SANY(SH:600031)2019-03-31 16:00Financial Performance - The company's operating revenue for 2018 reached CNY 55.82 billion, an increase of 45.61% compared to CNY 38.34 billion in 2017[18]. - Net profit attributable to shareholders was CNY 6.12 billion, representing a significant increase of 192.33% from CNY 2.09 billion in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 6.04 billion, up 237.94% from CNY 1.79 billion in 2017[18]. - The net cash flow from operating activities was CNY 10.53 billion, a 22.91% increase from CNY 8.56 billion in 2017[18]. - The company's total assets at the end of 2018 were CNY 73.77 billion, reflecting a 26.68% increase from CNY 58.24 billion at the end of 2017[18]. - The net assets attributable to shareholders increased to CNY 31.48 billion, a growth of 23.48% compared to CNY 25.50 billion in 2017[18]. - Basic earnings per share for 2018 were CNY 0.7907, up 189.32% from CNY 0.2733 in 2017[19]. - The weighted average return on equity was 21.45%, an increase of 12.76 percentage points from 8.69% in 2017[19]. - The company’s gross profit margin improved to 31.12%, an increase of 1 percentage point compared to 2017[36]. - The company achieved a significant reduction in financial expenses, decreasing by 89.72% to CNY 135.65 million from CNY 1.32 billion[48]. Research and Development - The company invested over 5% of its sales revenue in R&D annually, resulting in 8,107 patent applications and 6,657 authorized patents in 2018, leading the industry in both metrics[27]. - Research and development expenses increased by 127.60% to CNY 1.75 billion, up from CNY 770.87 million, reflecting the company's commitment to innovation[48]. - The company is focusing on intelligent and autonomous technologies, developing AI core technologies for excavators and a self-driving road roller[42]. - The company launched several innovative products, including the world's first fully hydraulic grader and a 1,000-ton all-terrain crane, showcasing its leadership in high-end manufacturing[27]. Market Performance - The sales revenue of excavators was 19.247 billion yuan, up 40.8% year-on-year, maintaining the top sales position in the domestic market for eight consecutive years[35]. - International sales revenue reached 13.627 billion yuan, growing by 17.29% year-on-year, with a significant acceleration in the second half of the year[39]. - The company expressed confidence in the growth prospects of the engineering machinery industry, supported by infrastructure investments and international opportunities from the Belt and Road Initiative[64]. Corporate Governance - There are no reported instances of non-operational fund occupation by controlling shareholders or related parties[6]. - The company has maintained a good integrity status, with no significant debts or court judgments outstanding[95]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance and good governance[185]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting through designated media[191]. Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.60 per 10 shares to shareholders, pending approval at the shareholders' meeting[5]. - The company distributed a cash dividend of CNY 1.60 per 10 shares, totaling CNY 1.24 billion in cash dividends for the year[47]. - In 2018, the company distributed a cash dividend of 2.60 CNY per 10 shares, totaling 2,177,649 CNY, which represents 35.60% of the net profit attributable to ordinary shareholders[87]. Environmental Responsibility - The company is committed to environmental protection, with all subsidiaries complying with pollution discharge standards[129]. - The company has established a multi-channel and effective poverty alleviation mechanism involving diverse cooperation and project selection[127]. - The company has implemented various educational support initiatives as part of its poverty alleviation strategy[127]. Future Outlook - The company aims to achieve a revenue target of 67 billion RMB in 2019[74]. - The company plans to significantly increase R&D investment in 2019, focusing on electric, unmanned, and intelligent technology development[78]. - The company anticipates that infrastructure investment growth in 2019 will exceed that of 2018, driven by strong demand in various sectors[71]. Employee Engagement - The company has a total of 17,383 employees, with 2,264 in R&D, indicating a strong focus on innovation and product development[186]. - The company has developed an online learning system (OLM) to enhance employee competency and career development, offering four levels of training[189]. - The total remuneration for directors, supervisors, and senior management was 51.72 million yuan, which was fully disbursed as planned[183].