Zhejiang Longsheng(SH:600352)2019-04-01 16:00Financial Performance - In 2018, Zhejiang Longsheng achieved a net profit of CNY 890,435,263.57, with a statutory surplus reserve of CNY 89,043,526.36, resulting in an undistributed profit of CNY 1,110,850,786.63 at year-end[4]. - The profit distribution plan for 2018 proposes a cash dividend of CNY 2.50 per 10 shares (tax included), with the remaining undistributed profits carried forward to the next year[4]. - The company reported a total undistributed profit of CNY 1,110,850,786.63 after deducting the distributed dividends of CNY 813,332,965.00 in June 2018[4]. - The company's operating revenue for 2018 reached ¥19,075,780,342.76, representing a 26.32% increase compared to ¥15,100,899,901.19 in 2017[19]. - Net profit attributable to shareholders was ¥4,111,364,628.97, a significant increase of 66.20% from ¥2,473,794,817.90 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥3,704,231,924.98, which is a 102.64% increase compared to ¥1,827,999,233.56 in 2017[19]. - The company's total assets at the end of 2018 were ¥52,216,259,169.85, up 12.65% from ¥46,352,806,669.05 at the end of 2017[19]. - Basic earnings per share for 2018 were ¥1.2637, reflecting a 66.19% increase from ¥0.7604 in 2017[20]. - The weighted average return on equity increased to 22.06%, up 6.82 percentage points from 15.24% in 2017[20]. - The net cash flow from operating activities for 2018 was ¥1,076,300,530.35, a recovery from a negative cash flow of ¥252,629,796.89 in 2017[19]. Audit and Compliance - Zhejiang Longsheng's financial report received a standard unqualified audit opinion from Tianjian Accounting Firm[3]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[5]. - There are no violations of decision-making procedures regarding external guarantees[6]. - The company has not proposed any capital reserve conversion to increase share capital in the profit distribution plan[4]. - The financial report is available for review at designated media outlets including Shanghai Securities Journal and Securities Times[14]. Risk Management - The company has outlined potential risks in its future development in the "Discussion and Analysis of Operating Conditions" section of the report[6]. - The report emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements related to operational plans and development strategies[5]. - The company faces management risks due to the increasing number of subsidiaries and joint ventures, necessitating enhanced oversight and internal auditing measures[100]. - The company is exposed to foreign exchange risks due to operations in multiple currencies, primarily managing this risk through natural hedging strategies[100]. Environmental Sustainability - The company is focused on environmental sustainability, aiming for a "zero emissions" management concept in its production processes[30]. - The company reduced wastewater by over 70% and solid waste by over 90% through clean production technology in its disperse dye project[60]. - The company reported a total wastewater discharge of 2,336,321 tons in 2018, with an average COD concentration of 46.36 mg/m³ and a total COD discharge of 130.522 tons[147]. - The company met its wastewater discharge permit requirements, with a permitted volume of 2,956,820 tons/year and COD limit of 236.546 tons/year[147]. - The company completed several environmental upgrades in 2018, including the installation of a flue gas desulfurization and denitrification system[148]. Research and Development - The company has a total of nearly 1,900 patents, supporting its strong R&D capabilities in high-end market product development[30]. - Research and development expenses increased by 25.24% to ¥731,546,102.50, reflecting the company's commitment to innovation[33]. - The number of R&D personnel was 601, accounting for 7.32% of the total workforce[47]. - The company has made significant equity investments in several firms, including a 100% stake in Shaoxing Shangyu Xinsheng Chemical Industry Co., Ltd.[89]. Shareholder Information - The total number of ordinary shares after the recent changes is 3,253,331,860, representing 100% of the company's equity[158]. - The largest shareholder, Ruan Shuilong, holds 389,653,992 shares, accounting for 11.98% of the total shares[164]. - The company issued 9,670,000 shares in a private placement, which became tradable on March 26, 2018[159]. - The total number of shares held by the top ten shareholders at the end of the reporting period was 1,020,000,000, representing a significant concentration of ownership[164]. Financial Products and Investments - The company entrusted CNY 93,100.00 million in bank financial products, with an unexpired balance of CNY 67,800.00 million[124]. - The company achieved a return of 42.06 from a financial product of 15,200.00 with an expected annualized return rate of 3.48%[128]. - The company has consistently maintained a recovery rate across various financial products, indicating strong performance in asset management[133]. - The overall performance of the financial products reflects a stable return on investment, contributing positively to the company's financial health[133]. Corporate Governance - The company has established a comprehensive internal control system and published the 2018 internal control evaluation report[186]. - The board of directors consists of 9 members, including 3 independent directors, and held 8 meetings during the year[186]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, and finance[191]. - The company has a complete governance structure, including a shareholders' meeting, board of directors, supervisory board, and management team, ensuring independence from controlling shareholders[192].