HOLSIN(SH:603909)2019-04-19 16:00Financial Performance - The company's operating revenue for 2018 was CNY 630,201,602.73, representing an increase of 83.19% compared to CNY 344,015,777.79 in 2017[26]. - The net profit attributable to shareholders of the listed company for 2018 was CNY 67,895,774.37, a 9.10% increase from CNY 62,230,049.21 in 2017[26]. - The net profit after deducting non-recurring gains and losses was CNY 60,027,608.50, up 9.97% from CNY 54,584,036.33 in the previous year[26]. - Basic earnings per share for 2018 was CNY 0.6758, an increase of 8.60% compared to CNY 0.6223 in 2017[27]. - Diluted earnings per share for 2018 was CNY 0.6753, reflecting an increase of 8.52% from CNY 0.6223 in 2017[27]. - The total profit reached CNY 87 million, reflecting a growth of 16.55% compared to the previous year[72]. - The company achieved operating revenue of CNY 630.20 million, a year-on-year increase of 83.19%[71]. - The company aims to increase revenue by 20% to 40% and net profit attributable to shareholders by 10% to 30% in 2019 compared to 2018[129]. Assets and Liabilities - The total assets at the end of 2018 reached CNY 1,340,665,467.67, an increase of 82.21% from CNY 735,763,474.97 at the end of 2017[26]. - The net assets attributable to shareholders of the listed company increased by 11.31% to CNY 702,097,020.20 from CNY 630,772,096.00 in 2017[26]. - The company's goodwill increased by CNY 108.74 million, a staggering growth of 8,699.69%, primarily due to the acquisition of Dalian Municipal Institute[52]. - Total liabilities rose from approximately CNY 101.63 million to CNY 601.05 million[191]. - The asset-liability ratio increased from 13.81% to 44.83% during the reporting period[191]. Cash Flow - The company reported a net cash flow from operating activities of CNY -748,249.63, an improvement of 40.90% from CNY -1,266,145.16 in 2017[26]. - The company reported a net cash flow from operating activities of CNY 58,365,658.28 in Q4 2018, a significant recovery from previous quarters[29]. - Net cash flow from investing activities decreased by 486.40% year-on-year, mainly impacted by the acquisitions of Dalian Municipal Institute and Fujian Yilu[109]. - Net cash flow from financing activities increased by 5478.81% year-on-year, largely due to acquisition loans and equity incentives[109]. Acquisitions and Growth - The company completed the acquisition of 100% equity in Dalian Municipal Institute and 69.48% equity in Fujian Yilu, enhancing its design and comprehensive management capabilities[65]. - The company's strategic acquisitions of Dalian Municipal Institute and Fujian Yilu significantly boosted its design consulting and comprehensive management business revenues[74]. - The company has established itself as a leading enterprise in the engineering consulting industry, participating in several key national projects, enhancing its brand influence and market competitiveness[55]. - The company anticipates steady growth in the engineering consulting industry driven by national infrastructure projects and the "Belt and Road" initiative[124]. Market and Industry Trends - In 2018, China's construction industry total output value reached CNY 23,508.6 billion, with a year-on-year growth of 9.9%, outpacing GDP growth by 3.3%[44]. - The engineering consulting industry saw a significant revenue increase, with total revenue for engineering surveying and design enterprises reaching CNY 4,339.13 billion in 2017, reflecting a year-on-year growth of 30.16%[47]. - The engineering supervision market has shown a compound annual growth rate of 20.07% from 2007 to 2017, indicating a robust growth trend in line with the construction industry[49]. Corporate Governance and Risk Management - The company emphasizes the importance of maintaining healthy and sustainable development while considering future business needs[9]. - The report includes a risk statement regarding forward-looking statements, cautioning investors about potential investment risks[10]. - The company faces risks related to policy changes, human resources, safety production, accounts receivable, and goodwill impairment, which could impact future operations[136][137][138][139][140]. - The company has established a robust internal control system to minimize safety production risks during engineering supervision[138]. Research and Development - The company has established a unique talent advantage through targeted recruitment and training initiatives, ensuring a stable and professional workforce[61]. - The company’s research and development expenses increased by 193.27% to CNY 19.36 million, driven by acquisitions and increased investment in innovation[74]. - The company has 223 R&D personnel, making up 9.78% of the total workforce[102]. - The company is focusing on cross-disciplinary collaboration in areas such as BIM technology and drone technology to enhance core competitiveness[104]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 1.35 per 10 shares, totaling CNY 13,837,500.00, based on a total share capital of 102.5 million shares as of December 31, 2018[9]. - The cash dividend distribution for 2018 represents 20.38% of the net profit attributable to the company's ordinary shareholders, which was 67,895,774.37 RMB[146]. - The controlling shareholders of the company have committed not to transfer or delegate the management of their shares for 36 months post-IPO, with an automatic extension of 6 months if certain price conditions are met[148]. Social Responsibility and Environmental Commitment - The company has committed to social responsibility initiatives, including a total donation of 55,200 RMB to support poverty alleviation efforts[176]. - The company maintains a focus on environmental responsibility, adhering to all relevant environmental protection policies[181].