SHREG(SZ:000803)2019-06-17 16:00Financial Performance - The company's operating revenue for 2018 was CNY 491,244,712.92, representing a 64.20% increase compared to CNY 299,176,964.83 in 2017[17]. - The net profit attributable to shareholders decreased by 51.67% to CNY 8,139,657.13 from CNY 16,841,438.37 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -197,094,689.48, a significant decline of 36,811.69% compared to CNY 536,871.78 in 2017[17]. - The basic earnings per share decreased by 53.85% to CNY 0.06 from CNY 0.13 in 2017[17]. - The weighted average return on net assets dropped to 9.89%, down 14.23% from 24.12% in the previous year[17]. - The company reported a total revenue of 45.5 million yuan for the year 2018, with a net profit margin of approximately -85.63%[67]. - The company reported a total revenue of 260 million for the year 2018, with a year-on-year growth of 5%[104]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 97,918,083.58, a turnaround from a negative cash flow of CNY -42,613,586.90 in 2017[17]. - The total assets at the end of 2018 were CNY 1,316,028,790.82, reflecting a 1.44% increase from CNY 1,297,315,616.37 at the end of 2017[18]. - The net cash flow from operating activities for the fourth quarter was CNY 109.61 million, indicating a strong recovery in cash generation[22]. - The net increase in cash and cash equivalents was ¥43,751,282.78, a decrease of 25.43% compared to the previous year[52]. - The company reported a significant increase in non-operating income, totaling CNY 205.23 million, primarily from financial asset gains[24]. Business Transformation and Strategy - The company underwent a business transformation in 2017, shifting its main operations to new energy electrical equipment manufacturing and sales[16]. - The company plans to focus on expanding its core competencies in new energy investment, services, and equipment business areas[30]. - The company has made strategic adjustments to its business model, transitioning towards high-end manufacturing in the new energy sector[33]. - The company plans to accelerate its transformation towards new energy investments and services, aiming to shrink traditional business operations in 2019[71]. - The company intends to initiate a non-public stock issuance to support its strategic layout and reduce its debt ratio, enhancing capital strength and risk resistance[71]. Revenue Sources and Declines - Revenue from the new energy equipment sector reached CNY 415 million, accounting for 84.45% of the total operating revenue, with a year-on-year growth of 296.88%[33]. - Traditional businesses, including silk and real estate, saw a significant decline in revenue, totaling CNY 20.87 million, down 76.73% year-on-year[34]. - The sales volume of silk was zero, indicating a 100% decrease compared to the previous year, while the sales volume of automobiles dropped by 97.73%[40]. - The revenue from wind turbine sales was ¥136,801,724.10, marking a 12.57% gross margin[40]. - The company adjusted its business focus, reducing operations in silk, automotive, and real estate sectors, leading to significant declines in sales[41]. Related Party Transactions - The company reported related party transactions amounting to 300.70 million yuan, accounting for 61.21% of total annual sales, indicating a significant reliance on related parties[73]. - The company’s related party transactions are conducted at market prices, ensuring fairness and transparency in pricing[108]. - The company has established ongoing business relationships with several subsidiaries, including Tianjin Fuhuan Enterprise Management Consulting Co., Ltd.[109]. Legal and Compliance Issues - The company has faced a total of 10 lawsuits, with various outcomes, including some already settled and others pending judgment[94]. - The company has actively managed its legal disputes to minimize financial impact and ensure compliance with legal obligations[94]. - The company has disclosed all ongoing litigation matters in accordance with regulatory requirements[93]. - The company reported no significant changes in its accounting firm or any related matters during the reporting period[92]. Governance and Management - The company maintains independence from its controlling shareholder in personnel, assets, finance, organization, and business operations[175]. - The governance structure of the company aligns with the requirements set forth by the China Securities Regulatory Commission and relevant laws[173]. - The company has established a performance evaluation and incentive mechanism for senior management to ensure effective duty fulfillment[185]. - The independent directors' suggestions were accepted, contributing to the improvement of the company's governance[180]. Future Outlook - The company has provided guidance for the next quarter, expecting revenue to reach between 1.6 billion and 1.7 billion, which would be a growth of 10-13%[158]. - New product launches are anticipated to contribute an additional 200 million in revenue by the end of the fiscal year[158]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 100 million allocated for potential deals[158]. - A new marketing strategy is set to roll out, aiming to increase brand awareness by 30% over the next year[158].