Smarter Energy(SH:600869)2019-04-24 16:00Financial Performance - In 2018, the company achieved a revenue of 17.512 billion yuan, representing a year-on-year growth of 1.46%[2] - The net profit after goodwill impairment was 1.87 billion yuan, a significant increase of 108.98% year-on-year, with net profit attributable to shareholders reaching 1.52 billion yuan, up 197.14%[2] - The company's operating revenue for 2018 was CNY 17,511,560,177.85, representing a 1.46% increase from CNY 17,260,237,626.63 in 2017[33] - Net profit attributable to shareholders for 2018 was CNY 151,783,128.07, a significant increase of 197.14% compared to CNY 51,081,631.01 in 2017[33] - The net cash flow from operating activities improved to CNY 512,349,761.23 in 2018, a 185.50% increase from a negative cash flow of CNY 599,206,066.14 in 2017[33] - The company reported a net profit of 15,178.31 million RMB for 2018, with no dividends distributed, reflecting a 0% payout ratio[166] Business Segments - The smart cable business generated a revenue of 14.712 billion yuan, growing by 3.84% year-on-year, and net profit soared to 438 million yuan, an increase of 1,087.26%[3] - The smart airport energy system service segment reported a revenue of 1.136 billion yuan, marking a 51.03% year-on-year growth, with a net profit of 164 million yuan, up 45.89%[6] - The revenue from the smart grid cable segment was 1,003,247.53 million, with a gross margin of 13.99%[91] - The smart oil and gas cable segment saw a revenue increase of 21.67% and a gross margin of 24.29%[91] Research and Development - The company has increased its R&D investment, establishing a lithium battery research institute led by experts from the national "Thousand Talents Program"[7] - The company invested 23,939.13 million in R&D, accounting for 1.37% of total revenue, with 415 R&D personnel[97] - The company has successfully developed a 4.5μm ultra-thin lithium battery copper foil, with a single roll length exceeding 15,000 meters[81] Market Expansion and Strategy - The company plans to maintain a net profit of no less than 171.6 million yuan and 205.92 million yuan for the years 2019-2020, ensuring continued industry leadership and growth[6] - The company plans to continue expanding its market presence and invest in new technologies to enhance its competitive edge[32] - The company plans to expand its international business, particularly in Southeast Asia, Africa, the Middle East, North America, and Europe, in line with the Belt and Road Initiative[149] Corporate Social Responsibility - The company has committed to social responsibility, having placed over 2,000 disabled individuals and 2,500 university students in jobs[10] - The company aims to enhance its comprehensive competitiveness and maintain a top position in the industry by focusing on customer-centric strategies and continuous innovation[11] Financial Commitments and Investments - The company plans to invest in key projects including the "Far East Foster High Energy Density Power Storage (Square) Lithium Battery R&D and Industrialization Project" and the "Smart Energy Industrial Park and 6GWh High-Performance Power and Energy Storage Lithium Battery Project" in 2019[169] - The company plans to suspend major external investments and acquisitions if it cannot meet bond obligations[178] Risks and Challenges - The company faces risks from macroeconomic fluctuations, with a noted slowdown in China's economic growth impacting its industry sectors[156] - The company is addressing market competition risks by accelerating technological and marketing innovations to enhance product competitiveness[157] - The company is monitoring raw material price fluctuations, particularly for copper and aluminum, which significantly impact product costs[158] Acquisitions and Ownership Changes - The company acquired 100% control of Jinghang An by purchasing a 49% stake from Far East Holdings, enhancing its strategic position in the smart airport sector[2] - The company acquired 49% equity in Beijing Jinghang An for RMB 728 million, resulting in 100% ownership[125] Legal and Compliance Matters - The company has ongoing significant litigation involving a loan agreement, seeking repayment of ¥161,247,819.80 plus interest and penalties from a subsidiary of Integrated Technology[195] - The company is involved in a legal dispute with Sanpu Pharmaceutical, with the Qinghai High People's Court ordering a retrial of the case[198]