Maysta Chemical(SH:603041)2019-04-24 16:00Financial Performance - In 2018, the company's operating revenue was CNY 305,165,538.28, representing a 1.30% increase compared to CNY 301,253,031.70 in 2017[20]. - The net profit attributable to shareholders decreased by 19.28% to CNY 40,823,561.44 in 2018 from CNY 50,574,345.72 in 2017[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 39.69% to CNY 25,484,396.15 in 2018 from CNY 42,258,118.32 in 2017[20]. - The net cash flow from operating activities decreased by 52.69% to CNY 28,884,975.41 in 2018 from CNY 61,055,308.19 in 2017[20]. - The basic earnings per share dropped by 24.07% to CNY 0.41 in 2018 from CNY 0.54 in 2017[21]. - The weighted average return on equity decreased to 5.67% in 2018, down from 8.18% in 2017, a reduction of 2.51 percentage points[21]. - The gross profit margin fell by 7.50 percentage points to 26.69% compared to the previous year[51]. - The company's net profit attributable to shareholders decreased by 19.28% to CNY 40,823,561.44, primarily due to a 22.45% increase in raw material costs[49][51]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.30 per 10 shares, totaling RMB 13,123,240.00 for the year 2018[6]. - For the fiscal year 2018, the proposed cash dividend is RMB 1.3 per 10 shares, amounting to RMB 13,123,240, with no capital reserve conversion or bonus shares planned[119]. - The cash dividend payout ratio for 2018 was 32.15%, compared to 31.64% in 2017 and 30.77% in 2016, indicating a consistent return to shareholders[124]. - The profit distribution policy is compliant with regulations and includes clear standards and procedures for adjustments, ensuring transparency and protection for minority shareholders[121]. Share Capital and Ownership - The total share capital as of December 31, 2018, is 100,948,000 shares[6]. - The company granted a total of 948,000 restricted shares to incentive objects in 2018, increasing the total share capital from 100,000,000 shares to 100,948,000 shares[21]. - The largest shareholder, Foshan Shunde Demai Chemical Group Co., Ltd., holds 53,475,000 shares, representing 52.97% of the total shares[194]. - The top ten shareholders include several natural persons, with Sun Yu holding 5,632,500 shares (5.58%) and Li Xiaoming holding 2,250,000 shares (2.23%)[194]. Risk Management - The company has identified risks related to raw material price fluctuations, exchange rate fluctuations, safety, environmental protection, and macroeconomic conditions[8]. - The decrease in net profit after deducting non-recurring gains and losses in 2018 was primarily due to the rise in silicone raw material prices, which increased cash payments for purchases[22]. - The company is facing risks from raw material price fluctuations, which significantly impact profit margins due to the high cost of key materials[109]. - The company has implemented measures to mitigate foreign exchange risks, including the establishment of a financial derivatives management system[110]. Research and Development - The company specializes in the research, production, and sales of polyurethane foam stabilizers, which are essential additives in the production of polyurethane foam plastics[30]. - The company has established a comprehensive and effective system for R&D, procurement, production, quality control, sales, and customer service, focusing on customer needs and its own capabilities[31]. - The company has a research and development team where over one-third of employees are dedicated to innovation, focusing on core technology systems that include basic research and application technology development[37]. - The company invested significantly in R&D, with expenses rising by 16.62% to CNY 21,780,868.88[51][53]. Market Position and Strategy - The company is recognized as a leading manufacturer in the domestic polyurethane foam stabilizer industry, having broken the monopoly of multinational corporations in the hard foam stabilizer market[35]. - The company has formed stable partnerships with major clients such as Dow Chemical, BASF, and Covestro, ensuring long-term business development[40]. - The company is focusing on the development of new environmentally friendly foam stabilizers, aligning with industry trends towards sustainability and innovation[34]. - The company aims to enhance its technological innovation capabilities by developing a new generation of polyurethane foam stabilizers, targeting high-tech products with independent intellectual property rights[103]. Compliance and Governance - The company has maintained a good integrity status, with no significant debts or regulatory actions reported[151]. - The company strictly adheres to legal compliance and has established a sound internal control system to protect the rights of shareholders and stakeholders[169]. - The company has been rated as a "blue enterprise" in the environmental credit evaluation system in Jiangsu Province, indicating compliance with environmental regulations[175]. - The company will not distribute profits to individuals who have not fulfilled public commitments[144]. Financial Management - The company has entrusted cash asset management with a total of RMB 343 million in bank wealth management products and RMB 250 million in broker wealth management products[160]. - The company approved the use of up to RMB 500 million of its own idle funds for cash management, focusing on short-term financial products with high safety and liquidity[162]. - The annualized return rates for various entrusted wealth management products ranged from 3.70% to 5.10%[163]. - The company has successfully recovered all expected returns from its entrusted wealth management products[163].