CREAT(SZ:002350)2019-04-26 16:00Dividend Policy - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares (including tax) to all shareholders[5]. - The company implemented a cash dividend policy, distributing at least 10% of the annual distributable profit in cash when profitable[136]. - Cumulative cash dividends from 2015 to 2017 amounted to CNY 45.06 million, representing 70.61% of the average annual net profit attributable to shareholders during that period[136]. - For the 2016 fiscal year, the company distributed CNY 34.15 million in cash dividends, with a ratio of 44.66% of the net profit attributable to shareholders[141]. - In 2018, the company proposed a cash dividend of CNY 0.60 per 10 shares, totaling CNY 29.40 million, which was approved and executed[142]. - The total cash dividend for 2018, including other methods, reached CNY 84.47 million, accounting for 100% of the total distributable profit[142]. - The company did not distribute any cash dividends for the 2017 fiscal year, maintaining a focus on reinvestment[139]. - The cash dividend policy aligns with the company's articles of association and shareholder resolutions, ensuring transparency and compliance[138]. - The company plans to continue its cash dividend distribution strategy based on profitability and cash flow conditions[136]. - The board of directors is responsible for proposing dividend plans based on the company's operational performance and future funding needs[136]. - The company ensures that minority shareholders have opportunities to express their opinions and protect their rights during the dividend decision-making process[138]. - The remaining undistributed profits after the dividend distribution will be carried forward to the next fiscal year[144]. - The profit distribution plan complies with the company's articles of association and the three-year shareholder return plan (2017-2019)[145]. Financial Performance - The company's revenue for 2018 was CNY 2,550,582,514.80, representing a 15.14% increase compared to CNY 2,215,280,596.13 in 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 102,307,439.99, a 41.72% increase from CNY 72,189,688.10 in 2017[17]. - The net profit after deducting non-recurring gains and losses was CNY 101,098,355.78, up 53.46% from CNY 65,879,378.44 in 2017[17]. - The company's total assets increased by 22.34% to CNY 3,570,101,510.91 at the end of 2018, compared to CNY 2,918,279,967.41 at the end of 2017[17]. - The net assets attributable to shareholders rose by 43.44% to CNY 1,745,978,192.07 at the end of 2018, compared to CNY 1,217,226,839.09 at the end of 2017[17]. - The basic earnings per share for 2018 was CNY 0.2138, a 29.11% increase from CNY 0.1656 in 2017[17]. - The diluted earnings per share for 2018 was CNY 0.2138, up 30.92% from CNY 0.1633 in 2017[17]. - The net cash flow from operating activities was negative CNY 22,908,771.33, a decrease of 126.22% compared to CNY 87,378,442.43 in 2017[17]. - The weighted average return on equity was 6.37% in 2018, slightly up from 6.14% in 2017[17]. - The company reported a total revenue of 99,734,296.8 million, with a net profit of -8,468,572.5 million for the reporting period[105]. - The company achieved a revenue of 16,030,322.9 million, with a net loss of -2,520,530.0 million in its energy services segment[104]. - The company’s total investment during the reporting period was 126,594,219.45 yuan, a decrease of 25.57% compared to the previous year[87]. Risk Management - The company emphasizes that forward-looking statements do not constitute substantial commitments to investors, highlighting the need for risk awareness[5]. - The report includes a detailed discussion of risk factors and countermeasures related to the company's future development[5]. - The company recognizes the risk of intensified market competition and plans to maintain its competitive edge through increased R&D investment and improved product quality[126]. - The company is addressing the risk of customer concentration by diversifying its market reach beyond state grid companies[127]. - The company acknowledges potential uncertainties in achieving performance commitments due to macroeconomic conditions and market competition[182]. Research and Development - The company has a strong focus on R&D, with significant investments leading to a robust portfolio of patented technologies and products[31]. - The company holds a total of 153 patent authorizations, including 26 invention patents, reflecting its strong commitment to research and development in smart distribution equipment[39]. - The company’s R&D expenses increased by 17.92% to ¥123,876,451.27 compared to the previous year[72]. - R&D investment amounted to ¥126,356,981.44, representing 4.95% of operating revenue, an increase from 4.74% in the previous year[76]. - The number of R&D personnel increased by 5.93% to 250, while the proportion of R&D personnel remained stable at approximately 12.07%[76]. Market Expansion - The report indicates that the company is exploring market expansion opportunities and potential mergers and acquisitions[10]. - The company has expanded its market presence beyond urban and rural power grids into industries such as solar thermal, chemical, metallurgy, and municipal sectors, aiming to increase its market share[41]. - The company aims to position itself as a leading manufacturer in the smart energy platform and integrated service provider market[27]. - The company is focused on developing new technologies and products in the field of distribution automation[10]. - The company is focusing on expanding its market presence through new technology development and energy management services[105]. Corporate Governance - The board of directors has confirmed that all members attended the meeting to review the annual report[4]. - The company has committed to ensuring the accuracy and completeness of the financial report, with key personnel affirming its integrity[4]. - The company emphasizes the importance of continuous innovation and talent retention to maintain its competitive advantage in the power distribution sector[128]. - The company is committed to strengthening its internal management and collaboration to ensure the successful execution of its strategic initiatives[125]. - The company has not reported any significant changes in the feasibility of its investment projects[96]. Shareholder Engagement - The company held eight shareholder meetings during the reporting period, enhancing participation from minority shareholders through combined voting methods[199]. - The company ensures that minority shareholders have opportunities to express their opinions and protect their rights during the dividend decision-making process[138]. - The company has established multiple channels for investor relations, including an interactive platform and dedicated communication methods[199]. Financial Reporting - The company reported no discrepancies between international and Chinese accounting standards for the reporting period[19]. - The company reported a significant change in accounting policies due to the Ministry of Finance's notification, affecting the financial statements from 2018 onwards[151]. - The company has not encountered any significant accounting errors that require retrospective restatement during the reporting period[154]. - The management expenses reported are RMB 121,345,735.50, an increase from RMB 111,028,705.94 in the previous period[153]. Social Responsibility - The company actively engages in social responsibility initiatives, focusing on environmental protection and community development[198]. - The company emphasizes employee rights and safety, achieving zero fatalities and passing safety standard certifications during the reporting period[200].