TBEA(SH:600089)2019-04-15 16:00Financial Performance - In 2018, TBEA achieved a net profit of ¥1,386,948,872.14, with a proposed cash distribution of ¥1.80 per 10 shares, totaling ¥668,576,302.02 for shareholders[3]. - The company plans to allocate 10% of the net profit, amounting to ¥138,694,887.21, to statutory reserves[3]. - TBEA's total distributable profit for 2018, including retained earnings, is ¥5,821,479,040.93[3]. - The company's operating revenue for 2018 was approximately ¥39.66 billion, representing a 3.59% increase compared to ¥38.28 billion in 2017[15]. - The net profit attributable to shareholders for 2018 was approximately ¥2.05 billion, a decrease of 6.73% from ¥2.20 billion in 2017[15]. - The basic earnings per share for 2018 was ¥0.4905, down 19.80% from ¥0.6116 in 2017[16]. - The weighted average return on equity decreased to 6.38% in 2018, down 1.86 percentage points from 8.24% in 2017[16]. - The company's total assets at the end of 2018 were approximately ¥92.59 billion, an increase of 10.76% from ¥83.60 billion at the end of 2017[15]. - The net assets attributable to shareholders increased by 11.16% to approximately ¥32.69 billion at the end of 2018, compared to ¥29.41 billion at the end of 2017[15]. - The company received government subsidies amounting to approximately ¥365.95 million in 2018, compared to ¥256.95 million in 2017[20]. Operational Highlights - The company operates in the power transmission and transformation, renewable energy, and energy sectors, with a focus on R&D, production, and sales of related products[22]. - The total installed capacity of renewable energy in China reached 728 million kilowatts in 2018, a year-on-year increase of 12%[22]. - The actual production of polysilicon in China was approximately 259,000 tons, with an average price of RMB 105,900 per ton, down 21.6% year-on-year[23]. - The installed capacity of renewable energy in China reached 728 million kilowatts, a year-on-year growth of 12%, with wind power and solar power contributing significantly[23]. - The company successfully developed the world's highest voltage level ±1100kV high-end converter transformer, which has been applied in a major project[28]. - In 2018, the company completed the domestic first offshore wind power booster station equipment integration project, breaking the market monopoly of foreign enterprises[28]. - The company participated in the development of 26 new products, all of which achieved advanced and leading technical levels domestically and internationally[28]. Revenue and Market Performance - The company signed contracts worth nearly CNY 20 billion in the domestic power transmission and transformation market in 2018[31]. - The company has over USD 6 billion in unconfirmed revenue and pending projects in its international system integration business as of December 2018[31]. - The revenue from transformer products decreased by 3.65% year-on-year, with a gross margin reduction of 7.98 percentage points due to intensified market competition and rising raw material costs[41]. - The revenue from wire and cable products increased by 6.52% year-on-year, with a gross margin improvement of 1.28 percentage points, attributed to enhanced market development and cost control[41]. - The revenue from coal products surged by 50.86% year-on-year, while the gross margin decreased by 2.82 percentage points due to increased mining rights costs[41]. - The revenue from electricity sales skyrocketed by 157.62% year-on-year, with a gross margin increase of 11.96 percentage points, driven by higher electricity generation from renewable energy projects[41]. Research and Development - The company’s research and development expenses amounted to CNY 569.23 million, reflecting a 3.16% increase from the previous year[38]. - The company invested in a high-purity polysilicon production upgrade project with an annual capacity of 36,000 tons, aiming to reach a total capacity of approximately 70,000 tons per year[30]. - The company has established its first overseas R&D and manufacturing base in India for ultra-high voltage products[30]. - The company has allocated 300 million CNY for research and development in new technologies for the upcoming fiscal year[189]. Environmental and Social Responsibility - The company established an industrial poverty alleviation fund with a donation of 10 million RMB to support poverty alleviation efforts in two villages in the Hotan region[147]. - The total amount donated for poverty alleviation and social assistance in 2018 was approximately 21.84 million RMB, earning the company the "2018 Xinjiang Uygur Autonomous Region Poverty Alleviation Organizational Innovation Award"[148]. - The company has implemented a comprehensive environmental monitoring plan for its operations, including air and water quality assessments[161]. - The company achieved a coal consumption rate of 300.86 g/kWh in 2018, a decrease of 11.04% compared to 338.20 g/kWh in 2017[158]. - The self-owned power plant of Xinte Energy has completed ultra-low emission modifications, meeting the standards for coal-fired power generation[157]. Corporate Governance and Compliance - The company has a clear and transparent cash dividend policy that complies with regulatory requirements, ensuring the protection of minority investors' rights[109]. - The company has made commitments to avoid competition with its major shareholder, TBEA Group, ensuring long-term compliance[113]. - The company has engaged Xinyong Zhonghe Accounting Firm for auditing services, with a remuneration of ¥2.3 million for the year[117]. - The company has implemented an insider information management system in compliance with regulatory requirements, with no incidents of information leakage reported[199]. - The company has established a governance structure that ensures clear responsibilities and effective checks and balances among the board, supervisory board, and management[199]. Future Outlook and Strategy - The company plans to actively expand both domestic and international markets, leveraging opportunities from national strategies like the "Belt and Road" initiative and increased investments in power grid construction[94]. - The company aims to achieve a gross margin of 25% in 2019, up from 22% in 2018[189]. - The management has set a performance guidance of 12 billion CNY in revenue for 2019, reflecting a growth target of 14%[189]. - The company is focusing on enhancing operational efficiency, with a goal to reduce production costs by 10% over the next year[189].