MCST(SZ:300355)2019-04-24 16:00Financial Performance - The company's operating revenue for 2018 was CNY 3,820,534,510.61, a decrease of 31.52% compared to CNY 5,578,887,956.00 in 2017[20]. - The net profit attributable to shareholders for 2018 was CNY 203,803,283.07, down 75.85% from CNY 843,982,201.82 in the previous year[20]. - The net cash flow from operating activities was negative CNY 1,871,835,226.67, a decline of 545.33% compared to CNY 420,324,304.85 in 2017[20]. - The basic earnings per share for 2018 was CNY 0.130, a decrease of 75.47% from CNY 0.53 in 2017[20]. - The total operating revenue for 2018 was CNY 3,820,534,510.61, representing a decrease of 31.52% compared to CNY 5,578,887,956.00 in 2017[55]. - The revenue from ecological environment construction was CNY 3,763,481,098.19, accounting for 98.51% of total revenue, with a year-on-year decrease of 30.89%[55]. - The company reported a total revenue of 3,849,444,825.81 yuan for the year 2018[170]. - The company confirmed revenue of CNY 204.32 million during the reporting period, with a cumulative revenue recognition of CNY 556.97 million[69]. Cash Flow and Liquidity - The company's operating cash flow net amount fluctuated significantly, from ¥42,032.43 million in 2017 to -¥187,183.52 million in 2018, indicating potential liquidity risks due to increased project scale and funding requirements[10]. - The net cash flow from operating activities in 2018 was -¥1,871,835,226.67, a decrease of 545.33% compared to the previous year[106]. - The company's cash and cash equivalents net decrease in 2018 was -¥1,113,998,428.10, a decline of 237.37% compared to the previous year[106]. - The company's financing cash inflow in 2018 was ¥6,254,292,169.69, an increase of 41.57% from 2017[106]. Assets and Liabilities - Total assets at the end of 2018 amounted to CNY 14,521,055,542.15, an increase of 16.39% from CNY 12,476,140,771.27 at the end of 2017[20]. - The company's total equity attributable to shareholders was CNY 3,665,901,770.20, reflecting a slight increase of 1.76% from CNY 3,602,336,650.07 in 2017[20]. - The company's total liabilities included short-term borrowings of ¥2,471,852,700.00, an increase of 2.79% from the previous year[109]. - The company's long-term receivables increased significantly to ¥6,117,943,140.60, up 39.10% year-on-year due to the consolidation of PPP project companies[109]. Shareholder Returns - The company plans to distribute a cash dividend of ¥0.18 per 10 shares, based on a total share base of 1,604,242,081 shares, reflecting a commitment to shareholder returns despite financial challenges[11]. - The cash dividend policy for the 2017 fiscal year was approved, distributing RMB 0.87 per 10 shares, totaling RMB 139.57 million[151]. - The company proposed a cash dividend of RMB 0.18 per 10 shares for 2018, totaling RMB 28,876,357.46, which represents 14.17% of the net profit attributable to ordinary shareholders[156]. - The total cash dividends distributed over the three years were RMB 228,604,396.57, with an average payout ratio of approximately 16.15%[157]. Operational Strategy and Market Expansion - The company has expanded its business operations outside of Inner Mongolia, establishing subsidiaries in various regions to diversify its client base and reduce dependency on local government contracts[6]. - The company aims to improve project cash flow by prioritizing clients with strong fiscal capabilities and increasing upfront payments in new contracts[11]. - The company is closely monitoring national policy changes that could impact its PPP business model, which is crucial for government project financing[8]. - The company plans to replicate the "Mongcao model" across regions, leveraging its accumulated ecological restoration technology to expand its market presence[145]. Research and Development - Research and development expenses increased by 9.33% year-on-year to CNY 72,278,808.17, reflecting the company's commitment to innovation[100]. - The company has undertaken 43 national and local scientific research projects, receiving over CNY 90 million in special financial funding[101]. - The company applied for 79 patents in 2018, of which 16 were authorized, including 1 invention patent[49]. - The company is committed to transforming research outcomes into production capabilities, enhancing its ecological restoration projects through scientific advancements[149]. Ecological Restoration and Environmental Management - The company has established 13 specialized research institutes and corresponding germplasm resource banks, focusing on drought-resistant and cold-resistant plants, among other areas[28]. - The company has completed over 30 ecological restoration projects in mining areas, restoring a total area of 26.8 million square meters[42]. - The company has developed five major industry or national standards for ecological restoration, including "Degraded Grassland Restoration" and "Grassland Ecological Pasture Management" technologies[34]. - The company has expanded its ecological restoration business to over 10 provinces in China and established international cooperation in countries like Singapore and the UAE[29]. Financial Management and Compliance - The company has maintained compliance with commitments regarding non-competition and reduction of related party transactions[159]. - The company has effectively managed its raised funds, ensuring that they are utilized for projects that support its operational goals and growth strategies[122]. - The company has not engaged in any related party transactions during the reporting period[179]. - The company has not reported any significant changes in its operational strategy or market expansion plans during the reporting period[188]. Contracts and Projects - The company signed 107 new engineering construction contracts with a total amount of CNY 2,391,261,000, a decline of 86.11% compared to the previous year[58]. - The company confirmed revenue of CNY 371.94 million for the G6 highway project, with cumulative revenue recognized reaching CNY 30.67 million by the end of the reporting period[59]. - The company confirmed revenue of CNY 12.70 million for the ecological construction project in Wuhai City, with cumulative revenue recognized reaching CNY 55.98 million by the end of the reporting period[66]. - The company has engaged in several guarantees totaling 1.45 billion CNY, with all guarantees completed by the end of the reporting period[183].