EBEM(SH:603002)2019-03-27 16:00Financial Performance - In 2018, the company's operating revenue reached RMB 1,803,943,407.76, representing a 45.82% increase compared to RMB 1,237,094,651.51 in 2017[25] - The net profit attributable to shareholders was RMB 50,007,535.73, a decrease of 36.26% from RMB 78,449,430.19 in the previous year[25] - The net profit after deducting non-recurring gains and losses was RMB 40,505,488.24, down 46.60% from RMB 75,853,717.32 in 2017[25] - Basic earnings per share for 2018 were RMB 0.08, a decrease of 38.46% compared to RMB 0.13 in 2017[28] - The weighted average return on net assets was 4.45%, down 2.94 percentage points from 7.39% in the previous year[28] - The company reported a revenue for the reporting period of RMB 1.804 billion, with a net profit attributable to shareholders of RMB 50.0075 million, reflecting a decrease of 36.26% compared to the previous year[60] Cash Flow and Assets - The net cash flow from operating activities increased significantly to RMB 137,084,785.49, a 295.81% rise from RMB 34,633,915.84 in 2017[27] - The total assets at the end of 2018 were RMB 1,959,752,264.88, an 18.68% increase from RMB 1,651,264,012.33 in 2017[27] - The net assets attributable to shareholders were RMB 1,110,110,071.37, showing a slight increase of 1.09% from RMB 1,098,115,586.92 in 2017[27] - The company’s asset-liability ratio increased to 43.35%, up 9.85 percentage points from the previous year[67] - The cash and cash equivalents at the end of the period are ¥433,246,954.62, representing 22.11% of total assets, a 98.01% increase from the previous period[90] Production and Sales - The company achieved a production volume of approximately 97,500 tons and a sales volume of about 96,200 tons, representing year-on-year increases of 29.48% and 23.25% respectively[60] - The production volume of epoxy resin was 97,541.65 tons, while sales volume reached 96,159.54 tons, indicating a year-on-year increase of 29.48% and 23.25%, respectively[77] - The company’s Zhuhai plant commenced production in May 2018, achieving stable product quality and meeting customer demands[61] - The company’s Zhuhai plant achieved a capacity utilization rate of 100% in 2018, while the Guangzhou plant had a utilization rate of 50%[111] Research and Development - The company holds 22 authorized invention patents and has 6 patents under review, with 76 non-proprietary technologies developed and applied[49] - The company has initiated 15 research projects during the reporting period, with 4 new products developed and 9 projects in the pilot stage[61] - The total R&D expenditure for the period is ¥81,487,774.31, which is 4.52% of operating revenue[85] - The company has 74 R&D personnel, accounting for 22.49% of the total workforce[85] Market and Industry - The company primarily engages in the production and sales of electronic-grade epoxy resin, with no changes in its main business since establishment[37] - The company’s epoxy resin products are utilized across various industries, including electronics, coatings, and composite materials, highlighting their versatility[41] - The domestic epoxy resin market is characterized by a concentration of production capacity and a shift towards specialized, high-value products, with a need for improved product variety and quality[97] - The global epoxy resin production capacity was approximately 4.6 million tons per year in 2018, with the top three companies (Dow Chemical, Taiwan's Nan Ya Plastics, and Momentive Specialty Chemicals) accounting for one-third of the total capacity[97] Environmental and Social Responsibility - The company emphasizes safety and environmental protection, implementing strict monitoring and training programs to ensure compliance[60] - The company invested RMB 5,603.38 million in environmental protection, accounting for 3.11% of operating revenue[127] - The company has established an online monitoring system for waste gas emissions to ensure compliance with pollutant discharge standards[186] - The company actively participates in social responsibility initiatives, including long-term partnerships with suppliers and customers[177] Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.41 per 10 shares, amounting to approximately RMB 25,190,879.70, which is 50.37% of the net profit attributable to shareholders[6] - The profit distribution policy stipulates that at least 30% of the annual distributable profit must be distributed as cash dividends if conditions are met[142] - The company reported a net profit attributable to ordinary shareholders of approximately 50.01 million CNY in 2018, representing a profit distribution ratio of 50.37%[146] Risks and Challenges - The company faces challenges from environmental regulations and rising compliance costs, which may lead to the elimination of non-compliant competitors in the industry[99] - The company is exposed to risks from fluctuations in raw material prices and changes in downstream industry demand, particularly in the epoxy resin sector[137] - The company faced risks related to significant increases in fixed assets leading to potential profit declines due to depreciation[137] Corporate Governance - The company has implemented a mechanism for independent directors to gather opinions from minority shareholders regarding profit distribution proposals[141] - The company has maintained compliance with regulatory requirements regarding the disclosure of its actual controller's identity[158] - There were no significant litigation or arbitration matters reported for the year[158]