AsAc(SH:601890)2019-04-29 16:00Financial Performance - In 2018, the company achieved a revenue of ¥1,037,512,425.34, representing a 1.80% increase compared to ¥1,019,141,116.57 in 2017[25] - The net profit attributable to shareholders of the listed company for 2018 was -¥14,683,223.55, a decrease of 144.25% from ¥33,180,238.76 in 2017[25] - The net cash flow from operating activities was ¥35,298,603.06, compared to -¥8,026,837.94 in 2017[25] - As of the end of 2018, the net assets attributable to shareholders of the listed company were ¥2,905,456,369.66, a decrease of 1.15% from ¥2,939,327,593.21 at the end of 2017[25] - Total assets at the end of 2018 were ¥3,775,840,557.90, down 0.78% from ¥3,805,554,965.36 in 2017[25] - The company reported a net profit attributable to shareholders excluding non-recurring gains and losses of -¥50,233,165.13 for 2018[25] - The company's basic earnings per share for 2018 was -0.015 CNY, a decrease of 142.86% compared to 0.035 CNY in 2017[28] - The net profit attributable to shareholders decreased by 144.25% year-on-year, primarily due to increased raw material steel prices and poor customer payment collections[28] - The company’s weighted average return on equity was -0.50% in 2018, down from 1.13% in 2017, reflecting a significant decline in profitability[28] - The company reported a net profit attributable to shareholders for Q4 2018 was -9,587,590.49 CNY, indicating continued financial challenges[29] Revenue and Sales - The company’s operating revenue for Q3 2018 was 295,537,269.44 CNY, while Q4 revenue was 284,812,362.91 CNY[29] - The total sales revenue for 2018 was 1.038 billion RMB, a year-on-year increase of 1.80%, with a net profit of -14.68 million RMB[47] - The company secured total orders worth 1.681 billion RMB in 2018, representing a 68.27% increase compared to 2017, with ship anchor chains accounting for 1.133 billion RMB and mooring chains for 548 million RMB[50] - The company reported a revenue increase of 9.06% in ship anchor chains, totaling ¥789,379,396.84, with a gross margin of 15.09%[78] - The company’s revenue from marine engineering mooring chains was ¥209,668,205.42, with a gross margin of 28.32%, down 6.85 percentage points from the previous year[78] Production and Capacity - In 2018, the company produced 97,554 tons of ship anchor chains, an increase of 1.18% year-on-year, while production of mooring chains decreased by 20.58% to 20,162 tons[47] - The company’s design capacity for 2018 was 250,000 tons, including 160,000 tons for ship anchor chains and 80,000 tons for offshore oil platform mooring chains[44] - The production volume of marine anchor chains was 97,554 tons, with a sales volume of 113,419 tons, representing a year-on-year increase of 1.18% in production and 4.43% in sales[56] - The company’s mooring chain sales decreased by 23.80% year-on-year, totaling 18,329 tons, reflecting challenges in the offshore engineering sector[47] Costs and Expenses - The average purchase price of steel increased significantly in 2018, leading to a rise in overall product costs and a substantial decline in gross profit margins, which was a major reason for the company's losses[50] - Domestic sales revenue increased by 23.60% year-on-year, while the cost of sales rose by 32.11%, indicating a significant impact on profitability[55] - The total cost of materials in the shipbuilding sector increased by 21.23% to ¥461,367,479.57, representing 68.83% of total costs[57] - The company reported a decrease in financial expenses by 205.68% to -¥17,108,950.53, primarily due to foreign exchange gains[62] Market Risks and Challenges - The company faces significant market risks due to the cyclical nature of the shipping and marine engineering industries, which are influenced by global economic changes[10] - The company has implemented cost control measures to mitigate the impact of raw material price fluctuations on operations[10] - Approximately 60% of the company's products are exported, exposing it to exchange rate risks, which are partially hedged through forward foreign exchange contracts[10] - The company faces market risks due to cyclical fluctuations in the shipping and marine engineering industries, which can impact new ship orders and prices[94] Government Subsidies and Financial Management - Non-recurring gains and losses included government subsidies amounting to 18,190,062.75 CNY in 2018, up from 13,089,579.14 CNY in 2017[32] - The company recorded a government subsidy of ¥18,190,062.75 and investment income from financial products of ¥31,094,634.59, collectively impacting total profit by ¥49,284,697.34[69] - The company’s cash flow from operating activities improved significantly, reaching 35.30 million RMB, compared to a negative cash flow of 8.03 million RMB in the previous year, marking a 539.76% increase[48] Shareholder and Corporate Governance - The company has a shareholder return plan for the years 2018-2020, approved on May 25, 2018, which is currently in effect[103] - The company has appointed Jiangsu Gongzheng Tianye Accounting Firm as its auditor for the year 2018, with an audit fee of RMB 80,000[111] - The integrity of the company and its controlling shareholders is reported to be good, with no significant debts or regulatory penalties[114] - The company maintained independence from its controlling shareholder, ensuring no misuse of resources or conflicts of interest[4] - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[177] Social Responsibility and Community Engagement - The company actively participates in social responsibility initiatives, focusing on poverty alleviation and community support[135] - In 2018, the company allocated 56 million RMB for poverty alleviation efforts, including education and health[134] - The company improved educational resources in impoverished areas with an investment of 2 million RMB[134] - A total of 54 million RMB was invested in other projects aimed at enhancing rural living conditions[134] - The company has helped zero individuals from registered impoverished households to escape poverty during the reporting period[134] Employee Management and Compensation - The total number of employees in the parent company and major subsidiaries is 1,707, with 992 in the parent company and 715 in subsidiaries[170] - The company has implemented a training plan focusing on energy management, safety knowledge, and special equipment safety training to cultivate comprehensive and professional talents[172] - The company has established a remuneration policy that combines individual benefits with company performance to motivate employees[171] - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to 1.994242 million yuan[165] Internal Controls and Compliance - The internal control audit report for 2018 was issued with no discrepancies noted, confirming the effectiveness of internal controls[187] - The company adhered to strict information disclosure regulations, enhancing transparency and protecting shareholder rights[4] - The management evaluated the reasonableness and effectiveness of internal controls related to credit policies and accounts receivable management[196] - The audit opinion stated that the financial statements fairly reflect the company's financial position and results of operations[189]