SHTD(SH:600647)2019-04-19 16:00Financial Performance - In 2018, the company reported a net profit attributable to shareholders of -56,300,512.45 CNY, a decrease of 605.45% compared to the previous year[5]. - The total revenue for 2018 was 20,396,701.82 CNY, down 13.89% from 23,686,746.76 CNY in 2017[21]. - The company's net assets attributable to shareholders decreased by 19.04% to 268,917,266.91 CNY at the end of 2018[21]. - The basic earnings per share for 2018 was -0.4046 CNY, a decline of 605.12% from 0.0801 CNY in 2017[22]. - The weighted average return on equity was -18.73%, a decrease of 21.84 percentage points compared to the previous year[22]. - The company experienced a significant decline in net profit due to operational challenges and market conditions[6]. - The company achieved a total revenue of 20.40 million yuan in 2018, a decrease of 13.89% compared to the previous year[35]. - The net profit for 2018 was -5.99 million yuan, with a loss attributable to the parent company of -5.63 million yuan, resulting in an earnings per share of -0.40 yuan[35]. - The company reported a significant drop in other receivables from RMB 2,974,410.40 in 2017 to RMB 1,004,793.35 in 2018, a decrease of about 66%[133]. - The company reported a total comprehensive loss of CNY 40,916,727.92 for the current period, resulting in a net loss of CNY 23,295,802.75[170]. Cash Flow and Investments - The net cash flow from operating activities for 2018 was -5,728,125.48 CNY, an improvement from -15,006,668.70 CNY in 2017[21]. - The total investment cash flow was -13.95 million yuan, a decrease of 117.55% compared to the previous year[37]. - The cash flow from operating activities was significantly impacted by a total cash outflow of $18,308,102.83, compared to $31,839,874.08 in the previous year[154]. - The cash flow from investing activities was -13,951,898.97 million RMB in 2018, a decrease from a positive cash flow of 79,516,277.57 million RMB in 2017[151]. - The company received $1,563,234.87 in cash from investment income, a decrease from $2,780,909.94 in the previous year, indicating lower investment performance[154]. Assets and Liabilities - The total assets of the company decreased by 13.98% to 473,925,724.02 CNY at the end of 2018[21]. - The company's total assets decreased to CNY 405,226,224.75 in 2018 from CNY 463,388,049.18 in 2017, a decline of 12.5%[140]. - Total liabilities decreased from RMB 187,743,243.90 in 2017 to RMB 177,522,470.78 in 2018, a decrease of about 5%[134]. - The owner's equity decreased to CNY 268,338,778.87 in 2018 from CNY 322,611,434.18 in 2017, a reduction of 16.8%[140]. - The company’s long-term assets decreased from RMB 252,336,738.57 in 2017 to RMB 41,570,408.09 in 2018, a significant drop of about 84%[134]. Revenue Sources - The main source of revenue came from Tongda Trading with 6.10 million yuan and Guangzhou Deyu with 12.24 million yuan in sales[32]. - The company reported a significant decline in sales revenue for Tongda Trading due to the termination of agency rights for certain products[35]. - The trading business reported revenue of ¥6,096,922.44, with a gross margin of 17.70%, showing a significant decline of 39.83% compared to the previous year[40]. Dividend Policy - The company did not distribute cash dividends or bonus shares for the 2018 fiscal year[5]. - The cash dividend policy stipulates that the company will distribute at least 10% of the distributable profit as cash dividends if there are no major investment plans[62]. - The company did not propose any cash profit distribution plan for the reporting period despite having a positive profit available for distribution to ordinary shareholders[69]. Governance and Management - The company has established a clear governance structure, ensuring that all shareholders can express their opinions and exercise their voting rights[110]. - The board of directors operates independently, with no interference from the controlling shareholder, and has established various specialized committees to enhance oversight[111]. - The company has a structured decision-making process for profit distribution, requiring board approval and consideration of independent directors' opinions[64]. - The company has engaged in various investor relations activities to enhance communication and maintain a positive market image[114]. Audit and Compliance - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2018[122]. - The company has implemented necessary internal controls to prevent material misstatements in financial reporting due to fraud or error[128]. - The audit identified key audit matters, including the valuation of financial instruments, which required significant judgment and estimation by management[124]. Future Outlook - The company plans to actively explore new business opportunities in 2019 to ensure sustainable operations[36]. - The company plans to increase investment in new business and project development to ensure sustainable and stable growth[57]. - In 2019, the company aims to seek new products and expand sales revenue in its main business[58].