WBD(SZ:300055)2020-06-04 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,324,280,444, a decrease of 36.06% compared to ¥2,071,246,441 in 2017[20]. - The net profit attributable to shareholders was -¥90,352,507, representing a decline of 129.71% from ¥305,373,649 in the previous year[20]. - The net cash flow from operating activities was ¥159,624,528, down 68.35% from ¥504,376,892 in 2017[20]. - The total assets at the end of 2018 were ¥7,419,632,913, a decrease of 7.23% from ¥7,998,004,030 at the end of 2017[21]. - The basic earnings per share for 2018 was -¥0.1044, a decline of 129.70% from ¥0.3530 in 2017[20]. - The weighted average return on equity for 2018 was 1.58%, down from 5.41% in 2017[20]. - The company experienced a net loss of -¥329,904,564.84 in the fourth quarter of 2018, contrasting with profits in the first three quarters[23]. - The total profit for 2018 was -66 million yuan, a year-on-year decline of 117.53%[47]. Cash Flow and Financial Management - Cash and cash equivalents decreased by 47.80% due to payments for goods, loan repayments, and support for joint ventures[40]. - The net cash flow from operating activities decreased by 68.35% to ¥159,624,528.52, primarily due to reduced accounts receivable recovery and increased payments[83]. - Total cash inflow from investment activities fell by 57.08% to ¥285,745,205.56, mainly due to a significant recovery of financial management funds in the previous year[83]. - The net cash flow from investment activities decreased by 62.03% to -¥494,569,197.99, attributed to a reduction in the recovery of financial products[83]. - Cash inflow from financing activities increased by 40.79% to ¥760,263,399.79, primarily due to an increase in bank borrowings[83]. - The net increase in cash and cash equivalents decreased by 711.33% to -¥532,432,771.62, mainly due to the decline in net cash flow from operating activities[83]. Accounts Receivable and Risk Management - The company reported an increase in accounts receivable as a percentage of revenue, indicating a potential risk in cash recovery, with a focus on improving management and monitoring of receivables[5]. - The company aims to strengthen financial management and market development coordination to mitigate risks associated with accounts receivable and improve cash flow[5]. - The company has established a comprehensive risk management system to enhance financial and operational oversight[48]. Goodwill and Impairment - The goodwill impairment risk has increased due to a significant decline in the profitability of the acquired company, Haotian Energy, leading to a substantial impairment provision that negatively impacted the company's performance[6]. - The transaction price for the 100% equity of Haotian Energy was confirmed at 681 million yuan, resulting in goodwill of 427.36 million yuan[177]. - In 2017, the company recognized a goodwill impairment provision of 64.73 million yuan, and an additional provision of 219 million yuan was recognized in the current reporting period[177]. Business Strategy and Market Expansion - The company plans to enhance its core competitiveness by expanding into high-salinity and difficult-to-treat wastewater markets, leveraging its brand advantages and operational scale[7]. - The company is actively pursuing market expansion opportunities in sectors such as steel, fertilizer, and pharmaceuticals to diversify its service offerings[7]. - The company is focusing on enhancing its core competencies in water engineering, hazardous waste treatment, and environmental equipment manufacturing while expanding its market presence[42]. - The company is committed to increasing R&D investment in technology innovation to improve product and service competitiveness in the environmental protection sector[43]. Research and Development - The company executed 20 R&D projects during the reporting period, with a total of 136 authorized patents, including 80 utility models and 55 inventions[78]. - R&D investment accounted for 2.70% of total revenue, up from 2.46% in the previous year[80]. - The company has expanded its R&D team, increasing the number of R&D personnel to 21, which is 12.28% of the total workforce[80]. - The company completed key technology research and application demonstration for the "near-zero discharge" of high-salinity wastewater, enhancing its capabilities in this area[59]. Environmental Commitment - The company is committed to environmental protection and is classified as a key pollutant discharge unit, with specific emissions data reported[168]. - The company emphasizes the protection of shareholder rights by ensuring fair participation in shareholder meetings and decision-making processes[159]. - The company’s wastewater treatment facilities utilize a process involving a regulating pool, stirring tank, sedimentation tank, and chlorine dioxide generator[170]. - The company’s air pollution control system includes a two-combustion chamber, rapid cooling tower, acid removal tower, and bag filter[171]. Shareholder and Governance - The cash dividend distribution plan for 2018 proposes a payout of 0.15 RMB per 10 shares, totaling 12,977,772.23 RMB, which is 14.36% of the net profit[130]. - The company has maintained a consistent cash dividend distribution approach over the past three years despite fluctuations in net profit[130]. - The company has committed to avoiding any direct or indirect competition with its own business in China, including Hong Kong, Macau, and Taiwan[131]. - The company has established a commitment to minimize unnecessary related party transactions[131]. Management Changes - The company experienced changes in management, with Gao Chunshan resigning as director and general manager on April 23, 2018, due to personal reasons[199]. - The independent director Yang Jun completed his term and left the position on April 23, 2018[199]. - The management team includes a mix of experienced professionals, with ages ranging from 38 to 70 years[197].