IMS(SH:600556)2019-03-20 16:00Financial Performance - In 2018, the company's operating revenue was CNY 66,862,565.20, representing a 1.58% increase compared to CNY 65,825,072.43 in 2017[23] - The net profit attributable to shareholders of the listed company was a loss of CNY 37,147,527.46, a decrease of 1,272.21% compared to a profit of CNY 3,169,006.41 in 2017[23] - The net cash flow from operating activities was a negative CNY 31,286,246.36, a decline of 168.70% from CNY 45,538,549.98 in 2017[23] - The company reported a net profit loss of CNY 25,815,859.23 after deducting non-recurring gains and losses, compared to a loss of CNY 4,291,420.51 in 2017[23] - The company's basic earnings per share (EPS) for 2018 was -0.09 yuan, a decrease of 1,000.00% compared to 2017[27] - The net profit attributable to shareholders decreased by 40.32 million yuan compared to the previous year, primarily due to lower profit sources and increased management expenses[27] - Operating revenue for 2018 was approximately 27.23 million yuan, with a slight increase in smart city business revenue by 12.96 million yuan, while property management revenue decreased by 11.22 million yuan[27] - The weighted average return on equity was -62.91%, a decrease of 62.95 percentage points from the previous year[27] - The company achieved operating revenue of 66.86 million yuan, an increase of 1.58% year-on-year, with a net profit attributable to shareholders of -37.15 million yuan, a decrease of 4.03 million yuan compared to the previous year[40] - The smart city business generated revenue of 37.25 million yuan, while the property management business reported revenue of 29.55 million yuan, reflecting a decrease of 27.52% year-on-year in property management revenue[48] - Operating costs increased by 24.03% to 50.48 million yuan, primarily due to the low gross margin of the smart city business, which is mainly focused on integrated procurement of intelligent transportation equipment[41] - The company reported a net cash outflow from operating activities of 31.29 million yuan, attributed to unpaid amounts from the smart city project and increased management fees[55] - The cash and cash equivalents decreased by 37.23% to 53.73 million yuan, largely due to expenditures on intermediary and legal fees[60] - The company’s gross margin for the smart city business was 2.61%, a decrease of 24.05 percentage points year-on-year, while the property management business had a gross margin of 10.89%, down by 10.37 percentage points[48] - The company’s management expenses increased by 70.97% to 16.80 million yuan, mainly due to higher intermediary service fees and legal costs[41] - The company’s accounts receivable increased by 174.21% to 28.21 million yuan, indicating a significant rise in outstanding payments from clients[60] Asset and Liability Management - As of the end of 2018, the net assets attributable to shareholders of the listed company were CNY 40,468,477.16, a decrease of 47.87% from CNY 77,626,273.27 at the end of 2017[26] - Total assets at the end of 2018 were CNY 107,259,914.02, down 14.72% from CNY 125,768,677.48 at the end of 2017[26] - The company’s net assets and total assets decreased by 37.16 million yuan and 18.51 million yuan, respectively, compared to the end of the previous year[27] - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 107,151,000 RMB[116] - The total amount of guarantees, including those to subsidiaries, is also 107,151,000 RMB[116] - The total amount of guarantees accounts for 2,647.76% of the company's net assets[116] - The amount of guarantees provided to shareholders, actual controllers, and their related parties is 107,251,000 RMB[116] - The amount of debt guarantees provided to entities with a debt-to-asset ratio exceeding 70% is 105,127,580 RMB[116] - The total of the three guarantee amounts (C+D+E) is 212,378,580 RMB[116] - The company reported a significant increase in other payables, rising from 34,261,136.93 to 35,396,920.70, an increase of about 3.3%[185] - The total non-current assets increased from 155,226,908.56 to 166,621,793.44, an increase of approximately 7.5%[191] - The company's total equity decreased from 78,079,866.59 to 39,156,532.95, a drop of approximately 49.8%[188] - The retained earnings showed a negative balance, worsening from -811,537,308.71 to -848,684,836.17[188] Corporate Governance and Management - The company plans not to distribute profits or increase capital reserves through stock conversion for the 2018 fiscal year, pending approval at the annual shareholders' meeting[6] - The company has proposed a merger with Beijing Tianxiaxiu Technology Co., Ltd., which is subject to shareholder and regulatory approval, introducing uncertainty regarding the transaction's completion[7] - There were no significant operational risks that materially affected the company's business during the reporting period[8] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties during the reporting period[8] - The company is actively exploring new business opportunities to enhance profitability and sustainability, particularly in the smart city sector[39] - The company is undergoing a significant share transfer, with 11.66% of shares being transferred to Tianxiexiu, leading to a change in controlling shareholder[79] - The company aims to become a technology-driven new media marketing service company through the acquisition of Tianxiexiu[79] - The actual controller and shareholders committed to not reducing their holdings in the company for 12 months, ensuring no interference in operational decisions[85] - The company has engaged Da Hua Accounting Firm for auditing services, with a fee of 800,000 RMB for a three-year term[98] - The company has no plans for mergers or acquisitions in the near term, focusing instead on internal strategies[87] - The company has maintained a stable management team, with no changes in key personnel reported during the period[147] - The independent directors have diverse backgrounds, contributing to a well-rounded governance structure[147] - The board of directors held 8 meetings during the year, with 1 in-person meeting and 7 conducted via communication methods[171] - The internal control self-evaluation report has been disclosed, indicating no major deficiencies during the reporting period[174] - The internal control audit report was issued by Da Hua Accounting Firm, confirming compliance[174] - There were no objections raised by independent directors regarding company matters during the reporting period[171] Legal and Regulatory Matters - The company is involved in a significant lawsuit where the plaintiff demands repayment of a loan and penalty totaling RMB 1.8 billion, with the company and another defendant being liable as guarantors[103] - As of December 31, 2018, the company has received 88 claims from investors regarding losses due to false statements, with a total claim amount of RMB 18,198,520.81[103] - The company has recognized a provision of RMB 9.3282 million for investor litigation cases based on legal advice received during the reporting period[104] - The company has a legal opinion from external law firms regarding the progress of litigation, which assesses potential outcomes and risks[177] - The company has implemented internal controls related to litigation and has discussed potential outcomes with legal personnel[177] - The audit report confirms that the financial statements fairly present the company's financial position as of December 31, 2018[177] - The reporting period does not indicate any stock incentive plans applicable to the current or departing directors and senior management[151] Employee and Compensation - The total number of employees in the parent company and major subsidiaries is 181, with 5 in the parent company and 176 in subsidiaries[164] - The total hours of outsourced labor amounted to 76,000 hours, with total payments of 3.2017 million yuan[167] - The company has implemented a wide salary range policy based on organizational performance and individual contributions[165] - Total pre-tax remuneration for the chairman Zhang Bai was 400,000 RMB, while other directors received similar amounts, indicating a consistent compensation structure[144] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to CNY 187,000[157] - The compensation for directors and supervisors is determined by the shareholders' meeting, while senior management compensation is decided by the board of directors[157] - The actual payment of remuneration for directors, supervisors, and senior management is only accrued and not yet disbursed, except for the employee supervisor who receives a monthly salary[157] Market and Industry Outlook - The property management industry is expected to grow rapidly, with market size projected to exceed 800 billion by 2021[76] - The industry is expected to see increased concentration as companies with financial strength and project reserves gain more opportunities in smart city construction[68] - The property management business is expected to grow rapidly, with the market size projected to exceed 800 billion yuan by 2021[35] - The company has not reported any significant changes in shareholder structure, maintaining stability among major stakeholders[144]