WINNERWAY(SZ:000573)2020-04-13 16:00Financial Performance - The company's operating revenue for 2019 was ¥912,620,218.35, a slight increase of 0.10% compared to ¥911,676,973.95 in 2018[17]. - The net profit attributable to shareholders for 2019 was ¥65,144,810.87, representing a growth of 25.16% from ¥52,047,809.13 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was ¥73,730,791.83, which is an increase of 42.21% compared to ¥51,846,085.61 in 2018[17]. - The basic earnings per share for 2019 was ¥0.1041, up 24.52% from ¥0.0836 in 2018[17]. - The total assets at the end of 2019 were ¥2,932,765,818.93, a decrease of 15.45% from ¥3,468,803,741.25 at the end of 2018[17]. - The net assets attributable to shareholders increased by 1.87% to ¥1,725,853,343.37 from ¥1,694,171,347.05 in 2018[17]. - The net cash flow from operating activities was negative at -¥292,783,060.66, a decline of 166.73% compared to ¥438,757,684.61 in 2018[17]. - The weighted average return on equity for 2019 was 3.74%, an increase from 3.09% in 2018[17]. - The operating profit for 2019 was ¥93,212,983.75, which marked a substantial increase of 48.18% year-on-year[33]. - The company achieved total revenue of ¥912,620,218.35 for the full year 2019, representing a slight increase of 0.10% compared to the previous year[33]. Revenue Breakdown - The real estate sales revenue reached ¥576,539,647.75, accounting for 63.17% of total revenue, with a year-on-year increase of 13.86%[50]. - The revenue from the recycling of used lead-acid batteries was ¥274,375,803.56, representing 30.06% of total revenue, but decreased by 18.88% compared to the previous year[50]. - The company's total revenue for 2019 was significantly impacted by a 66.92% decline in coal sales, which amounted to ¥3,630,374.27, down from ¥10,974,079.75 in 2018[50]. - The South China region contributed ¥908,989,844.08, or 99.60% of total revenue, showing a slight increase of 0.92% year-on-year[50]. Real Estate Operations - The company’s real estate business saw significant revenue growth from self-operated projects, contributing to the overall profit increase[33]. - The online sales area of new commercial housing in Dongguan reached 7.3942 million square meters, a year-on-year increase of 1.5%[37]. - The sales amount of new commercial housing was 138.515 billion yuan, reflecting a growth of 12.1%[37]. - The company reported a total sales area of 18,078.39 square meters for self-operated projects and 5,646.62 square meters for the Feili Mountain project during the reporting period[38]. - The company acquired a new land reserve project in Dongguan with a total area of 57,765.78 square meters and a total price of 2.55155 billion yuan[39]. - The total land reserve area for the company is 155.01455 thousand square meters, with a total building area of 513.74307 thousand square meters[39]. - The company has no new pre-sale certificate area for self-operated projects as of December 2019[38]. - The city government has introduced policies to encourage urban renewal, which will enhance investment and development opportunities[36]. Coal Mining Operations - The company is actively seeking diversification by entering the coal mining and recycled lead industries, aiming for cross-industry development[31]. - The company’s coal mining operations are currently undergoing regulatory scrutiny, with plans to apply for a new mining capacity of 450,000 tons per year[28]. - The coal mining operations faced challenges, with the Coal Mine K19 ceasing operations in December 2018 due to resource depletion, and a new mining license for 450,000 tons per year is currently being processed[42]. - The coal market is experiencing downward pressure on prices due to increased supply and reduced demand, impacting overall profitability[44]. - The company is preparing for a new mining project with a planned capacity of 450,000 tons per year, pending government approvals[43]. Environmental and Social Responsibility - The company has established a comprehensive pollution prevention and control system, including wastewater treatment and air emission standards compliance[195]. - The company reported a total pollutant discharge of 6,532.6 tons for SO2, 5,321.2 tons for NOX, and 95.62 tons for lead, with no exceedance of emission standards[195]. - The company has obtained the necessary environmental permits, including the Hazardous Waste Operating License and the Pollutant Discharge Permit[196]. - The company is actively involved in real estate development and management, with multiple projects under construction and planning stages[92]. - The company emphasizes the coordination of economic and social benefits, focusing on safety, quality management, and environmental protection in its operations[193]. Legal Matters - The company is involved in a significant lawsuit regarding a breach of contract with former shareholders of the Kongjiagou Coal Mine, with a claimed amount of CNY 30 million (approximately USD 4.3 million) in damages[163]. - The Supreme People's Court upheld the original ruling, which requires the defendants to pay the company a penalty of CNY 3 million (approximately USD 430,000), but the court did not support the company's request for a 30% equity transfer in the new mine[163]. - The integration of the Nuotao Ping Coal Mine and Kongjiagou Coal Mine has faced substantial delays due to the defendants' refusal to fulfill their obligations, leading to uncertainty about the successful completion of the integration[163]. - The company has filed an appeal to the Supreme People's Court after the defendants failed to comply with the first-instance judgment from the Guizhou High Court[163]. - The company is currently seeking to restore enforcement of the judgment in the Weining County People's Court, as the defendants have not executed the court's decision[163]. Investment and Financing - The average financing cost for bank loans ranges from 4.5675% to 6.5%, with a total financing balance of CNY 63.25 million[41]. - The company’s cash and cash equivalents decreased by 46.47% to ¥396,629,924.32, mainly due to reduced cash from sales and increased land auction deposits[67]. - The total investment amount for the reporting period was 268,807,683.92, a decrease of 67.46% compared to the previous year[78]. - The company received cash from financing activities amounting to 80,000,000.00, primarily from the release of pledged time deposits[69]. - The company has a total of 4.24 billion yuan in fixed asset investments across various real estate projects, with a completion rate of 100%[84]. Shareholder Returns - The company plans to distribute a cash dividend of ¥1 per 10 shares, based on a total of 648,730,604 shares[4]. - The cash dividend for 2019 was set at ¥1.00 per 10 shares, totaling approximately ¥64,873,060.40, which represents about 84.11% of the distributable profit[136]. - The cash dividend payout ratio for 2019 was 99.58% of the net profit attributable to shareholders[133]. - The company has committed to maintaining a minimum cash dividend payout ratio of 40% during its mature phase[134]. Operational Challenges - The company anticipates potential risks from the global COVID-19 pandemic affecting its real estate and lead production operations, leading to delays in project timelines[119]. - The company is facing market risks due to the frequent price fluctuations of lead products, which can impact operational results[123]. - The company is focusing on strengthening its procurement management to improve cost transfer capabilities and enhance operational efficiency[123]. - The company has faced potential risks related to policy changes affecting the recycling industry, particularly concerning the supply of raw materials[122].