FARATRONIC(SH:600563)2019-04-03 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 451,856,142.64, representing a 6.68% increase compared to RMB 423,580,819.05 in 2017[4]. - Total operating revenue for 2018 was RMB 1,721,422,019.98, a 1.40% increase from RMB 1,697,634,258.55 in 2017[11]. - The net cash flow from operating activities increased by 39.82% to RMB 579,177,124.37 from RMB 414,235,168.41 in 2017[11]. - The company's total assets rose to RMB 3,003,441,346.60, marking a 12.73% increase from RMB 2,664,365,458.77 in 2017[11]. - The basic earnings per share for 2018 was RMB 2.01, up 6.91% from RMB 1.88 in 2017[12]. - The company reported a net profit after deducting non-recurring gains and losses of RMB 440,255,838.20, reflecting an 11.82% increase from RMB 393,727,671.01 in 2017[11]. - The net profit attributable to the parent company was RMB 452 million, representing a year-on-year growth of 6.68%[21]. - The total comprehensive income for the year was CNY 452,544,071.66, compared to CNY 422,344,917.43 in the previous year, showing a positive trend[104]. Revenue and Market Performance - Domestic market revenue reached RMB 1.10 billion, up 2.31% year-on-year, while foreign market revenue was RMB 592 million, down 1.17%[22]. - The company reported a quarterly revenue of RMB 432,059,154.82 in Q4 2018, contributing to the annual total[13]. - The company's revenue from electronic components manufacturing reached ¥1,688,749,118.82, representing a year-over-year increase of 1.07%[25]. - Domestic revenue accounted for ¥1,096,452,672.96, with a growth of 2.31% year-over-year, while foreign revenue decreased by 1.17% to ¥592,296,445.86[25]. Cash Flow and Investments - The net cash flow from operating activities increased by ¥165 million to ¥579 million, primarily due to reduced cash expenditures through bank acceptance bills[28]. - The cash flow from investing activities was -¥457 million, an increase of ¥147 million compared to the previous year, mainly due to a decrease in net expenditure on financial products[28]. - The company received cash from investment recoveries amounting to ¥1,653,300,000.00, a substantial increase from ¥351,400,000.00 in the previous year, representing a growth of approximately 369.5%[107]. Research and Development - Research and development expenses amounted to RMB 71.47 million, reflecting a 1.21% increase from the previous year[23]. - The total R&D expenditure was ¥71,472,665.05, constituting 4.15% of the total revenue, with 309 R&D personnel making up 13.03% of the total workforce[29]. - The company is focusing on the development of new energy film capacitors to enhance its product technology level and shorten production cycles[19]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 292,500,000.00, which equates to RMB 13 per 10 shares[4]. - In 2018, the company distributed cash dividends amounting to RMB 292,500,000, representing 64.73% of the net profit attributable to ordinary shareholders[42]. - The cash dividend per 10 shares was RMB 13 in 2018, an increase from RMB 12 in 2017 and RMB 11 in 2016[42]. Assets and Liabilities - Total liabilities increased to CNY 502,467,030.34 from CNY 343,704,981.55, showing a significant increase of approximately 46.2%[97]. - Shareholders' equity rose to CNY 2,500,974,316.26 from CNY 2,320,660,477.22, representing an increase of about 7.8%[97]. - Current assets rose to CNY 2,252,658,176.32, up from CNY 1,712,047,619.20, indicating a growth of about 31.5%[96]. Internal Control and Governance - The company has established a robust internal control system, with no identified actions harming the interests of the company or its investors[81]. - The audit committee monitored the preparation of all periodic reports and communicated with the auditing firm, ensuring compliance and accuracy[80]. - The company is committed to maintaining transparency in information disclosure, ensuring all shareholders have equal access to relevant information[79]. Financial Management and Compliance - The company has consistently achieved full recovery on various financial products, demonstrating effective management of entrusted funds[49]. - The company reported a financial expense of -¥16,179,800, a decrease of 272% compared to the previous period, mainly due to currency exchange losses[28]. - The company has no significant litigation or arbitration matters reported for the year[44]. Employee and Management Information - Total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 6.5691 million yuan[70]. - The company employed a total of 2,371 staff, including 2,260 in the parent company and 111 in major subsidiaries[73]. - The company’s remuneration management system aims to reflect fairness and achieve motivation, linking salary growth to labor productivity[75]. Market Challenges and Strategic Focus - The company faced challenges due to the impact of the 5.31 policy on the photovoltaic sector, leading to a significant drop in orders from end customers[21]. - The company is strategically expanding into high-end markets such as automotive, photovoltaic, and wind power sectors[21]. - The thin film capacitor market is expected to grow steadily in the coming years due to increased investment in smart grid construction and renewable energy[38]. Accounting Policies and Financial Reporting - The financial statements were prepared based on the going concern principle[118]. - The company follows the enterprise accounting standards and ensures the financial statements reflect true and complete information[120]. - The company recognizes revenue from the sale of goods when the significant risks and rewards of ownership have transferred to the buyer[150].