LJRB(SH:600853)2019-03-29 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥10.51 billion, representing a year-over-year increase of 4.39% compared to ¥10.06 billion in 2017[22]. - The net profit attributable to shareholders for 2018 was approximately ¥146.29 million, a 5.02% increase from ¥139.29 million in 2017[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥144.26 million, reflecting a significant increase of 17.26% from ¥123.03 million in 2017[22]. - The company's total assets at the end of 2018 reached approximately ¥15.37 billion, a 20.30% increase from ¥12.78 billion at the end of 2017[22]. - The net assets attributable to shareholders increased by 61.64% to approximately ¥1.55 billion, primarily due to a non-public offering of 107.36 million new shares at a price of ¥4.38 per share, raising approximately ¥470.24 million[24]. - Basic earnings per share for 2018 were ¥0.2370, down 8.67% from ¥0.2595 in 2017[23]. - The weighted average return on equity decreased to 10.70%, down 4.95 percentage points from 15.65% in 2017[23]. - The company reported a negative net cash flow from operating activities of approximately -¥985.68 million, an improvement from -¥1.29 billion in 2017[22]. - The company achieved operating revenue of RMB 10,505,176,762.75, an increase of 4.39% compared to the previous year[49]. - The net profit attributable to the parent company reached RMB 14,628.55 million, reflecting a continuous growth trend[49]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares, totaling 12,883,353.16 RMB, while also increasing the share capital by 193,250,297 shares through capital reserve conversion, raising total shares to 837,417,955[5]. - The company is committed to long-term development while balancing shareholder interests in its profit distribution plan[5]. - The company has a cash dividend policy, distributing 0.10 RMB per 10 shares for the 2017 fiscal year[99]. - The company completed its 2018 semi-annual profit distribution, also distributing 0.10 RMB per 10 shares[100]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongshen Zhonghuan Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The company has appointed Zhongshen Zhonghuan Accounting Firm for auditing, with specific auditors named for the report[20]. - The company has not reported any significant accounting errors or changes in accounting policies during the reporting period[108]. - There are no outstanding issues regarding the use of funds or collection progress reported for the period[108]. - The company has not experienced any non-standard audit opinions from its accounting firm[108]. Legal and Regulatory Matters - The company faced a significant lawsuit involving a claim for construction payments totaling RMB 57,139,624.34, with the court proceedings being suspended and later withdrawn by the plaintiff[113]. - The company has been involved in legal disputes regarding payment claims, with a revised claim amounting to RMB 48,738,990 plus interest[113]. - The company was ordered to return labor fees amounting to ¥32,517,777.92 to Longjian Road and Bridge Co., Ltd. as per the court ruling[114]. - The company is involved in ongoing arbitration regarding a claim for damages totaling ¥42,180,818.65 due to increased labor costs[114]. - The company was ordered to pay a total of ¥2,127,319 in principal and interest to Guo Hong, as per the final court ruling[114]. - The total amount payable to Guo Hong, including interest and litigation costs, reached ¥2,508,174.61, which has been fully settled by the company[114]. - The company incurred litigation costs of ¥173,557 for the first instance and ¥113,540 for the second instance, totaling ¥287,097[114]. - The company faced a lawsuit for an engineering payment of ¥41,769,076.00, which is still under litigation[114]. - The company has been involved in multiple legal proceedings, including appeals and arbitration, affecting its financial obligations[114]. - The company has been actively managing its legal disputes to mitigate financial impacts and ensure compliance with court rulings[114]. Corporate Governance and Management Changes - The company has undergone changes in its board of directors, with the chairman resigning and the general manager temporarily assuming the role[14]. - The board of directors and supervisory board's term expired on April 7, 2018, and the company is actively working on the election process for new members[190]. - The company has not experienced any changes in controlling shareholders or actual controllers during the reporting period[184]. - Changes in senior management include the resignation of Chairman Shang Yunlong and Secretary Wang Zhengyu due to work requirements[200]. - New appointments include Liu Wanchang, Luan Qingzhi, and Qu Dechun as deputy general managers, all due to work needs[200]. Market Expansion and Project Development - The company is engaged in highway and bridge construction, holding various qualifications including special-level general contracting for highway engineering[30]. - The company secured 156 new contract projects with a total contract value of 12.088 billion yuan during the reporting period[43]. - The company participated in five PPP projects, further expanding its investment project portfolio[43]. - The company expanded its market presence in Tibet, Guangdong, Sichuan, and achieved success in the Indian and African markets[43]. - The company is actively pursuing market expansion through various construction projects across multiple countries, including Sudan, Bangladesh, and Kenya[80]. Financial Obligations and Guarantees - The total amount of guarantees provided by the company, including those for subsidiaries, reached 6,016,890,000 RMB, which is 389.14% of the company's net assets[142]. - The company has provided various guarantees for its subsidiaries, including 9.8 billion RMB for Heilongjiang Longjian Road and Bridge First Engineering Co., Ltd.[142]. - The company has a guarantee of 3.8 billion RMB for its wholly-owned subsidiary, Mongolia LJ Road and Bridge Co., Ltd.[142]. - The company has a guarantee of 8.1 billion RMB for its controlling subsidiary, Shandong Longyun Construction Investment Management Co., Ltd.[142]. Research and Development - Research and development expenses increased by RMB 5,168,488.24, representing a 265% rise due to enhanced R&D efforts[51]. - The company has established a postdoctoral research station, enhancing its research and development capabilities[40]. - Research and development expenses totaled CNY 7,118,866.21, which is 0.07% of total operating revenue, with a significant increase of 265.00% from CNY 1,950,377.97[63]. Social Responsibility and Environmental Management - The company has engaged in social responsibility initiatives, including a donation of 100,000 yuan to a charity in November 2018[158]. - The company organized over 400 employees for voluntary blood donation, receiving public recognition from the Harbin Blood Center[158]. - The company has maintained a commitment to environmental management, adhering to standards since 2006 and promoting green practices[160]. - The company has not been classified as a key pollutant discharger by environmental protection authorities[159]. Financial Reporting and Share Capital - The company reported a change in the format of its financial statements[155]. - The company issued 107,360,000 new shares in 2018, increasing total share capital from 536,807,658 to 644,167,658 shares[166]. - The company's consolidated debt-to-asset ratio improved from 88.80% to 88.24% following the issuance[174]. - The total number of ordinary shareholders increased from 53,234 to 54,873 during the reporting period[175].