KEC(SH:600997)2019-03-29 16:00Financial Performance - The net profit for 2018 was CNY 1,363,207,340.26, with a distributable profit of CNY 5,304,649,835.01 at year-end[4] - The proposed cash dividend is CNY 2.60 per 10 shares, totaling CNY 412,827,961.26, subject to shareholder approval[4] - The company plans to allocate 10% of the net profit, amounting to CNY 88,639,553.10, to statutory surplus reserves[4] - The company reported a beginning retained earnings of CNY 3,941,442,494.75 for 2018[4] - The company's operating revenue for 2018 was CNY 20.46 billion, an increase of 10.23% compared to CNY 18.56 billion in 2017[19] - Net profit attributable to shareholders reached CNY 1.36 billion, a significant increase of 163.92% from CNY 516.52 million in the previous year[19] - The total profit reached CNY 203,994,490, a significant year-on-year growth of 150.45%[38] - The basic earnings per share for 2018 was CNY 0.86, representing a 160.61% increase from CNY 0.33 in 2017[19] - The weighted average return on equity increased to 13.80%, up 8.02 percentage points from 5.78% in 2017[19] Cash Flow and Investments - The net cash flow from operating activities was CNY 3.32 billion, up 85.97% from CNY 1.79 billion in 2017[19] - Cash and cash equivalents increased by CNY 2.08 billion, a rise of 67.56% due to increased sales revenue[33] - The company’s long-term equity investments increased by CNY 416 million, a growth of 64.34% due to capital increase in a subsidiary[33] - The company invested CNY 400 million in the Kaichuang Group, impacting cash flow from investment activities negatively by 183.01%[41] - The company’s cash flow from operating activities increased by 85.97% to CNY 3,319,729,809.19, driven by higher cash receipts from sales[41] Production and Capacity - The company has a coal production capacity of 8.1 million tons per year and a coke production capacity of 7.2 million tons per year[30] - The company produced 678.98 million tons of coke, a decrease of 2.89%, and sold 684.08 million tons, down 3.57%[38] - The company reported a total coal supply to its chemical subsidiary of 139.94 million tons, accounting for 13.97% of total raw coal procurement[28] - The company produced 2,914,215 tons of washed coking coal and sold 3,042,444 tons, generating a sales revenue of 3.63 billion RMB with a gross profit of 1.497 billion RMB[62] Revenue Breakdown - The coal mining and selection industry generated revenue of ¥4,114,331,133.02, with a gross margin of 39.18%, reflecting a year-on-year revenue increase of 6.97% and a gross margin increase of 10.71 percentage points[44] - The coal chemical industry reported revenue of ¥19,713,294,532.59, with a gross margin of 8.62%, showing a year-on-year revenue increase of 11.61% and a gross margin increase of 3.56 percentage points[44] - The revenue from washed coal was ¥3,630,011,168.98, with a gross margin of 41.24%, reflecting a year-on-year revenue increase of 10.61% and a gross margin increase of 11.17 percentage points[44] - The revenue from metallurgical coke was ¥12,458,706,853.29, with a gross margin of 11.78%, showing a year-on-year revenue increase of 7.78% and a gross margin increase of 4.24 percentage points[44] - The revenue from other coal chemical products reached ¥7,253,664,797.03, with a gross margin of 3.18%, indicating an 18.85% year-on-year revenue increase and a gross margin increase of 2.81 percentage points[44] Environmental Compliance - The company strictly adheres to environmental regulations, with all pollutant emissions meeting the required standards[126] - The total annual emissions for COD were 17.488 tons, with a limit of 22.054 tons, indicating compliance with environmental standards[130] - The company generated 1798.1 tons of hazardous waste in 2018, with proper disposal measures in place[130] - The company has established a wastewater treatment system that meets the discharge standards for its production processes[131] - The company is committed to environmental compliance, with all pollutant emissions reported to be within regulatory limits[135] Social Responsibility and Community Engagement - The company has actively participated in poverty alleviation efforts, planning to help a designated village in Hebei Province completely eliminate poverty by 2020[120] - In 2018, the company conducted five visits to the designated village to guide poverty alleviation work and support impoverished households[121] - The company has achieved poverty alleviation for 153 households and 293 individuals by the end of 2018, with 60 households and 110 individuals lifted out of poverty in 2018 alone[123] - The company provided financial assistance of 3.22 million RMB for poverty alleviation efforts, helping 110 individuals escape poverty[123] - The company invested 0.50 million RMB in educational support for impoverished students, assisting 1 student[123] Corporate Governance - The company reported a total of 730 tons of hazardous waste generated in 2018, including 10 tons of waste nickel catalyst and 14.47 tons of waste mineral oil[155] - The company has not experienced any major environmental violations during the reporting period[178] - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to 2.7794 million yuan[197] - The company reported no changes in shareholding for the current and departing directors, supervisors, and senior management[197] - The controlling shareholder of the company is Kailuan (Group) Co., Ltd., which holds 44.12% of the shares[190]