WSBE(SH:600421)2020-04-29 16:00Financial Performance - In 2019, the net profit attributable to shareholders of the listed company was CNY 3,263,817.98, compared to a loss of CNY 8,930,013.06 in 2018, marking a significant recovery [5]. - The company's operating revenue for 2019 was CNY 23,267,767.22, a substantial increase of 2,220.50% from CNY 1,002,704.24 in 2018 [21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 7,073,257.30, compared to a loss of CNY 8,653,483.39 in the previous year [21]. - The basic earnings per share for 2019 was CNY 0.02, recovering from a loss of CNY 0.05 in 2018 [22]. - The weighted average return on net assets was 60.27%, a significant improvement from -584.44% in 2018 [22]. - The total comprehensive income for 2019 was 5,736,175.13 RMB, a stark contrast to the total comprehensive loss of -2,797,568.37 RMB in 2018, showcasing a strong recovery [145]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 6,097,925.24, a significant improvement from a negative cash flow of CNY 54,324.75 in 2018 [21]. - The company's financing activities generated a net cash flow of 8,292,600.00 RMB, a 212.93% increase compared to the previous year [34]. - Cash and cash equivalents increased by 415.34% to ¥25,622,075.15, reflecting improved liquidity [45]. - The net cash flow from operating activities for 2019 was -6,761,254.45 RMB, compared to -1,709,603.51 RMB in 2018, indicating a significant decline in operational cash flow [148]. - The total cash inflow from financing activities in 2019 was 8,360,000.00 RMB, up from 2,650,000.00 RMB in 2018, reflecting a strong increase in financing [149]. Assets and Liabilities - As of the end of 2019, the total assets of the company reached CNY 119,590,562.34, an increase of 157.38% from CNY 46,464,616.19 at the end of 2018 [21]. - The total liabilities increased to CNY 65,918,705.04 in 2019, compared to CNY 34,511,422.42 in the previous year, indicating a growth of approximately 91% [133]. - The company's current assets reached CNY 75,240,566.72, up from CNY 8,239,104.44 in 2018, reflecting a growth of over 800% [131]. - The total current liabilities exceeded current assets by 24,008,890.06 RMB, raising concerns about the company's ability to continue as a going concern [116]. - The total equity attributable to shareholders improved to CNY 25,208,641.41 from CNY 2,132,425.78, an increase of approximately 1090% [133]. Operational Highlights - The company incurred research and development expenses of 1,021,816.68 RMB, indicating ongoing investment in innovation [34]. - The company completed the acquisition of a 51% stake in Zhejiang Zhuangchen Construction Technology Co., Ltd., enhancing its operational capabilities in the construction sector [29]. - The operating costs for the year were 15,607,842.59 RMB, up 4,811.51% from the previous year, reflecting increased business activity [33]. - The company’s management expenses rose to 11,909,479.74 RMB, a 47.07% increase year-on-year, indicating higher operational overheads [33]. - The company’s subsidiary, Fuzeyuan (Beijing) Cultural Development Co., Ltd., continues to operate in the niche market of cemetery sales and funeral services, contributing to overall revenue [28]. Shareholder and Governance Information - The total number of ordinary shareholders at the end of the reporting period was 6,171, an increase from 5,701 at the end of the previous month [72]. - The company faced disciplinary actions from the Shanghai Stock Exchange, including public reprimands for several board members and executives due to regulatory violations [64]. - The company has maintained a stable management team with no significant changes in personnel during the reporting period [87]. - The board of directors includes independent members with diverse expertise, enhancing decision-making processes [91]. - The company emphasizes the importance of risk management and compliance in its operational strategy [90]. Future Outlook and Strategic Plans - In 2020, the company aims for a growth in operational indicators compared to 2019, despite economic pressures and the impact of COVID-19 [52]. - The company plans to expand its market presence beyond Jiangsu, Zhejiang, and Shanghai, targeting new regions such as North, Central, and South China, contributing 40% of total output value in 2019 [52]. - The company intends to reduce labor and management costs by 10% per unit of production through efficiency improvements and cost analysis meetings [52]. - The company plans to promote online services and cloud memorial services to cater to customers unable to visit in person [54]. - The company is exploring opportunities for mergers and acquisitions to drive growth and market expansion [90]. Compliance and Regulatory Matters - The company received an administrative penalty notice from the China Securities Regulatory Commission on December 19, 2016, regarding suspected false information disclosure [96]. - The company was fined and warned by the China Securities Regulatory Commission on December 10, 2018, for similar violations of information disclosure [96]. - The company has committed to maintaining compliance with regulatory requirements and enhancing corporate governance practices [91]. - The company has a compliance and risk control director who has been in position since 2016, ensuring regulatory adherence [93]. - The supervisory board found no issues with the company's operations, confirming compliance with relevant laws and regulations [108].