JUNZHENG(SH:601216)2019-04-18 16:00Financial Performance - The company's operating revenue for 2018 was CNY 8,463,840,595.87, representing a 9.37% increase compared to CNY 7,738,941,221.74 in 2017[16]. - The net profit attributable to shareholders for 2018 was CNY 2,284,817,164.01, a 6.37% increase from CNY 2,148,086,035.87 in 2017[16]. - The net cash flow from operating activities reached CNY 3,278,632,387.17, marking a significant increase of 41.50% from CNY 2,317,061,791.30 in 2017[16]. - The total assets at the end of 2018 were CNY 24,550,805,051.13, which is a 9.68% increase from CNY 22,384,111,658.76 at the end of 2017[16]. - The basic earnings per share for 2018 was CNY 0.2708, reflecting a 6.36% increase from CNY 0.2546 in 2017[16]. - The total equity attributable to shareholders at the end of 2018 was CNY 16,397,760,076.20, a 4.12% increase from CNY 15,748,751,550.45 at the end of 2017[16]. - The company achieved a total revenue of 846,384.06 million CNY, representing a year-on-year growth of 9.37%[28]. - The net profit attributable to the parent company was 228,481.72 million CNY, with a year-on-year increase of 6.37%[28]. - The industrial segment contributed 172,495.89 million CNY to the net profit, accounting for 75.50% of the total net profit, with a growth of 6.63%[28]. - The financial segment generated an investment income of 55,985.83 million CNY, making up 24.50% of the total net profit, with a growth of 5.56%[28]. Dividend Distribution - The company distributed a cash dividend of 1.6 RMB per 10 shares, totaling 1,350,082,782.40 RMB, which accounted for 59.09% of the net profit attributable to shareholders for 2018[3]. - The company plans not to distribute profits for the 2018 fiscal year, meaning no cash dividends, bonus shares, or capital reserve transfers to share capital will be issued[3]. - The company has decided not to distribute profits for the 2018 fiscal year, focusing instead on development needs[106]. Risk Management - The company reported no significant risks that could materially affect its production and operations during the reporting period[5]. - The company has outlined various risks and corresponding countermeasures in the report, which can be found in the section discussing operational conditions[5]. - The company faces risks from changes in industrial and environmental policies that may impact the chlor-alkali industry[102]. - The company is exposed to macroeconomic risks that could affect demand for its products, particularly if economic growth slows[102]. - The company is at risk from fluctuations in raw material prices, which could impact production costs[102]. Corporate Governance - The audit report issued by Dahua Certified Public Accountants was a standard unqualified opinion, ensuring the accuracy of the financial statements[2]. - The company has committed to fair pricing in related party transactions, ensuring compliance with legal and regulatory requirements[116]. - The company has established a long-term commitment to avoid any illegal appropriation of funds or assets from the company[116]. - The company has confirmed that it will fulfill its obligations regarding information disclosure in related party transactions[116]. - The company has implemented a new R&D expense category, separating it from management expenses for clearer financial reporting[120]. - The company has improved its corporate governance structure in compliance with relevant laws and regulations, ensuring transparency and fairness in decision-making[189]. Production and Capacity - The company has a PVC production capacity of 800,000 tons, caustic soda capacity of 550,000 tons, and silicon iron capacity of 300,000 tons, solidifying its position as a leader in the chlor-alkali chemical industry in Inner Mongolia[23]. - The company maintained a comprehensive production and sales rate of over 95% for its main products, including PVC, caustic soda, silicon iron, and cement clinker[29]. - The company’s production facilities in Wuhai and Ordos operated at full capacity, ensuring stable production across key processes[29]. - The company achieved a silicon iron production capacity utilization rate of 100.57% in 2018, with a total design capacity of 30,000 tons per year[75]. Research and Development - The company invested CNY 318,939,162.95 in R&D, a significant increase of 137.85% compared to the previous year[37]. - The company continues to advance R&D projects in process, equipment, and environmental protection to enhance industry competitiveness[53]. - The company has established a competitive salary structure linked to individual contributions and company performance[186]. Environmental Responsibility - The company reported a total sulfur dioxide emission of 1,892.8 tons in 2018, below the approved limit of 3,417.97 tons[146]. - The company achieved a nitrogen oxide emission of 3,249.64 tons in 2018, under the limit of 4,631.30 tons[146]. - The company has installed 19 sets of air pollution control devices and 17 sets of wastewater treatment facilities to ensure compliance with environmental standards[148]. - The company has established a dedicated storage for hazardous waste, ensuring proper management and disposal[150]. - The company emphasizes the importance of environmental protection and aims to enhance the operational efficiency of its environmental facilities through continuous technological upgrades[156]. Strategic Initiatives - The company aims to strengthen its energy chemical industry through "steady expansion and mergers and acquisitions" strategy[97]. - The company plans to enhance its safety management by pursuing ISO45001-2018 certification and improving safety production standards[99]. - The company is committed to developing clean and low-carbon production processes, focusing on optimizing chlor-alkali chemical production technology[71]. - The company is exploring partnerships with key industry players to leverage synergies and drive innovation, targeting a 20% increase in collaborative projects[174]. Financial Investments - The company provided financial assistance totaling 6.02 billion RMB to Sinochem Logistics and its subsidiaries during the reporting period[126]. - The total amount of guarantees provided by the company, including those to subsidiaries, was 4.259 billion RMB, which accounts for 25.97% of the company's net assets[129]. - The company has approved a plan to use up to RMB 10 billion for entrusted wealth management, with a total balance not exceeding RMB 50 billion[131]. Employee Engagement - The total number of employees in the company is 4,783, with 656 in the parent company and 4,127 in major subsidiaries[183]. - The training coverage rate for employees reached 100%, with a completion rate of 98.83% for the annual training plan[187]. - The company continues to expand its training programs, aiming to foster a learning organization through various training initiatives[187].