TECHMATION(SH:603015)2019-04-22 16:00Financial Performance - The net profit attributable to the parent company for 2018 was ¥58,812,877.16, with the parent company achieving a net profit of ¥87,565,881.36 after a 10% statutory surplus reserve of ¥8,756,588.14[5] - The distributable profit for the parent company in 2018 was ¥50,056,289.02, with a proposed cash dividend of ¥1.2 per 10 shares (including tax) for all shareholders[5] - The company's operating revenue for 2018 was CNY 685,622,485.51, a decrease of 6.44% compared to 2017[21] - The net profit attributable to shareholders for 2018 was CNY 58,812,877.16, down 26.97% year-on-year[21] - The net profit after deducting non-recurring gains and losses was CNY 50,569,105.24, a decrease of 25.63% compared to the previous year[21] - The net cash flow from operating activities for 2018 was CNY 61,522,437.86, a significant improvement from a negative cash flow of CNY -1,867,474.12 in 2017[21] - The total assets at the end of 2018 were CNY 1,594,536,205.39, an increase of 1.70% from the end of 2017[21] - The net assets attributable to shareholders at the end of 2018 were CNY 1,208,727,488.58, reflecting a growth of 1.72% year-on-year[21] - Basic earnings per share for 2018 were CNY 0.14, down 30.00% from CNY 0.20 in 2017[22] - The weighted average return on equity for 2018 was 4.91%, a decrease of 2.07 percentage points compared to 2017[22] Risks and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period[7] - The company has no non-operating fund occupation by controlling shareholders or related parties[7] - The company has not proposed any capital reserve to increase share capital for the year[5] - The company has not reported any significant accounting errors or changes that would impact its financial data[120] - The company has not faced any risks of suspension or termination of listing during the reporting period[123] - There are no significant integrity issues reported for the company's controlling shareholders or actual controllers during the reporting period[128] Research and Development - R&D investment represented 10.69% of the company's revenue in 2018, with R&D personnel making up 37.1% of the total workforce[41] - The company holds 166 authorized patents, including 37 invention patents, and has participated in drafting multiple national and industry standards[42] - The company has established a comprehensive R&D system leveraging locations in Taiwan, Shanghai, Ningbo, Xi'an, and Italy, focusing on both technology-driven and market-demand approaches[36] - The company is developing a new generation control system and high-end servo systems to expand product applications and meet market demands[71] - The company plans to continue focusing on R&D and cost management to improve profitability amid declining sales in key product lines[66] Market and Product Development - The decline in revenue and profit was primarily due to a decrease in sales orders for the company's main business in industrial control and drive systems, along with increased R&D and management expenses[23] - The company is expanding its product offerings to include specialized service robots for sectors like hospitality and law enforcement[34] - The renewable energy segment focuses on technology development for solar, wind, and biomass energy systems, with significant growth potential due to increased government investment[35] - The company is actively involved in the renewable energy sector, particularly in energy storage technologies, which are crucial for integrating renewable energy sources into the grid[85] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million allocated for potential deals[177] Shareholder and Governance - The company has a stock incentive plan in place, with the first grant of restricted stock announced in 2017[130] - The company has established a strong governance framework, facilitating effective communication with shareholders and addressing their concerns[148] - The company has a clear strategy for future growth, focusing on market expansion and the development of new technologies[147] - The company has a diversified cash dividend policy, adjusting the payout ratio according to different development stages[148] - The company has not faced any penalties from securities regulatory agencies in the past three years[183] Legal and Litigation Matters - The company has faced significant litigation matters during the reporting period, including a patent dispute related to an invention, which has been withdrawn[124] - The company has initiated arbitration against a supplier regarding a procurement contract dispute, involving an amount of RMB 398,800, and a settlement agreement is currently being executed[127] - The company has made provisions for litigation losses related to a previous arbitration case, amounting to RMB 157,700[126] - The company has successfully pursued a legal claim against a customer for overdue payments, with a judgment supporting the company's request[126] Employee and Management - The total number of employees in the parent company and major subsidiaries is 752, with 302 in the parent company and 450 in subsidiaries[184] - The company has established a competitive compensation policy to attract and retain talent[185] - The total remuneration for all directors, supervisors, and senior management was 7.2368 million yuan (before tax) at the end of the reporting period[181] - The company emphasizes employee welfare, providing comprehensive training programs and ensuring compliance with labor laws to protect employee rights[149] Financial Instruments and Guarantees - The company has structured deposits amounting to CNY 740,000,000.00 with an unexpired balance of CNY 140,000,000.00[140] - The company issued structured financial products totaling ¥30,000,000 with a guaranteed return rate of 4.25% and a total interest of ¥315,208.33, fully recovered[143] - The total guarantee amount during the reporting period (excluding guarantees to subsidiaries) was CNY 37,040,600.00[137] - The company provided debt guarantees of CNY 12,646,500.00 to entities with a debt-to-asset ratio exceeding 70%[137] Future Outlook - The company expects a revenue growth of 15% to 25% for 2019, following a 6.44% decline in 2018[92] - The company plans to develop a comprehensive smart manufacturing solution for plastic processing, integrating cloud management and IoT technologies[95] - The board of directors emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[177]