First(SH:603806)2018-03-15 16:00Financial Performance - The company's operating revenue for 2017 was approximately ¥4.58 billion, representing a 16.03% increase compared to ¥3.95 billion in 2016[22]. - Net profit attributable to shareholders decreased by 30.97% to approximately ¥585 million in 2017 from ¥848 million in 2016[24]. - The basic earnings per share fell to ¥1.46 in 2017, down 30.81% from ¥2.11 in 2016[23]. - The weighted average return on equity decreased by 6.78 percentage points to 12.03% in 2017 from 18.81% in 2016[23]. - Cash flow from operating activities decreased by 17.66% to approximately ¥243 million in 2017 from ¥295 million in 2016[24]. - Total assets increased by 3.76% to approximately ¥5.70 billion at the end of 2017, compared to ¥5.50 billion at the end of 2016[22]. - The net assets attributable to shareholders rose by 3.86% to approximately ¥5.03 billion at the end of 2017 from ¥4.84 billion at the end of 2016[22]. - The company reported a total revenue of CNY 6.48 billion, with a year-on-year increase of 1.83%[62]. - The company reported a net profit of 1,844.72 million CNY, compared to a net profit of 1,657.10 million CNY in the previous period, marking an increase of about 11.3%[124]. Dividend Policy - The company plans to distribute a cash dividend of 6 RMB per 10 shares, totaling 241.2 million RMB, and to increase capital by issuing 3 new shares for every 10 shares held, resulting in an increase of 120.6 million shares[6]. - The company approved a cash dividend of CNY 10 per 10 shares for the 2016 fiscal year, totaling CNY 402 million distributed to shareholders[145]. - The cash dividend policy mandates that at least 10% of the annual distributable profit must be allocated as dividends, with specific minimum ratios based on the company's development stage[143]. - In 2017, the company reported a net profit of CNY 585.19 million, with a cash dividend payout ratio of 41.22%[147]. - The company has not made any adjustments to its cash dividend policy as of the report date[146]. Market and Product Development - The company plans to continue expanding its photovoltaic product sales, which have been steadily increasing over the past three years[23]. - The company sold 577 million square meters of photovoltaic encapsulation film, an increase of 23.52% year-on-year, and 37.3461 million square meters of backsheet products, a significant increase of 88.92% year-on-year[34]. - The company is focusing on expanding its market share and competitive position in the photovoltaic encapsulation materials sector, leveraging its technological, financial, and management advantages[40]. - The company plans to enhance its competitive edge by developing new materials, including special acrylic resins and polyester polyols, to meet strategic requirements for new material development[42]. - The company is actively exploring new technologies and materials to adapt to changes in downstream component technologies, ensuring product sales stability[42]. Risks and Challenges - The company has detailed potential risks in the report, particularly in the section discussing future developments[8]. - The company experienced a decline in profitability for its film and backsheet products, impacting overall net profit[24]. - The company anticipates challenges in new product development due to a lack of experienced personnel, which may extend product development cycles[139]. - Rising costs of raw materials, particularly EVA resin, pose a risk to the company's profit margins, necessitating strategies to enhance revenue and manage costs effectively[140]. - There is a risk of increased accounts receivable due to cash flow issues among downstream component manufacturers, prompting the company to strengthen credit policies and contract management[137]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The company assures that the financial report is true, accurate, and complete, with no significant omissions or misleading statements[9]. - The company has no major litigation or arbitration matters during the reporting period[167]. - The company has no significant accounting policy changes or major accounting errors during the reporting period[163]. - The company has established a framework for compliance with the Shanghai Stock Exchange's regulations regarding share transactions[151]. Social Responsibility and Environmental Commitment - The company emphasizes its commitment to fulfilling social responsibilities as a publicly listed entity[181]. - The company strictly adheres to the Environmental Protection Law of the People's Republic of China, ensuring that all environmental protection facilities operate normally and that there were no penalties for environmental violations during the reporting period[185]. - The company has invested RMB 44,740 in other charitable projects, including the donation of rooftop power generation systems[181]. - The company has committed to ongoing support for employees in need through various donation initiatives[181]. - The company has provided RMB 35,000 through the "Spring Breeze Action" to assist disadvantaged communities with living and employment difficulties[180]. Shareholder Information - The total number of ordinary shares is 402,000,000, with 311,790,000 shares subject to restrictions, representing 77.56% of the total[189]. - The largest shareholder, Hangzhou Foster Technology Group Co., Ltd., holds 226,290,000 shares, representing 56.29% of the total shares[197]. - The company has undergone a change in its controlling shareholder from "Lin'an Foster Industrial Investment Co., Ltd." to "Hangzhou Foster Technology Group Co., Ltd." during the reporting period[200]. - The number of ordinary shareholders increased from 14,105 to 15,654 during the reporting period[195]. - The company has not disclosed any related party transactions among the remaining shareholders, indicating a potential for independent governance[198].