Tunghsu Optoelectronic(SZ:000413)2019-04-29 16:00Financial Performance - The company's operating revenue for 2018 was ¥28.21 billion, representing a 63.29% increase compared to ¥17.33 billion in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥2.16 billion, a 25.05% increase from ¥1.74 billion in 2017[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2.05 billion, up 33.32% from ¥1.54 billion in 2017[18]. - The basic and diluted earnings per share for 2018 were both ¥0.38, an increase of 18.75% from ¥0.33 in 2017[19]. - In 2018, the company achieved a revenue of 28.212 billion yuan, a growth of 63.29% compared to 2017, and a net profit of 2.164 billion yuan, an increase of 25.05% year-on-year[47]. - The revenue from the construction installation business was ¥5.28 billion, showing a significant growth of 178.43% from ¥1.90 billion in 2017[59]. - The revenue from the electronic communication products segment was ¥3.63 billion, which is a 69.51% increase from ¥2.14 billion in the previous year[59]. - The revenue from the graphene industrial application segment surged by 169.43%, reaching ¥181.39 million compared to ¥67.32 million in 2017[59]. - The new energy vehicle segment, driven by the acquisition of Shenlong Bus, achieved a sales revenue of 4.258 billion yuan, marking a growth of 69.39%[54]. - The company reported a net profit of ¥68.89 million from the acquisition of Shenzhen Sanbao Innovation Smart Co., Ltd., indicating a positive return on investment[67]. Dividend Policy - The company plans to distribute a cash dividend of 0.70 yuan per 10 shares to all shareholders, based on a total of 5,730,250,118 shares[4]. - The cash dividend amount for 2018 was CNY 401,117,508.26, representing 18.54% of the net profit attributable to ordinary shareholders[123]. - The total cash dividend (including other methods) for 2018 was CNY 401,117,508.26, which accounted for 100% of the total profit distribution[124]. - The company plans to distribute at least 30% of the average distributable profit over the next three years in cash dividends, contingent on sufficient cash flow and no major capital expenditures[124]. - The company has set a profit distribution plan for 2018-2020, prioritizing cash dividends and allowing for stock dividends under certain conditions[124]. Business Operations and Strategy - The company has not reported any changes in its main business since its listing, indicating stability in operations[16]. - The company has established five production bases for liquid crystal glass substrates, achieving the largest production capacity in China and the fourth largest globally[29]. - The company is actively developing graphene application products in collaboration with renowned universities and research institutions[28]. - The company aims to expand its new energy vehicle business, leveraging its partnership with Shenlong Bus to enhance revenue sources[28]. - The company has optimized its display materials business structure by expanding into cover glass, curved cover glass, optical films, color filters, and sapphire since 2015, enhancing competitiveness and profitability[30]. - The company has achieved a production capacity of nearly 5 million pieces for curved cover glass, which is suitable for flexible displays, and has begun mass production and sales[30]. - The company has successfully integrated graphene applications with global research institutions, developing products such as graphene-based lithium-ion batteries and energy-saving lighting, with some products already in mass supply[31][32]. - The company has become the only domestic enterprise with a complete set of production processes and equipment for liquid crystal glass substrates, enhancing its high-end equipment manufacturing capabilities[33]. - The company is actively integrating its supply chain in high-end materials and new energy vehicles, aiming to create a closed-loop industry chain[41]. Research and Development - The company has increased its research and development expenditures to support business expansion, reflecting a commitment to innovation and product development[37]. - The company has a strong R&D capability with over 2,400 independent intellectual property rights related to liquid crystal glass substrates and high-end equipment manufacturing[39]. - Total R&D investment reached CNY 596,044,201.02, up 54.52% from the previous year[78]. - The number of R&D personnel increased by 24.19% to 1,735, representing 21.98% of total employees[78]. - The company plans to increase its stock holdings through the Shenzhen Stock Exchange, with a commitment to invest between RMB 5 billion and RMB 15 billion within six months, representing 1% to 3% of the current total share capital[134]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[179]. - The total wastewater discharge from Fuzhou Dongxu Optoelectronics was 15.6 tons, with ammonia nitrogen levels at 6.8 mg/L, compliant with water quality standards[180]. - The company achieved a nitrogen oxide emission rate of 161.3 mg/m³ from the first-phase glass kiln, adhering to the electronic glass industry air pollutant discharge standards[180]. - The company has implemented advanced dust removal and denitrification systems to manage emissions effectively[180]. - The company has established measures for noise reduction and solid waste management, ensuring compliance with environmental noise standards[184]. - The company has implemented new wastewater treatment technologies to enhance compliance with environmental standards[182]. Acquisitions and Investments - The company completed several acquisitions, including Shenzhen Sanbao Innovation Smart Co., Ltd. for ¥157.60 million, enhancing its operational capabilities[66]. - The company completed a merger with Dongxu (Yingkou) Optoelectronic Display Co., Ltd., acquiring 65% ownership for a cash consideration of CNY 195,525,500.00[70]. - The company acquired Shenzhen Sanbao Innovation Smart Co., Ltd. with a 67% stake for a cost of approximately ¥157.60 million, resulting in a net profit of approximately -¥12.73 million[145]. - The company also acquired Zhongcheng Guojian Co., Ltd. with a 70% stake for ¥140 million, which reported a net profit of approximately -¥7.17 million[145]. Market Outlook - The average size of LCD screens is expected to increase by 1.5 inches, which can consume the capacity of an 8.5-generation LCD panel line, supporting stable growth in glass substrate performance[110]. - The global demand for flat panel display area is projected to grow by 6.4% in 2019, reaching 228 million square meters, benefiting the company's optoelectronic display materials business[110]. - The company plans to focus on large-size LCD panel supply in 2019, which remains the mainstream demand in the consumer market[110]. - The average subsidy for new energy vehicles is expected to decrease by 50% in 2019 compared to 2018, impacting the industry dynamics significantly[111]. Corporate Governance - The company is currently fulfilling commitments related to avoiding competition with its controlled entities[125]. - The company is actively managing its shareholder return strategy, ensuring compliance with legal and regulatory requirements[126]. - The company has committed to avoiding any form of direct or indirect competition with its controlling shareholder, Dongxu Group, during the period of control[132]. - The company is focused on adapting its operations and expansion needs through the funds raised from the bond issuance[132]. Social Responsibility - The company made a donation of 300 graphene electric heaters valued at CNY 200,000 to help with clean heating in Hebei Province[177]. - A total of CNY 89.04 million worth of 530 graphene electric heaters and CNY 200,000 worth of books were donated to schools and elderly care centers in Hebei Province[177]. - The company’s subsidiary donated CNY 22.85 million for poverty alleviation projects in Guangxi Province[177].