CZDH(SH:600230)2019-03-28 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 905,348,212.06, with a total distributable profit of CNY 2,271,217,403.04 after accounting for previous years' undistributed profits[7]. - The company's operating revenue for 2018 was CNY 4,431,727,480.04, representing a slight increase of 0.33% compared to CNY 4,417,195,148.24 in 2017[22]. - The net profit attributable to shareholders decreased by 22.77% to CNY 990,948,958.42 from CNY 1,283,042,408.44 in the previous year[22]. - The basic earnings per share for 2018 was CNY 2.4060, down 22.77% from CNY 3.1152 in 2017[23]. - The weighted average return on equity decreased by 28.93 percentage points to 31.42% from 60.35% in the previous year[24]. - The net cash flow from operating activities was CNY 1,500,350,635.81, a decrease of 15.02% compared to CNY 1,765,554,537.62 in 2017[22]. - The company achieved operating revenue of CNY 443,172.75 million, a year-on-year increase of 0.33% from CNY 441,719.51 million[39]. - Net profit attributable to shareholders was CNY 99,094.89 million, a decrease of 29,209.35 million or 22.8% compared to CNY 128,304.24 million in the same period last year[39]. - The company reported a net cash outflow from investment activities of CNY 75,950,077.79, a 96.33% increase in outflow compared to the previous year[42]. Asset and Liability Management - The company's total assets increased by 6.22% to CNY 4,614,027,210.46 at the end of 2018, compared to CNY 4,343,981,704.23 at the end of 2017[22]. - The net asset attributable to shareholders rose by 30.77% to CNY 3,587,972,710.31 from CNY 2,743,652,691.73 in 2017[22]. - The company's total liabilities decreased significantly, with a notable 88.99% reduction in taxes payable, amounting to ¥27,282,259.77[55]. - The company's cash and cash equivalents at the end of 2018 were ¥1,776,666,982.34, a 144.93% increase from the previous year[54]. - The company's inventory decreased by 36.64% to ¥86,158,068.10, due to write-offs and provisions for inventory impairment[54]. - The company reported a significant reduction in accounts receivable by 60.18%, totaling ¥366,865,685.34, reflecting adjustments in sales policies[54]. - Total liabilities decreased to ¥644,015,088.26 from ¥1,300,911,784.39, a decrease of approximately 50.5%[178]. Research and Development - Research and development expenses surged by 478.61% to CNY 14,240,571.30 from CNY 2,461,163.11[42]. - The total R&D investment represented 0.32% of the company's operating revenue, with 15 R&D personnel, accounting for 1.14% of the total workforce[52]. - The company has established partnerships with renowned universities to enhance its R&D capabilities and improve the educational level of its research team[66]. - The company is continuously advancing its R&D efforts, with over 10 new product development projects underway, achieving significant progress[66]. Market and Sales Strategy - The company maintained a TDI production capacity of 150,000 tons per year, accounting for approximately 17.8% of domestic capacity, indicating a strong market presence[31]. - The average market price for TDI fluctuated between ¥24,000 and ¥31,000 per ton throughout 2018, reflecting volatility in the market[37]. - The company adopted a dual sales model for TDI products, combining direct sales and distributors, which helped adapt to market changes[30]. - The company emphasized cost reduction and efficiency improvements in the TDI industry, focusing on expanding downstream product markets[31]. - The company achieved historical operational records for its TDI facilities, showcasing its competitive advantage in production technology and management[34]. - TDI product sales reached RMB 394,959.26 million with a gross margin of 50.03%, showing a year-on-year revenue increase of 1.37%[77]. - The company's direct sales revenue decreased by 30.5% to RMB 139,379 million, while distributor sales revenue increased by 26.02% to RMB 303,794 million[77]. Environmental Compliance - Cangzhou Dahua invested over 300 million yuan in pollution prevention and control over the years, ensuring stable compliance with discharge standards[112]. - The company has committed to environmental protection by adhering to legal discharge permits and enhancing environmental supervision[112]. - The company has implemented measures to ensure that all major pollutants are within the control indicators, with continuous monitoring in place[113]. - The company has established an emergency response plan for environmental incidents, which was reviewed and filed with the local environmental protection bureau in December 2018[121]. - The company has a comprehensive environmental management strategy, focusing on green development and ecological civilization construction[124]. Corporate Governance - The company appointed Deloitte Huayong as the auditor for the 2018 financial year, with an audit fee of CNY 600,000[104]. - The company has maintained good credit status and normal operating conditions during the reporting period[106]. - The company has no major litigation or arbitration matters during the reporting period[105]. - The company’s independent board committees actively contributed to governance without raising any objections during the reporting period[159]. - The company has no significant internal control deficiencies or important defects in financial reporting during the reporting period[162]. Shareholder Information - The total number of ordinary shares increased from 294,188,216 to 411,863,502 after a capital reserve conversion, resulting in a total increase of 117,675,286 shares[130]. - The largest shareholder, Cangzhou Dahua Group Co., Ltd., holds 190,467,424 shares, representing 46.25% of total shares[133]. - The number of ordinary shareholders increased from 46,976 to 47,530 during the reporting period[131]. - The company has no reported related party relationships among the top shareholders, ensuring independent shareholder actions[134]. Future Outlook - The company plans to increase investment in environmental protection measures to comply with stricter regulations, which may raise operational costs[90]. - The company is closely monitoring TDI market price fluctuations due to supply-demand changes and competition, with potential oversupply expected in 2019[89]. - The company plans to produce 150,000 tons of TDI and 160,000 tons of ion membrane caustic soda in 2019, ensuring zero major accidents[88]. - The company aims to leverage its market experience to predict price trends and adjust production schedules accordingly[89]. - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[198].