Vontron Technology(000920)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,105,114,406.76, representing a 2.06% increase compared to CNY 1,082,840,820.90 in 2017[18]. - The net profit attributable to shareholders for 2018 was CNY 88,030,679.85, a decrease of 23.09% from CNY 114,453,599.41 in 2017[18]. - The net cash flow from operating activities significantly dropped by 84.16% to CNY 18,425,370.95 from CNY 116,321,574.54 in the previous year[18]. - Basic earnings per share decreased by 22.22% to CNY 0.21 in 2018, down from CNY 0.27 in 2017[18]. - Total assets at the end of 2018 were CNY 2,016,030,614.54, reflecting a 10.85% increase from CNY 1,818,649,924.17 at the end of 2017[18]. - The company's net assets attributable to shareholders increased by 1.43% to CNY 859,680,864.88 at the end of 2018, compared to CNY 847,589,422.29 at the end of 2017[18]. - The weighted average return on equity decreased to 10.31% in 2018 from 14.03% in 2017, indicating a decline in profitability[18]. - Non-current asset disposal loss in 2018 was -253,207.86, compared to a gain of 599,855.85 in 2017, indicating a significant decline[23]. - Government subsidies recognized in 2018 amounted to 14,572,924.42, down from 23,885,509.61 in 2017, reflecting a decrease of 38.66%[23]. Business Strategy and Focus - The company has shifted its main business focus from railway freight cars to composite reverse osmosis membrane business and related sectors since 2014[17]. - The company is focusing on high-performance separation membranes, benefiting from supportive policies during the 13th Five-Year Plan period[40]. - The company is actively exploring and promoting mergers and acquisitions to enhance its business development[40]. - The company plans to continue expanding its market presence and developing new technologies in the filtration industry[76]. - The company aims to enhance its market position in water treatment membrane materials and expand into energy membrane materials, transitioning to a global provider of separation membrane materials and services[96]. Research and Development - The company holds 93 valid patents, including 38 invention patents, showcasing its strong R&D capabilities in membrane technology[33]. - The company has obtained a total of 277 authorized patents, including 57 invention patents[38]. - Research and development expenses increased by 22.42% to ¥66,449,481.46, representing 6.01% of operating revenue[61]. - The number of R&D personnel increased by 6.03% to 123, with R&D personnel accounting for 9.79% of the total workforce[61]. Market and Revenue Breakdown - Revenue from the other chemical manufacturing sector was ¥661,322,475.18, accounting for 59.84% of total revenue, with a year-on-year growth of 6.52%[46]. - Revenue from the palm product manufacturing sector was ¥426,733,580.61, which decreased by 1.09% year-on-year[46]. - The net water equipment sector saw a significant decline in revenue, dropping by 92.62% to ¥1,177,553.98 from ¥15,957,214.16 in 2017[46]. - The Guizhou region contributed ¥945,515,318.13, representing 85.56% of total revenue, with a growth of 4.94% year-on-year[49]. Cash Flow and Investments - Operating cash flow decreased by 84.16% to ¥18,425,370.95, primarily due to an increase in accounts receivable[63]. - Financing cash inflow surged by 213% to ¥313,000,000.00, mainly from the issuance of corporate bonds worth ¥285 million[63]. - The company reported a net cash outflow from investment activities of ¥141,296,749.60, a slight improvement of 1.17% compared to the previous year[63]. - The total amount of cash and cash equivalents at year-end was ¥265,771,636.78, accounting for 13.18% of total assets[70]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance system in compliance with relevant laws and regulations[198]. - There are no significant discrepancies between the company's governance practices and the regulatory guidelines issued by the China Securities Regulatory Commission[199]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finances[200]. Social Responsibility and Community Engagement - The company emphasized its commitment to social responsibility, focusing on employee rights, supplier and customer relations, and environmental protection initiatives[147][148]. - The company invested a total of CNY 19.4 million in poverty alleviation efforts, helping 3,934 registered impoverished individuals to escape poverty[152]. - The company is actively participating in the construction of a purified water plant in Guangming Village, which will benefit 2,747 rural residents, including 215 impoverished households[151]. Shareholder Information - The total number of shareholders at the end of the reporting period was 29,780, with 29,269 being ordinary shareholders[168]. - The largest shareholder, CR Industry Investment Co., Ltd., holds 42.64% of the shares, totaling 179,940,000 shares[168]. - The company has no strategic investors or general legal entities that became among the top 10 shareholders during the reporting period[170]. Employee Management and Development - The total number of employees in the company is 1,257, with 833 in production, 79 in sales, 153 in technical roles, 34 in finance, and 158 in administration[193]. - The company has implemented a performance-based salary system to drive business development[194]. - In 2019, the company plans to enhance employee training and talent reserves, focusing on production, technical, sales, and administrative roles[195].