SIFANG(SH:601126)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 3,528,688,645.91, representing a year-on-year increase of 10.88% compared to CNY 3,182,409,122.95 in 2017[27]. - The net profit attributable to shareholders of the listed company was CNY 216,997,146.83, showing a decrease of 8.83% from CNY 238,011,929.35 in the previous year[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 199,388,345.79, down 6.42% from CNY 213,064,855.52 in 2017[27]. - The company reported a total revenue of CNY 1,321,398,155.09 in Q4 2018, with a significant increase in profit attributable to shareholders in that quarter[30]. - Net profit attributable to shareholders was CNY 3,972,415,285.58, a 0.60% increase compared to the end of 2017[29]. - Total assets reached CNY 5,628,672,464.60, reflecting a 2.18% increase from the end of 2017[29]. - Basic earnings per share decreased by 6.90% to CNY 0.27 compared to 2017[29]. - Operating cash flow for the year was CNY 519,192,236.24, up 26.19% from the previous year[29]. - The company achieved a total order contract amount of 4.523 billion RMB in 2018, an increase of 10.56% compared to 4.091 billion RMB in the previous year[42]. - Research and development expenses amounted to CNY 427.85 million, representing an increase of 8.71% from CNY 393.56 million in the previous year[47]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.78 per 10 shares, totaling CNY 141,908,788.17, based on a total share base of 797,240,383 shares[8]. - The total number of shares for profit distribution is subject to adjustment based on any changes in share capital after the board and shareholders' meeting approval[8]. - The cash dividends for 2018 and 2017 represented 88.44% and 60.81% of the net profit attributable to ordinary shareholders, respectively[93]. - The company proposed a cash dividend of 1.78 RMB per 10 shares for the 2018 fiscal year, totaling 141,908,788.17 RMB, based on a total share count of 797,240,383 after excluding repurchased shares[90]. Risk Management - The report includes a risk statement regarding forward-looking statements, indicating that future plans and strategies do not constitute a commitment to investors[9]. - The company has detailed risk factors in the section discussing future development and potential challenges[10]. - The company faces risks from economic slowdown and uncertainties in electricity demand growth[82]. - The company is enhancing its risk control and group management capabilities to address challenges from rapid business expansion[85]. Corporate Governance - The company has maintained a complete and effective internal control system, covering major aspects of business management, and has conducted self-evaluations of internal controls[9]. - The company actively manages investor relations, ensuring fair treatment of all investors and maintaining open communication channels through its official website and investor interaction platforms[11]. - The company has successfully joined the "Corporate Governance Board" and continuously improves its governance practices in line with regulatory requirements[14]. - The governance structure complies with the requirements of the Company Law and the Securities Law, ensuring clear responsibilities and rights among board members[182]. - The company has established specialized committees within the board, including a strategy committee and an audit committee, to enhance decision-making and oversight[3]. Research and Development - The company maintained a research and development expense ratio of over 10% of operating revenue for the past three years[41]. - The company is focused on expanding its smart power generation and distribution systems, with a strong emphasis on technological innovation[35]. - Investment in R&D increased by 25%, focusing on innovative technologies and solutions[162]. - The company successfully launched several new technologies and products, including the SF6 permanent magnet ring network cabinet, achieving batch supply goals[45]. Legal Matters - There were no significant lawsuits or arbitration matters reported for the year[109]. - The company is currently involved in civil litigation with a total claim amount of RMB 24,570,000.00, which is still under trial[109]. - The company has a cash compensation claim of RMB 107,053,150.68 against the original shareholders of Shanghai Hongshen Technology Development Co., Ltd. due to unmet performance commitments[1]. Shareholder Information - The largest shareholder, Sifang Electric (Group) Co., Ltd., holds 366,929,706 shares, representing 45.12% of the total shares[142]. - The total number of ordinary shareholders was 24,702, a decrease from 24,781 at the end of the previous month[141]. - The company has not reported any strategic investors or general legal entities becoming top ten shareholders due to new share placements[145]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 3,217, with 1,306 in the parent company and 1,911 in subsidiaries[176]. - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to 5.5595 million yuan[172]. - The company has a mature compensation management system, with annual performance bonuses linked to net profit and cash flow performance[177]. - The company encourages internal training by utilizing skilled employees as trainers, enhancing the learning environment[180].