SANAN(SH:600703)2019-04-25 16:00Financial Performance - The total operating revenue for 2018 was CNY 8,364,374,225.51, a decrease of 0.35% compared to CNY 8,393,725,783.69 in 2017[14]. - The net profit attributable to shareholders of the listed company was CNY 2,830,158,066.15, down 10.56% from CNY 3,164,210,889.13 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 2,248,030,054.09, a decrease of 15.28% compared to CNY 2,653,353,360.57 in 2017[14]. - Basic earnings per share for 2018 was CNY 0.69, a decrease of 11.54% compared to CNY 0.78 in 2017[15]. - The weighted average return on equity decreased to 13.43% in 2018 from 17.13% in 2017, a decline of 3.70 percentage points[15]. - The company achieved a revenue of approximately 8.36 billion RMB, a slight decrease of 0.35% year-on-year[32]. - The net profit attributable to shareholders was 2.83 billion RMB, down 10.56% compared to the previous year[32]. Cash Flow and Assets - The net cash flow from operating activities increased by 12.89% to CNY 3,339,467,014.59 from CNY 2,958,029,795.60 in 2017[14]. - The total assets at the end of 2018 were CNY 30,789,328,691.75, representing a 22.00% increase from CNY 25,236,659,941.87 at the end of 2017[14]. - The company has adjusted its cash flow from operating activities due to government subsidies received, increasing Q1 and Q2 cash flow by CNY 581.75 million and CNY 220.64 million respectively[17]. - Cash received from operating activities increased by 114.48% to 1,437,752,256.18 CNY compared to the previous year[46]. - The total amount of cash paid for purchasing goods and services increased by 70.48% to 3,037,547,796.27 CNY[46]. - The total amount of cash received from investment activities decreased by 66.40% to 461,806,340.45 CNY[46]. - The total amount of cash paid for fixed assets increased by 57.47% to 5,296,495,927.62 CNY, reflecting higher project investment[47]. Research and Development - R&D expenses increased by 51.45% to approximately 806.51 million RMB, driven by new product development investments[35]. - Research and development expenses amounted to 144,389,403.35 CNY, representing a 14.01% increase compared to the previous year[44]. - The company is focusing on the research and development of new semiconductor materials, including silicon carbide and gallium nitride, to strengthen its core business[61]. - The company has established a training system that includes partnerships with key domestic universities and research institutions, enhancing its technical capabilities[130]. Market Strategy and Growth - The company aims to double its global market share in LED chips, which currently is not very high[21]. - The company is focusing on emerging markets such as plant lighting and smart streetlights, which have significant growth potential[21]. - The company is entering the 5G era, which is expected to enhance the market prospects for RF devices significantly[30]. - The company plans to expedite the construction of the Quanzhou Sanan Semiconductor project to quickly introduce new products and improve profitability[62]. - The company is committed to expanding its overseas market presence and diversifying its customer base to improve profitability[63]. Corporate Governance and Compliance - The company received a standard unqualified audit report from Zhongzheng Zhonghuan Accounting Firm[3]. - The company has retained the same accounting firm for 10 years, with an audit fee of 140,000 RMB[75]. - The company has implemented a governance structure that complies with relevant laws and regulations, ensuring the protection of investor interests[133]. - The company has established a management system for insider information to enhance information disclosure fairness[133]. - The company has no penalties from securities regulatory agencies in the past three years, reflecting a strong compliance record[127]. Environmental Responsibility - The company has implemented advanced pollution prevention facilities and regularly conducts operational status checks to ensure compliance with environmental regulations[93]. - The company reported no exceedances in wastewater and air emissions across its subsidiaries, maintaining compliance with national and local regulations[93]. - The environmental protection facilities have a 100% operational rate during the reporting period, ensuring compliance with pollution discharge standards[95]. - The company has established a complete set of pollution prevention facilities, continuously improving their construction and operational management[94]. Shareholder Information - The company distributed a cash dividend of 0.25 RMB per share for the 2017 fiscal year, totaling 1,019,606,232 RMB, which represents 32.22% of the net profit attributable to ordinary shareholders[68]. - In 2018, the company implemented a share buyback amounting to 349,999,261.01 RMB, which is considered part of the cash dividend, resulting in a total cash dividend of 1,160,785,381.01 RMB, or 41.01% of the net profit[69]. - The total number of ordinary shareholders at the end of the reporting period was 132,397, down from 158,778 at the end of the previous month[111]. - The company has no strategic investors or general legal entities becoming top 10 shareholders during the reporting period[114]. Employee and Management Information - The total number of employees in the parent company is 440, while the total number of employees in major subsidiaries is 10,964, resulting in a combined total of 11,404 employees[128]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 10.9815 million yuan[126]. - The chairman received a pre-tax compensation of 60.61 million CNY, while the general manager received 120.00 million CNY, highlighting the company's commitment to rewarding leadership[121]. - The management expressed optimism about future performance, indicating a strong pipeline of new products and market opportunities[121]. Financial Position - Total liabilities reached CNY 9,540,448,944.40, compared to CNY 5,464,318,758.62, indicating an increase of about 74.8%[157]. - Shareholders' equity rose to CNY 21,248,879,747.35 from CNY 19,772,341,183.25, reflecting an increase of approximately 7.5%[157]. - The company’s retained earnings at the end of the year were CNY 8,106,446,102.32, indicating a strong profit retention strategy[169]. - The total comprehensive income for the year included other comprehensive income of CNY 16,548,345.06[169].