TFE(SH:600237)2019-04-03 16:00Financial Performance - The company achieved a consolidated net profit attributable to shareholders of 9.53 million RMB in 2018, a decrease of 32.13% compared to 2017[5]. - Total operating revenue for 2018 was 885.38 million RMB, representing an increase of 8.85% from 813.36 million RMB in 2017[21]. - The net profit attributable to shareholders was 9,530,100 CNY, a decrease of 32.13% year-on-year[35]. - The company's gross profit margin decreased, with operating costs rising by 10.43% to 723,133,183.51 CNY[38]. - The company reported an operating profit of ¥8,576,791.61, down 50.96% from ¥17,464,737.58 in the previous year[141]. - The net profit for the year was ¥10,413,256.90, a decrease of 28.57% from ¥14,508,693.39 in the previous year[142]. - The company reported a comprehensive income of 10,413,256.90 RMB for the year, which includes both net profit and other comprehensive income[157]. Cash Flow and Liquidity - The net cash flow from operating activities was 6.09 million RMB, a significant decline of 84.30% compared to 38.80 million RMB in 2017[21]. - The company reported a net cash flow from operating activities of 62,713,191.91 CNY in the fourth quarter[25]. - Cash inflow from financing activities totaled 286,000,000.00 RMB, while cash outflow was 311,010,028.32 RMB, resulting in a net cash flow of -25,010,028.32 RMB[151]. - The total cash and cash equivalents at the end of 2018 were ¥215.00 million, a decrease from ¥313.43 million at the beginning of the year, reflecting a decline of about 31.4%[148]. - The cash flow from operating activities showed a net inflow of ¥6.09 million, down from ¥38.80 million in the previous year, indicating a decrease of approximately 84.3%[147]. - The cash outflow from investing activities was ¥56.90 million, an increase from ¥47.42 million in the previous year, representing a rise of about 19.5%[148]. Assets and Liabilities - The company's total assets decreased by 5.36% to 1.91 billion RMB at the end of 2018, down from 2.01 billion RMB at the end of 2017[21]. - Total current assets decreased from CNY 1,052,948,960.13 to CNY 1,003,770,531.80, a decline of approximately 4.5%[134]. - Total liabilities decreased from CNY 742,960,387.73 to CNY 624,523,517.08, a reduction of approximately 16.0%[135]. - The company's retained earnings showed an improvement from CNY -235,779,458.67 to CNY -226,249,347.94, a reduction in losses of about 4.5%[135]. - The total equity increased from CNY 1,271,090,006.72 to CNY 1,281,503,263.62, an increase of about 0.2%[135]. Research and Development - Research and development expenses were reduced by 13.04% to 26,274,137.11 CNY, indicating a focus on cost management[38]. - The total R&D expenditure was ¥26,274,137.11, accounting for 2.97% of total revenue, with 232 R&D personnel, representing 11.30% of the total workforce[46]. - The company incurred research and development expenses of ¥21.13 million in 2018, down from ¥25.50 million in the previous year, indicating a reduction of approximately 17.2%[145]. Market and Competitive Environment - The company faced challenges due to external economic pressures, including increased competition and rising costs from trade tensions[35]. - The domestic capacitor industry faces challenges such as low-level repetitive construction and low R&D capabilities, leading to intense price competition[53]. - The capacitor film industry is experiencing structural overcapacity, indicating potential for market consolidation[57]. - The company is addressing risks from US-China trade tensions, which have impacted exports of capacitors and polyester films[60]. Corporate Governance and Shareholder Information - The company has established a modern corporate governance structure in compliance with relevant laws and regulations[115]. - The total number of ordinary shareholders at the end of the reporting period was 51,709, an increase from 49,476 at the end of the previous month[89]. - The largest shareholder, Anhui Tongfeng Electronics Group Co., Ltd., held 94,561,280 shares, representing 16.76% of the total shares, with 88,500,000 shares pledged[91]. - The company has not proposed a cash dividend distribution plan despite having positive distributable profits for common shareholders[69]. Environmental and Social Responsibility - The company has been recognized as a "green enterprise" and has passed the ISO14001 environmental management system certification[83]. - The company has actively engaged in poverty alleviation efforts, with a total investment of 13.53 million RMB, helping 88 registered impoverished individuals to escape poverty[80]. - The company plans to continue improving village infrastructure and provide health insurance for impoverished households in the upcoming year[82]. Future Outlook and Strategic Plans - The company plans to achieve a revenue of 1,050 million yuan and a cost of 875 million yuan for 2019, with a focus on improving operational efficiency[59]. - The company aims to expand into high-end products and related electronic materials, enhancing its market share and profitability[58]. - The company recognizes the need for strategic investments in emerging industries to enhance its operational scale and profitability[58]. Internal Control and Audit - The company has established internal control mechanisms, with no significant deficiencies reported[130]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018[124]. - The management is responsible for ensuring the financial statements are prepared in accordance with accounting standards[130].