Financial Performance - The group recorded a consolidated revenue of approximately RMB 746 million for the year ended December 31, 2018, representing an increase of approximately RMB 64 million or 9.4% compared to 2017[37]. - Sales of fiberglass grating products generated revenue of approximately RMB 555 million, accounting for about 74.5% of total revenue, with a year-on-year increase of 32.1% from approximately RMB 420 million[38]. - Revenue from overseas sales, including the US and UK, was approximately RMB 413 million, representing about 55.4% of total sales, an increase of approximately 46.8% compared to 2017[25]. - The profit for the year increased by approximately 115.2% from about RMB 683,000 in the year ended December 31, 2017, to about RMB 1.5 million in the year ended December 31, 2018[54]. - The company did not propose any dividends for the year ended December 31, 2018, consistent with 2017[63]. Research and Development - The group invested approximately RMB 34 million in R&D for new products and innovative technology solutions during the year ended December 31, 2018, slightly down from RMB 35 million in 2017[32]. - Additional R&D personnel will be recruited to strengthen the R&D department's capabilities[24]. - The company plans to enhance its R&D capabilities by procuring new testing equipment and hiring additional full-time technical personnel[32]. - The company has hired one additional R&D staff member in the year ending December 31, 2018, with plans to hire another qualified candidate in 2019[74]. Market and Sales Strategy - The company plans to actively bid for potential projects to drive sales of fiberglass products amid uncertain market conditions[27]. - The company is in discussions with potential clients regarding sales orders for composite material subway evacuation platform products, which are expected to significantly contribute to revenue in 2019[27]. - The contribution of newly developed products, including composite material subway evacuation platform products, epoxy wedge products, and fiberglass sleeper products, accounted for approximately 21.6% of total sales for the fiscal year ended December 31, 2018[32]. - The overall fiberglass market in China is expected to grow at a revised compound annual growth rate of 5.0% over the next two years[31]. Environmental Impact - The group has maintained a commitment to minimizing any negative environmental impacts during production, with no significant violations of environmental laws reported for the year[35]. - The company aims to reduce carbon dioxide emissions and land pollution through policies that enhance manufacturing efficiency[151]. - The company implemented measures to reduce volatile organic compound emissions, including maintaining an activated carbon absorption system[150]. - The group reported greenhouse gas emissions for Scope 1, Scope 2, and Scope 3 totaling 34,443.31 kg, 1,130,217.6 kg, and 7,351.61 kg respectively as of December 31, 2018[147]. Corporate Governance - The company has adhered to the corporate governance code as stipulated in the GEM listing rules for the fiscal year ending December 31, 2018[98]. - The board consists of six directors, with three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[102]. - The company has established a system for the training and continuous professional development of directors and senior management[100]. - The independent non-executive directors are required to confirm their independence in writing according to GEM listing rules[102]. Risk Management - The board is responsible for establishing and maintaining an effective risk management and internal control system to achieve business objectives and safeguard assets[132]. - The group faced various risks including business, financial, operational, and other risks, with the board ultimately responsible for risk management[134]. - As of December 31, 2018, the group complied with the corporate governance code regarding internal controls and risk management, with no significant deficiencies noted[134]. - The company continues to adopt a going concern basis for preparing its consolidated financial statements, with no significant uncertainties affecting its ability to continue operations as of December 31, 2018[127]. Employee and Social Responsibility - The company emphasizes employee training and development, providing both internal and external training programs[172]. - The company has a strict policy against child labor and forced labor, with no labor disputes reported for the year ending December 31, 2018[173]. - The company is committed to corporate social responsibility and seeks to participate in community activities[181]. - The overall employee turnover rate was approximately 25% due to changes in the number of part-time workers[169]. Shareholding and Ownership - Mr. Jiang holds a beneficial interest in 163,600,000 shares, representing 40.9% of the company's equity[199]. - The ownership structure highlights significant control by Mr. Jiang over the company's shares through Longxiang[199]. - The report emphasizes compliance with regulatory requirements for disclosure of shareholdings[199]. - The document outlines the requirements for notifying the company and the stock exchange about interests and positions[199].
硅鑫集团(08349) - 2018 - 年度财报