CBMT(SH:603099)2019-03-27 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 67,629,928.01 in 2018, with a cash dividend of RMB 0.26 per 10 shares, totaling RMB 6,933,420, which accounts for 10.25% of the net profit[4]. - The company's operating revenue for the year was approximately CNY 464.14 million, representing a 19.45% increase compared to CNY 388.58 million in the previous year[23]. - Net profit attributable to shareholders was CNY 67.63 million, a decrease of 4.47% from CNY 70.79 million in the prior year[23]. - The net cash flow from operating activities was CNY 100.09 million, down 11.34% from CNY 112.89 million in the previous year[23]. - The total assets increased by 12.58% to CNY 1.27 billion from CNY 1.12 billion year-over-year[23]. - The basic earnings per share decreased by 7.41% to CNY 0.25 from CNY 0.27 in the previous year[23]. - The company reported a weighted average return on equity of 6.90%, down 0.79 percentage points from 7.69% in the previous year[23]. - The company reported a total revenue of 7,935,350.51 RMB for accounts receivable, which has been consolidated with notes receivable[99]. - The company reported a total profit margin decrease, reflecting challenges in maintaining profitability amidst market conditions[200]. Business Operations - The company operates in the Changbai Mountain scenic area, which is a national-level nature reserve[10]. - The company has exclusive operating rights for tourist transportation in three scenic areas of Changbai Mountain, enhancing its market position[30]. - The company produced 180,000 cubic meters of natural hot spring water annually, indicating significant market potential in the hot spring development business[30]. - The hotel management business has partnered with InterContinental Hotels Group, enhancing service offerings and brand recognition in the region[30]. - The company is transitioning towards an online travel agency model, integrating technology with traditional travel services to enhance competitiveness[30]. - The company has established itself as the largest tourism passenger transport company in the Changbai Mountain area, with exclusive operating rights for key transportation routes[34]. - The company’s subsidiary, Tianchi International Travel, has become a leading center for high-end tourism product development in the region[34]. - The hotel management segment has shown improvement, with the Crowne Plaza brand becoming a landmark hotel in Changbai Mountain tourism[34]. - The company has implemented a smart management system for scenic areas, significantly reducing visitor wait times by two-thirds during peak seasons[34]. - The company plans to expand its ice and snow tourism offerings, including new projects and services to attract winter tourists, capitalizing on the growing demand for winter sports[56]. - The company is adjusting its Fire Volcano Hot Spring project to better align with family vacation trends, increasing the number of family-oriented accommodations[56]. - The company is pursuing a "light asset" operation strategy, focusing on management output and collaboration with surrounding scenic areas to enhance tourism diversity[56]. Financial Management - The company has engaged Xinyong Zhonghe Accounting Firm for a standard unqualified audit report[4]. - The financial report is confirmed to be true, accurate, and complete by the company's management[4]. - The company has a comprehensive disclosure policy, utilizing multiple media for reporting, including Shanghai Securities News and China Securities Journal[18]. - The company’s cash and cash equivalents at the end of 2018 were 16,981,260 RMB, an increase of 53.39% from the previous year[47]. - The company’s long-term assets increased significantly, with intangible assets rising to 197,843,863.11 RMB, a 105.94% increase year-on-year[47]. - The company’s financial expenses increased to 1,133,100 RMB, primarily due to interest expenses from new borrowings[45]. - The company’s management service costs rose to 53,885,569.78 RMB, reflecting a 191.26% increase year-on-year due to the establishment of new subsidiaries[44]. - The company has committed to bear the costs related to the resettlement and economic compensation for employees during the dissolution and liquidation process[97]. - The company has implemented a change in accounting policy that does not affect profit or loss, total assets, or net assets[100]. Shareholder and Investor Relations - The company has a cash dividend policy that aims to provide stable returns to investors, having revised its shareholder return plan in 2017 for the years 2017-2019[61]. - The company will avoid and minimize related party transactions, ensuring fairness and transparency in unavoidable transactions[71]. - The company has made supplementary commitments to protect the interests of its investors[96]. - The company has established a long-term commitment to protect investor rights and will propose supplementary or alternative commitments to shareholders[87]. - The company will take necessary measures to ensure compliance with commitments, including timely disclosures and cooperation with supervisory bodies[88]. - The company has pledged to fully disclose any failure to fulfill commitments and apologize to investors, ensuring transparency and accountability[89]. - The company will compensate investors for losses caused by violations of commitments, based on amounts determined by regulatory authorities or negotiated with investors[84]. Risks and Challenges - The report includes a risk statement regarding forward-looking statements, indicating potential risks in future plans and strategies[4]. - The company faces risks from macroeconomic changes that could impact disposable income and tourism demand, potentially leading to revenue and profit declines[59]. - The company’s profitability may be adversely affected by inflation-related cost increases, as it requires regulatory approval to adjust ticket and service prices[59]. - The company’s operations are susceptible to unexpected events such as natural disasters and pandemics, which could negatively impact performance[59]. - The tourism business is highly seasonal, with over 60% of annual revenue generated in the third quarter, indicating a reliance on summer tourism[59]. Corporate Governance - The company has not faced any non-operational fund occupation by controlling shareholders or related parties[4]. - The company has not violated decision-making procedures for providing guarantees[4]. - The company has committed to not engaging in similar business activities as its controlling shareholder, ensuring no direct competition[65]. - The company has no significant changes in controlling shareholders during the reporting period[124]. - The company maintains compliance with corporate governance regulations set by the China Securities Regulatory Commission[156]. - The company conducted three shareholder meetings during the reporting period, addressing various operational and financial matters[157]. - There were changes in the board of directors, with three directors resigning due to work changes and two new deputy general managers appointed[148]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 1,319, with 802 in the parent company and 517 in subsidiaries[151]. - The company has established a performance-based compensation policy linking overall salary levels to business performance[152]. - The total pre-tax compensation for all senior management during the reporting period was CNY 1,328,000[139]. - The company has a training plan in place to develop knowledge-based employees and promote a learning organization[153]. Future Outlook - The company aims for a 2019 revenue target of CNY 494.74 million and a net profit of CNY 55.05 million, focusing on enhancing its tourism offerings and operational efficiency[56]. - Future outlook includes strategies for market expansion and potential new product developments to enhance revenue streams[200].