WSBE(SH:600421)2019-04-25 16:00Financial Performance - The net profit attributable to the parent company for 2018 was -8,930,013.06 RMB, resulting in a total distributable profit of -429,462,086.48 RMB after accounting for the beginning retained earnings[4]. - The company's operating revenue for 2018 was 1,002,704.24 RMB, a decrease of 96.51% compared to 28,767,309.13 RMB in 2017[21]. - The net profit attributable to shareholders was RMB -8,930,013.06, contributing to a total net loss of RMB -11,104,280.37 for the year[34]. - The basic earnings per share for 2018 was -0.05 RMB, compared to -0.04 RMB in 2017[22]. - The total comprehensive income for 2018 was -11,104,280.37 RMB, which is a decrease from -10,355,947.28 RMB in 2017, reflecting ongoing financial challenges[139]. - The company reported a net profit of -11,104,280.37 RMB for 2018, compared to -10,355,947.28 RMB in 2017, indicating a year-over-year increase in net loss of approximately 7.2%[137]. - Operating profit for 2018 was -2,442,927.49 RMB, which is a decline from -2,163,646.48 RMB in 2017, reflecting a worsening operational performance[139]. Assets and Liabilities - The total assets decreased by 13.87% to 46,464,616.19 RMB at the end of 2018 from 53,948,082.19 RMB at the end of 2017[21]. - The net assets attributable to shareholders decreased by 64.42% to 2,132,425.78 RMB at the end of 2018 from 5,992,977.55 RMB at the end of 2017[21]. - The company's total equity decreased from CNY 17,775,546.72 in 2017 to CNY 11,953,193.77 in 2018, a decline of about 32.8%[131]. - The company's total liabilities decreased from CNY 36,172,535.47 in 2017 to CNY 34,511,422.42 in 2018, a decrease of approximately 4.6%[130]. - The company's retained earnings showed a negative balance of CNY -429,462,086.48 in 2018 compared to CNY -420,532,073.42 in 2017[131]. - The company's total liabilities to total assets ratio improved from 67.1% in 2017 to 74.3% in 2018[130]. Cash Flow - The company reported a negative cash flow from operating activities of -54,324.75 RMB in 2018, compared to -2,649,978.61 RMB in 2017[21]. - Operating cash flow showed a significant improvement, with a net cash flow of RMB -54,324.75 compared to RMB -2,649,978.61 in the previous year, reflecting a 97.95% increase[35]. - The cash dividend policy was revised to clarify the priority and conditions for cash dividends, approved by the board on March 15, 2019[50]. - The net cash flow from operating activities improved by 97.95%, reaching -¥54,324.75, attributed to reduced procurement and expenses following the subsidiary's shutdown[41]. Business Operations - The company established a new subsidiary, Fuzeyuan (Beijing) Cultural Development Co., Ltd., focusing on cemetery sales and funeral services, generating minimal revenue during the reporting period[29]. - The company plans to actively seek support from major shareholders to address operational challenges and ensure normal business activities[32]. - The company is focusing on the steady development of its existing business, primarily through its subsidiary engaged in cemetery sales and funeral services[53]. - The company plans to strengthen management in risk control and explore new business opportunities to achieve sustainable development[47]. - The company aims to revitalize idle assets and stabilize existing operations amid challenges due to its small asset scale[48]. Regulatory Compliance - The company received a penalty of 600,000 RMB from the China Securities Regulatory Commission for violations, which has been paid[53]. - The company has faced regulatory scrutiny in the past, with penalties related to information disclosure issues[93]. - The company is committed to improving its financial reporting and compliance following the administrative penalties received[62]. Shareholder Information - The total number of ordinary shareholders reached 8,013 by the end of the reporting period, an increase from 7,197 at the end of the previous month[72]. - Zhejiang Hengshun Investment Co., Ltd. holds 38,136,775 shares, representing 19.50% of the total shares, with no changes during the reporting period[73]. - The controlling shareholder changed from "Wuhan New Generation Technology Co., Ltd." to "Zhejiang Hengshun Investment Co., Ltd." on January 24, 2019[76]. - The actual controller changed from "Cai Shouping" to "Lou Yongliang" on January 24, 2019[81]. Management and Governance - The company has maintained a stable leadership team with no changes in shareholding[88]. - The total remuneration for the board and management amounted to 525,300 CNY[88]. - The company has a diverse management background with experience in various industries[88]. - The company has a structured process for determining the remuneration of its directors and senior management based on performance evaluations[91]. Financial Reporting - The audit report indicated that the financial statements fairly reflect the company's financial condition and operational results for the year ended December 31, 2018[113]. - The company's management is responsible for ensuring that financial statements are prepared in accordance with accounting standards and reflect a true and fair view of its financial position[123]. - The financial statements are prepared based on the going concern assumption, reflecting the company's financial position and operating results as of December 31, 2018[174]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming year[136]. - The company plans to seek new business opportunities and inject new assets through self-developed businesses or acquisitions to normalize operations[172]. - The company plans to continue focusing on capital reserves and risk management strategies to enhance financial stability moving forward[152].