GZRS(SH:600367)2019-03-07 16:00Financial Performance - In 2018, the company achieved a total operating revenue of ¥1,593,039,258.42, representing a year-on-year increase of 19.32% compared to ¥1,335,083,506.96 in 2017[24] - The net profit attributable to shareholders of the listed company for 2018 was ¥115,934,974.46, which is a 21.43% increase from ¥95,473,552.42 in the previous year[24] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥116,854,702.10, reflecting a growth of 27.39% from ¥91,729,509.95 in 2017[24] - The company’s total distributable profit for 2018 was ¥392,772,319.57[5] - The total profit for the period increased by CNY 32.37 million, with a total profit of CNY 151.45 million, up 27.18% year-on-year[60] - The company reported a net profit attributable to shareholders of CNY 21,225,856.88 in the first quarter, with fluctuations in subsequent quarters[28] - The diluted earnings per share remained consistent at CNY 0.40, reflecting stable performance[26] - Basic earnings per share increased by 21.21% to CNY 0.40 compared to 2017[26] Cash Flow and Dividends - The net cash flow from operating activities decreased by 30.74% to ¥90,817,302.91, down from ¥131,119,291.72 in 2017[24] - The company plans to distribute a cash dividend of ¥0.40 per 10 shares, totaling ¥11,921,800, which accounts for 10.28% of the net profit attributable to shareholders[5] - The operating cash flow net amount for the first quarter was CNY -50,239,758.82, while the fourth quarter showed a positive flow of CNY 10,886,068.30[29] - The company’s cash flow from financing activities improved to 34,216,768.96 yuan, primarily due to funds received from equity incentive subscriptions[75] Assets and Liabilities - The net assets attributable to shareholders increased by 9.63% to CNY 1,274,646,120.37 compared to the end of 2017[25] - Total assets rose by 8.82% to CNY 1,898,224,692.89 from the end of 2017[25] - The company’s total assets amount to approximately 724.98 million, with net assets of about 332.62 million[145] - The company has a total outstanding loan of RMB 32 million, which includes RMB 12 million and RMB 20 million due from Rongguang Mining, with the latter being overdue since 2015[191] Production and Sales - The company’s main business includes the research, production, and sales of barium salts, strontium salts, and manganese-based products, with key products such as barium carbonate and electrolytic manganese dioxide[36] - Barium carbonate production increased by 2.52% to 266,045 tons, while sales rose by 5.52% to 281,031 tons, with a significant inventory reduction of 52.17%[82] - High-purity barium chloride production surged by 106.59% to 7,119 tons, and sales increased by 90.46% to 7,565 tons, despite a 48.52% drop in inventory[82] - The company’s actual production of strontium carbonate in 2018 was 21,700 tons, with a production capacity of 30,000 tons per year[153] - The company’s EMD production capacity is 30,000 tons, with an actual output of about 26,400 tons in 2018, primarily consisting of alkaline and lithium manganese products[154] Research and Development - Research and development expenses surged by 186.71% to 8,480,835.44 yuan, primarily due to increased costs associated with flue gas treatment projects[74] - The number of R&D personnel is 409, representing 14.24% of the total workforce[97] - The company invested CNY 53.88 million in R&D in 2018, accounting for 3.38% of its operating revenue[114] - The company completed several R&D projects, including the optimization of high-purity manganese sulfate production processes, resulting in two new patents[67] Market and Competition - The company faces various risks including industry competition, customer volatility, and rising raw material costs, which are detailed in the report[9] - The company maintains a competitive advantage in barium salt products, with the overall production capacity and output ranking first globally in the industry[51] - The company is committed to enhancing R&D investment to improve product quality and diversify its offerings[151] - The company operates in a highly competitive market for barium, strontium, and manganese, facing risks from capacity and price competition[172] Environmental and Safety Management - The company achieved a 100% harmless disposal rate for barium slag, with a total of 144,000 tons utilized, showcasing its commitment to environmental management[63] - The company invested 9,348.98 million RMB in environmental protection operations during the reporting period, enhancing its environmental governance capabilities[140] - The company is committed to strengthening its environmental and safety management practices, recognizing the complexity and long-term nature of these challenges[166] Legal and Compliance - The company has ongoing significant litigation related to loans totaling 1,200,000 RMB, which have not been repaid as of December 2015[189] - The company is involved in multiple ongoing lawsuits, including a claim for RMB 10.9 million against Henan Anfei Electronic Glass Co., Ltd. for unpaid debts[194] - The company has taken steps to enforce court judgments against Rongguang Mining, including the seizure of land assets valued at approximately 295,726 square meters[191] Future Outlook - The projected revenue for 2019 is 1,927.78 million yuan, representing a year-on-year increase of 21.01% compared to 1,593.04 million yuan in 2018[164] - The company plans to enhance production of high-purity manganese sulfate and EMD, with specific projects aimed at increasing capacity and optimizing production processes[161] - The company anticipates a balanced supply and demand for EMD in 2019, despite increased competition from peers expanding their production capacity[155]