Hexing(SH:603556)2019-04-22 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 329,919,823.05 for the year 2018, with a legal surplus reserve of RMB 37,091,350.47[4]. - The total distributable profit at the end of 2018 was RMB 1,841,652,954.29, considering the retained earnings from previous years[4]. - The proposed cash dividend is RMB 4.00 per 10 shares, amounting to an estimated total cash dividend of RMB 194,394,886.40, based on the total share capital of 494,464,100 shares[4]. - The total cash dividend, including the share repurchase amount of RMB 32,894,098.55, is projected to be RMB 227,288,984.95, which represents 68.89% of the net profit attributable to shareholders[5]. - In 2018, the company's operating revenue was CNY 2,552,901,256.19, a decrease of 15.62% compared to CNY 3,025,410,050.26 in 2017[18]. - The net profit attributable to shareholders was CNY 329,919,823.05, down 41.38% from CNY 562,851,964.67 in the previous year[18]. - The net cash flow from operating activities was negative CNY 7,998,951.12, a decline of 102.12% compared to CNY 376,894,159.40 in 2017[18]. - The basic earnings per share decreased to CNY 0.68, down 41.38% from CNY 1.16 in 2017[19]. - The weighted average return on equity was 6.90%, a decrease of 5.74 percentage points from 12.64% in 2017[20]. - The total assets at the end of 2018 were CNY 6,408,966,314.01, a slight decrease of 0.69% from CNY 6,453,658,450.06 in 2017[18]. Shareholder Returns - The company is focused on maintaining a reasonable return to shareholders while considering future growth needs[4]. - The company has implemented a share repurchase program amounting to RMB 32,894,098.55 during the year[5]. - The company plans to distribute a cash dividend of RMB 4.00 per 10 shares, totaling an estimated cash dividend of RMB 194,394,886.40 based on the total share capital[80]. - The total cash dividend for 2018, including the share buyback amount, is expected to be RMB 227,288,984.95, which represents 68.89% of the net profit attributable to shareholders[80]. Risk Management - The company has detailed the risks it faces in the annual report, urging investors to pay attention to potential risks[7]. - The company plans to continue its development strategy while being cautious about investment risks[6]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. Research and Development - The company focuses on the power industry, providing IoT-based smart power distribution solutions and related engineering and operation services[26]. - The company has invested significantly in R&D, adopting an integrated product development model to enhance its smart power distribution solutions[29]. - R&D expenses accounted for 8% of revenue, with 123 patents obtained by the end of the reporting period[38]. - The company has established a product development platform to enhance its R&D capabilities and reduce technological innovation risks[76]. Market Position and Strategy - The company is positioned as a leading exporter of smart electricity meters, with products distributed in over 90 countries[32]. - The company aims to become a provider of IoT-based smart power distribution solutions and microgrid solutions, with a focus on R&D investment and global marketing platform development[71]. - The company plans to launch new products in the smart microgrid and IoT-based solutions in 2019[43]. - The company is focusing on establishing direct sales capabilities and reducing reliance on agents in 20 global regions[72]. Financial Management - The company has implemented measures to strengthen cash management and reduce foreign exchange risks through various financial instruments[46]. - The company has adopted financial tools such as forward foreign exchange contracts to hedge against currency fluctuation risks[75]. - The company has entrusted cash asset management, with a total of ¥1,640,000,000.00 in bank wealth management products from raised funds and a remaining balance of ¥550,000,000.00[93]. - The company has also invested ¥2,800,000,000.00 in bank wealth management products from its own funds, with a remaining balance of ¥1,658,000,000.00[93]. Corporate Governance - The company has established a robust internal control system in place, complying with relevant laws and regulations to ensure proper governance[139]. - The audit committee held 4 meetings during the reporting period to review financial reports and monitor risk, enhancing the quality of financial reporting[147]. - The internal control audit report issued by Ernst & Young Huaming confirmed the effectiveness of the company's internal controls without significant deficiencies[150]. - The company actively communicates with shareholders through various channels, ensuring their voting rights are upheld[140]. Employee and Management Structure - The company employed a total of 2,853 staff, including 962 in the parent company and 1,891 in major subsidiaries[135]. - The workforce composition includes 1,331 production staff, 277 sales personnel, 887 technical staff, 67 financial staff, and 291 administrative staff[135]. - The total remuneration for directors, supervisors, and senior management in 2018 amounted to 6.7206 million yuan[132]. - The company has implemented a comprehensive training program, partnering with international consulting firm Korn Ferry for employee development[137]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming year, aiming to enhance revenue streams[171]. - The management is optimistic about future performance, with strategic initiatives aimed at increasing revenue and market share[126]. - The company is focusing on technological advancements and strategic acquisitions to drive future growth[180].