CHALIECO(SH:601068)2019-03-28 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 305,687,021.63, with a parent company's undistributed profit of CNY 101,492,156.99[6]. - The company's operating revenue for 2018 was CNY 33,572,111,306.81, a decrease of 6.91% compared to CNY 36,065,345,812.51 in 2017[26]. - Net profit attributable to shareholders for 2018 was CNY 305,687,021.63, down 48.29% from CNY 591,208,852.19 in 2017[26]. - The net cash flow from operating activities in 2018 was CNY 570,965,784.31, a decline of 65.19% compared to CNY 1,640,116,685.51 in 2017[26]. - The total assets at the end of 2018 were CNY 49,030,983,416.00, an increase of 8.06% from CNY 45,373,789,798.86 at the end of 2017[29]. - The net assets attributable to shareholders at the end of 2018 were CNY 10,152,648,726.48, reflecting a growth of 10.62% from CNY 9,178,230,014.88 at the end of 2017[29]. - Basic earnings per share for 2018 were CNY 0.08, a decrease of 61.90% from CNY 0.21 in 2017[30]. - The weighted average return on net assets for 2018 was 2.84%, down 4.72 percentage points from 7.56% in 2017[30]. - The company reported a net profit of CNY 329,192,917.59 under international accounting standards for 2018, compared to CNY 616,878,047.52 under Chinese accounting standards[31]. Dividend Policy - The proposed cash dividend is CNY 0.31 per 10 shares, totaling CNY 91,706,106.49, which represents 30% of the net profit attributable to shareholders[6]. - The company plans to distribute at least 80% of profits as cash dividends during the mature stage without significant capital expenditure, and at least 40% if there are major capital expenditures[134]. - The remaining undistributed profit for 2018 is RMB 9,786,050.50, which will be carried forward to the next fiscal year for distribution[134]. - The cash dividend payout ratio for 2016 was 20%, with a total cash dividend of RMB 231,694,920.00 based on a net profit of RMB 1,144,402,563.50[137]. - The company has a policy to prioritize cash dividends, with a minimum distribution of 20% of the distributable profit after covering accumulated losses and reserves[134]. - The company’s cash dividend for 2018 is subject to approval at the annual shareholders' meeting[134]. - The company’s cash dividend distribution policy is designed to ensure sustainable business operations while rewarding shareholders[134]. Risks and Challenges - The company faces several risks including cost overruns, project delays, exchange rate fluctuations, price volatility, cash flow risks, and overseas operational risks[8]. - The company emphasizes the importance of reading the risk factors associated with forward-looking statements in the report[7]. - The company faces risks related to cost overruns due to fixed-price contracts, which may lead to lower-than-expected profits[125]. - Project delays may occur due to various factors, including regulatory changes and disputes with partners, affecting timely project completion[126]. - The company is exposed to foreign exchange risks as it expands overseas, impacting costs and revenues[127]. - Price volatility of key materials like steel and cement poses a risk to operational costs[130]. - Cash flow risks arise from the need for upfront payments in bidding and project execution, potentially leading to liquidity issues[130]. Audit and Compliance - The audit report for 2018 was issued by Da Xin Certified Public Accountants, confirming the financial statements' accuracy and completeness[4]. - The company has a standard unqualified audit report for the fiscal year 2018[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated any regulatory decision-making procedures regarding external guarantees[8]. Research and Development - The company plans to increase R&D investment and enhance market competitiveness in 2019[42]. - The total R&D investment amounted to CNY 794.04 million, representing 2.37% of total revenue[81]. - The number of R&D personnel was 2,380, accounting for 16.08% of the total workforce, indicating a strong focus on innovation[81]. - The company has initiated 13 key research projects, including the development of intelligent aluminum electrolysis technology[84]. - The company aims to enhance its technological innovation and develop key technologies in the non-ferrous industry, focusing on energy conservation and environmental protection[117]. Market Position and Contracts - The company signed a total of 6,844 contracts in 2018, with a cumulative contract value of RMB 48.56 billion[47]. - The uncompleted contract amount as of December 31, 2018, was RMB 58 billion[47]. - The company has established a leading position in the aluminum engineering contracting sector in China[48]. - The company signed major contracts in overseas markets, including projects in Saudi Arabia, Laos, Indonesia, Guinea, Zambia, and Kazakhstan[55]. - The company completed the "2+8+1" domestic and international highway project, which is its largest financing project to date[55]. Financial Management - The financial management strategy focuses on maximizing cash surplus and controlling free cash flow[124]. - The company has committed to maintaining a stable stock price and addressing competition and related party transactions for a period of three years post-IPO[138]. - The company has a total guarantee balance of CNY 13,580,000 at the end of the reporting period, excluding guarantees to subsidiaries[185]. - The company has not provided guarantees to shareholders, actual controllers, or their related parties[187]. Share Capital and Stock Market - The total share capital for the dividend distribution is 2,959,066,667 shares[6]. - The company issued 295.91 million shares at a price of RMB 3.45 per share in August 2018, raising capital for its operations[103]. - The company was officially listed on the Shanghai Stock Exchange on August 31, 2018, marking a significant milestone in its capital market strategy[54]. - As of December 31, 2018, the total number of shares issued by the company was 2,959,066,667, with H-shares accounting for 399,476,000 shares (13.5%) and A-shares accounting for 2,559,590,667 shares (86.5%) of the total issued capital[198].