XLDY(SH:600769)2019-04-29 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of CNY 5,092,467.93, a decrease of 0.48% compared to CNY 5,117,131.91 in 2017[5]. - The company's operating revenue for 2018 was CNY 37,323,423.81, representing a decline of 36.08% from CNY 58,387,444.73 in the previous year[20]. - The net profit for 2018 was CNY 5.09 million, representing a decrease of 3.41% compared to the previous year[35]. - The company reported a significant improvement in net profit after deducting non-recurring gains and losses, reaching CNY 914,334.51 compared to a loss of CNY -1,052,627.59 in 2017, marking a 186.86% increase[20]. - The company reported a net loss of CNY 730,848,439.83, which is a slight improvement from a loss of CNY 735,940,907.76 at the beginning of the year[161]. - The company reported a total revenue of 2,774.85 million yuan for construction contract income, accounting for 74.35% of the total revenue in 2018[149]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 4,389,749.49, a 303.51% increase compared to a negative cash flow of CNY -2,156,969.92 in 2017[20]. - Cash and cash equivalents at the end of the period amounted to ¥24,331,579.73, representing 17.05% of total assets, an increase of 43.27% compared to the previous period[51]. - The net cash flow from investing activities increased by 61.48%, amounting to 4,213,925.34, up from 2,609,592.53 in the previous year[37]. - The total assets of the company at the end of 2018 were CNY 142,721,143.87, reflecting a slight increase of 1.07% from CNY 141,207,780.81 in 2017[20]. - Current assets totaled CNY 51,698,884.04, down from CNY 54,030,450.27, indicating a decrease of about 4.9%[159]. - Total liabilities stood at CNY 90,998,709.12, slightly down from CNY 91,439,111.54, a decrease of about 0.5%[161]. Revenue Segments - The operating revenue for 2018 was CNY 37.32 million, with water supply business revenue increasing by 16.77% to CNY 9.22 million, while construction installation revenue decreased by 44.70% to CNY 27.75 million[35]. - The water supply segment generated revenue of 9,221,150.98, with a gross margin of 31.74%, reflecting a year-on-year increase of 16.77%[42]. - The construction engineering segment's revenue was 27,748,464.48, with a gross margin of 8.37%, showing a significant decline of 44.70% year-on-year[42]. Shareholder and Governance - The company plans not to distribute profits for the 2018 fiscal year, as the distributable profit was negative at CNY -730,848,439.83[5]. - The board proposed no profit distribution for 2018, as the distributable profit was negative, and no capital reserve transfer to increase share capital was planned[89]. - The total number of ordinary shareholders increased from 19,784 to 20,714 during the reporting period[107]. - The company has not disclosed any significant related party transactions during the reporting period[96]. Strategic Initiatives and Risks - The company has indicated potential risks in its future transformation and operational plans, advising investors to be cautious[6]. - The company aims to enhance the stability and sustainability of its development by focusing on its main business in 2019[34]. - The company is facing market risks due to its reliance on large clients and projects, which may affect revenue stability[86]. - The company is in a strategic transformation phase, focusing on improving operational efficiency and exploring new growth opportunities[83][84]. Internal Controls and Audit - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018[143]. - The company identified significant internal control deficiencies during the reporting period, which were disclosed in the internal control audit report[140]. - The management is responsible for ensuring the financial statements are prepared in accordance with accounting standards and for maintaining effective internal controls[152]. Employee and Management - The company has implemented a performance evaluation mechanism for senior management, linking total remuneration to overall company performance[137]. - The total pre-tax remuneration for the chairman and general manager, Dong Yaojun, was CNY 217,500[119]. - The number of employees in the parent company is 47, while the total number of employees in the parent company and major subsidiaries is 67[127].