JSAC(SH:600389)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 3,921,170,777.70, an increase of 7.68% compared to CNY 3,641,359,132.35 in 2017[23] - The net profit attributable to shareholders of the listed company was CNY 392,099,378.11, representing a significant increase of 57.48% from CNY 248,987,700.37 in the previous year[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 353,115,544.11, up 56.15% from CNY 226,142,043.61 in 2017[23] - Operating income for the fourth quarter reached CNY 1,078,030,282.51, with a total annual operating income of CNY 4,921,100,777.68[26] - The net profit attributable to shareholders for the fourth quarter was CNY 132,583,267.34, contributing to an annual net profit of CNY 392,079,378.41[26] - The total share capital at the end of 2018 was 297,000,000 shares[6] - Basic earnings per share rose to CNY 1.3202, a 57.49% increase from CNY 0.8383 in the previous year[25] - The weighted average return on net assets increased by 5.93 percentage points to 22.76% from 16.83% in the previous year[25] Cash Flow and Dividends - The net cash flow from operating activities decreased by 39.81% to CNY 310,120,480.83 from CNY 515,253,811.15 in the previous year[23] - The proposed cash dividend distribution is CNY 4.0 per 10 shares, totaling CNY 118,800,000.00, subject to approval at the annual shareholders' meeting[6] Assets and Liabilities - The net assets attributable to shareholders of the listed company increased to CNY 1,822,479,093.66, representing a 16.40% increase from CNY 1,565,646,107.43 in the previous year[25] - The total assets amounted to CNY 3,206,684,210.55, an 8.61% increase compared to CNY 2,952,551,940.20 in the previous year[25] - The company’s overseas assets amounted to 494,839,313.26 yuan, accounting for 15.43% of total assets[40] Research and Development - The company continues to focus on the research and development of pesticides and specialty chemicals, maintaining a stable business model without significant changes[34] - Research and development expenses surged by 223.94% to CNY 104,895,366.76 from CNY 32,381,555.63 year-on-year[54] - The company added 12 new R&D projects during the reporting period, with 8 projects passing the gate review, including JS152 and JS-T202, which have entered the implementation phase[95] - The company has filed 11 patents during the reporting period, with 5 patents granted[95] Market and Industry Position - The agricultural chemical industry in China saw a 9.5% decline in pesticide production in 2018, indicating a shift towards supply-side structural reform[36] - The company is positioned to enhance its competitiveness in the global market through strategic innovations and industry consolidation[39] - The company is recognized as one of the top 20 pesticide exporters in China based on export revenue[42] - The company is one of the largest glyphosate producers in China, with an annual production capacity of 70,000 tons, including 30,000 tons from the glycine method and 40,000 tons from the IDAN method[86] Environmental Management - The company has established a comprehensive waste management technology system, enhancing its environmental management capabilities[45] - The company’s environmental protection facilities operated stably in 2018, with total environmental operation costs amounting to 139.2 million yuan[182] - The company achieved compliance with wastewater discharge standards, with no incidents of exceeding discharge limits reported during the reporting period[183] - The company has developed an emergency response plan for environmental incidents, which has been reviewed by internal and external experts and filed with higher management[192] Risk Management - The company has detailed risks related to industry policy changes, market fluctuations, raw material price volatility, and environmental regulations in its report[8] - The company faces risks related to safety, environmental regulations, market fluctuations, raw material price volatility, and exchange rate fluctuations[128][129][131] - The company is focused on risk management to effectively control operational risks and ensure stable production[127] Corporate Governance and Compliance - The audit report issued by Ruihua Certified Public Accountants was a standard unqualified opinion[5] - The company has not faced any major litigation or arbitration matters during the reporting period[155] - The company has committed to compensating any losses incurred by the listed company due to violations of related party transaction commitments[147] Community Engagement - In 2018, the company donated over 200,000 yuan to the Nantong Charity Federation for poverty alleviation and education support[176] - The company organized a charity sale, with 1,450 employees contributing over 81,000 yuan to support local communities[176] - The company plans to continue operating the Jiangshan Love Fund to assist communities affected by illness or disasters[178]