*ST炼石(000697) - 2018 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2018 was CNY 1,602,519,879.44, representing a 112.89% increase compared to CNY 752,737,593.72 in 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 24,551,990.93, a decrease of 57.59% from CNY 57,893,244.41 in 2017[17]. - The basic earnings per share for 2018 was CNY 0.0425, down 58.90% from CNY 0.1034 in 2017[17]. - The company achieved total operating revenue of CNY 1,602,519,879.44, representing a year-on-year increase of 112.89%[49]. - The company’s total profit amounted to CNY 7,075.37, with a net profit attributable to shareholders of CNY 2,455.20[49]. - The company reported a significant increase in domestic revenue, which rose by 8,969.61% to CNY 78,386,994.03[54]. - The company reported a net cash flow from operating activities of 56,227,901.14 CNY, a turnaround from a negative cash flow of -70,297,921.90 CNY in 2017, marking a 179.99% improvement[68]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to -CNY 210,597,367.72 in 2018, compared to -CNY 219,216,347.36 in 2017, reflecting a 3.93% improvement[17]. Assets and Liabilities - Total assets at the end of 2018 were CNY 5,207,278,611.07, a slight decrease of 0.26% from CNY 5,220,762,287.06 at the end of 2017[18]. - The net assets attributable to shareholders increased by 104.75% to CNY 3,071,037,360.12 at the end of 2018, compared to CNY 1,499,859,626.15 at the end of 2017[18]. - Gardner's cash and cash equivalents decreased by 66.54% year-on-year, mainly due to repayment of short-term loans and payments related to the acquisition of NAL[41]. - The total assets at the end of 2018 were 5,208,000,000.00 CNY, with cash and cash equivalents decreasing by 11.98% compared to the previous year[73]. Acquisitions and Business Expansion - The company has expanded its business into aerospace manufacturing, following the acquisition of Gardner Aerospace Holdings Limited in June 2017[16]. - The acquisition of UK-based NAL in July 2018 enhanced the company's product range and overall capabilities in aerospace manufacturing[46]. - Gardner's acquisition of NAL has strengthened its position in the long-bed processing sector, with products used in major aircraft models like Airbus A320 and Boeing 777[28]. - Gardner's acquisition of NAL added six factories in the UK and France, enhancing its product range and market reach[37]. - The company acquired 100% equity of NAL Company during the reporting period, which was included in the consolidated financial statements[122]. Research and Development - Research and development expenses totaled 125,441,366.58 CNY in 2018, representing 7.83% of total revenue, a decrease from 15.63% in 2017[66]. - The company is committed to ongoing research and development to innovate new products and technologies[176]. Environmental and Compliance - The company’s wastewater treatment process ensures that the water quality meets the "Comprehensive Wastewater Discharge Standards" after sedimentation[149]. - The company’s dust removal efficiency in air pollution control is over 99%, complying with the secondary standards of the "Comprehensive Air Pollution Discharge Standards"[149]. - The company has established an emergency response plan for environmental incidents, ensuring effective prevention measures are in place[150]. - The company has engaged a qualified third-party unit for regular monitoring of environmental risks and compliance[150]. Shareholder and Governance - The company plans to utilize undistributed profits for project investments rather than distributing them to shareholders[107]. - The company has not proposed any profit distribution to shareholders for the years 2016, 2017, and 2018, primarily due to operating losses and the need for funds for ongoing projects[103][107]. - The company has committed to avoiding competition with its controlling shareholders and related parties, ensuring operational independence[109]. - The company guarantees that its subsidiaries will have independent financial accounting systems and will not share bank accounts with the parent company[111]. - The company has established measures to ensure that any related party transactions are conducted transparently and in compliance with market principles[111]. Employee and Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.1322 million[180]. - The highest individual remuneration was received by Wang Lzhi, the Deputy General Manager, totaling CNY 1.74 million[182]. - The company employed a total of 2,487 staff, with 1,719 in production roles and 244 in technical positions[183]. - The company has established a comprehensive training system to enhance employee skills and safety awareness[185]. Risks and Challenges - The company faces potential policy risks related to compliance costs in the aviation manufacturing sector due to regulatory changes[97]. - Gardner's sales are significantly dependent on a single customer, Airbus, which accounts for a large portion of its annual sales, posing a risk to profitability stability if Airbus's revenue declines[98]. - The exchange rate fluctuations between GBP and RMB pose a risk to the company's future consolidated financial data due to the reporting currency differences[98]. - The goodwill recognized from the acquisition of Gardner and NAL amounts to RMB 2.434 billion, with potential impairment risks if Airbus's sales are adversely affected by unforeseen events[99].