YT(SH:600692)2019-03-27 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 43,030,634.46, a decrease of 32.65% compared to CNY 63,890,936.57 in 2017[5]. - The total operating revenue for 2018 was CNY 733,938,895.44, down 39.54% from CNY 1,213,836,031.70 in 2017[21]. - The basic earnings per share for 2018 was CNY 0.1223, a decline of 32.65% from CNY 0.1816 in 2017[22]. - The weighted average return on net assets for 2018 was 5.98%, a decrease of 3.61 percentage points from 9.59% in 2017[22]. - The net profit attributable to shareholders decreased by 32.65% year-on-year, largely due to a substantial drop in property sales and steel trading[23]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, fell by 53.51%, influenced by the recovery of equity in a subsidiary and the reversal of previously recognized impairment provisions[23]. - The company reported a significant increase in financial expenses, rising by 79.00% to ¥24.94 million, attributed to an increase in short-term borrowings[50]. - The company reported a net loss of CNY 1,463,433.73 in its asset management segment, indicating a need for improved operational efficiency[73]. - The total profit for the year was CNY 12.62 million, a decrease from CNY 23.62 million in the previous year, marking a decline of approximately 46.6%[188]. Assets and Liabilities - The company's total assets decreased by 7.95% to CNY 1,930,345,675.41 at the end of 2018, down from CNY 2,097,091,114.26 in 2017[21]. - The company's total assets as of December 31, 2018, were CNY 1.93 billion, a decrease of 7.95% year-on-year[38]. - The total liabilities at the end of 2018 were CNY 594,082,453.53, compared to CNY 318,728,899.45 at the beginning of the year[180]. - The company's total current assets decreased from RMB 1,600,042,184.95 to RMB 1,464,330,435.14, reflecting a reduction of approximately 8.5%[174]. - The company's cash and cash equivalents decreased from RMB 256,262,838.13 at the beginning of the year to RMB 143,333,774.11 by year-end, representing a decline of approximately 44%[174]. Cash Flow - The company reported a cash flow from operating activities net amount of CNY -291,464,389.95 for 2018, worsening from CNY -217,530,718.17 in 2017[21]. - The net cash flow from operating activities showed a net outflow of approximately 73.93 million yuan, mainly due to investments in affordable housing projects[23]. - The net cash flow from operating activities was negative at ¥291,464,389.95, compared to a negative ¥217,530,718.17 in the prior year[190]. - The company’s cash flow from financing activities increased by 342.54% year-on-year, amounting to CNY 164.07 million[43]. - The ending cash and cash equivalents balance was ¥139,133,774.11, down from ¥256,262,838.13, representing a decline of approximately 45.7%[191]. Dividends and Retained Earnings - The company will not distribute cash dividends or increase capital reserves in 2018 due to significant funding needs for ongoing and new real estate projects[5]. - The company did not propose any cash dividend for the year 2018, with a net profit attributable to ordinary shareholders of CNY 43,030,634.46[86]. - The company has not distributed any dividends in the past three years, indicating a focus on reinvestment into ongoing projects[86]. - The retained earnings amount to 162,988,299.64, reflecting the company's ability to reinvest profits[200]. Risks and Challenges - The company has identified various risks including policy, market, operational, and financial risks that may impact future development[7]. - The company is experiencing operational risks due to a shortage of core technical talent, which is critical for its transformation and development[80]. - The company is subject to market risks from intensified competition in the real estate sector, particularly affecting smaller enterprises[80]. - The company's projects are significantly influenced by local real estate regulations, which may impact property prices and sales speed[80]. Governance and Management - The company is focused on maintaining strong governance with independent directors overseeing key decisions[127]. - The company has a governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and management, ensuring clear responsibilities and coordination[144]. - The company has implemented a performance evaluation mechanism for senior management, linking annual salary decisions to performance assessments[152]. - The company’s board of directors and supervisory board operate in compliance with legal and regulatory requirements, ensuring effective governance[3]. Future Plans and Strategies - The company aims to strengthen its existing business structure and expand into water environment governance, ecological agriculture, and clean energy sectors[75]. - In 2019, the company plans to enhance its real estate business by ensuring project construction progress and improving marketing efforts to secure cash flow[76]. - The company will focus on expanding its market share in communication engineering, particularly in light of the new opportunities presented by 5G network development[77]. - The company intends to improve its internal control systems and enhance management efficiency through rigorous budget management and internal audits[78].