uncertainties regarding its ability to continue as a going concern [4]. - The company has implemented strict information disclosure practices, ensuring transparency and timely communication with investors [115]. - The company received warnings from the China Securities Regulatory Commission for inaccurate disclosures in annual reports from 2020 to 2023, including revenue and profit figures [130]. - The company has acknowledged the need for self-inspection and rectification in response to issues raised in the audit report, aiming for timely resolution [175]. - The company plans to strengthen compliance with laws and regulations, improve internal controls, and enhance information disclosure management [192]. Market Outlook - The ecological environment industry is expected to receive a boost from national policies aimed at promoting sustainable development and ecological protection, which will benefit the landscaping sector [35]. - The company is exploring new industry forms through technology integration in the landscaping sector, such as smart nurseries and intelligent construction management [50]. - The company plans to expand its market presence in the energy sector, with a focus on new energy technologies and storage solutions, aiming for a revenue of 5,000 million [97]. - The company anticipates a 5% GDP growth in 2024, contributing to a stable economic environment for its operations [99]. - The company is committed to enhancing its core competitiveness by improving the quality of its workforce and fostering collaboration across its business segments [105]. Financial Management - The company reported a significant loss from fair value changes in financial assets and liabilities, amounting to -30.47 million yuan [28]. - Financial expenses increased by 76.17% to 47.58 million yuan, mainly due to reduced interest income [54]. - The company has a clear cash dividend policy that complies with its articles of association and allows for sufficient expression of opinions by minority shareholders [149]. - The company is focusing on risk management to mitigate potential cash flow pressures arising from delayed payments and the tightening financial conditions of local governments [108]. - The company has ongoing significant litigation with a cumulative amount of CNY 119,243,900, representing 10.17% of the latest audited net assets [188].