ECEC(SZ:002140)2019-03-29 16:00Financial Performance - The company's operating revenue for 2018 was ¥4,034,046,570.12, representing a 38.68% increase compared to ¥2,908,838,388.09 in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥148,269,862.29, a significant turnaround from a loss of ¥63,135,836.62 in 2017, marking a 334.84% increase[21]. - The net profit after deducting non-recurring gains and losses was ¥143,940,146.66, up 320.60% from a loss of ¥65,185,495.28 in the previous year[21]. - Basic and diluted earnings per share for 2018 were both ¥0.33, a 335.71% increase from a loss of ¥0.14 per share in 2017[21]. - The weighted average return on equity was 7.31%, a significant improvement from -3.16% in 2017[21]. - Total assets at the end of 2018 were ¥5,931,615,986.83, a decrease of 3.73% from ¥6,161,416,826.20 at the end of 2017[21]. - The net assets attributable to shareholders increased by 7.70% to ¥2,104,027,959.35 from ¥1,953,682,633.96 in 2017[21]. - The company's cash flow from operating activities showed a negative net amount of ¥432,332,348.62, a decline of 208.84% compared to a positive cash flow of ¥397,203,839.39 in 2017[21]. Business Operations - The company operates primarily in the civil engineering construction industry, focusing on sectors such as chemical, petrochemical, environmental municipal, infrastructure, and civil construction[36]. - The total revenue from the engineering general contracting business has consistently accounted for approximately 90% of the company's main business income[57]. - The company has completed over 2,000 large and medium-sized projects across various sectors, receiving over 300 provincial and national awards for excellence[49]. - The company has established multiple operational entities, including Wuhu Donghua Liulang Water and Zhejiang Tianze Dayou Environmental Energy, which have been completed and are now operational[58]. - The company is actively expanding its investment and operational projects in areas such as wastewater treatment and solid waste disposal, with a focus on PPP projects in municipal infrastructure[58]. Market Strategy and Expansion - The company plans to enhance its market strategy by focusing on diversified operations to mitigate risks associated with concentrated business areas[47]. - The company aims to expand its international market presence to alleviate competitive pressure in the domestic market[47]. - The company is focusing on expanding its overseas business, particularly in North Africa, Russian-speaking regions, and the Middle East[94]. - The company is committed to integrating party building with production to enhance its core competitiveness[94]. - The company is focusing on environmental engineering consulting, design, and total contracting as part of its core business strategy[173]. Research and Development - The company is committed to technological innovation and has developed advanced technologies in various chemical and environmental sectors[49]. - The company initiated 19 new technology development projects and completed 9 projects during the year, focusing on areas such as new coal chemical and environmental engineering[85]. - The company applied for 26 new patents in 2018, with 11 patents granted, including 4 invention patents[144]. - The company's R&D investment amounted to ¥130,425,719.29, an increase of 27.65% compared to ¥102,173,851.44 in 2017[148]. - The number of R&D personnel increased to 211, representing 18.08% of the total workforce, up from 17.96% in 2017[148]. Risk Management - The company has outlined potential risks in production and operation management, including policy, market, and technology development risks[5]. - The company emphasizes that future development plans and annual targets may differ from actual results due to internal and external environmental changes[5]. - The company has a well-established qualification maintenance mechanism to ensure the smooth renewal of its various qualifications[54]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[5]. - The company operates under the supervision of the China Securities Regulatory Commission and the Shenzhen Stock Exchange[11]. - The company has a dedicated investor relations team to handle inquiries and provide information to shareholders[16]. Industry Trends - The global GDP growth rate is expected to decline in 2019, with developed economies projected to grow at 2.1%[176]. - The IMF forecasts a further decrease in global goods export growth to 3.76% in 2019[176]. - China's GDP growth target for 2019 is set between 6% and 6.5%[178]. - The environmental protection industry is projected to reach a GDP share of 3% by the end of the 13th Five-Year Plan[182]. - The market for municipal solid waste treatment is anticipated to reach a revenue scale of 120 billion yuan by the end of the 13th Five-Year Plan, with daily incineration capacity expected to grow to 594,100 tons[188].