XINLI FINANCE(SH:600318)2019-04-12 16:00Financial Performance - In 2018, the company's consolidated net profit attributable to shareholders was CNY 52,971,292.95, a significant increase of 117.16% compared to a net loss of CNY 308,722,141.22 in 2017[5]. - The company's operating income for 2018 was CNY 533,352,197.93, representing a decrease of 15.77% from CNY 633,236,981.90 in 2017[22]. - The net cash flow generated from operating activities increased by 84.87% to CNY 813,343,170.85 in 2018, compared to CNY 439,958,355.13 in 2017[22]. - Basic earnings per share for 2018 were CNY 0.11, a recovery from a loss of CNY 0.64 per share in 2017, marking an increase of 117.19%[23]. - Net profit reached 153 million RMB, representing a significant increase of 185.63% compared to the previous year, marking a turnaround from losses[45]. - The company achieved total operating revenue of 533 million RMB in 2018, a decrease of 15.77% year-on-year[45]. - The company's total operating revenue decreased by 15.77% compared to the same period last year, amounting to ¥533,352,197.93[53]. Asset and Liability Management - The total assets of the company decreased by 11.06% to CNY 5,644,903,614.00 at the end of 2018, down from CNY 6,347,004,830.55 at the end of 2017[22]. - The company's net assets attributable to shareholders increased by 2.96% to CNY 1,037,843,362.79 at the end of 2018, compared to CNY 1,007,970,437.05 at the end of 2017[22]. - The company's total assets decreased to CNY 2,478,399,200.10 from CNY 2,714,350,762.81, a decline of 8.7%[192]. - Total liabilities decreased to CNY 3,363,332,366.98 from CNY 4,032,372,455.51, a reduction of approximately 17%[188]. - Long-term borrowings decreased to ¥863,476,084.71 from ¥1,265,619,385.76, a decline of about 32%[188]. Shareholder Actions - The company repurchased a total of 18,800,000 shares during the reporting period, with a total payment of CNY 215,250,348.58[5]. - The company plans to implement a share issuance in 2019 as per the approval from the China Securities Regulatory Commission, thus no profit distribution will be made for 2018[5]. - The company’s cash dividend for 2018 was recorded as RMB 215,250,348.58, reflecting the share repurchase as a form of cash distribution[80]. - The company will not distribute cash dividends despite having a positive profit available for distribution to ordinary shareholders, as no proposal was put forward[81]. Risk Management - The company has identified various risks including market risk, credit risk, and liquidity risk, and has implemented measures to manage and control these risks[8]. - The company emphasized enhancing risk management and internal controls to support sustainable growth and operational efficiency[47]. - The liquidity risk management policy includes regular monitoring of short-term and long-term cash needs to maintain sufficient cash reserves[73]. - The company has implemented a dynamic management system for credit risk, including due diligence and regular follow-ups with debtors[72]. Subsidiary Performance - The company’s subsidiary, Dexin Guarantee, has been steadily developing its financing guarantee business, contributing to local economic growth[30]. - The company’s small loan subsidiary, Deshan Microfinance, has been recognized as a benchmark enterprise in Anhui Province, focusing on serving small and micro enterprises[31]. - The company’s subsidiary, Derun Leasing, recovered significant receivables, positively impacting liquidity and profitability[48]. Legal and Compliance Issues - The company won a lawsuit against Tongcheng Kaidi and Kaidi Ecology, resulting in a court-ordered compensation of RMB 40,705,467.21 for unpaid rent and penalties[94]. - The company has ongoing litigation involving amounts exceeding RMB 10 million, with a total of RMB 3,450,000 involved in a case against Anhui Yu'an Group[96]. - The company has received administrative penalties for overstating revenue and profits in the 2015 annual report, leading to disciplinary actions against involved directors and supervisors[145]. Corporate Governance - The company has established a governance structure with five directors, including two independent directors, meeting legal requirements[152]. - The board of directors is committed to maintaining transparency and accountability in financial reporting and corporate governance[140]. - The company has implemented measures to strengthen the confidentiality management of insider information[156]. - The company has established a performance evaluation and incentive mechanism for senior management, linking compensation to company performance and individual contributions[166]. Future Outlook - The management team is optimistic about achieving a revenue growth target of 15% for the next fiscal year, driven by strategic initiatives and market opportunities[141]. - The company is focusing on technological advancements and new product development to stay competitive in the financial services sector[139]. - Future outlook includes plans for market expansion and the introduction of new financial products to enhance service offerings[139].