CPEC(SH:600339)2019-04-22 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 368,325,452.48, with a proposed cash dividend of CNY 0.52 per share, totaling CNY 290,323,668.49 distributed to shareholders[4]. - The company's audited revenue for 2018 was CNY 58,622,877,048.11, representing a year-on-year increase of 5.89% compared to CNY 55,361,719,999.17 in 2017[14]. - The net profit attributable to shareholders in 2018 was CNY 955,017,195.02, marking a significant increase of 42.54% from CNY 670,005,933.42 in 2017[14]. - The total distributable profit for ordinary shareholders at the end of 2018 was CNY 804,180,816.32[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2018 was CNY 846,101,764.91, an increase of 78.29% compared to the previous year[15]. - The net cash flow from operating activities reached CNY 8,614,045,937.34, representing a significant increase of 206.42% year-on-year[15]. - The total assets at the end of 2018 amounted to CNY 93,753,996,622.25, reflecting a growth of 2.75% compared to the end of 2017[15]. - The diluted earnings per share for 2018 was CNY 0.1711, which is a 40.48% increase from CNY 0.1218 in 2017[16]. - The basic earnings per share after deducting non-recurring gains and losses was CNY 0.1515, up 75.55% from CNY 0.0863 in the previous year[16]. - The weighted average return on equity increased to 4.13%, up by 1.13 percentage points from 3.00% in 2017[16]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[6]. - The company has outlined various risks and countermeasures in its operational discussion and analysis section[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[6]. Operational Highlights - The company continues to engage in engineering design, construction, and total contracting services in the oil and gas sector, maintaining its core business model[22]. - The company is actively exploring BOT and PPP investment and construction management projects to adapt to market demand changes[24]. - The company has established a complete set of core technologies in oil and gas field surface engineering, oil and gas storage and transportation, and refining and chemical fields, achieving domestic leading levels[30]. - The company possesses an annual crude oil production capacity of 20 million tons and a natural gas production capacity of 30 billion cubic meters[30]. - The company has developed a series of advanced technologies in refining engineering, including a million-ton ethylene project that breaks foreign monopolies on core technologies[30]. - The company has built a 1.2 million tons/year LNG liquefaction plant and a 6.5 million tons/year LNG receiving station, showcasing its capabilities in LNG engineering[30]. - The company aims to enhance its project management capabilities to achieve significant breakthroughs in international markets[26]. - The oil and gas engineering construction industry is influenced by macroeconomic development and international oil price fluctuations, with a recovery in capital expenditures observed in 2018 compared to 2016[26]. International Expansion - The company expanded its international business to over 60 countries and regions, ranking 33rd among the top 250 international contractors in the U.S. and 42nd globally[32]. - The company is actively seeking new projects and partnerships in key regions such as the Middle East, Central Asia, Russia, Africa, and North America[50]. - The company plans to continue expanding its overseas market presence and improving profit margins in the upcoming periods[50]. Research and Development - Research and development expenses rose to RMB 125 million, marking an 18.91% increase year-on-year[43]. - The company applied for 293 patents and received 232 new patent authorizations during the year[40]. - The company is actively advancing major technology projects, including 12 significant technology initiatives led or participated in by China National Petroleum Corporation[40]. Corporate Governance - The company has a structured approach to training and education to enhance employee awareness and quality regarding QHSE standards[104]. - The company has implemented a modern corporate governance structure, enhancing the supervisory functions of the board and its committees[198]. - The board of directors consists of 12 members, including 4 independent directors, complying with legal and regulatory requirements[200]. Environmental Responsibility - The company has implemented measures to ensure environmental protection during construction, including the establishment of a soil and groundwater remediation expert workstation[158]. - The company reported that solid waste and wastewater disposal met relevant laws and regulations, ensuring compliance with environmental standards[160]. - The company is focusing on environmental engineering technologies, including wastewater treatment and carbon capture, to seize new economic growth opportunities[26]. Shareholder Engagement - The company has established a comprehensive overseas HSE and social security management system to mitigate overseas social security risks[104]. - The company has maintained a cash dividend policy that prioritizes cash distributions, with a minimum of 80% of profits allocated for dividends during mature phases without significant capital expenditure[107]. - The company’s profit distribution policy requires independent directors to provide independent opinions on any proposed changes[109]. Community Engagement - The company has invested a total of 12.8828 million RMB in poverty alleviation efforts[146]. - The company has helped sell over 100 tons of potatoes for villagers in Xiaoshang Village, addressing their sales difficulties[147]. - The company has provided 30,000 RMB in donations for medical assistance to alleviate the burden of serious illnesses in rural areas[149]. Financial Management - The company reduced accounts payable by 6.207 billion CNY compared to the beginning of the year, demonstrating effective debt management[39]. - The company optimized its budget control model, reducing the comprehensive income tax rate to 45.11% through effective tax planning[38]. - The company achieved a net increase of RMB 8.746 billion in cash and cash equivalents, primarily due to an increase in operating cash inflow of RMB 8.614 billion, which is a 205.5% increase compared to the previous year[68].