CHQSXP(SZ:000565)2019-03-20 16:00Financial Performance - The company's operating revenue for 2018 was ¥631,238,184.26, a decrease of 82.51% compared to ¥3,609,032,830.90 in 2017[17]. - The net profit attributable to shareholders for 2018 was ¥45,221,577.87, down 44.26% from ¥81,125,365.92 in 2017[17]. - The net cash flow from operating activities decreased by 54.03% to ¥24,940,323.03 in 2018 from ¥54,248,320.34 in 2017[17]. - The company's total assets at the end of 2018 were ¥1,468,725,389.85, a decrease of 6.51% from ¥1,571,040,505.02 at the end of 2017[17]. - The net profit excluding non-recurring gains and losses for 2018 was ¥36,694,469.26, a decrease of 31.53% from ¥53,588,564.85 in 2017[17]. - In 2018, the company achieved a total revenue of 631 million yuan, a year-on-year decrease of 82.51%[39]. - The revenue from the paint and coating manufacturing segment was 480 million yuan, an increase of 6.61% year-on-year, while the chemical trading segment saw a revenue of 151 million yuan, a decrease of 95.21%[39]. - The net profit attributable to shareholders was 45.22 million yuan, down 44.26% year-on-year, primarily due to a 92.32% decrease in the chemical trading segment[39]. - Total revenue for 2018 was ¥631,238,184.26, a decrease of 82.51% compared to ¥3,609,032,830.90 in 2017[43]. - Manufacturing revenue accounted for ¥479,968,108.50, representing 76.04% of total revenue, with a year-on-year increase of 6.61%[46]. - Wholesale revenue dropped to ¥151,270,075.76, constituting 23.96% of total revenue, reflecting a significant decline of 95.21%[43]. Shareholder Information - The company reported a cash dividend of 0.13 yuan per 10 shares, based on a total of 433,592,220 shares, with no bonus shares issued[5]. - The company’s net profit for 2018 was 58,314,839.29 CNY, with a distributable profit of 52,483,355.36 CNY after statutory reserve allocation[102]. - The cash dividend for 2018 represents 12.46% of the company's net profit attributable to ordinary shareholders[99]. - The total number of shareholders at the end of the reporting period is 40,738, an increase from 39,698 in the previous month[179]. - The largest shareholder, Chongqing Chemical Holdings (Group) Company, holds 40.55% of the shares, totaling 175,808,982 shares[180]. - The top ten shareholders include individuals with shareholdings ranging from 0.20% to 0.69%, with the highest being Lin Shangde at 3,000,000 shares[180]. - The controlling shareholder is a local state-owned entity, Chongqing Chemical Holdings (Group) Company, established on August 25, 2000[181]. - There were no changes in the controlling shareholder during the reporting period[182]. - The report indicates that there are no pledged or frozen shares among the top shareholders[179]. - The total number of shares held by the top ten unrestricted shareholders is 182,000,000[180]. Business Strategy and Operations - The company plans to focus on the development of water-based and high-performance coatings, including graphene applications, to enhance sustainable growth[27]. - The company reported a significant reduction in its chemical trading business to mitigate risks and ensure financial safety[28]. - The company aims to enhance product competitiveness through innovation and upgrading existing products[27]. - The company plans to accelerate the development of environmentally friendly coatings and improve product quality while controlling costs in 2019[35]. - The company aims to achieve over 500 million yuan in revenue from paint manufacturing in 2019, while ensuring the chemical trade business operates under controlled risks[87]. - The company is committed to reducing VOC content in products, aligning with new environmental regulations, and increasing market share for water-based and powder coatings[84]. - The company will enhance production quality control and optimize production processes to ensure stable product quality and reduce production costs[88]. - The company is focusing on expanding existing markets and developing new markets, including online sales channels, to boost paint sales[88]. - The company plans to implement an innovative incentive mechanism to motivate sales teams and improve performance[88]. - The company emphasizes the importance of internal management and compliance to ensure legal and regulatory adherence, promoting stable development[89]. Environmental and Social Responsibility - The company emphasizes social responsibility, adhering to principles of integrity and compliance with laws and regulations[141]. - The company has invested approximately 1,500 million in environmental protection facilities since 2008, with an additional investment of about 494 million during the reporting period[143]. - The company has implemented dust control measures in production to protect employee health and improve working conditions[144]. - The company provided assistance to 7 impoverished households in Pengqiao Village, Jiangjin District, with a total funding of 7,000 RMB, equivalent to 0.7 million RMB for poverty alleviation efforts[147]. - The company is classified as a key pollutant discharge unit by environmental protection authorities, with specific emissions monitored and reported[150]. - The company achieved a chemical oxygen demand (COD) discharge of 1.89 tons per year, with no exceedance of the discharge standards[151]. - The company has implemented various employee welfare activities, including summer cooling assistance and educational support, enhancing employee engagement and satisfaction[146]. - The company has signed responsibility agreements for anti-corruption measures with its leadership, emphasizing strict assessment and promotion of new cadres[146]. - The company has improved employee working and living conditions through renovations and expansions of facilities, reflecting its commitment to employee care[146]. - The company actively participated in community engagement activities, including public open days and environmental awareness events, fostering a harmonious relationship with local residents[146]. Legal and Compliance Matters - The company is involved in a significant arbitration case with a claimed amount of CNY 50 million, with a ruling requiring the opposing party to return CNY 15 million within ten days of the decision being served[114]. - The arbitration ruling also includes compensation for price differences amounting to CNY 16.88 million and legal fees of CNY 1 million, totaling CNY 32.30 million[114]. - The company has not faced any situations that could lead to suspension or termination of listing after the annual report disclosure[112]. - The company has not undergone any bankruptcy reorganization during the reporting period[113]. - The company has received a penalty for exceeding the allowable concentration of xylene emissions, and has completed the necessary rectifications[168]. - The company reported a fine of RMB 300,000 imposed by the Xinjiang Changji Prefecture Safety Supervision Bureau following a chemical poisoning accident at its subsidiary Xinjiang Yushanxia, which resulted in 1 death and 2 injuries[171]. Management and Governance - The company has a diverse management team with backgrounds in engineering, finance, and management, enhancing its operational capabilities[193]. - The company’s board includes independent directors with significant academic and professional backgrounds, enhancing governance[198]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 543.54 million[200]. - The current chairman, Zhang Weilin, received a total remuneration of CNY 64.32 million during the reporting period[200]. - The independent director, Li Dingqing, has served in multiple roles across various organizations, indicating a broad expertise[198]. - The company has a structured approach to remuneration, ensuring that payments are made monthly and are performance-based[199]. - The total remuneration for the supervisor, Wan Rulin, was CNY 57.63 million, reflecting the company's commitment to rewarding leadership[200]. - The independent directors, including Liu Wei and Tao Changyuan, received CNY 3 million each, highlighting the company's investment in governance[200].