MPCSH(SZ:000637)2019-04-26 16:00Financial Performance - The company's operating revenue for 2018 was ¥4,319,899,403.22, a decrease of 1.99% compared to ¥4,407,686,773.63 in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥37,250,992.22, representing a significant decline of 62.52% from ¥99,377,915.67 in 2017[18]. - The net profit after deducting non-recurring gains and losses was ¥48,971,029.59, down 45.34% from ¥89,587,806.30 in the previous year[18]. - The basic earnings per share for 2018 was ¥0.07, a decrease of 63.16% compared to ¥0.19 in 2017[18]. - The weighted average return on equity was 4.05%, a decrease of 7.03 percentage points from 11.08% in 2017[18]. - The total operating revenue for 2018 was approximately CNY 4.32 billion, a decrease of 1.99% compared to 2017[50]. - The industrial segment contributed CNY 4.04 billion, accounting for 93.62% of total revenue, with a year-on-year increase of 3.83%[50]. - The company’s gross profit margin for the industrial segment was 4.53%, a decrease of 1.84 percentage points compared to the previous year[52]. - The company’s production volume for 2018 was 764,827.7 tons, a decrease of 3.41% from 2017[53]. - The company reported a total revenue of 6,778 million for the year 2018, reflecting a 24% increase compared to the previous year[123]. Cash Flow and Dividends - The net cash flow from operating activities was ¥133,989,876.34, a slight increase of 0.03% compared to ¥133,944,056.70 in 2017[18]. - The company plans to distribute a cash dividend of ¥0.60 per 10 shares, based on a total of 519,875,356 shares[6]. - The total cash dividend for 2018 was 31,192,521.36 CNY, which accounted for 100% of the distributable profit[97]. - The cash dividends for 2018 represented 83.74% of the net profit attributable to ordinary shareholders, while 2017 and 2016 were 78.47% and 84.66%, respectively[95]. - The company has maintained a consistent cash dividend policy, with no adjustments to the profit distribution policy during the reporting period[93]. Production and Operations - The company achieved a polypropylene production of 182,300 tons in 2018, completing 86.79% of its annual plan[28]. - The MTBE production reached 172,100 tons, achieving 99.78% of the annual target, with an olefin conversion rate maintained above 94%[28]. - The company operates under a "production based on sales" model for polypropylene and MTBE, ensuring full capacity utilization throughout the year[30]. - The company sold 17.63 million tons of polypropylene with a sales rate of 96.73%, and 17.70 million tons of MTBE with a sales rate of 102.87%[42]. - The company completed 101.67% of its annual plan for three and four pre-treatment volumes, achieving 440,100 tons[42]. Strategic Initiatives and Investments - The company is investing in a new project for comprehensive utilization of cracking carbon nine and tar, which is expected to expand its operational scope and business in the future[31]. - The company is investing in a comprehensive utilization project for cracked carbon nine and tar, with a total investment of 860 million yuan, and a 300,000 tons/year hydrogen peroxide project[44]. - The company has established two subsidiaries and made significant upgrades to its fixed assets during the reporting period[32]. - The company is strategically located near major economic areas, providing a competitive advantage in raw material transportation and product distribution[34]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[120]. Research and Development - Research and development expenses amounted to 65.37 million, representing 1.51% of the total revenue, an increase of 6.68% compared to the previous year[63]. - The number of R&D personnel decreased by 4.29% to 134, while the proportion of R&D personnel in the total workforce was 13.96%[63]. - The company has allocated 200 million for research and development in new technologies for the upcoming year[152]. - The R&D budget has been increased by 15% to support innovation and new technology initiatives[162]. Market Outlook and Challenges - The company faces uncertainties in achieving its 2019 operational goals due to industry policies and market competition[6]. - The company faced challenges in 2019 due to increased competition and potential supply shortages in raw materials, particularly for MTBE and polypropylene[46]. - The company aims to achieve a polypropylene production target of 182,000 tons, MTBE of 153,000 tons, white oil series products of 38,000 tons, and ethanolamine of 12,200 tons in 2019[47]. - The company plans to streamline operations and adjust staffing to enhance efficiency amid ongoing reforms[46]. Customer Engagement and Market Expansion - User data indicated a 63.28% increase in the volume of raw materials processed compared to the previous year[118]. - The company plans to expand its market presence by increasing production capacity by 24.60% in the upcoming year[118]. - User data showed a growth in customer base by 29% year-on-year, reaching a total of 31 million users[148]. - The company aims to improve customer engagement through enhanced digital platforms, targeting a 20% increase in user interaction[180]. Sustainability and Corporate Governance - The company maintained a zero-accident record in safety and environmental protection throughout the year, with an investment of 13.4 million yuan in safety production[41]. - The company is committed to sustainable practices as part of its long-term strategy[145]. - The company aims to reduce operational costs by 5% through efficiency improvements in the supply chain[182]. - The company is committed to sustainability initiatives, aiming for a 20% reduction in carbon emissions over the next five years[183].