SMEG(SH:600689)2019-03-29 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 15,774,647.69, with a year-end distributable profit of CNY 21,215,115.80[4] - The company's operating revenue for 2018 was CNY 1,378,099,486.15, representing a 7.88% increase from CNY 1,277,461,194.16 in 2017[19] - The net profit attributable to shareholders decreased by 48.09% to CNY 10,746,956.82 from CNY 20,702,720.78 in the previous year[19] - The basic earnings per share for 2018 was CNY 0.05, down 50% from CNY 0.10 in 2017[20] - The total assets of the company at the end of 2018 were CNY 735,205,948.83, a decrease of 2.29% compared to CNY 752,458,122.27 in 2017[19] - The weighted average return on equity decreased to 2.34% in 2018 from 4.69% in 2017, a decline of 2.35 percentage points[20] - The net cash flow from operating activities increased by 63.46% to CNY 7,025,431.23 from CNY 4,298,040.64 in 2017[19] - The company's net assets attributable to shareholders at the end of 2018 were CNY 459,956,577.83, a slight increase of 0.23% from CNY 458,916,748.32 in 2017[19] - The company reported a significant decrease in asset impairment losses, down 91.59% to ¥1,420,341.06 from ¥16,879,381.56 in the previous year[62] - The company's operating costs increased to approximately ¥1.28 billion, with a year-on-year growth of 7.76%[52] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.17 per 10 shares, totaling CNY 3,416,852.83[4] - In 2017, the company distributed cash dividends of RMB 0.15 per 10 shares, totaling RMB 3,014,870.15, with a net profit of RMB 20,702,720.78 for that year[80] - For 2018, the proposed cash dividend is RMB 0.17 per 10 shares, amounting to RMB 3,416,852.83, with a net profit of RMB 15,774,647.69[82] Revenue Streams - The company achieved a total import and export volume of 168.24 million USD, representing a year-on-year growth of 6.24%, with exports amounting to 158.96 million USD and imports at 9.28 million USD[31] - The security service business generated revenue of 19.73 million yuan, representing a year-on-year growth of 15.49%[40] - The import and export trade business achieved revenue of 118.25 million yuan, an increase of approximately 8.02% compared to the previous year[40] - The company’s property leasing business generated revenue of 27.92 million yuan, showing significant improvement compared to the previous year[41] Operational Developments - The company completed ISO9001 quality management system certification and customs AEO certification during the reporting period, enhancing its trade service capabilities[29] - The security service segment achieved a new qualification for confidential information system integration, expanding its service offerings[30] - The company has established a strong reputation in the security service sector, accumulating high-quality client resources including Fudan University and Shanghai Disney Resort[35] - The company has streamlined its operations by cleaning up loss-making enterprises, reducing the proportion of loss-making enterprises from 70% in 2015 to 25% in 2018[42] Cash Flow and Investments - The net cash flow from operating activities improved significantly, reaching approximately ¥7.03 million, a 63.46% increase compared to the previous year[52] - The company achieved a financial income of approximately ¥5.58 million through short-term financial management strategies[47] - The company has a total of 9 equity investments in various enterprises, including Shanghai Bohua Gene Chip Technology Co., Ltd. and Guangdong Fota Group Co., Ltd.[66] - The company has authorized a total of RMB 150 million for low-risk short-term financial products, with an investment of RMB 14.2 million in bank wealth management products[97] Risk Management and Compliance - The company emphasizes risk management, particularly in the import and export business, which is sensitive to fluctuations in the RMB exchange rate[77] - The company is enhancing internal control management and improving service quality to mitigate risks in its security business[78] - The company strictly adheres to environmental protection laws and has not faced any penalties for violations during the reporting period[106] - The company has implemented various internal control measures to enhance governance and risk management, conducting 57 audits and special inspections during the reporting period[50] Corporate Governance - The company appointed Lixin Accounting Firm (Special General Partnership) as the auditor for the fiscal year 2018, with an audit fee of RMB 850,000[86] - The total payment to Lixin Accounting Firm for financial and internal control audits in 2018 amounted to RMB 1,150,000 (after tax)[88] - The board of directors held 5 meetings during the year, with 1 in-person meeting and 4 conducted via communication methods[140] - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2018[146] Employee and Social Responsibility - The company has a focus on employee welfare, ensuring basic rights and enhancing benefits for staff[105] - The company has established a training plan to enhance employees' professional skills and management knowledge[133] - The company emphasizes social responsibility, promoting resource conservation and green practices, contributing to sustainable development[105] Future Outlook - The company aims to enhance its core business through supply-side structural reforms, focusing on increasing effective supply and modern service industry development[74] - The company’s foreign trade growth may slow down due to global economic uncertainties, but it plans to improve quality and efficiency in its operations[73] - The company is exploring new business opportunities aligned with its strategic development plan, prioritizing industries with high relevance and strategic fit[76]