DDN(002263)2019-06-27 16:00Financial Performance - The company reported a total revenue of 2.177 billion yuan for the year 2018, reflecting a year-on-year increase of 15%[12] - The company's operating revenue for 2018 was CNY 1,465,365,600, representing a 39.76% increase compared to CNY 1,048,515,720 in 2017[26] - The net profit attributable to shareholders in 2018 was CNY 40,087,617, a significant turnaround from a loss of CNY 567,593,106 in 2017, marking a 107.06% improvement[26] - The cash flow from operating activities increased by 279.81% to CNY 258,088,209 in 2018, compared to CNY 45,805,909 in 2017[26] - The total assets at the end of 2018 were CNY 3,847,169,560, reflecting a 16.10% increase from CNY 3,313,784,110 at the end of 2017[27] - The net assets attributable to shareholders increased by 0.62% to CNY 2,183,197,880 at the end of 2018, compared to CNY 2,169,687,220 at the end of 2017[27] - The basic earnings per share for 2018 was CNY 0.02, a 106.67% increase from a loss of CNY 0.30 per share in 2017[26] - The weighted average return on equity improved to 1.83% in 2018 from -23.13% in 2017, indicating a positive shift in profitability[26] - The company reported a significant reduction in net profit attributable to shareholders after deducting non-recurring gains and losses, which was CNY -109,887,831 in 2018, an 83.58% improvement from CNY -669,327,548 in 2017[26] Investment and R&D - The company plans to invest 100 million yuan in R&D for new materials and technologies in 2019, focusing on optical films and lithium battery separators[12] - Research and development expenses amounted to ¥18,418,255.73, reflecting a 3.76% increase from the previous year[65] - The company has established partnerships with institutions like the Chinese Academy of Sciences and Zhejiang University for R&D in high-performance polymer films[44] - The company is focusing on the development of differentiated products and new materials, with a clear strategy for integrating differentiation and new materials[48] Market Position and Strategy - The company aims to expand its market share in the packaging materials industry, leveraging its technological advancements and product differentiation[8] - The company reported a significant increase in production capacity with the launch of new optical film projects, positioning itself ahead of competitors[8] - The company’s capacitor film production capacity is 18,000 tons, with products included in the national ultra-high voltage power construction directory, becoming a new profit growth point[39] - The optical film market is projected to expand as domestic LCD production increases and the demand for high-quality optical films rises, with the company positioned to benefit from this trend[93] - The company aims to enhance its leading position in the CPP and BOPET film industries while improving the profitability of traditional plastic films[94] Regulatory and Legal Issues - The company is facing regulatory scrutiny from the China Securities Regulatory Commission regarding potential information disclosure violations, which could impact stock trading status[12] - The company has a total of 21.78 million yuan in guarantees provided to related parties, which is currently under litigation to protect shareholder interests[13] - The company is currently unable to determine the final resolution of the regulatory guarantee issues[141] - The company is involved in a lawsuit with a claim amount of CNY 4,000,000, which has not yet been heard in court[120] - Another lawsuit involves a claim of CNY 3,600,000, with the second instance yet to be heard[121] Corporate Governance - The company has a long-term commitment to avoid related party transactions, with commitments made on June 20, 2009, and is currently fulfilling these commitments[109] - The company has adhered to commitments regarding the avoidance of related party fund transfers since June 2011, ensuring no harm to minority shareholders[108] - The company’s independent auditor issued a non-standard audit report with an emphasis of matter for the 2018 financial report, which the board has addressed[113] - The board of directors consists of 7 members, including 3 independent directors, and held 11 meetings during the reporting period[195] Employee and Management Structure - The total number of employees in the company is 717, with 474 in production, 27 in sales, and 96 in technical roles[188] - The company has a total remuneration of 2.32 million yuan for directors, supervisors, and senior management during the reporting period[187] - The company emphasizes talent development through career planning and training programs, ensuring employee growth aligns with corporate needs[191] - The management team includes professionals with extensive backgrounds in various industries, enhancing the company's strategic capabilities[182] Financial Health and Liabilities - The company has a guarantee amount of 3,500 million, representing 1.60% of the total assets, with a potential loss due to regulatory guarantees[142] - The company has a contingent liability of 4,602.13 million, which is 2.11% of total assets, related to the restructuring plan[143] - The company has a guarantee amount of 3,600 million, accounting for 1.65% of total assets, with a potential loss due to regulatory guarantees[143] - The company has a guarantee amount of 2,400 million, which is 1.10% of total assets, related to the restructuring plan[143] Future Outlook - In 2019, the company plans to increase production capacity and stabilize output, focusing on optimizing processes and enhancing management practices[96] - The company targets to sell 3,000 tons of coated film products and develop new products such as high elongation films and heat shrink films[97] - The company has set a performance guidance of 10% revenue growth for the upcoming fiscal year[129]