云煤能源(600792) - 2018 Q4 - 年度财报

Definitions This chapter defines specific terms and abbreviations used in the report, covering the company, its affiliates, subsidiaries, and regulatory bodies, to ensure content consistency and clarity - This chapter primarily explains specific terms and abbreviations used in the report, including the company, its affiliates, subsidiaries, and regulatory bodies, to ensure consistency and clarity of the report content[11] Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information and its key financial performance metrics over recent periods Company Basic Information This chapter provides the company's basic business registration information, contact details, information disclosure channels, and stock overview, with its Chinese abbreviation "Yunmei Energy" and stock code 600792 listed on the Shanghai Stock Exchange Company Basic Information | Item | Information | | :--- | :--- | | Chinese Name | Yunnan Coal Energy Co., Ltd. | | Chinese Abbreviation | Yunmei Energy | | Stock Code | 600792 (A-share), 122258 (Corporate Bond) | | Listing Exchange | Shanghai Stock Exchange | | Legal Representative | Peng Wei | Key Accounting Data and Financial Indicators for the Past Three Years In 2018, the company's operating revenue grew 22.07%, net profit attributable to shareholders turned profitable at CNY 192 million, and operating cash flow increased 32.80%, reflecting enhanced core business profitability Key Accounting Data (Unit: CNY) | Key Accounting Data | 2018 | 2017 | YoY Change (%) | 2016 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,399,279,342.17 | 4,422,929,775.19 | 22.07 | 3,375,166,041.60 | | Net Profit Attributable to Shareholders of Listed Company | 191,643,022.93 | -48,638,680.59 | N/A | 48,542,597.11 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 148,576,648.48 | -80,011,574.61 | N/A | -299,694,348.22 | | Net Cash Flow from Operating Activities | 517,667,103.35 | 389,795,893.34 | 32.80 | 628,395,566.65 | | Net Assets Attributable to Shareholders of Listed Company | 3,107,025,729.00 | 2,915,325,719.38 | 6.58 | 2,972,228,313.50 | | Total Assets | 5,359,583,313.02 | 5,268,274,448.16 | 1.73 | 6,413,511,916.25 | Key Financial Indicators | Key Financial Indicators | 2018 | 2017 | YoY Change (%) | 2016 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.19 | -0.05 | N/A | 0.05 | | Weighted Average Return on Net Assets (%) | 6.36 | -1.65 | Increased by 8.01 percentage points | 1.65 | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 4.93 | -2.72 | Increased by 7.65 percentage points | -10.17 | 2018 Quarterly Financial Data The company's 2018 performance improved quarter-over-quarter, with strong Q3 and Q4 growth; operating revenue steadily rose, and net profit attributable to shareholders turned positive in H2, peaking at CNY 107 million in Q4 2018 Quarterly Key Financial Data (Unit: CNY) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,210,775,618.73 | 1,255,423,622.30 | 1,361,813,616.95 | 1,571,266,484.19 | | Net Profit Attributable to Shareholders of Listed Company | 6,312,671.54 | -2,338,879.44 | 80,705,547.28 | 106,963,683.55 | | Net Cash Flow from Operating Activities | 32,921,225.01 | 27,221,213.43 | 216,512,087.91 | 241,012,577.00 | Non-recurring Gains and Losses In 2018, total non-recurring gains and losses were CNY 43.0664 million, mainly from CNY 35.3746 million investment income from asset disposal and CNY 11.9479 million government subsidies, significantly contributing to net profit Non-recurring Gains and Losses Items (Unit: CNY) | Non-recurring Gains and Losses Item | 2018 Amount | 2017 Amount | | :--- | :--- | :--- | | Government Subsidies Recognized in Current Profit/Loss | 11,947,902.00 | 35,304,258.52 | | Investment Income from Disposal of Available-for-Sale Financial Assets | 35,374,600.00 | 0.00 | | Other Non-operating Income and Expenses Excluding the Above | 1,541,434.54 | -4,205,555.11 | | Total | 43,066,374.45 | 31,372,894.02 | Company Business Overview This section outlines the company's primary business activities, operational strategies, and the prevailing conditions within its industry Main Business, Operating Model, and Industry Overview The company's main business is coal coking, with core products being coke for steel smelting, alongside chemical by-products like coal gas and methanol; its wholly-owned subsidiary, Kunsteel Heavy Equipment, engages in equipment manufacturing, with the coking industry's profitability closely tied to the downstream steel industry's prosperity, which saw significant coke price increases and profit recovery in 2018 due to supply-side reform and environmental policies - The company's main business is coal coking, producing and selling coke and related chemical products, with coke being a crucial raw material for the steel industry, significantly influenced by downstream steel mill prosperity[29] - In 2018, the coke market experienced tight supply and significant price increases, leading to a substantial recovery in industry profits, benefiting from the steel industry's supply-side reform and stricter coking industry capacity reduction and environmental policies[30][31] Analysis of Core Competencies The company's core competencies stem from stable sales through strategic cooperation with Kunsteel Group, enhanced coke quality and cost reduction via technology and refined management, continuous R&D and innovation leading to patents and national standards, and the strong technical capabilities and qualifications of its subsidiary Kunsteel Heavy Equipment - Leveraging its controlling shareholder Kunsteel Holding, the company maintains a long-term strategic partnership with Wuhan Iron and Steel Group Kunming Iron and Steel Co., Ltd., ensuring stable coke product sales and enhancing market risk resilience[32] - The company prioritizes technological innovation, securing multiple patent authorizations in 2018 and officially implementing the national standard 'Determination of Ammonia Nitrogen Content in Coking Wastewater - Formaldehyde Method,' enhancing its industry influence[33] - Wholly-owned subsidiary Kunsteel Heavy Equipment Group possesses strong technical capabilities and production qualifications in heavy equipment manufacturing, particularly holding provincial competitive advantages in lifting and transportation equipment and mining and metallurgical equipment, and mastering independent EB furnace manufacturing technology[34][35] Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's operational performance, financial condition, and future outlook Overall Analysis of Operating Performance In 2018, the company achieved all operating targets, benefiting from a favorable steel market driven by supply-side reform; it effectively adjusted coal and coke prices through market analysis, enhanced coke output and quality via technical improvements and full-capacity production, strengthened internal management and performance assessment, maintained stable safety and environmental compliance, and made new progress in technological innovation, laying a foundation for competitiveness and transformation - Strengthened market analysis by establishing a market analysis department, enhancing price trend judgment capabilities and effectively preventing coal and coke price inversions[38] - Designated 2018 as the 'Coke Quality Improvement Year,' significantly improving coke quality through technical breakthroughs and enhanced management; both Anning Branch and Shizong Company achieved high and stable production, leading to a notable year-on-year increase in total coke output[38][39] - Promoted technological and management innovation, securing 17 utility model patents, 1 software copyright, and 1 invention patent throughout the year, and initiated a low-cost high-end titanium ingot casting project, laying the foundation for the transformation and development of its heavy equipment business[40] Key Operating Performance During the Reporting Period During the reporting period, the company achieved operating revenue of CNY 5.399 billion, a 22.07% year-on-year increase, and net profit attributable to shareholders of CNY 192 million, successfully turning losses into profits; double-digit growth in coke production and sales was the primary driver of performance improvement, with significant profitability enhancement attributed to the improved steel market, full-capacity production, and cost control measures Analysis of Income Statement and Cash Flow Statement In 2018, the company's operating revenue and cost increased by 22.07% and 17.57% respectively, leading to an improved gross margin; investment income significantly rose by CNY 35.277 million due to the transfer of Chengdu Touzhiruifeng LP shares, resulting in both operating profit and net profit turning losses into gains, indicating a substantial improvement in profitability; net cash flow from operating activities increased by 32.80%, while investing cash flow turned negative due to large investment principal recovery in the prior period and increased capital expenditures in the current period, and financing cash outflow significantly decreased due to lower loan repayments Key Income Statement and Cash Flow Statement Item Changes | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,399,279,342.17 | 4,422,929,775.19 | 22.07 | Increased sales volume and selling prices | | Operating Cost | 4,803,424,320.29 | 4,085,733,898.21 | 17.57 | Increased production leading to higher costs | | Investment Income | 35,276,990.02 | -575,561.21 | N/A | Investment income recognized from transfer of Chengdu Touzhiruifeng LP shares | | Operating Profit | 224,373,658.56 | -51,531,771.29 | N/A | Improved market, effective production organization, cost reduction, and efficiency enhancement | | Net Cash Flow from Operating Activities | 517,667,103.35 | 389,795,893.34 | 32.80 | Increased profitability of main business | | Net Cash Flow from Investing Activities | -45,140,683.86 | 353,469,641.29 | -112.77 | Recovery of investment principal in prior period and increased capital expenditures in current period | | Net Cash Flow from Financing Activities | -335,804,351.77 | -767,655,421.29 | 56.26 | Reduced repayment of financial institution loans compared to prior period | Main Business Segment Performance In 2018, the company's main business revenue increased by 21.01%, with gross margin rising by 3.66 percentage points to 10.71%; coal chemical business was the primary revenue contributor, growing by 24.48% with a 4.48 percentage point gross margin increase, while core product coke revenue grew by 27.25% with a 6.10 percentage point gross margin increase; however, coal gas and coal chemical by-products saw declining gross margins due to rising costs, and by region, Qujing City's business grew fastest, with revenue up 35.92% and gross margin up 8.05 percentage points Main Business by Product | By Product | Operating Revenue (CNY) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Coke | 4,195,842,800.29 | 17.97 | 27.25 | Increased by 6.10 percentage points | | Coal Gas | 173,946,829.01 | -90.35 | 3.31 | Decreased by 34.25 percentage points | | Coal Chemical By-products | 379,618,963.02 | -27.46 | 8.62 | Decreased by 6.79 percentage points | | Equipment Manufacturing | 328,718,547.90 | 18.65 | 15.22 | Decreased by 4.04 percentage points | | Total | 5,267,683,725.76 | 10.71 | 21.01 | Increased by 3.66 percentage points | - Coke sales volume increased by 307,300 tons year-on-year, and the average selling price increased by CNY 156.99 per ton, which were the primary drivers of revenue growth[46][47] - The decline in coal gas gross margin was primarily due to a decrease in selling price per unit and an increase in raw coal and labor costs; the decrease in coal chemical by-products gross margin was mainly due to rising raw coking coal prices and increased unit costs from desulfurization and denitrification project investments[51][52] Asset and Liability Analysis As of the end of 2018, the company's total assets were CNY 5.360 billion, a slight 1.73% increase from the beginning of the period; in asset structure, monetary funds significantly increased by 87.61% due to enhanced profitability, while available-for-sale financial assets sharply decreased by 91.30% due to LP share transfers; in liability structure, other payables and long-term payables both significantly declined due to repayments, resulting in an overall asset-liability ratio of 40.74%, down 1.91 percentage points year-on-year, with CNY 878.06 million in restricted assets at period-end, mainly related to finance lease fixed assets, intangible assets, and bank deposits Key Balance Sheet Item Changes | Item Name | Current Period End Balance (CNY) | Prior Period End Balance (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 400,271,822.49 | 213,355,721.23 | 87.61 | Company's profitability enhanced during the reporting period | | Available-for-Sale Financial Assets | 30,500,000.00 | 350,500,000.00 | -91.30 | Due to transfer of Chengdu Touzhiruifeng LP shares during the reporting period | | Long-term Payables | 113,873,620.06 | 269,097,140.75 | -57.68 | Due to repayment of some finance lease borrowings during the reporting period | | Retained Earnings | -294,475,652.49 | -484,032,840.26 | N/A | Due to company's operating accumulation during the reporting period | Major Restricted Assets at Period-End | Item | Year-end Carrying Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 97,594,033.43 | Letters of credit, bank acceptance bill deposits, and frozen accounts | | Fixed Assets | 684,847,704.73 | Sale-leaseback finance lease assets | | Intangible Assets | 95,617,085.40 | Sale-leaseback mortgage | | Total | 878,058,823.56 | | Industry Operating Information Analysis In 2018, guided by the "13th Five-Year Plan" and "Three-Year Action Plan for Winning the Blue Sky Defense War," the coking industry continued supply-side reform and environmental upgrades, showing a trend of increasing volume and rising prices, with coke output slightly up and prices fluctuating to a near-decade high, significantly improving industry profits; as a major coking enterprise in Yunnan Province, the company boasts leading domestic process equipment, brand advantages, and a centralized management model for procurement and sales, actively engaging in R&D innovation and transparently disclosing production processes and capacity utilization - Core industry policies focus on capacity reduction, industrial upgrading, and stricter environmental regulations, with the '13th Five-Year Plan for Coking Industry Development' mandating elimination of outdated capacity and higher environmental standards, and the 'Three-Year Action Plan for Winning the Blue Sky Defense War' strengthening pollution control in key regions[65][66] - Key operating characteristics of the coking industry in 2018 included a 0.8% year-on-year increase in coke output; prices initially suppressed then rose, with an overall upward trend; both export volume and price increased; and industry profits reached a historical high, with an average gross profit of CNY 382 per ton for coke enterprises[67][68][69] Capacity and Operating Status | Main Plant or Project | Design Capacity | Capacity Utilization Rate (%) | | :--- | :--- | :--- | | Anning Branch Coking Project | 1 million tons/year | 103.69% | | Shizong Coal Coking Project | 980,000 tons/year | 94.90% | | Shizong Coal Coking Methanol Project | 100,000 tons/year | 48.46% | Discussion and Analysis of Future Development The company anticipates future trends in the coking industry to include a prominent coal-coke-steel industry chain advantage, continuously stricter environmental requirements, and increased industry concentration; based on this, it has formulated a strategy to gradually exit the coal chemical business and transition into high-end advanced equipment manufacturing, while also planning for clean energy and modern logistics industries, with a 2019 target of producing 2.1 million tons of coke and achieving CNY 5.6 billion in revenue, while also identifying major risks such as macroeconomic fluctuations, industrial policies, environmental regulations, safety management, and high reliance on related party sales - Company development strategy: gradually exit the coal chemical business, leverage capital market advantages to complete the transformation and upgrading of traditional equipment manufacturing within 3-5 years, enter the high-end advanced equipment manufacturing sector, and strategically deploy in clean energy and modern logistics industries[96] 2019 Operating Plan | Product | Planned Output | | :--- | :--- | | Coke | 2.1 million tons | | Chemical Products | 178,300 tons | | Coal Mining Products | 175,000 tons | | Operating Revenue | CNY 5.6 billion | - Key risks faced by the company include: macroeconomic fluctuations impacting downstream steel industry demand, changes in coking industry policies, increased costs due to stricter environmental standards, production safety management, and a high proportion of sales to related party Wuhan Iron and Steel Kunming[98][99] Significant Matters This section details important events and decisions impacting the company, including profit distribution, fulfillment of commitments, major related-party transactions, and social responsibility initiatives Profit Distribution Plan During the reporting period, the company formulated the "Shareholder Dividend Return Plan for the Next Three Years (2018-2020)"; however, as of the end of 2018, the company's retained earnings were negative (-CNY 294 million), not meeting the dividend conditions, thus the board proposed no cash dividends or capital reserve to share capital increase for 2018, consistent with no dividend distribution in the past three years - Due to accumulated losses from prior years, the company's retained earnings as of the end of the reporting period were -CNY 294,475,652.49, thus the company proposes no cash distribution or capital reserve to share capital increase for 2018[5][101] Fulfillment of Commitments During the reporting period, controlling shareholder Kunsteel Holding strictly fulfilled long-term commitments regarding maintaining the listed company's independence, standardizing related-party transactions, and avoiding horizontal competition; however, Kunsteel Heavy Equipment Group failed to meet its 2018 performance commitment from the 2016 asset swap, with actual net profit (excluding non-recurring items) of CNY 4.4735 million, falling short of the CNY 25 million target, requiring Kunsteel Holding to compensate the company CNY 18.8403 million in cash per the agreement - Kunsteel Heavy Equipment Group's net profit after deducting non-recurring gains and losses for 2018 was CNY 4,473,516.63, failing to meet the committed target of no less than CNY 25 million[112] - According to the performance commitment agreement, controlling shareholder Kunsteel Holding must compensate Yunmei Energy with CNY 18,840,304.45 in cash for the difference by May 12, 2019[113][126] Significant Related Party Transactions The company engaged in multiple related-party transactions related to daily operations, primarily selling coke and purchasing raw materials from related parties, all of which followed appropriate approval procedures; additionally, the company completed a significant asset sale related-party transaction, transferring part of its stake in Chengdu Touzhiruifeng Investment Center (Limited Partnership) to related party Kunsteel Real Estate to revitalize funds - To revitalize funds, the company and its subsidiary Shizong Coal Coking transferred part of their shares in Chengdu Touzhiruifeng Investment Center (Limited Partnership) to related party Kunsteel Real Estate, a transaction completed by the end of the reporting period[87][123] Work on Actively Fulfilling Social Responsibilities The company actively fulfills its social responsibilities, participating in targeted poverty alleviation in Haidai Town, Xuanwei City, Yunnan Province, under the unified plan of its controlling shareholder Kunsteel Company, including leadership support, personnel deployment, and charitable product purchases, raising CNY 394,602 in poverty alleviation funds in 2018; as a key pollutant-discharging entity, the company also transparently disclosed its pollutant discharge information, environmental investments, and pollution control facility operations, with environmental investments totaling CNY 52.7139 million, accounting for 0.98% of operating revenue during the reporting period - In 2018, under the unified arrangement of Kunsteel Company, the company carried out targeted poverty alleviation work in Haidai Town, Xuanwei City, raising a total of CNY 394,602 in poverty alleviation funds through leadership support, personnel deployment, and charitable purchases[131][132] Environmental Investment Status | Environmental Investment Funds (Unit: CNY 10,000) | Proportion of Investment Funds to Operating Revenue (%) | | :--- | :--- | | 5,271.39 | 0.98 | Changes in Ordinary Shares and Shareholder Information This section details any changes in the company's ordinary share capital and provides an overview of its shareholder structure Changes in Ordinary Share Capital During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure - During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure[143] (II) Top Ten Shareholders and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of the End of the Reporting Period As of the end of 2018, the company had 37,923 shareholders; the top two shareholders, Kunming Iron and Steel Holding Co., Ltd. and Yunnan Yuntianhua Group Co., Ltd., both state-owned legal entities, held 60.19% and 10.31% respectively, indicating a highly concentrated equity structure, with a portion of the controlling shareholder Kunsteel Holding's shares (246.9 million shares) pledged Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Kunming Iron and Steel Holding Co., Ltd. | 595,841,429 | 60.19 | State-owned Legal Entity | | Yunnan Yuntianhua Group Co., Ltd. | 102,083,000 | 10.31 | State-owned Legal Entity | | Zhang Qunying | 7,611,800 | 0.77 | Domestic Natural Person | | Central Huijin Asset Management Co., Ltd. | 1,899,000 | 0.19 | State-owned Legal Entity | - Controlling shareholder Kunming Iron and Steel Holding Co., Ltd. pledged 246,900,000 of its company shares[147] Directors, Supervisors, Senior Management, and Employees This section provides information on the company's board of directors, supervisory board, senior management, and overall employee structure (I) Changes in Shareholdings and Remuneration of Current and Departed Directors, Supervisors, and Senior Management During the Reporting Period During the reporting period, none of the company's directors, supervisors, or senior management held company shares, with no changes in their shareholdings; in 2018, the total pre-tax remuneration paid to directors, supervisors, and senior management was CNY 3.5656 million, with Chairman Mr. Peng Wei receiving CNY 570,600 and General Manager Mr. Li Li receiving CNY 416,700 Remuneration of Selected Directors, Supervisors, and Senior Management (Unit: CNY 10,000) | Name | Position | Total Pre-tax Remuneration Received from Company During Reporting Period | | :--- | :--- | :--- | | Peng Wei | Chairman, Party Secretary | 57.06 | | Li Li | Director, General Manager | 41.67 | | Zhang Kunhua | Director, Deputy General Manager | 35.43 | | Total | / | 356.56 | Employee Information As of the end of the reporting period, the company and its major subsidiaries had a total of 2,036 employees; by professional composition, production personnel accounted for the largest proportion at 1,717 individuals, and by education level, most employees held college degrees or below; the company implements a performance-linked remuneration policy and has developed annual training plans to enhance employee skills Employee Professional Composition | Professional Category | Number of Employees | | :--- | :--- | | Production Personnel | 1,717 | | Sales Personnel | 66 | | Technical Personnel | 154 | | Financial Personnel | 33 | | Administrative Personnel | 66 | | Total | 2,036 | Corporate Governance This section describes the company's corporate governance framework, including its structure, operational mechanisms, and internal control systems Overview of Corporate Governance During the reporting period, the company continuously improved its corporate governance structure in strict accordance with laws and regulations such as the "Company Law" and "Securities Law"; the responsibilities among the general meeting of shareholders, board of directors, supervisory board, and management are clearly defined, ensuring standardized overall operation, with the company maintaining independence from its controlling shareholder in business, personnel, assets, organization, and finance, and strictly implementing information disclosure and insider information registration management systems - The company's corporate governance structure is sound, with clear responsibilities and standardized operations among the general meeting of shareholders, board of directors, supervisory board, and management, complying with relevant requirements of the China Securities Regulatory Commission[172] - The company possesses independent and complete business operations and autonomous management capabilities, maintaining independence from its controlling shareholder in business, personnel, assets, organization, and finance[172] Internal Control The company has disclosed its 2018 internal control self-evaluation report, for which Ruihua Certified Public Accountants (Special General Partnership) issued a standard unqualified internal control audit report, indicating no material weaknesses in the company's internal control during the reporting period - The company disclosed its 2018 Internal Control Evaluation Report, for which Ruihua Certified Public Accountants issued a standard unqualified 'Internal Control Audit Report'[178][179] Corporate Bonds Information This section provides details regarding the company's outstanding corporate bonds, including their basic terms and credit ratings Basic Information of Corporate Bonds The company has one outstanding corporate bond, "13 Yunmei Industry," code 122258, which completed interest payment on December 3, 2018, and saw CNY 59.991 million in principal repurchased under its put option, leaving a balance of CNY 190 million; concurrently, the company opted to raise the coupon rate for the remaining two years from 7.80% to 8.80% '13 Yunmei Industry' Bond Basic Information | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (Unit: CNY 10,000) | Adjusted Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 13 Yunmei Industry | 122258 | 2013-12-03 | 2020-12-03 | 19,000.90 | 8.80 | - During the reporting period, the company exercised a put option on the '13 Yunmei Industry' bond, with a repurchase amount of CNY 59,991,000.00; concurrently, the company opted to increase the coupon rate for the remaining two years of the bond's term by 100 basis points to 8.80%[184][185] Corporate Bond Rating Status According to the follow-up rating report issued by United Credit Ratings Co., Ltd. on June 1, 2018, the company's main credit rating was maintained at "AA-", with a "stable" outlook, and the "13 Yunmei Industry" bond's credit rating was maintained at "AA" - In June 2018, United Credit Ratings Co., Ltd. maintained the company's corporate credit rating at 'AA-' with a 'stable' outlook, and the '13 Yunmei Industry' corporate bond's credit rating at 'AA'[187] Financial Report This section presents the company's audited financial statements and the accompanying audit report for the reporting period Audit Report Ruihua Certified Public Accountants (Special General Partnership) audited the company's 2018 financial statements and issued a standard unqualified audit report, concluding that the financial statements fairly presented the company's financial position and operating results in all material respects, with key audit matters being "Related Parties and Related Party Transactions" and "Goodwill Impairment" - Audit firm Ruihua Certified Public Accountants issued a standard unqualified audit report[195] - Key audit matters include: - Related Parties and Related Party Transactions: Due to diverse transaction types and significant amounts, there is a risk of incomplete disclosure and fairness of transactions - Goodwill Impairment: Goodwill impairment testing, arising from the acquisition of four coal mines, relies on significant management estimates and assumptions[198][201] Financial Statements This chapter includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the year 2018 Consolidated Income Statement Key Data (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 5,399,279,342.17 | 4,422,929,775.19 | | Operating Profit | 224,373,658.56 | -51,531,771.29 | | Total Profit | 225,825,104.02 | -30,323,631.18 | | Net Profit | 197,002,552.95 | -40,007,098.72 | | Net Profit Attributable to Shareholders of the Parent Company | 191,643,022.93 | -48,638,680.59 | Consolidated Balance Sheet Key Data (Unit: CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 5,359,583,313.02 | 5,268,274,448.16 | | Total Liabilities | 2,183,380,353.15 | 2,285,675,027.93 | | Total Owners' Equity Attributable to the Parent Company | 3,107,025,729.00 | 2,915,325,719.38 | Consolidated Cash Flow Statement Key Data (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 517,667,103.35 | 389,795,893.34 | | Net Cash Flow from Investing Activities | -45,140,683.86 | 353,469,641.29 | | Net Cash Flow from Financing Activities | -335,804,351.77 | -767,655,421.29 | | Net Increase in Cash and Cash Equivalents | 136,722,067.83 | -24,389,886.66 | Reference Documents This chapter lists reference documents, including financial statements signed and sealed by the legal representative, CFO, and head of accounting, the original audit report with the accounting firm's seal and certified public accountant's signature, and originals of all publicly disclosed documents and announcements during the reporting period - This chapter lists reference documents, including financial statements bearing the signatures and seals of the legal representative, CFO, and head of accounting, the original audit report with the accounting firm's seal and certified public accountant's signature, and originals of all publicly disclosed documents and announcements during the reporting period[611]