CTCG(SH:600358)2020-04-29 16:00Financial Performance - In 2019, the company reported a net profit attributable to shareholders of -190,094,288.44 CNY, with an undistributed profit of -356,671,746.45 CNY[4]. - Operating revenue for 2019 was CNY 354,970,862.79, an increase of 28.99% compared to CNY 275,183,249.87 in 2018[26]. - Net loss attributable to shareholders was CNY -190,094,288.4, a decrease of 127.41% from CNY -83,590,557.22 in the previous year[26]. - Basic earnings per share for 2019 was CNY -0.3765, a decline of 127.49% compared to CNY -0.1655 in 2018[28]. - The weighted average return on equity decreased to -53.02% in 2019 from -15.59% in 2018, a drop of 37.43 percentage points[28]. - Total assets at the end of 2019 were CNY 558,715,779.77, down 25.96% from CNY 754,564,430.33 at the end of 2018[27]. - Cash flow from operating activities was CNY -42,120,779.23, a decrease of 36.30% compared to CNY -30,902,354.88 in 2018[27]. - The company's net assets attributable to shareholders decreased by 48.49% to CNY 233,633,027.82 at the end of 2019 from CNY 453,567,494.22 at the end of 2018[27]. - The company reported a total comprehensive income for 2019 of CNY -217,095,806.02, compared to CNY -59,277,606.67 in 2018, showing a significant increase in comprehensive losses[183]. Audit and Compliance - The company received a qualified audit opinion from its auditing firm regarding the 2019 financial report, indicating concerns about the accuracy and completeness of the financial statements[4]. - The company has appointed Asia Pacific (Group) CPA as its auditor for the 2019 financial year, with an audit fee of 450,000 RMB[98]. - The internal control audit report identified three significant deficiencies, leading to a negative opinion on the internal controls[157]. - The company’s financial statements were audited, but a qualified opinion was issued due to issues with receivables and inventory[160]. Debt and Receivables - The company has not received the 20 million CNY from the equity transfer of 49% stake in Zhongnong Guolian, which constitutes non-operating fund occupation[10]. - The company is actively pursuing the recovery of the 20 million CNY equity transfer payment from the designated third party, Xiamen Contemporary Asset Management Co., Ltd[10]. - The company is actively pursuing debt recovery from receivables dating back to 2018, facing challenges such as uncontactable debtors and insolvency issues[44]. - The company reported significant issues with receivables, including a major receivable of ¥33,531,117.03, with a provision for bad debts of ¥3,342,693.76[161]. - The company has a substantial outstanding receivable of ¥31,668,082.41 from a related party, with a provision for bad debts of ¥316,680.82[162]. Business Operations and Strategy - The company's main business includes internet marketing, commercial real estate IP integration marketing, water sports, and marine leisure tourism services[37]. - The company aims to become a leading enterprise in China's sports, entertainment, and leisure tourism sectors, focusing on diversified and compound growth[37]. - The company aims to focus on tourism and large-scale consumption as part of its development strategy[73]. - The company plans to clear non-performing assets and restore its financing capabilities in 2020[74]. - The company plans to enhance its financing channels and improve the management of receivables to protect its interests[44]. Shareholder and Capital Structure - The company’s stock is listed on the Shanghai Stock Exchange under the code 600358[23]. - The total number of ordinary shareholders at the end of the reporting period was 38,252, an increase from 37,937 at the end of the previous month[116]. - Jiangxi Tourism Group held 98,803,000 shares, accounting for 19.57% of the total shares, with 73,556,106 shares pledged[118]. - Jianglv Group acquired 73,556,106 shares, representing 14.57% of the total share capital, becoming the largest single shareholder of the company[122]. - The company did not propose any cash dividend distribution for the years 2017 to 2019, with net profits of -190.09 million RMB in 2019 and -86.59 million RMB in 2018[81]. Employee and Management - The company has a total of 159 employees, with 21 in the parent company and 138 in major subsidiaries[141]. - The employee composition includes 64 technical personnel, 23 sales personnel, and 49 administrative personnel[141]. - The company has established a training plan for employees at different levels, focusing on internal and external training, as well as new employee onboarding[143]. - The remuneration for senior management is determined based on company performance, market salary levels, and completion of work tasks[138]. - The company has a diverse board with members having extensive experience in various sectors, including publishing, finance, and tourism[134]. Legal Matters - The company has initiated legal actions against seven defendants to recover losses, with a lawsuit filed on September 6, 2019[92]. - The company is involved in a significant lawsuit against Beijing Yijin Hotel Co., Ltd., claiming 69,976,390.55 RMB in outstanding debts[100]. - The company is pursuing legal action against Jianglv Group for a breach of a share transfer agreement, demanding the return of a double deposit totaling ¥243,970,892.38[102]. Risks and Challenges - The company faces risks from market demand fluctuations due to the impact of COVID-19 on the tourism sector, leading to uncertainty in future demand trends[77]. - Increased competition in the tourism sector is anticipated, with more capital entering the market, potentially affecting market share and profit margins[77]. - The company has a high proportion of receivables relative to total assets, which poses a significant collection risk; measures will be taken to recover historical debts and manage receivables more effectively[77].