IBS(SH:603183)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 494.61 million, an increase of 11.40% compared to CNY 443.99 million in 2017[25]. - The net profit attributable to shareholders for 2018 was CNY 64.60 million, a decrease of 2.09% from CNY 65.98 million in 2017[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 57.52 million, down 2.23% from CNY 58.83 million in 2017[25]. - The cash flow from operating activities for 2018 was CNY 2.11 million, a significant decrease of 93.38% compared to CNY 31.80 million in 2017[25]. - The total assets at the end of 2018 were CNY 959.17 million, an increase of 13.95% from CNY 841.76 million at the end of 2017[25]. - The net assets attributable to shareholders at the end of 2018 were CNY 698.01 million, an increase of 8.28% from CNY 644.64 million at the end of 2017[25]. - The basic earnings per share for 2018 were CNY 0.52, a decrease of 16.13% from CNY 0.62 in 2017[26]. - The weighted average return on equity for 2018 was 9.68%, a decrease of 6 percentage points from 15.68% in 2017[26]. - The company achieved a revenue of CNY 495 million in 2018, representing a year-on-year growth of 11.40%[65]. - The net profit attributable to shareholders for 2018 was CNY 64.60 million, showing a decrease of 2.09% compared to the previous year[65]. - Total assets at the end of 2018 amounted to CNY 959 million, with net assets attributable to shareholders reaching CNY 698 million[65]. Dividend Policy - The company plans to distribute a cash dividend of 1.05 CNY per 10 shares, totaling 13,135,920 CNY, and will increase its total share capital by 50,041,600 shares through a capital reserve conversion, raising the total share capital to 175,145,600 shares[3]. - The company has a cash dividend policy that mandates at least 20% of the distributable profits to be allocated for cash dividends when conditions are met[119]. - The company is committed to a cash dividend distribution of at least 80% of profits in mature stages without major capital expenditures[119]. - The profit distribution plan for 2018 was approved at the shareholders' meeting, requiring a two-thirds majority of voting rights held by attending shareholders[121]. - The company must complete the distribution of dividends within two months after the shareholders' meeting approval[121]. - The company reported a net profit of RMB 1,313.59 million for 2018, with a cash dividend payout ratio of 20.34%[123]. - The company has a policy to adjust profit distribution based on operational conditions and long-term development needs, requiring board approval and shareholder meeting ratification[121]. - The independent directors must review and provide opinions on the profit distribution plan before it is submitted to the shareholders' meeting[121]. - The company must disclose the reasons for not proposing a cash dividend if it is profitable and meets the distribution conditions[122]. - The company has committed to protecting shareholder rights and ensuring compliance with relevant regulations during profit distribution adjustments[121]. Market Risks and Competition - The company faces risks from industry fluctuations, particularly due to the slowdown in domestic economic growth and ongoing macroeconomic controls in the real estate market, which may impact the construction service sector's growth[6]. - Increased competition in the construction service industry is anticipated as fixed asset investments rise, leading to greater pressure on market share and profitability[8]. - The company acknowledges the competitive pressure from new entrants in the construction services market, necessitating strategies to maintain market share[112]. - The company's financial performance is closely tied to the real estate sector, with potential adverse effects from government policies aimed at controlling housing prices[114]. - The company faces risks related to industry fluctuations, particularly due to macroeconomic changes and real estate market regulations that could impact construction service demand[109]. Operational Strategies - The company emphasizes the importance of timely adjustments to its operational strategies in response to market conditions to avoid cyclical fluctuations in performance[6]. - The company is actively exploring new markets outside Jiangsu to mitigate risks associated with regional concentration and enhance overall revenue growth[7]. - The company is enhancing internal systems and processes to improve operational efficiency and compliance across subsidiaries[107]. - The company is implementing a dual mechanism for recruitment, focusing on academic qualifications and rigorous selection processes to attract top talent[108]. - The company plans to enhance its service capabilities in EPC general contracting and comprehensive consulting services[105]. Research and Development - The company focuses on engineering technology services and the production and sales of new building materials, establishing several innovation platforms to enhance core competitiveness[33]. - The company has a well-established research and innovation platform, with multiple provincial-level research centers and a total of 31 patent applications filed in 2018[62]. - The company is focusing on research and development in areas such as sponge cities, prefabricated buildings, and smart technologies[104]. - The company has initiated 15 new research projects, including 1 from the Ministry of Housing and Urban-Rural Development[62]. - Research and development expenses amounted to 19,643,361.76 CNY, representing 3.97% of total revenue[79]. Asset Management - The company reported a significant increase in fixed assets by 63.77% to CNY 158.40 million, primarily due to property and equipment purchases[60]. - The company has committed 35 million CNY to bank wealth management products, with 20 million CNY sourced from raised funds and 3.5 million CNY from self-owned funds[144]. - The annualized return rate for one of the wealth management products was set at 4.35%, with expected returns of 10.85 CNY[145]. - The company reported a total of 10,000 million in financial products with a return rate of 4.40% for the period ending June 2018[150]. - The company achieved a return rate of 4.55% on financial products amounting to 10,000 million for the period ending June 2018[148]. Corporate Governance - The company has received a standard unqualified audit report from Jiangsu Gongzheng Tianye Accounting Firm, ensuring the accuracy of its financial statements[5]. - The company has maintained compliance with all regulatory requirements and has no issues with the integrity of its controlling shareholders or actual controllers[137]. - The board of directors is committed to maintaining transparency and accountability in financial reporting and corporate governance practices[190]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 12.01 million yuan before tax[195]. Employee Management - The company employed a total of 1,137 staff, with 769 in production, 138 in sales, 78 in technical roles, 10 in finance, and 142 in administration[197]. - The educational background of employees includes 44 with postgraduate degrees, 483 with bachelor's degrees, 372 with associate degrees, and 238 with education below associate level[197]. - The company has implemented a salary policy that includes basic salary and performance-based pay, in accordance with labor laws and regulations[198]. - The training system includes pre-job training, internal training, and external training to enhance employee skills and team cohesion[199]. Environmental and Safety Practices - The company emphasizes environmental protection and aims to contribute to green energy in the construction sector[153]. - The company has established a safety production management system to enhance safety controls in daily operations[152]. - The company is committed to protecting employee rights and has implemented measures for occupational health and safety[152]. - The company has not faced any penalties related to environmental issues during the reporting period[153].