WOLONG REAL ESTATE(SH:600173)2024-01-12 16:00Financial Performance - The net profit attributable to the parent company for 2022 was approximately RMB 311.68 million, with distributable profits amounting to RMB 2.46 billion[4]. - The company's revenue for 2022 was approximately RMB 4.73 billion, an increase of 39.19% compared to RMB 3.40 billion in 2021[25]. - The net profit attributable to shareholders decreased by 34.33% to approximately RMB 311.68 million in 2022 from RMB 474.66 million in 2021[25]. - The basic earnings per share (EPS) for 2022 was RMB 0.4449, down 34.57% from RMB 0.6800 in 2021[25]. - The weighted average return on equity (ROE) decreased by 5.46 percentage points to 8.39% in 2022 from 13.85% in 2021[25]. - The net cash flow from operating activities was negative RMB 1.13 billion in 2022, a significant decline compared to positive RMB 229.63 million in 2021[25]. - The total assets of the company decreased by 14.03% to approximately RMB 6.47 billion at the end of 2022 from RMB 7.52 billion at the end of 2021[25]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 70.05 million for all shareholders[4]. - The total share capital of the company is 700,506,244 shares, which will be the basis for the dividend distribution[4]. - The cash dividend accounted for 22.47% of the net profit attributable to ordinary shareholders in the consolidated financial statements, which was 311,684,726.96 RMB[138]. - The company distributed a cash dividend of 1.5 RMB per 10 shares, totaling 105,075,936.60 RMB, implemented on May 19, 2022[134]. Acquisitions and Investments - The company acquired 100% equity of Shanghai Mining in January 2022, which required retrospective adjustments to the financial data[25]. - The company invested RMB 68 million to acquire 100% equity of Shanghai Mining, completing the registration process by the end of the reporting period[76]. - The company also invested RMB 9.15 million to increase its stake in Shanghai Mining by purchasing 5 million shares at RMB 1.83 per share[76]. - The company acquired a 0.7692% stake in Chengyun Technology for RMB 20 million, with the transaction completed by May 30, 2022[76]. - The company purchased a 10.39% stake in Jinyuan Rare Earth for RMB 70.5 million, with the transfer completed on September 8, 2022[76]. Operational Challenges - The real estate industry faced significant challenges in 2022, with a 24.3% decline in sales area and a 26.7% decrease in sales amount compared to the previous year[35]. - The real estate business generated sales revenue of 1.627 billion yuan, a decline of 34.71% year-on-year, due to a significant downturn in the housing market[39][44]. - The company reported a significant decrease in cash and cash equivalents, totaling 1.146 billion RMB, which is a 57.41% decline from the previous period[67]. - The company faces risks related to macroeconomic policies, market fluctuations, and project development delays[100][101]. Revenue Streams - The company expanded its non-ferrous metal trading business, achieving sales revenue of 3.096 billion yuan, a remarkable increase of 244.51% year-on-year, effectively offsetting losses from the real estate sector[39][44]. - The mineral trading business generated sales revenue of CNY 3,096,306,600.04, accounting for 65% of total revenue, with a gross margin of 2.89%[49]. - The company reported a net profit of CNY 19,194,800 from the mineral trading segment, despite a significant impairment loss of CNY 17,430,010 related to the investment in Junhai Network[50]. Compliance and Governance - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[6]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company emphasizes compliance management and risk prevention, integrating compliance requirements into business processes to mitigate operational risks[40][46]. - The company has implemented strict internal control systems to regulate related party transactions, ensuring fairness and protecting shareholder interests[107]. - The company has maintained a good integrity status, with no unfulfilled court judgments or significant overdue debts[159]. Future Outlook - The company plans to advance a "premium, platform-based, and overseas" development strategy, focusing on three key IPs for game development[93]. - The company expects a total revenue of 5.874 billion yuan and operating costs of 5.437 billion yuan in 2023[99]. - The real estate market is expected to stabilize in the first half of 2023 and show signs of recovery in the second half, supported by government policies[96]. - The company aims to diversify its operations, with mineral trade business revenue anticipated to be 4.152 billion yuan[99]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 271, with 32 in the parent company and 239 in subsidiaries[130]. - The total remuneration for all directors, supervisors, and senior management was 5.73 million yuan[119]. - The company has established a performance-based compensation system to attract and retain core talent[131]. - The company emphasizes employee training, with plans covering all employees and combining internal and external training methods[132]. Market Performance - The company reported a total revenue of 1.2 billion in 2022, representing a year-over-year increase of 15%[115]. - User data showed an increase in active users by 20% year-over-year, reaching 5 million active users[116]. - Junhai Network achieved a revenue of 1.05 billion yuan in 2022, an increase of 22.48% compared to the previous year, driven by self-developed products[171]. Risk Management - The company is committed to enhancing its internal control systems and governance structures to mitigate operational risks[103][106]. - The company has a long-term commitment to not engage in competing businesses with Wolong Real Estate[151]. - The company has committed to ensuring that its actual controller and shareholders do not harm the legitimate rights of other shareholders[151].