NCIC(SZ:002246)2019-04-08 16:00Financial Performance - The company's operating revenue for 2018 was ¥2,363,371,941.02, representing an increase of 8.24% compared to ¥2,183,355,173.37 in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥123,679,724.13, which is a 14.01% increase from ¥108,480,949.42 in 2017[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥86,974,136.03, showing a significant increase of 66.89% from ¥52,113,914.09 in 2017[21]. - The net cash flow from operating activities decreased by 35.04% to ¥133,513,389.24 in 2018, down from ¥205,529,731.63 in 2017[21]. - The total assets at the end of 2018 were ¥3,620,089,086.76, reflecting a 4.00% increase from ¥3,480,886,253.95 at the end of 2017[21]. - The net assets attributable to shareholders increased by 6.97% to ¥2,407,982,882.82 at the end of 2018, compared to ¥2,251,178,261.24 at the end of 2017[21]. - The basic earnings per share for 2018 was ¥0.23, up 9.52% from ¥0.21 in 2017[21]. - The diluted earnings per share also stood at ¥0.23, reflecting the same 9.52% increase from ¥0.21 in 2017[21]. - The weighted average return on equity for 2018 was 5.37%, a decrease of 0.40% from 5.77% in 2017[21]. - The total profit attributable to minority shareholders (after tax) was ¥316,510.01 in 2018, a recovery from a loss of ¥2,173,956.61 in 2017[28]. Market Position - The company maintains a domestic market share of over 50% for nitrocellulose products and 20% for international markets[9]. - The company achieved a domestic market share of 70% for pumps used in phosphate fertilizers and 40% for pumps used in flue gas desulfurization[9]. - The company maintained a domestic market share of 53% and an international market share of 24% in the nitrocellulose sector, solidifying its position as a leading manufacturer[32]. - The active carbon product market share is approximately 15%, while the human defense filter market share stands at around 25%[38]. - The special industrial pump series products have a domestic market share of 70% in the phosphate fertilizer pump segment and 40% in the flue gas desulfurization pump segment[38]. Environmental Initiatives - The company is increasing its investment in environmental protection to meet rising emission standards, which may lead to higher product costs[10]. - The company aims to ensure compliance with pollution discharge standards and has successfully maintained stable operation of its environmental facilities[10]. - The company is actively pursuing energy-saving and emission-reduction initiatives to mitigate environmental risks[10]. - The company’s wastewater treatment facilities maintained stable compliance with discharge standards, significantly reducing pollutant emissions per unit of output[190]. - In 2018, the company’s total emissions included 140.3 tons of chemical oxygen demand and 15.81 tons of sulfur dioxide, both within regulatory limits[189]. - The company has been fined 100,000 CNY by the Taiyuan Environmental Protection Bureau for failing to meet environmental protection requirements during a trial run of its desulfurization and denitrification activated carbon production line[200]. Research and Development - R&D expenses rose by 18.39% to ¥84,658,925.46, indicating a focus on innovation[80]. - The company completed the design of 20 new pump models, enhancing market competitiveness[81]. - The company is exploring an intelligent online monitoring and diagnostic system for pump lifecycle management[81]. - The company is focusing on the development of new protective materials for CBRN defense, enhancing its core competitiveness in the protection field[84]. - The company has developed a new model of dredging pump and is researching two new materials, establishing a data collection center for large pumps[82]. Strategic Plans - The company plans to achieve a revenue target of 2.638 billion for 2019, with a profit target of 150 million[108]. - The company is focusing on expanding its market presence in the mining metallurgy sector and developing a full range of slurry pump products[107]. - The company plans to temporarily reduce the production scale of slurry pumps and petrochemical pumps to control investment risks[101]. - The company is committed to innovation-driven development and enhancing its core competitiveness and risk prevention capabilities[107]. - The company will continue to implement an "internationalization and high-end" brand strategy to maintain its leading position in the nitrocellulose industry[107]. Shareholder Returns - The company reported a cash dividend of 0.55 RMB per 10 shares, based on a total of 549,034,794 shares, with no bonus shares issued[5]. - The total cash dividend for 2018 amounted to CNY 30,196,913.67, representing 24.42% of the net profit attributable to ordinary shareholders[133]. - The cash dividend policy stipulates that at least 10% of the distributable profit must be distributed in cash each year, with a cumulative distribution of at least 30% of the average annual distributable profit over any three consecutive years[124]. - The company prioritizes cash dividends over stock dividends, ensuring a clear and transparent profit distribution policy[121]. - The independent directors play a crucial role in the formulation and execution of the cash dividend policy, ensuring compliance and transparency[127]. Risk Management - The company is facing market risks including demand shrinkage in traditional markets and competition, but is implementing strategies like "differentiation" and "one policy for one customer" to stabilize core customers[9]. - The company anticipates a continued decline in demand for nitrocellulose in 2019, with intensified market competition[111]. - The company faces risks from market demand shrinkage, trade disputes, and increased competition, necessitating proactive management strategies[110]. Corporate Governance - The company emphasizes the importance of respecting the independent legal status of listed companies and ensuring their independent operation and decision-making[138]. - The company commits to strictly adhering to national laws and regulations regarding related party transactions, ensuring they are conducted under normal commercial conditions[138]. - The company will ensure timely and accurate disclosure of information related to significant asset restructuring, adhering to relevant regulations[139]. - The company has committed to ensuring that its subsidiaries do not occupy the listed company's funds or assets illegally[141].