AKL(SH:603722)2019-04-02 16:00Financial Performance - In 2018, the company achieved a net profit of ¥33,424,540.29, with a distributable profit of ¥30,082,086.26 after deducting the statutory surplus reserve[4]. - The company's operating revenue for 2018 was CNY 422,445,453.38, an increase of 45.24% compared to the previous year[22]. - The net profit attributable to shareholders decreased by 33.17% to CNY 33,424,540.29, primarily due to rising raw material costs and increased export and transportation expenses[22]. - Basic earnings per share fell by 46.58% to CNY 0.39, attributed to lower net profit and an increase in the number of shares outstanding[23]. - The weighted average return on equity decreased by 9.27 percentage points to 6.47%[23]. - The company reported a net cash flow from operating activities of CNY 39,895,200.52, down 31.80% from the previous year[22]. - The total assets at the end of 2018 were CNY 675,438,935.33, reflecting a 2.04% increase from the previous year[22]. - The gross profit margin decreased by 11.76 percentage points to 18.29% due to rising raw material prices outpacing product sales price increases[61]. Dividend Policy - The company plans to distribute a cash dividend of ¥2.00 per 10 shares, totaling ¥17,340,000.00 (including tax) to shareholders[4]. - A cash dividend of ¥2.00 per 10 shares will be distributed, totaling ¥17,340,000.00 (including tax), which represents 51.88% of the net profit attributable to ordinary shareholders[147][148]. - The company prioritizes cash dividends, aiming for a minimum cash distribution of 20% of the distributable profit each year[141]. - The profit distribution policy emphasizes sustainability and stability, with a focus on reasonable returns for investors[140]. - The company will consider industry characteristics and development stages when formulating differentiated cash dividend policies[140]. - The profit distribution conditions include having positive distributable profits and no major investment plans in the next twelve months[135][136]. - The company aims to maintain a cash dividend ratio of at least 80% for mature stages without major capital expenditures[140]. Governance and Compliance - The company has established a strong governance structure with a board of directors and supervisory board ensuring accountability and transparency[7]. - The company has received a standard unqualified audit report from its accounting firm, indicating the accuracy and completeness of its financial statements[7]. - The company has engaged Deloitte Touche Tohmatsu CPA Ltd. for continuous supervision and auditing services, ensuring ongoing compliance and oversight[19]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. Market and Product Development - The company is focused on expanding its market presence and developing new products, particularly in the field of high transparency materials and specialty chemicals[10]. - The company specializes in producing various chemical new materials, including polyether amines and optical-grade polymer materials[31]. - The company has established long-term partnerships with well-known enterprises in target markets such as wind power and marine oil, leveraging product quality and service advantages to capture market share[36]. - The company actively expands its international market presence while accelerating new product development to enhance sales growth[36]. - The company invests annually in R&D to improve product quality, energy efficiency, and production safety, focusing on high-value new products with significant market potential[40]. Risks and Challenges - The company has detailed potential industry and operational risks in the report, emphasizing the importance of risk awareness for investors[6]. - The company faces risks from significant fluctuations in raw material prices, which could impact gross margins and profitability[124]. - The company anticipates increased production costs due to stricter environmental regulations, which could affect overall performance[127]. - The implementation of new fixed asset projects will lead to increased depreciation costs, posing a risk to profitability if the projects do not yield expected benefits[131]. Shareholder Information - The total number of ordinary shares increased to 86,700,000, with 65,000,000 being restricted shares and 21,700,000 being unrestricted shares[190]. - As of December 31, 2018, restricted shares accounted for 53.02% of total shares, while unrestricted shares made up 46.98%[192]. - The largest shareholder, Zhu Xuejun, holds 24,300,000 shares, representing 28.03% of the total shares, with 4,920,000 shares pledged[196]. - The company does not have a controlling shareholder situation[200]. - The top ten unrestricted shareholders hold a total of 60,000,000 shares, all of which are common stock[197]. Social Responsibility - The company actively participates in charitable activities, donating funds to local charities and supporting education initiatives[179]. - The company emphasizes the protection of shareholder rights and maintains open communication with investors[178]. - The company promotes a harmonious labor relationship and provides welfare improvements for employees[178]. - The company has established a strong reputation and credibility through its commitment to social responsibility[178].