HCSC(SH:600378)2019-04-19 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 524,821,836.25 yuan for 2018, with a total distributable profit of 1,968,720,966.99 yuan[5]. - The proposed cash dividend is 0.63 yuan per 10 shares, totaling 52,742,717.94 yuan (including tax) to be distributed to shareholders[5]. - The company's operating revenue for 2018 was 4,181,828,889.36 yuan, representing a 14.70% increase compared to 3,645,812,609.99 yuan in 2017[23]. - The net profit attributable to shareholders of the listed company for 2018 was CNY 524,821,836.25, representing a 61.06% increase compared to the previous year[24]. - The basic earnings per share for 2018 was CNY 0.63, an increase of 61.54% from CNY 0.39 in 2017[27]. - The total assets at the end of 2018 reached CNY 8,275,759,967.88, reflecting a 3.38% increase from CNY 8,005,103,332.54 in 2017[24]. - The net cash flow from operating activities for 2018 was CNY 536,113,616.12, a slight decrease of 0.55% compared to CNY 539,081,101.75 in 2017[24]. - The company reported a total net asset attributable to shareholders of CNY 4,865,668,173.86, which is a 9.53% increase from CNY 4,442,270,505.66 in 2017[24]. - The company has maintained a stable dividend policy while considering operational funding needs[5]. - The audit report issued by Beijing Xinghua Certified Public Accountants confirms the accuracy and completeness of the financial report[4]. Acquisitions and Restructuring - The company completed the acquisition of 11 subsidiaries from China Haohua on December 26, 2018, expanding its product offerings to include fluorine materials, specialty gases, and fine chemicals[9]. - The financial statements for the acquired subsidiaries will be consolidated from the date of control, ensuring all financial data prior to the merger is restated[10]. - The company completed a major asset restructuring on December 26, 2018, transforming its main business into advanced materials, specialty chemicals, and innovative services, with total assets amounting to approximately ¥8.28 billion as of December 31, 2018[96]. - The restructuring expanded the company's product portfolio significantly, establishing a multi-layered industrial structure with fluorine materials as the flagship product, aiming for steady growth and rapid development in specialty gases and specialty rubber and plastics[97]. - The company achieved significant revenue and net profit growth through the acquisition of 11 high-quality technology enterprises under China Haohua, enhancing its core competitiveness in research and technology[59]. Research and Development - The company's R&D expenses increased by 20.91% to 311 million RMB, reflecting a commitment to enhancing research capabilities[116]. - The number of R&D personnel accounted for 34.67% of the total workforce, with a total of 2,341 employees dedicated to R&D[133]. - The company applied for 250 patents in 2018, including 2 international invention patents and 177 domestic invention patents, with 119 patents granted[168]. - The company has undertaken 103 research projects during the reporting period, including 13 projects from national departments and 30 key provincial and municipal projects[154]. - The project on "New Process Development for PTFE Production and Comprehensive Wastewater Treatment" has achieved breakthroughs in key technologies and is currently establishing related engineering devices[155]. - The company has developed a high-temperature methanation catalyst to replace foreign products, with a patent granted and ongoing pilot testing[163]. Market Position and Industry Trends - The company has established a diversified industrial layout focusing on fluorine chemicals, special gases, special rubber and plastic products, fine chemicals, and technical services, serving multiple core industries in both military and civilian sectors[39]. - The fluorochemical industry in China has developed a complete product system, with a significant market share in global fluoropolymer production, particularly in PTFE[63]. - The domestic specialty gas market is primarily driven by the electronics and petrochemical industries, each accounting for approximately 40% of annual sales[71]. - The special gas industry in China is experiencing significant growth due to the rapid development of integrated circuits, flat display devices, and semiconductors, with a focus on increasing variety, quality, and purity of products[75]. - The defense budget in China increased by 8.1% in 2018, indicating a positive outlook for the military chemical market due to rising demand for new weaponry and aerospace developments[62]. Environmental and Social Responsibility - The company invested CNY 36,269,400 in environmental protection, accounting for 0.87% of total operating revenue[195]. - The company faced four environmental penalty incidents during the reporting period, resulting in fines totaling CNY 130,000[196][197]. Product Development and Innovation - The company has developed high-performance, environmentally friendly polyurethane materials that meet market demands and can replace imported materials, significantly improving production efficiency and filling domestic technology gaps[49]. - The company has successfully developed a range of special functional coatings for aerospace applications, demonstrating superior heat resistance and corrosion protection[51]. - The company has developed a unique high-compression fluoropolymer product that supports 5G cable production, achieving import substitution[43]. - The company has established a national-level research and production base for propellant raw materials, contributing to the localization of key materials in marine coatings and breaking foreign monopolies[105]. Financial Metrics and Growth - The company's total revenue for 2018 reached approximately CNY 3.88 billion, representing a year-on-year increase of 31.99%[120]. - The gross profit margin for the petroleum and chemical industry reached 6.77% in 2018, the highest since 2012, while the chemical industry specifically achieved a gross profit margin of 6.89%[109]. - The gross profit margin for the fluorine materials segment was 29.09%, with a year-on-year increase of 2.31 percentage points[120]. - The revenue from electronic gases decreased by 13.74% year-on-year, with a gross profit margin of 33.93%[120]. - The revenue from special rubber products increased by 35.09% year-on-year, achieving a gross profit margin of 36.81%[120].