ACEG(SH:600502)2019-03-20 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥38.83 billion, representing a 9.51% increase compared to ¥35.46 billion in 2017[24]. - The net profit attributable to shareholders for 2018 was approximately ¥799.94 million, a 2.38% increase from ¥781.34 million in 2017[24]. - The net profit after deducting non-recurring gains and losses was approximately ¥771.72 million, showing a significant increase of 20.53% from ¥640.25 million in 2017[24]. - The company's total assets at the end of 2018 were approximately ¥75.55 billion, an 18.96% increase from ¥63.51 billion at the end of 2017[24]. - The net assets attributable to shareholders increased by 16.80% to approximately ¥9.06 billion from ¥7.75 billion in 2017[24]. - The basic earnings per share for 2018 was ¥0.46, a decrease of 8.00% compared to ¥0.50 in 2017[27]. - The weighted average return on net assets for 2018 was 10.36%, down 2.09 percentage points from 12.45% in 2017[27]. - The company reported a net cash flow from operating activities of approximately -¥2.06 billion for 2018, an improvement from -¥9.23 billion in 2017[24]. - The total profit for the year was 1.17 billion RMB, an increase of 1.99% compared to the previous year, with net profit attributable to shareholders reaching 800 million RMB, up 2.38%[49]. - The company achieved an annual operating revenue of 38.83 billion RMB, representing a year-on-year growth of 9.51%[49]. Dividend Policy - The company plans to distribute a cash dividend of 1.5 CNY per 10 shares, totaling 258.17 million CNY for the year 2018[6]. - The proposed dividend for 2018 is 1.5 CNY per 10 shares, amounting to a total cash dividend of 25.82 million CNY, with no bonus shares issued[158]. - The company has maintained a cash dividend policy, distributing a total of 17.53 million CNY in cash dividends over the past three years, which is 39.17% of the average distributable profit[158]. - The company’s net profit attributable to shareholders in 2018 was 79.99 million CNY, with a dividend payout ratio of 32.27%[159]. Risk Management - The company reported no significant risks affecting future development strategies or ongoing operations during the reporting period[8]. - The company emphasizes the importance of risk awareness in forward-looking statements regarding future plans and strategies[7]. - The company aims to mitigate major risks by strengthening budget management and reducing financing costs, while closely monitoring financial risks[149]. - The company emphasizes risk management to prevent liquidity and debt default risks, ensuring safe and healthy development[148]. - The construction industry faces significant market risks due to low entry barriers and increasing competition, leading to compressed profit margins[150]. - The company has experienced financial risks due to high capital requirements and slow cash flow recovery in real estate and infrastructure investments[150]. Operational Activities - The company has established a comprehensive information disclosure system to ensure transparency and compliance with regulatory requirements[20]. - The company is engaged in various sectors including construction, infrastructure investment, and real estate development, focusing on comprehensive engineering services[34]. - The company has established a comprehensive industrial chain in the construction sector, covering various areas including housing construction, public works, water conservancy, and bridge construction, enhancing its competitive edge[45]. - The company operates seven hydropower stations with a total installed capacity of 246,100 KW and an annual designed power generation of approximately 1 billion KWH[41]. - The company is transitioning from traditional construction to investment operations, focusing on PPP and EPC projects to extend its business model[45]. - The company has implemented centralized procurement for major construction materials, improving cost control and supplier relationships[45]. Project and Contract Management - The company signed 276 new construction contracts with a total value of 52.52 billion RMB, with an average contract value growth of 31.45% year-on-year[49]. - The company completed 12 PPP projects during the year, with a total of 40 ongoing PPP projects[48]. - The company has a total of 873 ongoing projects with a total amount of RMB 13,177,877.65 million, including 258 in housing construction and 351 in infrastructure engineering[79]. - The total amount of unfinished projects is RMB 14,343,217.03 million, with 918 projects remaining[85]. - Infrastructure engineering revenue accounted for 46.58% of total revenue in 2018, while housing construction revenue accounted for 32.46%[88]. Safety and Compliance - The company maintained a 100% safety training rate for employees and achieved a 100% rectification rate for major safety hazards, with no significant safety incidents reported during the year[48]. - The company has established a three-tier quality management system and has been certified under ISO9001:2016, ensuring effective quality control[92]. - The company received several prestigious awards, including the George R. Richardson Award and the Zhan Tianyou Award, indicating high-quality project execution[95]. - The company has committed to resolving existing property defects, with a preliminary estimated cost of 314.0723 million RMB for addressing non-productive personnel expenses related to the merger involving 5,818 individuals[175]. Investments and Financial Activities - The total amount of equity investment in 2018 reached CNY 4,685,580,000, an increase of CNY 2,137,475,866, or 83.9% compared to the previous year[100]. - The company has invested 144,000,000 RMB in bank wealth management products using idle self-owned funds, with no overdue amounts[198]. - The company has issued a total of 54,000,000 RMB in short-term loans from its own funds, with no overdue amounts[199]. - The company is transferring receivables worth RMB 529 million to a related party for factoring financing to improve capital efficiency[192]. Legal and Regulatory Matters - The company is involved in multiple civil lawsuits, with a total amount involved of approximately RMB 4,122.54 million, RMB 20,535.02 million, and RMB 8,890.49 million for different cases[183][186][186]. - The company has ongoing civil litigation with amounts involved of RMB 5,464.65 million and RMB 6,767.47 million, with some cases still pending[186][186]. - The company has a pending case involving RMB 17,323.36 million, with a first-instance judgment requiring payment, but the plaintiff has appealed[186]. - The company has a total of RMB 5,021.11 million involved in a lawsuit regarding unpaid project funds and interest[186]. Corporate Governance - The company has engaged Huapu Tianjian Accounting Firm for auditing services, with a fee of 3.25 million RMB for the current year[180]. - The company has been audited by the same accounting firm for 16 years, ensuring consistency in financial reporting[180]. - The company guarantees the independence of Anhui Water Conservancy's management and financial operations, ensuring no overlap with the controlling party's other enterprises[165]. - The company has established a commitment to transparency in related party transactions, ensuring fair pricing and compliance with legal regulations[165].