Tstc(SH:600552)2019-03-14 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥3.05 billion, a decrease of 14.06% compared to ¥3.55 billion in 2017[21]. - The net profit attributable to shareholders for 2018 was approximately ¥43.08 million, down 44.35% from ¥77.41 million in 2017[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥81.31 million, a significant increase of 253.26% compared to -¥23.02 million in 2017[21]. - The company decided not to distribute profits for 2018 due to negative retained earnings at the end of the year[6]. - The net profit attributable to shareholders decreased by 44.10% to CNY 0.0564 per share in 2018 compared to CNY 0.1009 in 2017[24]. - The operating cash flow for the year was CNY 11,071,856.01, a significant improvement from a negative cash flow of CNY -102,069,903.15 in the previous year[24]. - The total profit decreased by 43.89% to ¥70,787,033.97 from ¥126,168,210.62 in the previous year[45]. - The net profit decreased by 45.11% to ¥57,308,299.17, down from ¥104,405,237.70 in the previous year[45]. - The company reported a significant increase in other income, which rose by 674.04% to ¥127,299,569.38 compared to ¥16,446,128.98 last year[45]. Assets and Liabilities - The company's total assets increased by 14.32% to CNY 6,020,740,823.79 at the end of 2018 from CNY 5,266,397,846.08 at the end of 2017[24]. - The total liabilities increased by 60.57% to 309,603.40 million CNY, primarily due to the rise in current liabilities[60]. - The total amount of related party transactions for the year reached CNY 412,560,405.12, with significant transactions including procurement of raw materials and sales of goods[93]. - The total liabilities to equity ratio increased, indicating a higher leverage position for the company compared to the previous year[190]. Research and Development - The company’s R&D investment amounted to 131 million RMB, with 35 projects completed and 43 new patents applied for[38]. - Research and development expenses slightly decreased by 1.60% to ¥131,247,788.20 from ¥133,376,586.64 year-on-year[45]. - Research and development expenses surged to ¥22,390,710.17, up from ¥7,906,785.70, marking an increase of approximately 183.5%[199]. - The capitalized R&D expenses accounted for 7.47% of total R&D investments, indicating a focus on long-term innovation[57]. Market Position and Strategy - The company maintained a leading position in the electric melting zirconium industry, achieving a net profit of 103 million RMB[40]. - The company successfully entered the Huawei mobile supply chain, expanding its customer base[40]. - The company is actively expanding its production capacity in response to rising prices of zirconium raw materials, with increased competition expected in 2019[69]. - The company is focusing on innovation-driven strategies and increasing R&D investment to align with market demands[77]. - The company is actively seeking new growth points by optimizing product structure and collaborating with industry partners[80]. Environmental and Social Responsibility - The company has established an environmental management system compliant with GB/T24001-2016/ISO14001:2015 standards at its subsidiaries[110]. - The company has implemented effective pollution control measures, ensuring that wastewater and emissions meet regulatory standards[111]. - The company has created over 400 job opportunities through its technology industry poverty alleviation projects in Chizhou, Anhui Province[109]. - The company has successfully completed its poverty alleviation target for 2018, achieving a 100% poverty alleviation rate for the planned targets[109]. Corporate Governance - The company has established an investor relations management system to facilitate communication and ensure all investors have equal access to information[172]. - The board of directors consists of seven members, including three independent directors, and has established four specialized committees to assist in decision-making and oversight[169]. - The independent auditor issued a standard unqualified opinion on the internal control audit report for the year 2018[177]. - The company ensures equal treatment of all shareholders and adheres to legal requirements for convening and conducting shareholder meetings[169]. Risks and Challenges - The company has faced significant risks and uncertainties that may impact its future performance, as noted in the risk disclosure section[8]. - The company faces significant macroeconomic risks due to complex development environments and trade tensions, which may impact market demand[80]. - Accounts receivable management is a concern, with increasing payment terms and high accounts receivable levels posing bad debt risks[80].