ETS(SZ:002545)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,605,923,048.90, representing an increase of 18.59% compared to CNY 2,197,458,673.79 in 2018[26]. - The net profit attributable to shareholders for 2019 was CNY 304,730,042.44, a decrease of 31.75% from CNY 446,473,039.19 in 2018[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 161,420,353.77, down 54.10% from CNY 351,690,762.71 in 2018[26]. - The net cash flow from operating activities for 2019 was CNY 412,842,932.17, a decline of 28.46% compared to CNY 577,086,132.86 in 2018[26]. - The total assets at the end of 2019 were CNY 11,808,806,332.11, an increase of 3.92% from CNY 11,363,749,429.74 at the end of 2018[29]. - The net assets attributable to shareholders at the end of 2019 were CNY 7,703,745,338.75, up 3.20% from CNY 7,464,720,084.44 at the end of 2018[29]. - The basic earnings per share for 2019 were CNY 0.2420, a decrease of 30.02% from CNY 0.3458 in 2018[26]. - The weighted average return on equity for 2019 was 4.03%, down from 6.17% in 2018[26]. - The company's total revenue for the reporting period was CNY 2,605.92 million, an increase of 18.59% compared to the previous year[66]. - The operating profit decreased by 35.45% to CNY 379.19 million, while the net profit attributable to shareholders fell by 31.75% to CNY 304.73 million[66]. Dividend Distribution - The company reported a profit distribution plan to distribute a cash dividend of 0.8 RMB per 10 shares to all shareholders, based on a total of 1,244,062,083 shares[6]. - The cash dividend for 2018 was RMB 1.20 per 10 shares, amounting to RMB 151,467,615.00, representing 33.93% of the net profit attributable to ordinary shareholders[171]. - The cash dividend for 2017 was RMB 0.50 per 10 shares, totaling RMB 64,557,709.35, which was 25.69% of the net profit attributable to ordinary shareholders[171]. - The company's cash dividend policy has been executed in accordance with its articles of association and shareholder resolutions, ensuring the protection of minority shareholders' rights[168]. - The cash dividend distribution plan for 2019 is subject to approval at the shareholders' meeting[172]. - The company's total distributable profit for 2019 is RMB 902,447,539.96[172]. - The cash dividend represents 100% of the total profit distribution for the year[172]. - The company has maintained a consistent cash dividend policy over the past three years, with clear standards and procedures[168]. Business Expansion and Operations - The company has expanded its main business to include both steel structure manufacturing and potassium fertilizer production since 2016, following the acquisition of Sichuan Huiyuanda[24]. - The company expanded its market presence by entering the photovoltaic energy steel structure and industrial storage steel structure markets[43]. - The company maintained its leading position in the steel structure market, particularly in power plant steel structures and communication towers[42]. - The company is actively expanding its potassium fertilizer business, with ongoing construction of the second phase of the potassium chloride expansion project to enhance profitability[54]. - The company has established a strong technical team with nearly 100 patents, maintaining a leading position in product technology and quality in the steel structure industry[56]. - The company aims to leverage its strategic positioning in the steel structure industry to expand into renewable energy projects, enhancing market share and growth potential[50]. - The company has successfully exported approximately 480,000 tons of potassium chloride to mainland China, becoming a pioneer in responding to the national potassium fertilizer strategy[50]. - The company’s potassium fertilizer products are primarily sold to Southeast Asian countries, including China, India, Vietnam, Thailand, Malaysia, and Singapore[54]. Risks and Challenges - The company faces risks including market demand decline due to macroeconomic conditions, raw material price fluctuations, and increased operational costs due to intensified industry competition[6]. - The company acknowledges potential risks from foreign exchange rate fluctuations that could impact its financial performance[6]. - The company faces risks from fluctuating steel and potassium prices, which could impact production costs and profitability, necessitating improved material utilization and supply chain management[159]. - Labor cost increases due to a shortage of skilled workers may affect operational efficiency and product quality, especially with the expansion of production capacity[159]. - Currency exchange rate fluctuations pose a risk to the company's export sales, as foreign currency settlements can impact pricing and economic performance[160]. Research and Development - The company invested CNY 56 million in R&D, accounting for 2.15% of total revenue, and introduced advanced cutting and welding technologies[68]. - The company’s R&D expenses rose by 27.48% to approximately ¥56.01 million compared to the previous year[91]. - The number of R&D personnel increased to 305 in 2019, up 0.66% from 303 in 2018, with R&D personnel accounting for 15.95% of total employees[93]. - The company completed the R&D of new products including steel structures and iron tower series during the reporting period[92]. - The company will continue to invest in research and development, aiming to improve its innovation capabilities and product quality management to support its strategic goals[155]. Market Trends and Opportunities - The company is positioned to benefit from the significant investment in ultra-high voltage (UHV) projects, with a projected investment scale of 1,811 billion CNY for UHV construction, which is expected to drive demand for transmission line towers[120]. - The global electricity demand is forecasted to grow at an average annual rate of 2.4% until 2035, which will increase the demand for power transmission equipment, including transmission line towers[123]. - The offshore wind power sector is projected to grow at a compound annual growth rate of approximately 26.02% from 2019 to 2023, with installed capacity expected to exceed 10.67 million kilowatts by 2023[134]. - The market for seismic isolation technology is expected to expand over 10 times due to the implementation of national policies and standards, with a significant increase in construction projects utilizing this technology[148]. - The potassium fertilizer market in East Asia and surrounding regions shows a significant supply-demand gap, with China being a major consumer[138]. Corporate Governance and Compliance - The company committed to reducing and regulating related party transactions, ensuring fair pricing based on independent third-party transactions[184]. - The company will not engage in any business that competes with its main operations to avoid conflicts of interest[182]. - The company will ensure that any related party transactions are conducted at fair market prices to protect the interests of all shareholders[184]. - The company has emphasized the importance of adhering to legal regulations and internal control systems in all transactions[188]. - The company has committed to maintaining transparency and accountability in its financial dealings with related parties[194].