SAFETY(SH:603028)2019-05-13 16:00Financial Performance - The company's net profit attributable to shareholders for 2018 was CNY 16,911,306.44, a decrease of 29.65% compared to CNY 24,038,262.80 in 2017[5]. - Total revenue for 2018 was CNY 547,361,902.77, reflecting a slight decline of 1.33% from CNY 554,726,412.28 in the previous year[20]. - The basic earnings per share for 2018 was CNY 0.08, down 27.27% from CNY 0.11 in 2017[22]. - The company reported a decrease of 48.48% in net profit after deducting non-recurring gains and losses, amounting to CNY 7,777,069.86 in 2018[20]. - The net profit attributable to shareholders decreased by 29.65% compared to the same period last year, primarily due to a slight decline in operating revenue[23]. - The company’s net profit attributable to shareholders was CNY 16,911,306.44, a decrease of 29.65% year-on-year[44]. - The gross profit margin for the metal wire rope and other products increased by 0.23 percentage points to 19.05%, despite a 1.07% decrease in revenue[48]. - The net profit for the year was CNY 16,911,306.44, a decline of 29.5% compared to CNY 24,038,262.80 in the previous year[157]. Cash Flow and Liquidity - The net cash flow from operating activities for 2018 was negative at CNY -20,698,258.73, a significant decrease of 126.15% compared to CNY 79,166,726.09 in 2017[20]. - The net cash flow from operating activities decreased by 126.15% compared to the previous period, largely due to increased inventory reserves[62]. - The total cash and cash equivalents at the end of the period were CNY 104,809,716.33, slightly down from CNY 105,331,943.23 at the beginning of the year[164]. - The cash inflow from operating activities totaled CNY 549,019,796.36, compared to CNY 531,241,497.19 in the previous year, indicating a slight increase of approximately 3.34%[162]. - The company paid CNY 151,432,520.00 in debt repayments, which is significantly higher than CNY 71,000,000.00 in the previous year[163]. - The net cash flow from financing activities was $63,299,205.20, compared to a negative cash flow of $15,616,379.82 in the previous year, indicating a significant improvement[166]. Assets and Liabilities - The company's total assets at the end of 2018 amounted to CNY 965,954,406.25, a marginal increase of 0.51% from CNY 961,088,843.25 in 2017[21]. - The company's net assets attributable to shareholders at the end of 2018 were CNY 699,110,780.07, an increase of 1.62% from CNY 687,954,620.77 in 2017[21]. - Current assets totaled CNY 548,488,121.24, up from CNY 510,590,219.16, indicating an increase of about 7.4%[149]. - Total liabilities decreased slightly to CNY 266,843,626.18 from CNY 273,134,222.48, a reduction of approximately 2.4%[151]. - Short-term borrowings rose to CNY 159,565,550.00 from CNY 76,000,000.00, marking an increase of about 109.5%[150][151]. Research and Development - The company has 146 independent patents and design rights as of December 31, 2018, contributing to its strong R&D capabilities[36]. - The company’s R&D expenses rose by 0.39% to CNY 20,025,591.78, reflecting its commitment to innovation[43]. - Research and development expenses increased slightly by 0.39% to CNY 20,03 million[48]. Market and Competition - The company operates a direct sales model for most products, supplemented by an agency sales model for some, and has established a subsidiary in Hong Kong to expand its market presence[32]. - The company faced challenges from macroeconomic pressures, including rising raw material costs and increased inventory, impacting profit margins[34]. - The company is exposed to raw material price volatility risks, which could impact its performance if prices fluctuate significantly[74]. - The company aims to improve product quality and reduce costs by enhancing process control and source management[73]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.23 per 10 shares, totaling CNY 5,078,400, based on a total share capital of 220,800,000 shares[5]. - The company reported a cash dividend of 0.23 CNY per 10 shares for the year 2018, with a total cash dividend amounting to 5,078,400 CNY, representing 30.03% of the net profit attributable to ordinary shareholders[79]. - The company has consistently maintained a high percentage of profit distribution to shareholders over the past three years, indicating a commitment to returning value to investors[79]. Corporate Governance - The company adheres to strict corporate governance and complies with relevant laws and regulations to ensure accurate and timely information disclosure[97]. - The company has established a remuneration assessment committee responsible for formulating and approving the remuneration policies for senior management[134]. - The company has a designated board secretary responsible for information disclosure, ensuring transparency and fairness in communication with shareholders[131]. - The company has implemented measures to ensure compliance with corporate governance standards as per regulatory requirements[131]. Employee and Management - The number of employees in the parent company was 558, while the total number of employees in the parent company and major subsidiaries was 746[123]. - The company has implemented a salary policy based on job positions, with sales personnel's remuneration linked to annual performance[124]. - The company has appointed new financial directors and deputy general managers to meet development needs[121]. Miscellaneous - The company has not reported any significant accounting errors or changes outside of the aforementioned adjustments[86]. - The company has no major litigation or arbitration matters during the reporting period[90]. - The company has not engaged in any cash asset management or entrusted loans during the reporting period[96].