SKSHU(SH:603737)2019-04-23 16:00Financial Performance - The company's operating revenue for 2018 was RMB 3,584,016,773.57, representing a 36.82% increase compared to RMB 2,619,460,163.41 in 2017[18]. - The net profit attributable to shareholders of the listed company was RMB 222,488,028.71, up 26.43% from RMB 175,974,586.21 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 188,635,334.28, reflecting a 30.00% increase from RMB 145,108,471.70 in 2017[18]. - Cash generated from operating activities amounted to RMB 266,731,620.44, which is a 19.38% increase compared to RMB 223,423,721.21 in 2017[18]. - The basic earnings per share for 2018 was CNY 1.67, representing a 23.70% increase from CNY 1.35 in 2017[20]. - The weighted average return on net assets increased by 1.59 percentage points to 18.31% in 2018, compared to 16.72% in 2017[20]. - The total profit for 2018 was CNY 27,176.15 million, with a net profit of CNY 22,248.80 million, reflecting a growth of 26.43% year-over-year[48]. - The company reported a net cash flow from operating activities of CNY 376,002,820.88 in Q4 2018, a significant recovery from negative cash flow in earlier quarters[25]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 5.1 per 10 shares, totaling RMB 67,895,746.65, and to increase capital stock by 4 shares for every 10 shares held, resulting in a total capital increase of 53,251,566 shares[4]. - The company has established a profit distribution policy that emphasizes reasonable returns to investors, ensuring continuity and stability in profit distribution[114]. - The company aims to distribute at least 20% of its distributable profits as cash dividends annually, provided it meets the conditions for cash distribution[114]. - In 2018, the company distributed cash dividends amounting to 67,895,747 RMB, which is 30.52% of the net profit attributable to ordinary shareholders[119]. - The cash dividend for 2017 was 56,199,660 RMB, representing 31.94% of the net profit attributable to ordinary shareholders[119]. Market and Product Development - The company has a comprehensive strategy for market expansion and product development, although specific details on new products and technologies were not disclosed in the provided content[18]. - The company has been focusing on the research and development of new products, including various types of architectural and wood coatings[28]. - The company is expanding its market presence by targeting both residential and commercial sectors with tailored paint solutions[28]. - The company launched the "Wall Clear Zhen Cai" coating in 2018, which features air purification and self-cleaning functions, enhancing its competitive advantage[37]. - The company aims to provide integrated green building solutions, including coatings, insulation, waterproofing, flooring, and substrates[33]. Risk Management - The company has detailed various risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company faces risks from real estate regulation, which may reduce product demand, and plans to enhance marketing efforts and diversify product offerings to mitigate this risk[110]. - The company is exposed to raw material price volatility, with over 90% of its main business costs tied to raw materials, and will implement strategies to manage these risks[111]. - The company has established strict credit policies for large real estate developers to manage accounts receivable risks effectively[111]. Environmental Commitment - The company has established a "Health+" new standard in the coating industry, focusing on environmentally friendly and healthy wall coatings[33]. - The company received the "National Green Factory" award in 2018, reflecting its commitment to sustainable practices[34]. - The company adheres to environmental regulations and has completed environmental impact assessments for its projects[153]. - The company has implemented strict environmental protection measures across its factories, ensuring stable compliance with emission standards[154]. - The wastewater treatment facilities utilize a combination of physical and biochemical methods, achieving a high pollutant removal rate[155]. Research and Development - The company has over 1,000 R&D and technical personnel, with 30 new graduates recruited in 2018 from top universities[36]. - The company invested a total of 92.59 million yuan in R&D in 2018, accounting for 2.58% of consolidated revenue, focusing on new products and technologies[64]. - The company submitted 8 patent applications in 2018, including 4 utility model patents and 4 invention patents, with a total of 273 authorized patents by the end of the year[76]. - The company is in the pilot stage for several new product developments, including ultra-low VOC water-based wood coatings and high-performance single-component water-based paints[77][78]. Corporate Governance - The company has committed to reducing related party transactions and ensuring they are conducted at fair market prices[126]. - The company has established performance commitments linked to the execution of its compensation system for directors and senior management[126]. - The company has maintained compliance with the commitments made during its initial public offering[126]. - The company has not faced any penalties from securities regulatory agencies in the past three years[200]. Shareholder Information - The largest shareholder, Hong Jie, holds 87,158,654 shares, representing 65.92% of the total shares, with 28,169,000 shares pledged[179]. - The total number of shares held by the chairman and CEO, Hong Jie, increased from 67,045,119 at the beginning of the year to 87,758,234 by year-end, reflecting an increase of 20,713,115 shares[189]. - The company has a plan to increase shareholding if the stock price remains below the audited net asset value for 10 consecutive trading days, with a minimum investment of RMB 10 million per transaction[125]. - The company has established a commitment to not engage in competitive activities that threaten its main business during the controlling period[125].