CREAT(SZ:002350)2018-04-13 16:00Dividend Policy - The company reported a plan not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[7]. - The company plans to not distribute cash dividends or issue bonus shares for the 2017 fiscal year, pending shareholder approval[141]. - The cash dividend policy stipulates that at least 10% of the distributable profits should be distributed in cash if conditions are met[134]. - The company’s cash dividend policy allows for a minimum payout ratio of 80% for mature companies without significant capital expenditure plans[134]. - The company’s board of directors is responsible for proposing the annual or semi-annual profit distribution plan based on operational and financial conditions[135]. - The company’s cash dividend policy is compliant with its articles of association and shareholder resolutions[138]. - The company has a three-year shareholder return plan from 2017 to 2019, which includes guidelines for profit distribution[133]. - The company did not distribute cash dividends in 2017, despite having a positive net profit available for distribution to ordinary shareholders[143]. - The retained undistributed profits will primarily support the company's business operations and investment needs, especially with the upcoming operational demands of the Zhengzhou Airport production base[144]. - The company plans to maintain financial stability and ensure normal operations by not distributing profits in 2017, considering macroeconomic conditions and funding requirements[144]. - No cash dividends, stock dividends, or capital reserve transfers to increase share capital are planned for the current fiscal year[145]. Financial Performance - The company’s operating revenue for 2017 was ¥2,215,280,596.13, representing a 24.69% increase compared to ¥1,776,594,263.26 in 2016[19]. - The net profit attributable to shareholders for 2017 was ¥72,189,688.10, a decrease of 5.59% from ¥76,462,166.80 in 2016[19]. - The net cash flow from operating activities increased by 42.49% to ¥87,378,442.43 in 2017, up from ¥61,320,512.70 in 2016[19]. - The total assets at the end of 2017 were ¥2,918,279,967.41, reflecting a 24.31% increase from ¥2,347,527,254.10 at the end of 2016[19]. - The net assets attributable to shareholders increased by 5.29% to ¥1,217,226,839.09 at the end of 2017, compared to ¥1,156,043,700.71 at the end of 2016[19]. - The basic earnings per share for 2017 was ¥0.1869, down 7.70% from ¥0.2025 in 2016[19]. - The diluted earnings per share for 2017 was ¥0.1843, a decrease of 8.94% from ¥0.2024 in 2016[19]. - The weighted average return on equity for 2017 was 6.14%, down from 6.81% in 2016[19]. - The company reported a net profit of ¥57,655,750.62 in Q4 2017, following a loss of ¥8,375,791.15 in Q1 2017[24]. - The total operating revenue for Q4 2017 was ¥802,412,499.17, contributing significantly to the annual revenue[23]. Research and Development - The report outlines the company's commitment to research and development in new products and technologies, particularly in the field of smart grid solutions[12]. - The company has invested significantly in R&D, holding numerous patents and technological achievements, which strengthens its system integration and product differentiation capabilities[32]. - The company holds a total of 154 patent authorizations, including 22 invention patents, reflecting strong R&D capabilities[39]. - R&D investment amounted to ¥105,049,503.47, an increase of 34.65% compared to ¥78,015,197.77 in 2016, representing 4.74% of operating revenue[81]. - The company completed the development of several new products, including a digital fault indicator platform and a low-cost DTU platform[78]. - The company applied for 15 new patents during the reporting period, including 3 invention patents and 11 utility model patents[52]. Market Expansion and Strategy - The company is actively pursuing market expansion strategies and technological advancements to strengthen its competitive position[12]. - The company has a nationwide sales network covering over 30 provinces, with a marketing team structured into 7 major regions and 33 local sales divisions[31]. - The company is expanding its market presence beyond traditional power grids into sectors like railways and wind power[41]. - The company is leveraging its advantages in the distribution network sector to enhance its position in the energy internet market[45]. - The company signed new contracts worth 2,782 million yuan, an increase of 28.28% compared to the previous year[46]. - The company is actively involved in the power distribution business in two national-level new areas, Guian New Area and Zhengzhou Airport Area, which are part of the first batch of pilot projects by the National Development and Reform Commission[58]. - The company plans to establish a new energy management company in Xiong'an New Area with an investment of ¥10,000,000 to participate in smart grid construction[56]. - The company is exploring opportunities in smart grid and micro-energy networks, which aligns with current market trends towards sustainable energy solutions[93]. Governance and Compliance - The board of directors and management confirmed the accuracy and completeness of the annual report, assuming legal responsibility for any misstatements or omissions[4]. - The annual report includes a comprehensive overview of the company's governance and shareholder structure, which is vital for transparency and accountability[13]. - The company has committed to fulfilling all promises made by shareholders and related parties during the reporting period[146]. - The company has made commitments to avoid any direct or indirect competition with its main business in the future[147]. - The company’s board and senior management have committed to diligently fulfilling their responsibilities to protect the interests of all shareholders[148]. - The company has maintained a continuous relationship with its auditing firm for 11 years, with specific auditors serving for 3 and 2 years respectively[155]. Operational Efficiency - The company aims to enhance its management capabilities and operational efficiency through information technology and process optimization[53]. - The company plans to optimize business processes and enhance management levels to improve contract quality in the power grid market and expand into international markets[126]. - The company is committed to continuous innovation and talent acquisition to adapt to technological advancements in the industry[128]. - The company has implemented a strict multi-level quality control system to ensure high-quality products for customers, enhancing customer satisfaction[191]. - The company has introduced advanced equipment for environmental management, including SF6 gas recovery devices and smoke purification systems, to minimize environmental pollution[192]. Legal and Regulatory Matters - The company is involved in a legal dispute with a claim amount of RMB 1,822,680, which is currently under appeal[158]. - The company has not faced any penalties or rectification issues during the reporting period[159]. - The company has not reported any non-operating fund occupation by controlling shareholders during the reporting period[150]. Subsidiaries and Investments - The company established two new subsidiaries and merged with two non-controlling entities during the reporting period[72]. - The company has completed the registration of its joint venture in Anhui, focusing on energy services and technology, which is expected to enhance its market presence[93]. - The company has made significant equity investments, including a CNY 15,300,000 investment in a company specializing in industrial automation systems and related equipment manufacturing[93]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and diversify its portfolio[197]. - The company completed the acquisition of a subsidiary, enhancing its operational capabilities in the electrical equipment sector[198]. Community and Environmental Engagement - The company actively engages in community development and environmental protection initiatives, aligning with its mission to contribute to local economic revitalization[187]. - The company has not yet initiated targeted poverty alleviation efforts and has no subsequent plans for such initiatives[193]. Future Outlook - The company provided guidance for the upcoming quarter, projecting a continued upward trend in revenue growth[197]. - The company announced plans for new product development, focusing on innovative technologies in the energy sector[198].