Original(SH:603991)2019-03-05 16:00Financial Performance - The company achieved a net profit of ¥38,005,018.95 in 2018, with a cumulative distributable profit of ¥151,991,198.43 at the end of the year[5]. - The company's operating revenue for 2018 was CNY 569,777,614.26, representing a 33.30% increase compared to CNY 427,445,898.90 in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 38,005,018.95, a slight increase of 0.13% from CNY 37,957,327.51 in 2017[22]. - The total assets increased by 30.20% to CNY 817,414,936.32 in 2018, up from CNY 627,797,041.90 in 2017[23]. - The company's net assets attributable to shareholders rose by 6.62% to CNY 491,870,655.74 at the end of 2018, compared to CNY 461,319,136.59 at the end of 2017[23]. - The basic earnings per share decreased by 5.56% to CNY 0.51 in 2018, down from CNY 0.54 in 2017[24]. - In 2018, the company achieved operating revenue of CNY 569.78 million, a year-on-year increase of 33.30%[48]. - The net profit for 2018 was CNY 38.01 million, reflecting a slight increase of 0.13% compared to the previous year[48]. Dividends and Shareholder Returns - A cash dividend of ¥1.60 per 10 shares (including tax) is proposed for shareholders, based on a total share capital of 74,534,998 shares[5]. - The cash dividend distribution for 2018 is set at 1.60 RMB per 10 shares, reflecting an increase from 1.00 RMB per 10 shares in 2017[114]. - The company has established a shareholder return plan for the next three years (2017-2019) to enhance transparency in cash dividend policies[111]. Audit and Compliance - The report includes a standard unqualified audit opinion from Lixin Certified Public Accountants[4]. - The financial report is guaranteed to be true, accurate, and complete by the board of directors and management[8]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018, and its operational results for the year[200]. - The audit identified key audit matters, including the recoverability of accounts receivable and revenue recognition, which were deemed significant due to the potential for management manipulation[193]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[6]. - The report outlines potential risks faced by the company in the operational discussion section[7]. - The company recognizes the risk of raw material price fluctuations affecting operational stability, as key materials are influenced by international oil market trends[105]. - The company faces risks related to the loss of core technical personnel, which could impact its R&D capabilities and lead to potential technology leaks[104]. Research and Development - The company invested CNY 21.97 million in R&D, marking a 13.06% increase from the previous year[50]. - The company holds 80 invention patents and 1 utility model patent, with 33 invention patents authorized as of December 31, 2018, showcasing its strong research and development capabilities[40]. - The company’s R&D efforts are concentrated on key industry technologies, aiming for breakthroughs and deeper industry applications[78]. - The company completed the construction of a modern technology center laboratory covering approximately 2,000 square meters, enhancing its R&D capabilities[78]. Market and Sales Performance - The sales volume of special environmentally friendly polymer materials for optical communication cables increased by 38.68% compared to the same period last year[24]. - The sales volume of special insulating polymer materials for power cables increased by 43.43% compared to the same period last year[24]. - The company has established a strong sales network across the country, enhancing customer satisfaction through customized services[43]. - The revenue from the East China region increased significantly, primarily due to increased demand from existing customers and the expansion of new clients[56]. Inventory and Cash Flow - The net cash flow from operating activities was negative CNY 74,765,210.86, a significant decline from positive CNY 473,904.95 in 2017[23]. - The company experienced a significant increase in inventory levels to meet customer stocking demands due to rising sales volumes[25]. - The inventory of special insulation polymer materials for power cables increased to meet customer stocking needs, with a year-on-year increase of 508.14%[57]. - The net cash flow from operating activities decreased by 15,876.41% to -74.77 million yuan, mainly due to increased raw material purchases[64]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, ensuring that pollutant emissions comply with national regulations[109]. - The company effectively managed pollutants generated during production, including minor waste gas and solid waste, and conducted regular environmental testing[147]. - The company donated a total of RMB 284,000 to social causes during the reporting period, reflecting its commitment to social responsibility[146]. Corporate Governance - The company has a commitment from its major shareholders to not transfer or manage their shares for a specified period, ensuring stability in shareholding[116]. - The company will compensate for any actual losses incurred by the company due to violations of commitments by its related parties[120]. - The company will disclose the completion status of its compensation measures and the fulfillment of related commitments in regular reports[132]. - The company held 1 shareholders' meeting and 4 board meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[180]. Employee and Management Information - The total number of employees in the parent company is 388, with 229 in production, 21 in sales, 74 in technology, 7 in finance, and 57 in administration[175]. - The total remuneration for all directors, supervisors, and senior management in the company amounted to 3.4847 million RMB before tax[173]. - The company has established a competitive and equitable compensation system, adjusting salaries annually based on market levels to attract talent[176]. - The company continues to focus on retaining key management personnel while ensuring competitive compensation packages[166].