SSET(SZ:300540)2018-04-24 16:00Financial Performance - The company's operating revenue for 2017 was CNY 239,550,930.96, a decrease of 22.24% compared to CNY 308,072,671.22 in 2016[17]. - The net profit attributable to shareholders for 2017 was CNY 19,282,583.15, down 50.03% from CNY 38,588,744.72 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 5,547,826.21, a decline of 82.51% compared to CNY 31,720,544.18 in 2016[17]. - Basic earnings per share decreased by 58.36% to CNY 0.2410 from CNY 0.5788 in 2016[17]. - The total operating cost for 2017 was CNY 170,523,957.26, which is a decrease of 15.54% from CNY 201,907,633.33 in 2016[49]. - The company reported a significant reduction in sales expenses by 8.15% to CNY 9,298,235.18, while management expenses decreased by 6.62% to CNY 32,303,960.18[53]. - The company's total liabilities increased to CNY 304,000,733.11 from CNY 262,762,307.88, representing a rise of about 15.7%[200]. Assets and Liabilities - Total assets at the end of 2017 were CNY 962,608,715.00, an increase of 6.07% from CNY 907,520,055.14 at the end of 2016[17]. - The net assets attributable to shareholders increased by 1.95% to CNY 647,406,165.65 from CNY 635,047,763.88 in 2016[17]. - Current assets totaled CNY 904,764,640.89, up from CNY 851,772,234.66, indicating an increase of approximately 6.2%[198]. - The cash and cash equivalents rose to CNY 229,836,550.66 from CNY 177,371,858.92, marking a significant increase of about 29.6%[197]. - Accounts receivable increased to CNY 385,035,410.60 from CNY 380,350,931.63, showing a slight growth of around 1.8%[198]. - The total current liabilities increased to CNY 302,592,733.11 from CNY 261,354,307.88, reflecting a rise of about 15.8%[199]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.50 per 10 shares, totaling CNY 4,000,000, based on 80,000,000 shares[4]. - The company reported a cash dividend of 0.5 yuan per 10 shares, totaling 4 million yuan, with a cash dividend payout ratio of 20.74% of the net profit attributable to shareholders[85][89]. - The company has maintained a consistent profit distribution policy, with no dividends in 2015, 8 million yuan in 2016, and 4 million yuan in 2017[86][89]. Contracts and Projects - The total amount of new contracts signed during the reporting period was 305 million yuan, primarily involving natural gas liquefaction devices and LNG gas stations[39]. - The company successfully launched several projects, including a natural gas liquefaction device for Beihai City and a coal gas liquefaction project for Inner Mongolia Yuantong Coal Chemical Group[38]. - The company signed a significant sales contract for a natural gas liquefaction project with a processing capacity of 1 million cubic meters per day, which is currently under construction and expected to be operational in 2018[47]. Research and Development - Research and development investment for 2017 amounted to CNY 12,820,000, resulting in the acquisition of 3 invention patents and 7 utility model patents[42]. - R&D investment amounted to ¥12,824,205.10 in 2017, representing 5.35% of operating revenue, an increase from 4.69% in 2016[54]. - The company aims to develop new products and technologies, including modular design for small LNG units, which can reduce construction time by 3-6 months compared to traditional assembly methods[74]. Market Position and Industry Trends - The natural gas consumption in China reached 235.2 billion cubic meters in 2017, with a year-on-year growth of 17%[28]. - The company is positioned to benefit from national policies promoting natural gas as a key clean energy source, aiming for a 10% share in primary energy consumption by 2020[28]. - In 2017, China's natural gas demand increased by 31 billion cubic meters, a growth of 15% compared to 2016, with total LNG demand reaching 38 million tons, making China the second-largest LNG importer globally[71]. - The global LNG market size grew by 29 million tons by the end of 2017, with liquefaction capacity expansion completed at 45%[71]. Corporate Governance and Management - The company has maintained a stable management team with no changes in the positions of directors, supervisors, and senior management during the reporting period[141]. - The independent directors attended all board meetings and shareholder meetings, with no objections raised against company matters[167][168]. - The company has established a performance evaluation system for senior management, linking their performance directly to compensation[173]. - The audit committee reviewed internal control and related party transactions, ensuring compliance and effective oversight[170]. Employee and Labor Relations - The total number of employees in the company is 256, with 197 in the parent company and 59 in major subsidiaries[152]. - The company has a professional composition of 80 production personnel, 69 sales personnel, 68 technical personnel, 8 financial personnel, and 31 administrative personnel[152]. - The company has implemented a salary system based on responsibility, ability, and performance to encourage employee contributions[154]. - The company has a 100% labor contract signing rate for employees during the reporting period[154]. Audit and Compliance - The audit opinion issued was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position and results of operations[179]. - The company had zero significant deficiencies in internal controls for both financial and non-financial reports during the reporting period[179]. - The management is responsible for ensuring the financial statements are prepared in accordance with accounting standards and maintaining necessary internal controls[188].