TENGDA CONST.(SH:600512)2019-04-26 16:00Financial Performance - The company achieved a net profit of ¥71,357,968.72 for the year 2018, with a statutory surplus reserve of ¥7,135,796.87 allocated[5]. - The total distributable profit for shareholders at the end of the year was ¥671,815,041.14, after accounting for a cash dividend distribution of ¥31,978,056.64[5]. - The company plans to distribute a cash dividend of ¥0.20 per 10 shares, amounting to a total of ¥31,978,056.64[5]. - The retained earnings after the dividend distribution stood at ¥639,836,984.50, which will be carried forward to the next fiscal year[5]. - The company's operating revenue for 2018 was approximately ¥3.51 billion, a decrease of 2.13% compared to ¥3.59 billion in 2017[21]. - The net profit attributable to shareholders for 2018 was approximately ¥25.61 million, down 90.56% from ¥271.19 million in 2017[21]. - Basic earnings per share for 2018 were ¥0.02, representing an 88.24% decrease from ¥0.17 in 2017[22]. - The weighted average return on equity decreased to 0.52% in 2018, down 5.14 percentage points from 5.66% in 2017[22]. - The total assets at the end of 2018 were approximately ¥11.24 billion, a decrease of 7.65% from ¥12.17 billion at the end of 2017[21]. - The net cash flow from operating activities for 2018 was approximately ¥154.95 million, a decline of 3.14% from ¥159.98 million in 2017[21]. - The company reported a significant loss in the first quarter of 2018, with a net profit attributable to shareholders of -¥89.35 million[25]. - The company achieved operating revenue of ¥3,513,251,186.57, a decrease of 2.13% compared to the previous year, primarily due to reduced income from PPP project construction[44]. - The net profit attributable to the parent company was ¥25,609,991.77, down 90.56% year-on-year, mainly due to a decrease in operating profit[44]. - The gross profit margin for engineering construction was 13.07%, a decrease of 7.07 percentage points compared to the previous year[48]. Risk Management - The company has provided a detailed risk analysis in the report, highlighting potential risks in future development[7]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the report[6]. - The company faces macroeconomic risks due to its reliance on the construction industry, which is sensitive to economic fluctuations and government infrastructure spending[86]. - The company is exposed to policy risks as the construction industry is heavily influenced by national policies, which can impact its development and operational strategies[86]. - The company acknowledges management and financial risks associated with its expanding asset and operational scale, necessitating improved management capabilities and risk assessment[87]. Construction Business Overview - The company’s construction engineering business accounted for 93.76% of total revenue, with no new land reserves since 2014[32]. - The company primarily operates in the East China region, with no overseas business activities reported[32]. - The company achieved a new breakthrough in new contract awards, with over 6.7 billion CNY in the Hangzhou market alone during the reporting period[41]. - The company focuses on traditional markets while actively exploring new markets, particularly capitalizing on opportunities related to the upcoming Hangzhou Asian Games[41]. - The company has a competitive advantage in project quality, having received multiple awards such as the National Quality Engineering Silver Award and the Zhejiang Province "Qianjiang Cup" for its completed projects[37]. - The company holds a special grade qualification for municipal public engineering construction, enhancing its competitiveness in the municipal engineering sector[37]. - The construction industry is significantly influenced by fixed asset investment, particularly in infrastructure and real estate, which directly impacts the company's contract signing and business volume[34]. - The company has strengthened its project management and cost control, emphasizing budget management throughout the production process to enhance economic benefits[38]. - The company has successfully tackled technical challenges in complex projects such as urban rail transit and bridges, showcasing its technical capabilities[41]. Research and Development - Research and development expenses increased significantly by 343.15% to ¥142,543,330.55, reflecting the company's commitment to innovation[46]. - The company obtained 2 utility model patents and filed 20 invention patents during the reporting period, highlighting its focus on technological advancement[42]. - The company organized 5 provincial-level construction methods and 26 patent applications, enhancing its technical capabilities[42]. - The number of R&D personnel was 365, accounting for 12.18% of the total workforce[54]. Corporate Governance - The company has a diverse board with no individual holding more than 10% of shares, promoting balanced governance[149]. - The company has not disclosed any new strategies or future outlook in the provided documents[144]. - The company has maintained a focus on expanding its investment portfolio, particularly in the real estate sector, to drive future growth[157]. - The company has seen significant leadership changes, with key personnel transitions aimed at strengthening its governance and operational efficiency[156]. - The company has established a performance evaluation system for senior management based on construction output, target profits, and cost control[163]. - The company emphasizes employee training, aligning training programs with business development needs to enhance core competitiveness[164]. Financial Obligations and Investments - The company has committed to not engage in competitive activities with its listed entity[95]. - The company has provided guarantees totaling RMB 3,500,000 to its subsidiaries during the reporting period[102]. - The company has ongoing engineering contracts exceeding RMB 50 million, including a contract with Shanghai Pudong Engineering Management Co., totaling RMB 864.18 million, which is still in progress[106]. - The company has secured multiple contracts for various infrastructure projects, with total values ranging from RMB 4.5 million to over RMB 200 million, all of which are in progress[110]. - The company has a projected loss of RMB 1,300,000 million from significant equity investments[71]. - The company has significant equity investments totaling RMB 248,645 million, with a notable investment in Zhejiang Taizhou Coastal Expressway Co., Ltd. valued at RMB 146,400 million[71]. Audit and Compliance - The audit report issued by Tianjian Accounting Firm was a standard unqualified opinion[5]. - The company has not reported any significant internal control deficiencies during the reporting period[177]. - The audit opinion is based on sufficient and appropriate audit evidence obtained from the company's financial information[199]. - Key audit matters are identified based on discussions with governance, which are crucial for the financial statement audit[200]. - The company must comply with ethical requirements related to independence and communicate any relationships that may affect this independence[199]. Shareholder Information - The total number of restricted shares before the change was 108,735,189, representing 6.80% of total shares, which decreased by 47,231,772 to 61,503,417, now accounting for 3.85%[136]. - The total number of unrestricted circulating shares was 1,490,167,643, representing 93.20%, which increased by 47,231,772 to 1,537,399,415, now accounting for 96.15%[136]. - The largest shareholder, Ye Linfu, held 61,503,417 restricted shares after the release, down from 108,735,189[142]. - No other shareholders hold more than 5% of the company's shares, indicating a lack of concentrated ownership[147]. - The company does not have a controlling shareholder, which may provide more flexibility in decision-making[148].