SLC(SZ:002106)2019-03-29 16:00Financial Performance - The company's operating revenue for 2018 was CNY 4,416,084,125.93, representing a 10.70% increase from CNY 3,989,349,812.08 in 2017[30]. - The net profit attributable to shareholders for 2018 was CNY 224,947,441.02, a significant increase of 59.65% compared to CNY 140,904,504.92 in 2017[30]. - The basic earnings per share for 2018 was CNY 0.32, up 60.00% from CNY 0.20 in 2017[30]. - The total assets as of the end of 2018 were CNY 4,845,035,176.21, reflecting a 3.71% increase from CNY 4,671,844,409.77 at the end of 2017[30]. - The net assets attributable to shareholders increased by 3.14% to CNY 3,841,954,455.16 from CNY 3,725,051,739.27 in 2017[32]. - The total amount of cash flow from investment activities was -¥58,973,066.68, a 68.97% improvement compared to -¥190,029,315.15 in 2017[75]. - The company reported a significant increase in accounts receivable, which rose to ¥1,225,385,977.97, representing 25.29% of total assets, up from 22.92% in 2017[81]. - The company received government subsidies totaling CNY 43.30 million in 2018, contributing positively to its financial performance[39]. Dividend Policy - The company plans to distribute a cash dividend of 1 RMB per 10 shares, totaling 70,581,616 RMB based on a total share capital of 705,816,160 shares as of December 31, 2018[10]. - The cash dividend for 2018 is also set at 1.00 yuan per 10 shares, with the same total amount of 70,581,616.00 yuan, to be distributed on June 15, 2018[128]. - The cash dividends distributed in 2018 accounted for 31.38% of the net profit attributable to ordinary shareholders, which was 224,947,441.02 yuan[130]. - The total distributable profit for the year 2018 was 195,248,041.30 yuan, with the cash dividend representing 100% of the total profit distribution[131]. - The company has maintained a consistent cash dividend policy over the past three years, with no changes to the dividend distribution plan[127]. Research and Development - The company has a strong commitment to research and development, particularly in flexible touch screen sensors and advanced display technologies[14]. - Research and development expenses increased by 30.42% to CNY 175,991,977.61, driven by investments in new products and technologies[71]. - The number of R&D personnel increased by 18.57% from 210 in 2017 to 249 in 2018, representing 22.05% of the total workforce[74]. - The company plans to enhance R&D efforts for flexible touch screens in 2019, aiming for mass production capabilities by the second half of the year[105]. - The company is focused on reducing management and production costs while improving overall operational efficiency and management effectiveness[112]. Market and Product Development - The company is focusing on expanding its market presence through the introduction of innovative technologies and products, including anti-reflection and anti-fingerprint coatings[14]. - The company is exploring strategic acquisitions to enhance its technological capabilities and market reach[14]. - The company holds a leading position in the domestic market for mid-to-high-end ITO conductive glass and has the only mass production line for fifth-generation touch screens in China[43]. - The company achieved operating revenue of CNY 441,608.41 million in 2018, an increase of CNY 42,673.43 million or 10.70% compared to the previous year, primarily driven by the sales of large-sized integrated capacitive touch screens[58]. - The company is continuously optimizing production processes and equipment to enhance the performance and cost competitiveness of its products, particularly the OGM structure[52]. Operational Risks - The company faces significant operational risks due to market fluctuations in large-sized capacitive touch screens, which are a major source of profit[19]. - The company is exposed to exchange rate risks due to its export trade primarily settled in USD, which may impact its financial performance[21]. - The company will closely monitor foreign exchange market trends and develop emergency management plans to mitigate adverse impacts from exchange rate fluctuations[112]. - The company faces operational risks due to market fluctuations in demand for mid-to-large size integrated capacitive touch screens, which are a major source of revenue[115]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and energy conservation as part of its sustainable development strategy[178]. - The company’s environmental protection facilities achieved compliance with wastewater discharge standards, with chemical oxygen demand (COD) at 23 mg/L against a standard of 300 mg/L[185]. - The company has established a comprehensive environmental management system and has not experienced any major environmental accidents or penalties in 2018[181]. - Regular monitoring of wastewater and air emissions is conducted by third-party agencies, with data connected to the ecological environment center's data platform[194]. - The company has implemented a comprehensive environmental protection management system and has obtained ISO 14001 certification[195]. Corporate Governance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[9]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations[9]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[134]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[136]. - The company has not experienced any major litigation or arbitration matters during the reporting period[148].