WXHS(SH:603090)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 415,142,927.25, representing a year-on-year increase of 12.83% compared to CNY 367,951,683.19 in 2017[22]. - The net profit attributable to shareholders of the listed company reached CNY 32,623,930.44 in 2018, a significant increase of 32.89% from CNY 24,550,223.64 in 2017[22]. - The net cash flow from operating activities was CNY 26,866,886.96, showing a remarkable increase of 131.80% compared to CNY 11,590,792.20 in the previous year[22]. - The total assets of the company at the end of 2018 were CNY 663,829,575.12, which is a 10.51% increase from CNY 600,702,483.66 at the end of 2017[22]. - The basic earnings per share for 2018 was CNY 0.33, reflecting a 32.00% increase from CNY 0.25 in 2017[23]. - The company achieved operating revenue of 415.14 million yuan, a year-on-year increase of 12.83%[34]. - The net profit attributable to shareholders reached 32.62 million yuan, reflecting a growth of 32.89% compared to the previous year[34]. - The company sold approximately 8,500 tons of products in 2018, marking a year-on-year increase of 6.22%[33]. - The gross profit margin for the main business was 27.00%, an increase of 0.60 percentage points year-on-year[37]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 10,000,000.00 yuan for the year 2018[5]. - The company has a cash dividend policy that includes a distribution of 1 RMB per 10 shares for the 2017 fiscal year, reflecting a commitment to shareholder returns[72]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxinghua Accounting Firm[4]. - The company has committed to ensuring the accuracy and completeness of its annual report[8]. - The company has not encountered any non-standard audit opinions from its accounting firm[79]. - The internal control audit report confirmed the effectiveness of the company's internal controls for the year[149]. - The company has not reported any significant deficiencies in internal control during the reporting period[139]. Risks and Challenges - The company has outlined potential industry and policy risks in its report, emphasizing the importance of investor awareness[7]. - The company faced a 25% tariff on products exported to the U.S., which accounted for approximately 25% of total revenue[33]. - The cost of raw materials and labor increased, leading to a rise in product costs and pressure on profitability[33]. - The company faces risks related to macroeconomic fluctuations, which could lead to reduced orders and slower payment collection[67]. Market Presence and Operations - The company exported approximately 80% of its products to regions including the Americas, Europe, and Asia, indicating a strong international market presence[29]. - The company’s main business involves the manufacturing of heat exchangers[13]. - The company plans to focus on compact and efficient heat exchangers, adapting to the increasing power output of machinery while minimizing installation space[62]. - The company plans to achieve operating revenue exceeding 500 million RMB in 2019, focusing on expanding the cryogenic equipment business while consolidating its mechanical manufacturing market[65]. - The company is actively seeking mergers and acquisitions to strengthen its long-term competitive advantage and achieve greater economies of scale[66]. Research and Development - The company has established a comprehensive quality control system, achieving various international certifications including ASME and CE, which enhances its competitive edge in the market[30]. - The company has developed a "plate-fin heat exchanger heat transfer and flow resistance parameter database," improving product design efficiency and reducing development cycles[30]. - R&D expenses totaled 20.84 million yuan, representing 5.02% of total revenue, with 94 R&D personnel making up 12.38% of the total workforce[47]. - Research and development expenses rose to ¥20,840,391.52, a 30.7% increase from ¥15,951,091.40 in 2017, indicating a focus on innovation[162]. Shareholder Structure and Governance - The largest shareholder, Niu Yuxia, holds 54,675,000 shares, representing 54.68% of the total shares[106]. - Niu Faqing, another major shareholder, holds 4,643,700 shares, accounting for 4.64%[106]. - The company has a total of 59,318,700 restricted shares at the end of the reporting period[102]. - The company does not have a controlling shareholder or actual controller situation[113]. - The total remuneration for Niu Faqing as chairman is reported at 60.00 thousand yuan, while Niu Yuxia, as a director, receives 24.00 thousand yuan[119]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.1788 million yuan[124]. Environmental and Social Responsibility - The company has eliminated the original acid-base cleaning production line, resulting in zero production wastewater discharge[97]. - The company has implemented a "rainwater and sewage diversion" system in its drainage system[97]. - The company uses activated carbon adsorption for waste gas treatment, with high-altitude emissions for the cleaning process[97]. - The company has recycled aluminum edge scraps and unqualified products, ensuring effective solid waste management[97]. Employee and Management Structure - The total number of employees in the parent company is 473, while the main subsidiaries have 286 employees, resulting in a total of 759 employees[127]. - The company has implemented a performance evaluation system and incentive mechanisms to attract and retain talent, aiming for sustainable human resource development[130]. - The company emphasizes a competitive salary structure linked to performance, with a focus on internal equity and cross-department collaboration[128]. - The company has established a comprehensive training program for employees, focusing on modern management and technical skills[129]. Financial Management and Investments - The company has utilized RMB 125 million in broker financial products and RMB 60 million in bank financial products from raised funds[92]. - The company has a total of RMB 25 million in broker financial products with an annualized return of 4.85%[94]. - The company has a total of RMB 50 million in broker financial products with an annualized return of 5.15%[95]. - The company has a total of RMB 20 million in bank financial products with an annualized return of 1.755%[95]. - The company has a total of RMB 5 million in bank financial products with an annualized return of 1.755%[95].