SCMF(SZ:000731)2019-04-15 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,639,919,528.80, representing a 4.43% increase compared to CNY 2,528,000,405.91 in 2017[16]. - The net profit attributable to shareholders for 2018 was CNY 219,596,981.88, a significant increase of 41.13% from CNY 155,603,301.59 in 2017[16]. - The net profit after deducting non-recurring gains and losses was CNY 218,796,816.00, up 48.81% from CNY 147,034,075.21 in the previous year[16]. - The basic earnings per share for 2018 was CNY 0.3713, an increase of 41.13% compared to CNY 0.2631 in 2017[17]. - The net cash flow from operating activities decreased by 19.75% to CNY 444,282,625.54 from CNY 553,603,359.19 in 2017[17]. - Total assets at the end of 2018 were CNY 4,149,081,899.51, a decrease of 5.13% from CNY 4,373,523,538.06 at the end of 2017[17]. - The net assets attributable to shareholders increased by 6.72% to CNY 2,799,287,599.03 from CNY 2,622,931,978.11 in 2017[17]. - The weighted average return on equity for 2018 was 8.03%, up from 6.12% in 2017[17]. - The company achieved a total profit of CNY 246,213,021.55, with a net profit attributable to shareholders of CNY 219,596,981.88, representing a significant increase from CNY 47,318,748.16 in 2017[106]. - The company reported a significant increase in the profit margin from 30.41% in 2017 to 40.40% in 2018[106]. Revenue Breakdown - The chemical fertilizer manufacturing sector contributed CNY 1,408,737,482.18, accounting for 53.36% of total revenue, but saw a decline of 6.42% compared to the previous year[59]. - Natural gas supply revenue increased by 3.57% to CNY 431,415,747.85, representing 16.34% of total revenue[59]. - The total revenue from fertilizer products in 2018 was approximately ¥922.30 million, a decrease of 9.15% compared to ¥1,080.13 million in 2017[66]. - The total revenue from chemical products increased by 3.06% to ¥333.02 million in 2018, up from ¥268.77 million in 2017[66]. - The total revenue from natural gas supply reached ¥375.75 million in 2018, representing a growth of 4.30% from ¥287.19 million in 2017[66]. - The total revenue from other products and trade was ¥308.88 million in 2018, an increase of 1.79% compared to ¥269.17 million in 2017[66]. Production and Sales - The company produced 39,270 tons of urea and 27,280 tons of compound fertilizer, with sales of 31,680 tons of urea and 27,800 tons of compound fertilizer during the reporting period[26]. - The company produced 7,160 tons of automotive urea and sold 8,190 tons, indicating a strong market demand[27]. - The production capacity for melamine is 50,000 tons per year, with 51,600 tons produced and 52,500 tons sold during the reporting period[28]. - The company has a liquefied natural gas (LNG) production capacity of 1 million cubic meters per day, producing 10,940 tons and selling 10,570 tons of LNG[30]. - The company sold 59.57 million tons of chemical fertilizers, a decrease of 23.66% from the previous year[62]. - The inventory of chemical fertilizers increased by 68.21% to 6.56 million tons, attributed to seasonal sales strategies[62]. Market Trends and Industry Insights - The fertilizer industry is experiencing a recovery trend, with ongoing structural adjustments and improvements in management and product quality[30]. - The fertilizer industry is transitioning from quantity-driven growth to product structure upgrades, focusing on low-cost, environmentally friendly, and compound fertilizers[31]. - The melamine industry is experiencing a supply-demand imbalance, with a production capacity exceeding 220,000 tons and a significant price drop due to low demand from downstream industries[33]. - The car urea market saw a consumption increase of 80% in 2018, reaching approximately 166.5 million tons, indicating strong growth potential[37]. - The liquid natural gas (LNG) consumption in China reached 2,766 billion cubic meters in 2018, with a year-on-year growth of 16.6%[40]. - The car urea industry is expected to benefit from stricter emission standards, promoting faster market development[38]. - The nitrate ammonium industry is facing overcapacity issues, with a need for further capacity control and optimization to address environmental and safety standards[39]. - The fertilizer industry is entering a 4.0 era, integrating product R&D, smart manufacturing, and agricultural services to enhance user experience[32]. Research and Development - The company developed a proprietary spray granulation compound fertilizer production process, which won the Sichuan Provincial Science and Technology Progress Award[46]. - The company created a high tower large particle urea granulation process, achieving a significant reduction in investment and energy consumption, and received the Sichuan Provincial Science and Technology Progress Second Prize[46]. - The company has filed for 2 invention patents and 1 utility model patent during the reporting period, with a total of 50 valid authorized patents by the end of the reporting period[50]. - The company is actively researching natural gas-based ethylene technology and has completed the feasibility study for a 0.3 million tons/year liquid fertilizer project[50]. - The company is focusing on the development of new products, including liquid fertilizers and various types of composite fertilizers, which have been successfully launched in the market[50]. Risk Management and Compliance - The company highlighted potential risks including safety and environmental risks, product price fluctuations, cost increases, and natural gas supply imbalances[5]. - The company faces risks related to safety and environmental compliance, product price volatility, and rising costs due to industry overcapacity[98]. - The company is committed to strict safety and environmental risk management to prevent accidents and ensure compliance[98]. - The company received an administrative penalty of 200,000 CNY for exceeding wastewater and waste gas discharge standards, which has been rectified[146]. - The company has established environmental protection facilities that are operating normally in accordance with environmental regulations[145]. Corporate Governance and Social Responsibility - The company emphasizes the importance of strengthening party leadership and institutional framework to ensure effective governance and operational efficiency[95]. - The company is dedicated to cultural development and social responsibility through employee welfare and community engagement initiatives[97]. - The company donated a total of 486,000 CNY to support education and assist impoverished students in various regions[141]. - The company has not reported any subsequent poverty alleviation plans as of the end of the reporting period[142]. - The company maintained a good integrity status, with no significant debts or court judgments unmet during the reporting period[118]. Future Outlook and Strategic Goals - The company aims for a revenue target of over 2.5 billion yuan and a basic profit target of 80 million yuan for 2019, with a striving profit target of 120 million yuan[94]. - The company is actively pursuing market expansion and technological innovation to drive future growth and competitiveness[93]. - The company plans to enhance safety and environmental protection measures, targeting zero accidents, zero injuries, and zero pollution as part of its operational goals[94]. - The company is focusing on optimizing cost management through technological improvements and efficient resource utilization to enhance profitability[95]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[176].