BAOSHENG SCI(SH:600973)2019-03-14 16:00Financial Performance - The company's operating revenue for 2018 was ¥32,184,404,083.45, representing a 55.55% increase compared to ¥20,691,164,048.09 in 2017[20]. - The net profit attributable to shareholders of the listed company was ¥117,694,027.30, a 36.48% increase from ¥86,237,388.92 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥95,324,533.17, showing a significant increase of 146.79% compared to ¥38,626,462.92 in 2017[20]. - The company's total assets at the end of 2018 were ¥16,660,110,325.42, which is a 13.21% increase from ¥14,715,780,956.86 at the end of 2017[20]. - Basic earnings per share increased by 35.21% to CNY 0.096 in 2018 compared to CNY 0.071 in 2017[23]. - The net profit attributable to shareholders for Q1 2018 was CNY 32,893,366.30, while Q2 and Q3 were CNY 48,823,385.04 and CNY 33,034,167.35 respectively[24]. - The weighted average return on equity rose to 3.24% in 2018, an increase of 0.84 percentage points from 2.40% in 2017[23]. - The company reported a total of CNY 22,369,494.13 in non-recurring gains and losses for 2018, compared to CNY 47,610,926.00 in 2017[28]. - The net cash flow from operating activities was negative at -¥831,229,312.99, an improvement from -¥1,571,162,967.43 in 2017[20]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥0.29 per 10 shares, totaling ¥35,441,262.99, which accounts for 30.11% of the net profit attributable to shareholders for 2018[6]. - The cash dividend per 10 shares was CNY 0.29 (including tax) for the year 2018[98]. - The company distributed a total cash dividend of CNY 35,441,262.99, which accounts for 30.11% of the net profit attributable to shareholders for 2018[98]. Research and Development - The company achieved a significant increase in R&D investment for new products and technologies, enhancing its product development capabilities[30]. - Research and development expenses increased by 30.14% to 452.44 million RMB, reflecting the company's commitment to innovation[43]. - The company reported a total of 817 R&D personnel, which constitutes 13.47% of the total workforce[7]. - The company developed 25 new products, with 9 recognized as domestically advanced and 2 as internationally leading[39]. - The company is increasing R&D investment to improve its technological capabilities and meet the evolving demands of downstream industries[81]. Market Position and Strategy - The company maintained its leading position in the cable industry, with several products recognized as industry champions, particularly in fire-resistant cables and railway urban rail cables[34]. - The company implemented a "2236" marketing transformation strategy, shifting from a single marketing personnel model to a dual-driven model[30]. - The company adopted a production strategy based on sales demand and utilized hedging methods to manage copper price volatility risks[30]. - New contracts in the power energy and rail transit markets increased by 23.1% and 27.4% respectively, indicating strong market growth[39]. - The company successfully secured contracts for major projects, including the Qingdao SCO Summit and the Beijing New Airport, enhancing its market presence[40]. Risks and Challenges - The company has outlined potential industry and market risks in its report, emphasizing the importance of risk management strategies[7]. - The company faced challenges such as low industry concentration and increasing competition in mid-to-low-end products, indicating a need for transformation and innovation[32]. - The company recognizes the need for structural adjustment and industry consolidation to enhance competitiveness in a highly fragmented market[82]. - The company faces risks related to changes in electricity industry investment policies, which could impact market demand for its products[92]. - There is a risk of core technical personnel turnover or shortages, which could affect the company's competitive advantage and R&D capabilities[93]. Governance and Compliance - The company has received a standard unqualified audit report from Zhongshen Zhonghuan Accounting Firm[5]. - The company strictly adheres to information disclosure regulations, ensuring the accuracy and timeliness of its announcements[131]. - The company has implemented strict governance measures to prevent the controlling shareholder from exploiting its position for additional benefits[181]. - The board of directors consists of 8 members, including 3 independent directors, complying with legal requirements[182]. - The company actively engaged with investors through various channels, maintaining fairness and protecting investor rights[183]. Social Responsibility and Community Engagement - The company actively participated in social welfare initiatives, providing support to low-income families and engaging in community outreach[140]. - The company recognized the need for ongoing efforts in fulfilling social responsibilities, acknowledging gaps compared to stakeholder expectations[144]. - The company strictly complied with environmental regulations, ensuring no pollution incidents occurred during the reporting period[145]. Employee Management and Development - The company established a comprehensive employee management system, focusing on professional development and performance evaluation[137]. - The total number of employees in the parent company is 3,498, while the total number of employees in major subsidiaries is 2,569, resulting in a combined total of 6,067 employees[177]. - The company has 4,328 production personnel, 344 sales personnel, 503 technical personnel, 56 financial personnel, and 705 administrative personnel, totaling 5,936[177]. - The actual remuneration paid to directors, supervisors, and senior management during the reporting period amounted to 5.6866 million yuan[172]. Financial Management and Investments - The financing activities generated a net cash flow of ¥2,712,290,627.78, up from ¥1,837,636,127.70 in the previous year[5]. - The total investment during the reporting period was CNY 939,134,040.00, reflecting an increase of 11.46% compared to the previous year's investment of CNY 842,586,862.42[70]. - The company made significant equity investments, including CNY 470,000,000.00 in AVIC Baosheng Marine Engineering Cable Co., Ltd., acquiring a 70% stake[71]. - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 150.01 million, which accounts for 4.09% of the company's net assets[123]. - The company has not provided any guarantees to shareholders, actual controllers, or their related parties[123].