LETS(SZ:002398)2019-04-08 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,715,699,370.91, representing a 35.94% increase compared to CNY 1,997,655,720.16 in 2017[16]. - The net profit attributable to shareholders for 2018 was CNY 249,127,471.69, a 30.37% increase from CNY 191,091,276.25 in 2017[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 225,575,808.14, up 40.95% from CNY 160,040,198.19 in 2017[16]. - The basic earnings per share for 2018 was CNY 0.36, a 28.57% increase from CNY 0.28 in 2017[16]. - The company's total assets at the end of 2018 were CNY 3,653,054,120.35, reflecting a 16.14% increase from CNY 3,145,481,635.13 at the end of 2017[17]. - The weighted average return on net assets for 2018 was 10.49%, an increase of 1.83% from 8.66% in 2017[17]. - The net cash flow from operating activities for 2018 was CNY 77,893,698.57, a 4.28% increase from CNY 74,700,091.40 in 2017[16]. Shareholder Information - The company reported a cash dividend of 0.70 RMB per 10 shares, totaling approximately 48.5 million RMB based on 692,624,177 shares[5]. - The proposed cash dividend for 2018 is 0.70 CNY per 10 shares, amounting to a total cash dividend of 48,483,692.39 CNY, which represents 19.46% of the net profit attributable to shareholders[96][98]. - The cash dividend payout ratio for 2018 is 19.46%, compared to 36.22% in 2017 and 20.49% in 2016, indicating a decrease in the proportion of profits distributed as dividends[96]. - The total distributable profit as of December 31, 2018, is 251,842,440.48 CNY after accounting for the legal surplus reserve and previous undistributed profits[97]. - The company has implemented a shareholder return plan for 2018-2020, focusing on reasonable returns while considering long-term development[93][98]. Business Operations - The company operates in two main business segments: comprehensive technical services and new materials for additives[26]. - The comprehensive technical service business generated revenue of 401 million yuan and a net profit of 84.25 million yuan during the reporting period[39]. - The new materials business achieved operating revenue of 1.949 billion yuan and a net profit of 135 million yuan[41]. - The company established three new industrial bases in Sichuan, Yunnan, and Chongqing to enhance production capacity in the southwestern region[41]. - The company actively participated in high-speed rail projects, successfully winning bids for over ten project segments, enhancing its contribution from large engineering projects[41]. Research and Development - The company has established a comprehensive research and development base covering nearly 20,000 square meters, enhancing its technological capabilities[33]. - The company launched 52 new technology projects and received 4 technology awards during the reporting period[41]. - The total number of authorized patents increased to 254, with 72 new patents granted in 2018[42]. - The company expanded its technology platforms to a total of 15, including 1 national-level technology platform[43]. - Research and development expenses increased by 95.78% to ¥82,615,741.27, reflecting a significant investment in innovation[59]. Market Position and Strategy - The company is recognized as a leading enterprise in the concrete additive industry, with over 50 types of concrete additives and related products available[27]. - The company aims to leverage its innovative capabilities to adapt to market changes and enhance its core competitiveness through strategic development[30]. - The company plans to integrate existing resources and expand its traditional engineering testing business nationwide, while also improving the efficiency of its electronic and ecological environment testing services[83]. - The company anticipates that fixed asset investment will stabilize in 2019, with manufacturing and real estate sectors expected to maintain rapid growth, providing a favorable environment for the construction materials industry[82]. Risks and Challenges - The company faces risks including market conditions, raw material price fluctuations, labor costs, and industry competition[5]. - The company plans to improve automation and optimize work efficiency to mitigate the impact of rising labor costs on its operations[88]. - The company experienced a significant increase in accounts receivable by ¥370,000,000, impacting the cash flow despite revenue growth of ¥718,000,000[63]. Corporate Governance - The board of directors and management have confirmed the accuracy and completeness of the annual report[4]. - The company has a long-term commitment to avoid related party transactions that could harm the interests of other shareholders[103]. - The company’s major shareholders pledged to strictly adhere to the company's financial management system to prevent fund occupation[103]. - The company has established a commitment to maintain the security of its funds and prevent any form of fund occupation by related parties[103]. Environmental Responsibility - The company has established pollution prevention facilities, including a domestic sewage treatment facility that meets discharge standards[157]. - The company conducts annual environmental monitoring through a qualified third-party organization[158]. - The company’s wastewater discharge meets the standards set by the Comprehensive Wastewater Discharge Standards (GB 8978-1996)[156]. - The company’s noise emissions comply with the Industrial Enterprise Boundary Noise Emission Standards (GB 12348-2008)[157]. Legal and Compliance - The company did not face any situations that could lead to suspension or termination of its listing during the reporting period[122]. - The company has not engaged in any major asset sales during the reporting period, maintaining its asset portfolio[77]. - The company has reported no penalties or rectification measures during the reporting period, indicating a stable compliance status[126].