SMIC(SH:600810)2019-04-25 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 649,514,145.89 CNY in 2018, representing an increase of 867.68% compared to 67,120,597.65 CNY in 2017[7]. - Total operating revenue for 2018 was 11,153,158,281.97 CNY, a growth of 4.38% from 10,684,740,403.81 CNY in 2017[25]. - The net cash flow from operating activities reached 692,204,803.43 CNY, a significant increase of 230.42% compared to 209,490,523.86 CNY in 2017[25]. - The company's total assets as of the end of 2018 were 10,964,581,345.23 CNY, reflecting a 10.40% increase from 9,931,820,471.70 CNY in 2017[25]. - The net assets attributable to shareholders increased by 25.68% to 3,179,099,955.03 CNY at the end of 2018, up from 2,529,585,809.14 CNY in 2017[25]. - Basic earnings per share for 2018 were 1.47 CNY, an increase of 880.00% from 0.15 CNY in 2017[26]. - The weighted average return on equity for 2018 was 22.76%, an increase of 20.07 percentage points from 2.69% in 2017[26]. - The company reported a net profit excluding non-recurring gains and losses of 646,667,288.28 CNY, which is a 1,201.97% increase from 49,668,318.15 CNY in 2017[25]. - The total profit for the year reached ¥1,080,290,000, an increase of ¥926,680,000 compared to ¥153,610,000 in the previous year, primarily due to increased sales volume and price changes[74]. Dividend and Capital Management - The company plans to distribute a cash dividend of 4.50 CNY per 10 shares, totaling 199,026,000.00 CNY, with 72,062,285.35 CNY retained for future distribution[7]. - The cash dividend for 2018 was set at 4.50 yuan per 10 shares, representing 30.64% of the net profit attributable to shareholders[132]. - The company intends to increase its capital reserve by converting 3 shares for every 10 shares held, resulting in an additional 132,684,000 shares[7]. Research and Development - The company completed the research and development of microcrystalline transparent nylon, which passed third-party testing for compliance with EU standards[40]. - The company was granted 2 invention patents and 18 utility model patents during the reporting period, indicating a continuous enhancement of its competitive edge[40]. - Research and development expenses increased by 3.93% to 130,577,263.64 RMB, reflecting a commitment to innovation[50]. - The company has initiated 59 research projects during the reporting period, with 40 new projects and 19 ongoing projects, enhancing its innovation capabilities[87]. Production and Sales - The company achieved a production capacity utilization rate of 100% for its industrial silk and tire cord fabric in the Weidong District, with a total design capacity of 9.3 million tons and 2.5 million tons respectively[92]. - The production of Nylon 66 industrial yarn reached 61,425 tons, completing 87.13% of the annual target[122]. - The company completed the production and sales task of 630 tons of copolymer nylon, meeting customer requirements[71]. - The company’s revenue from nylon 66 chips increased by 25.16% year-on-year, with a total revenue of approximately CNY 2.99 billion[100]. Environmental and Safety Initiatives - The company invested nearly 10 million RMB in safety upgrades, enhancing the reliability of production systems[43]. - The company implemented a VOCs treatment project, significantly reducing emissions of non-methane total hydrocarbons and other pollutants[44]. - The company has been awarded the title of "Green Enterprise" by the local environmental protection authority, highlighting its commitment to clean production[44]. - The company reported a total COD discharge of 250.9 tons and ammonia nitrogen discharge of 29.1 tons in 2018, with no exceedance of discharge standards[184]. - The company has established pollution prevention facilities that are operating normally, ensuring compliance with national discharge standards[186]. Market Position and Competition - The company is a leading player in the nylon 66 industrial yarn and fabric market, with significant production capacity and a strong presence in Southeast Asia and Europe[39]. - The company is facing increasing competition in the nylon product market due to the expansion of domestic nylon 6 and nylon 66 production capacities[82]. - The average annual growth rate for nylon 66 industrial filament is projected to be 3.8% over the next decade, with significant growth opportunities in China[81]. Strategic Focus and Future Plans - The company aims to achieve a nylon 66 copolymer product with a tensile strength of ≥70MPa and an impact strength of ≥4.5KJ/m²[71]. - The company plans to expand its production capacity with ongoing projects, including a 40,000-ton nylon 66 chip project and a 100,000-ton nylon 6 civilian silk project[96]. - The company plans to produce 168,000 tons of Nylon 66 chips in 2019, reflecting a significant increase in production capacity[123]. - The company aims to build a million-ton-level nylon chemical industry base, enhancing competitiveness through an integrated industry system[121]. Related Party Transactions and Legal Matters - The total amount of related party transactions for the year 2018 was estimated at CNY 1,092.743 million, with actual transactions amounting to CNY 996.15652 million[161]. - The company engaged in various related party transactions, including procurement of raw materials and products totaling RMB 478,272.22 million from Henan Shennong Nylon Chemical Co., Ltd.[155]. - The company is currently in the process of litigation regarding claims of false securities statements, with no estimated liabilities recognized yet[151]. Community Engagement and Social Responsibility - The company invested CNY 255.9 million in poverty alleviation projects, helping 21 registered impoverished individuals to escape poverty[180]. - The company provided vocational skills training to 39 individuals and assisted 8 registered impoverished households in achieving employment[182]. - The total investment for targeted poverty alleviation efforts reached 44.3 million[182].