TGWC(SH:600116)2019-03-24 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,298,466,057.58, representing a 6.64% increase compared to CNY 1,217,622,519.61 in 2017[22] - The net profit attributable to shareholders for 2018 was CNY 213,578,524.58, a decrease of 37.80% from CNY 343,386,911.88 in 2017[22] - The net profit after deducting non-recurring gains and losses was CNY 133,286,425.56, down 32.58% from CNY 197,684,318.74 in the previous year[22] - Basic earnings per share decreased by 37.14% to CNY 0.22 in 2018 compared to CNY 0.35 in 2017[26] - The company's net profit attributable to shareholders for Q4 2018 was CNY 38,880,141.45, with a total annual revenue of CNY 1,298,465,258.58[27] - The company's net profit was 214 million yuan, a decrease of 37.61% compared to the previous year[56] - The company's operating revenue was 1.298 billion yuan, an increase of 6.57% from 1.218 billion yuan in the previous year, while total operating costs rose by 12.05% to 1.181 billion yuan[56] Cash Flow and Assets - The net cash flow from operating activities increased by 11.70% to CNY 431,264,840.14 from CNY 386,094,363.87 in 2017[22] - The net cash flow from operating activities was negative at CNY -13,726,979.73 in Q1 2018, but improved to CNY 237,970,269.68 by Q4 2018[30] - The company's total assets at the end of 2018 were CNY 5,149,182,016.71, reflecting a 3.77% increase from CNY 4,962,124,819.58 in 2017[25] - As of the end of 2018, the net assets attributable to shareholders were CNY 2,851,700,499.42, a 3.88% increase from CNY 2,745,127,505.66 at the end of 2017[25] - The company's total liabilities rose by 4.94% to 2.359 billion yuan, resulting in a debt-to-asset ratio of 45.81%[56] Operational Challenges - The decrease in net profit was primarily due to reduced water inflow in the river basin, decreased hydropower generation, increased costs of purchased electricity, and non-recurring gains from land disposal in the previous year[25] - The company is facing challenges in increasing the proportion of low-cost self-generated electricity and is looking to expand its power distribution business for new profit growth[151] - The government has indicated a trend towards reducing electricity prices by an average of 10%, which may affect the company's revenue from electricity sales[167] - The company faces operational risks due to reliance on external power purchases, which are more expensive than self-generated power[166] Investments and Projects - The company invested CNY 50 million in key engineering projects, with a total actual investment of CNY 670 million, and received CNY 160 million in central budget investment, indicating ongoing progress in infrastructure improvements[63] - The company is actively pursuing major asset restructuring to acquire controlling stakes in Chongqing Changdian United Energy Co., Ltd. and 100% of Chongqing Liangjiang Changxing Power Co., Ltd.[45] - The company plans to invest ¥37,765,000 in the Wanzhou Urban Function Recovery Power Grid Renovation Project, with an investment of ¥1,524,490 completed by the end of the reporting period[121] Market Position and Strategy - The company aims to expand its market presence in power engineering design and installation services through competitive bidding[38] - The company holds a significant market position in the Wanzhou District, covering approximately 80% of the area, with stable electricity demand[150] - The company is actively exploring direct trading models between electricity supply and demand to reduce purchasing costs and enhance competitiveness[149] Governance and Compliance - The company has established a comprehensive internal control system, revising over 90 internal control regulations to enhance governance and risk management[65] - The board of directors held five meetings during the reporting period, approving 42 proposals to ensure compliance and effective decision-making[65] - The company has committed to ensuring its independence in operations, assets, personnel, and finances, avoiding related party transactions that could compromise this independence[191] Dividend Policy - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 99.3 million, which represents 46.49% of the net profit attributable to shareholders in the current period[66] - The company has established a cash dividend policy that mandates a minimum distribution of 10% of the distributable profits for the year[172] Environmental and Safety Commitments - The company achieved a "zero accident, zero pollution" goal in 2018, reflecting its commitment to safety and environmental protection[64] - The company is committed to enhancing internal management and efficiency to counteract the effects of potential electricity price reductions[167] Financial Reporting and Audit - The company has made adjustments to its financial reporting in accordance with new regulations issued by the Ministry of Finance, which will not affect its financial status or cash flow[194] - The company has appointed Tianjian Accounting Firm (Special General Partnership) as the financial audit institution for the 2018 fiscal year, with an audit fee of 600,000 RMB[197]