Keda Group(SH:600499)2019-04-10 16:00Financial Performance - The company reported a net profit attributable to shareholders of -588.58 million RMB for the year 2018, indicating a loss [4]. - The company's net profit attributable to shareholders of the listed company for 2018 was a loss of CNY 58,857.86 million, a decrease of 222.90% from a profit of CNY 47,889.13 million in 2017 [17]. - The company achieved operating revenue of CNY 607,083.82 million, representing a year-on-year growth of 5.98% [35]. - The company's operating revenue for 2018 was CNY 607,083.82 million, an increase of 5.98% compared to CNY 572,851.36 million in 2017 [17]. - The company reported a total of CNY 109,615,036.65 in non-recurring gains and losses for 2018, compared to CNY 178,719,986.73 in 2017 [21]. - The company’s operating costs increased by 6.15% to CNY 454,255.84 million, while sales expenses rose by 21.73% [36]. - The company’s R&D expenses grew by 27.08% to CNY 13,993.21 million, reflecting its commitment to product innovation [36]. - The company reported a comprehensive income total of RMB -458,299,013.33 for the year 2018 [176]. - The company’s retained earnings decreased by CNY 667,438,859.78, indicating a significant impact on the company's profitability [173]. Dividend and Profit Distribution - Due to the negative distributable profit for 2018, the company will not issue cash dividends or capital reserve transfers [4]. - The company’s profit distribution plan for 2018 included no cash dividends due to negative distributable profits, while the previous year saw a cash dividend distribution of 78.86 million RMB [73]. - The company reported a significant loss in undistributed profits amounting to CNY 667,438,859.78, affecting future dividend distributions [173]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxi CPA [3]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report [2]. - The company has no significant issues regarding compliance with financial reporting standards as per the latest updates [78]. - The company’s internal control audit was conducted by Zhongxi Accounting Firm, with a remuneration of RMB 30,000 [81]. - The company’s internal control audit report was disclosed on April 11, 2019, confirming no significant deficiencies in internal control during the reporting period [144]. Assets and Liabilities - The total assets at the end of 2018 were CNY 1,218,812.14 million, a slight decrease of 0.51% from CNY 1,225,075.77 million at the end of 2017 [18]. - The company’s total liabilities for debt repayment increased by 55.85% to 291,546.81 million RMB [48]. - The company’s cash and cash equivalents at the end of the period were 147,565.89 million RMB, representing 12.11% of total assets [51]. - The company’s inventory increased by 17.95% to 198,110.71 million RMB compared to the previous period [51]. - The company’s total current liabilities increased to RMB 5,698,912,451.62 from RMB 5,050,128,427.48, which is an increase of approximately 12.88% [156]. Business Operations and Strategy - The company has expanded its lithium battery materials business, with a 20,000-ton battery-grade lithium carbonate project under construction, expected to enhance production capacity significantly [23]. - The company aims to transition from equipment provider to industry service provider, focusing on service potential and expanding consumables and maintenance services [23]. - The company has established a presence in the overseas ceramic tile market, particularly in developing countries, which is showing rapid growth [23]. - The company is actively expanding its market presence in Africa, with over 3,000 sales outlets for its ceramic tiles, indicating a robust growth strategy in emerging markets [29]. - The company is focusing on technological leadership and product superiority to drive growth in both the building materials machinery and lithium materials sectors [64]. Research and Development - The company holds a total of 2,522 patents, including 795 invention patents, showcasing its commitment to innovation and technology leadership in the industry [28]. - The company is actively exploring new applications for its technology in related fields, broadening its market reach and profitability [33]. - The company’s research and development expenses increased to approximately ¥177.83 million, up 27.06% from ¥139.93 million in the previous year [161]. Market Presence and Expansion - The company has established a presence in overseas markets, including subsidiaries in India and Turkey, to enhance its international footprint and service capabilities [30]. - A 60% stake acquisition in Italian ceramic machinery company Welko aims to strengthen the company's position in the European market and enhance its product offerings [31]. - The company plans to enhance its core competitiveness by transitioning from a customer-led model to a technology-driven model in the building materials machinery sector [66]. - The company is committed to expanding its overseas presence, particularly in India, Bangladesh, and Southeast Asia, while leveraging its acquisition of Italian company Welko to enter the European and American markets [66]. Risk Management - The company has outlined potential risks in its future development, which can be found in the detailed analysis section of the report [6]. - The company has faced risks related to industry extension, goodwill impairment, and overseas investment, necessitating enhanced risk management strategies [68]. - The company emphasizes the importance of adapting to macroeconomic conditions and optimizing its product pricing system to mitigate risks [69]. Shareholder Information - As of the end of the reporting period, the total number of common stock shareholders was 50,277, an increase from 46,005 at the end of the previous month [112]. - The largest shareholder, Bian Cheng, holds 11.03% of the shares, while Xinhua Lian Holdings Co., Ltd. holds 9.11%, and Lu Qin holds 7.99% [117]. - The company does not have a controlling shareholder or actual controller, as no single shareholder can influence the decisions of the shareholders' meeting [117]. - The company has not experienced any changes in actual controllers during the reporting period [118]. Environmental Responsibility - The company has not been listed as a key pollutant discharge unit and has adhered to environmental protection laws and regulations [105]. - The company has implemented a complete paperless office system to reduce paper waste and promote environmental responsibility [105]. - The company plans to continue its focus on environmental protection as part of its sustainable development strategy [105].