DFGC(SZ:000679)2019-04-29 16:00Financial Performance - The company reported a significant change in its business structure, shifting focus primarily to retail, hotel, and real estate sectors[16]. - The company's operating revenue for 2018 was ¥1,087,555,948.24, a decrease of 41.00% compared to ¥1,843,241,506.25 in 2017[18]. - The net profit attributable to shareholders was -¥414,926,964.97, representing a decline of 3,278.01% from a profit of ¥13,056,179.49 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was -¥402,586,784.21, a decrease of 1,326.12% compared to -¥28,229,507.27 in 2017[18]. - The basic and diluted earnings per share were both -¥1.16, a drop of 3,000.00% from ¥0.040 in 2017[18]. - The total assets at the end of 2018 were ¥5,587,735,324.06, down 7.54% from ¥6,043,229,226.00 at the end of 2017[18]. - The net assets attributable to shareholders decreased by 30.71% to ¥936,269,040.56 from ¥1,351,196,005.53 in 2017[18]. - The company reported a net cash flow from operating activities of ¥57,430,687.03, a slight decrease of 1.67% from ¥58,405,699.91 in 2017[18]. - The company reported a revenue of CNY 108,755.60 million, a decrease of 41.00% year-on-year[36]. - The net profit attributable to shareholders was CNY -41,492.70 million, a decline of 3,278.01% compared to the previous year[36]. Shareholding Structure - As of 2016, Wuxin Investment Holdings became the controlling shareholder, holding 100 million shares, which is 28.06% of the total share capital[17]. - The actual controller of the company is Mr. Chen Zhixiang, following the share transfer to Wuxin Investment Holdings[17]. - The company has undergone multiple changes in its shareholding structure since its establishment, with the latest being the transfer of shares to Wuxin Investment Holdings[16]. - Dalian Friendship Group's major shareholders include Wuxin Investment Holdings, Dalian State-owned Assets Supervision and Administration Commission, and Dayang Group[16]. - The company has no preferred shares outstanding during the reporting period[141]. - The largest shareholder, Wuxin Investment Holdings (Shenzhen) Co., Ltd., holds 100,000,000 shares, representing 28.06% of the total shares[134]. - The second-largest shareholder, Xia Chongyang, holds 6,750,000 shares, accounting for 1.89% of the total shares[134]. Retail and Real Estate Operations - The company’s retail business is primarily concentrated in Dalian, with a focus on transforming department stores into shopping centers to meet consumer demand[29]. - The company aims to continue innovating and adapting to the retail industry's transformation to improve its performance in a competitive market[29]. - The real estate segment generated revenue of CNY 30,648.43 million, down 69.40% year-on-year, with a loss of CNY -38,558.48 million[36]. - The retail sector is focusing on transforming into a "department store shopping center" model, emphasizing youthfulness, trendiness, and diversification[85]. - The company plans to actively seek new cooperation models and promote the sales of existing projects, including the Shenyang Friendship Times Square and Dalian Furihua International projects[85]. - The company has established a new development principle focusing on small plots in central urban areas, termed the "Three Middle Principles"[33]. Financial Management and Reporting - The company emphasizes the importance of accurate financial reporting and accountability from its management team[3]. - The company has not reported any significant mergers or acquisitions in the latest financial year[16]. - Future outlook and performance guidance details are not provided in the available documents[16]. - The company has not made any changes to its store operations during the reporting period[42]. - The company has not engaged in any significant equity or non-equity investments during the reporting period[72][73]. - The company did not experience any major lawsuits or arbitration matters during the reporting period[103]. - The company has not identified any risks during the supervisory activities of the supervisory board in the reporting period[173]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased by 47.84% compared to the beginning of the period, primarily due to debt repayments[32]. - The company’s receivables decreased by 53.73%, mainly due to the collection of sales proceeds from real estate projects[32]. - The net cash flow from investing activities increased significantly by 158.81% to ¥120,937,555.45, primarily due to the recovery of investment funds from Suzhou Huiyin[61]. - The net cash flow from financing activities decreased by 39.79% to -¥517,954,027.88, mainly due to the repurchase of part of the company's bonds[61]. - Total cash and cash equivalents decreased by 34.42% to -¥339,585,783.19[19]. - The proportion of cash and cash equivalents to total assets decreased by 5.05% to 6.53%[64]. Internal Control and Audit - The audit committee emphasized the need to strengthen the internal audit mechanism and improve the internal control system[171]. - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the financial statements[183]. - The company maintains an effective internal control system for financial reporting as of December 31, 2018, in all material respects[178]. - There were no significant deficiencies in internal control identified during the reporting period[175]. - The company’s internal control self-assessment report was disclosed on April 30, 2019, indicating full compliance with internal control standards[176]. Employee and Management Information - The total number of employees in the company is 526, with 414 in the parent company and 112 in major subsidiaries[157]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 468.68 million RMB[156]. - The company has not granted any stock incentives to directors and senior management during the reporting period[156]. - The company established a salary management system based on market research, linking salary growth to social average wages and economic indicators[159]. - In 2018, the company conducted 98 training sessions with a total of 621 participants, accumulating 589 hours of training[160]. Strategic Outlook - The company is committed to adjusting its operational strategies to enhance management capabilities in response to rising development costs and market competition[88]. - The company has faced significant policy risks in real estate due to ongoing government regulations aimed at curbing speculation, with expectations of continued strict measures[86]. - The real estate market is experiencing increased competition and market volatility, necessitating a focus on small land plots in central urban areas[86]. - The company is addressing funding risks by enhancing inventory turnover to ensure liquidity and improving capital structure[87].