SFH(SH:600615)2019-06-05 16:00Financial Performance - In 2018, the company achieved a net profit of ¥9,331,577.78, a decrease of 91.20% compared to ¥106,022,111.71 in 2017[5]. - The company's operating revenue for 2018 was ¥83,306,296.33, down 11.85% from ¥94,506,126.59 in 2017[21]. - The net cash flow from operating activities decreased by 91.27% to ¥4,527,608.07 from ¥51,846,321.57 in the previous year[21]. - Basic earnings per share for 2018 were ¥0.050, down 91.13% from ¥0.564 in 2017[23]. - The weighted average return on equity decreased to 1.57% from 19.71% in the previous year, a decline of 18.14 percentage points[23]. - The total profit for the year was CNY 12.26 million, down 90.46% from CNY 128.50 million in the previous year, primarily due to non-recurring gains from the sale of a subsidiary in the prior year[39]. - The company reported a net loss of ¥-86,881,508.61 for the year, an improvement from ¥-96,213,086.39 in the previous year, indicating a narrowing of losses[170]. Assets and Liabilities - The total assets at the end of 2018 were ¥646,164,012.76, a slight decrease of 0.62% from ¥650,177,449.63 at the end of 2017[22]. - The company's net assets attributable to shareholders increased by 1.40% to ¥598,771,806.79 from ¥590,506,012.24 in 2017[22]. - Total liabilities decreased to ¥46,127,712.41 from ¥58,511,978.37, indicating a reduction in financial obligations[169]. - The company's equity attributable to shareholders increased to ¥598,771,806.79 from ¥590,506,012.24, reflecting a positive change in retained earnings[170]. Cash Flow - The cash flow from operating activities in Q4 was CNY -443,030.00, influenced by both non-operating and operating factors, with a net cash flow of CNY 120,400.00 after adjustments[28]. - The company reported a significant drop in cash flow from investment activities, improving by 55.48% to -¥117,527,478.54, mainly due to fewer purchases of financial products compared to the previous year[55]. - Cash and cash equivalents decreased by 94.31% to 6,817,884.45 yuan, primarily due to non-recurring occupation by the controlling shareholder[61]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,625, an increase from 11,290 at the end of the previous month[105]. - The largest shareholder, Longxin Holdings Co., Ltd., held 62,901,231 shares, representing 33.45% of the total shares[107]. - The report indicates that there are no related party relationships among the top ten shareholders, ensuring independent decision-making[111]. Operational Challenges - The decrease in net profit was primarily due to the high non-recurring gains from the sale of subsidiary equity in the previous year[24]. - The company's sales of aluminum and magnesium alloy products were impacted by a decline in the automotive market, leading to a decrease in production scale and material usage[39]. - The company has faced issues with the controlling shareholder interfering in operations and non-operational fund occupation[135]. Future Plans and Strategies - The company plans to enhance the management of its subsidiaries to maintain stable operations in its main business[40]. - The company plans to actively explore new markets, including export markets and new energy vehicles, to maintain market share amid domestic industry challenges[46]. - The company is focusing on expanding its business and ensuring sustainable development in light of market demand and policy guidance[73]. Internal Control and Governance - The company has committed to enhancing compliance with corporate governance standards and ensuring the independence of its operations from the controlling shareholder[147]. - The internal control audit report issued by Tianjian Accounting Firm provided a negative opinion, indicating serious concerns regarding the company's internal controls[149]. - The company has conducted a comprehensive investigation into the investment decisions related to trust products and is preparing an emergency plan to safeguard trust funds[143].