Yuancheng gold(SH:600766)2019-04-25 16:00Financial Performance - In 2018, the company reported a net profit of -2,349,350.74 RMB, a decrease of 189.07% compared to the previous year's profit of 2,637,697.65 RMB[5]. - The company's operating revenue for 2018 was 12,079,032.52 RMB, representing an increase of 8.78% from 11,103,761.59 RMB in 2017[20]. - The net cash flow from operating activities decreased by 72.19% to 1,768,426.92 RMB, down from 6,360,083.69 RMB in 2017[20]. - The total assets at the end of 2018 were 159,005,195.60 RMB, a decrease of 1.77% from 161,867,228.25 RMB in 2017[21]. - The company's net assets attributable to shareholders decreased by 7.40% to 51,471,230.40 RMB from 55,585,406.79 RMB in 2017[20]. - Basic earnings per share for 2018 were -0.01 RMB, a decline of 200.00% compared to 0.01 RMB in 2017[22]. - The weighted average return on equity was -4.39%, a decrease of 9.40 percentage points from 5.01% in 2017[22]. Operational Highlights - The company faced various operational risks, which are detailed in the management discussion section of the report[7]. - The company has not engaged in non-operational fund occupation by controlling shareholders or provided guarantees in violation of regulations[7]. - The operating cost surged to ¥4,779,317.10, a significant increase of 1,133.45% from ¥387,474.28 in the previous year[40]. - The company reported an investment loss of ¥2,942,629.16, which is a 202.16% increase from the previous loss of ¥973,854.77[40]. - Management expenses rose by 12.24% to ¥4,266,897.01 from ¥3,801,493.30 in the previous year[40]. - The company established a joint venture, Zhejiang Free Trade Zone Huiyi Yuancheng Energy Co., Ltd., to expand its business scope, focusing on energy products[33]. - The gold mining custody business remains the primary focus, with efforts to optimize the operational structure and explore new business growth points[28]. Industry Context - In 2018, China's gold production was 513.9 tons, a 0.7% decrease year-on-year, while gold consumption increased by 5.7% to 1,151.4 tons[44]. - The average domestic gold price fell by 1.5% to 271.4 yuan per gram, while the international gold price rose by 1.2% to 1,270.6 USD per ounce[44]. - Natural gas consumption in China reached 2,770 billion cubic meters in 2018, a strong growth of 17%[45]. Risk Management and Compliance - The company aims to strengthen risk control systems and promote information technology to enhance operational efficiency[48]. - The company faces price risks due to fluctuations in gold prices, which directly impact profitability[49]. - The company emphasizes compliance with safety and environmental regulations to mitigate operational risks[49]. - The company has implemented measures to ensure compliance with relevant laws and regulations regarding corporate governance[77]. Profit Distribution Policy - The company plans not to distribute profits for 2018 and will not allocate statutory surplus reserves or increase capital reserves[5]. - The company prioritizes cash dividends as a profit distribution method, ensuring that the total distribution does not exceed the cumulative distributable profits and does not harm the company's ongoing operational capability[53]. - The board of directors must consider independent directors' opinions when making decisions on profit distribution policies[53]. - The company aims to distribute cash dividends annually, with the possibility of proposing interim cash dividends based on profitability and funding needs[54]. - If the company has positive net profits but does not propose a cash dividend plan, it must disclose the reasons and the intended use of retained earnings[57]. - The company has not distributed any cash dividends in the past three years, with a reported net profit of -2,349,350.74 RMB in 2018 and 2,637,697.65 RMB in 2017[61]. Governance and Management - The company has established a comprehensive governance structure and internal control system, continuously improving governance levels and ensuring compliance with laws and regulations[107]. - The company disclosed its internal control self-assessment report and received an internal control audit report, confirming the effectiveness of its internal controls[110]. - The company maintained transparency in information disclosure, ensuring all shareholders had equal access to information[106]. - The company has a total of 25 employees, with 23 in the parent company and 2 in major subsidiaries[100]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 1.231 million yuan[97]. - The company held 2 shareholder meetings during the reporting period, fully complying with the relevant regulations to ensure the rights of all shareholders, especially minority shareholders[104]. Financial Position - The total assets at the end of the reporting period were CNY 160,283,016.89, down from CNY 163,132,094.95 at the beginning of the period, reflecting a decrease of about 1.7%[130]. - The total liabilities at the end of the reporting period were CNY 107,528,941.63, slightly up from CNY 106,276,910.85, indicating an increase of approximately 1.2%[130]. - The total equity attributable to shareholders decreased to CNY 52,754,075.26 from CNY 56,855,184.10, representing a decline of about 7.4%[130]. - The cash and cash equivalents increased to CNY 26,974.70 from CNY 17,208.66, showing a growth of approximately 56.5%[129]. - The accounts receivable amounted to CNY 978,515.02, with no previous year data available for comparison[129]. - The inventory remained stable at CNY 103,092,448.88, unchanged from the previous year[129]. Legal and Regulatory Matters - The company has a history of significant legal disputes, including a case involving a total loan amount of 15.4 million RMB, for which it provided guarantees[64]. - The company is involved in a legal case with Shandong Jiawei Group, with a judgment amount of RMB 12,007,053.10, of which RMB 3 million has been received[68]. - The company has a total of RMB 1,420 million in frozen bank deposits as part of the legal proceedings against Shandong Jiawei Group[68]. Employee Relations - The company emphasizes a commitment to employee rights and welfare, ensuring compliance with labor laws and timely payment of social insurance[80]. - The company has established a transparent and competitive mechanism for employee selection and promotion, aiming to boost employee motivation and creativity[80].