SACRED SUN(SZ:002580)2019-04-26 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,835,559,638.46, representing a 7.56% increase compared to ¥1,706,468,317.13 in 2017[16]. - The net profit attributable to shareholders decreased by 48.15% to ¥16,159,390.42 in 2018 from ¥31,168,251.38 in 2017[16]. - The net profit after deducting non-recurring gains and losses was ¥4,071,696.94, down 76.36% from ¥17,227,252.22 in the previous year[16]. - The net cash flow from operating activities was negative at -¥28,301,645.16, a decline of 223.30% compared to ¥22,953,258.17 in 2017[16]. - The total assets at the end of 2018 were ¥1,912,641,534.78, a decrease of 5.87% from ¥2,031,889,754.30 at the end of 2017[16]. - The company's net assets attributable to shareholders increased by 1.30% to ¥1,185,482,362.05 at the end of 2018 from ¥1,170,272,013.17 at the end of 2017[16]. - The company's total revenue for the industrial sector (including batteries) reached approximately ¥1.84 billion, with a year-on-year increase of 7.56%[39]. - The revenue from new energy and emergency storage batteries was approximately ¥927.40 million, reflecting a year-on-year growth of 7.40%[39]. - The backup battery segment saw a revenue decline of 15.51%, totaling ¥544,732,408.40, which accounted for 29.68% of total revenue[38]. - The power battery segment experienced significant growth of 100.93%, reaching ¥220,324,622.89, representing 12.00% of total revenue[38]. - Export revenue increased by 28.37% to ¥379,287,339.74, making up 20.66% of total revenue[38]. Business Operations - The company has expanded its business scope to include lithium battery recycling, energy management systems, and smart energy technology development[15]. - The company focuses on the new energy storage, backup power, and new energy power sectors, providing solutions and services in these areas[24]. - The company has established advanced research platforms, including an academician workstation and a national recognized enterprise technology center, to support its R&D efforts[26]. - The company has completed the construction of projects for electric vehicle power batteries and long-life energy storage batteries, utilizing advanced automation and intelligent manufacturing equipment[26]. - The company aims to enhance its brand influence and overseas market presence through localized sales and service networks[26]. - The company successfully expanded into overseas markets, participating in multiple storage demonstration projects along the "Belt and Road" initiative and in North America[34]. - The company is advancing its internationalization strategy by establishing a wholly-owned subsidiary in Hong Kong to enhance overseas operations[33]. - A strategic framework agreement was signed with Zhongmin New Energy to acquire 100% equity of Xinneng Tongxin, aiming to integrate storage and photovoltaic power generation businesses[34]. Shareholder and Stock Information - The company’s stock code is 002580, and it is listed on the Shenzhen Stock Exchange[12]. - The company’s major shareholders include Song Bin and several other individuals, with a significant change in control noted in December 2017[15]. - The company reported a plan not to distribute cash dividends or issue bonus shares for the year[5]. - The company did not distribute cash dividends in 2017 and 2018, maintaining a focus on sustainable development and reducing financing costs[89]. - The company’s total share capital changed to 354,057,227 shares after the repurchase and cancellation of 344,080 shares[144]. - The largest shareholder, Song Bin, holds 7.26% of shares, totaling 25,704,287, with a decrease of 8,221,100 shares during the reporting period[152]. - The second largest shareholder, Zhongmin New Energy Power Investment Co., Ltd., holds 5.01% of shares, totaling 17,755,800[153]. - The company has no actual controller, with Zhongmin New Energy Power Investment Co., Ltd. being the largest shareholder indirectly controlled by China Minmetals Corporation[156]. Risk Management - The company faces risks related to macroeconomic policy changes, raw material price fluctuations, and environmental regulations[4]. - The company has implemented hedging strategies for lead price fluctuations, including futures contracts and price linkage agreements with customers[76]. - The company operates in over 100 countries, with a significant portion of its exports settled in USD, exposing it to foreign exchange risks[77]. Environmental and Social Responsibility - The company has established a dedicated environmental protection department and is committed to enhancing energy conservation and environmental protection measures[78]. - The company emphasizes social responsibility, focusing on shareholder rights protection, employee welfare, and environmental protection initiatives[121][123]. - The company has established a specialized environmental safety management department responsible for environmental protection, ensuring efficient operation of pollution control facilities[125]. - The total discharge of COD is 680.4 kg, with a concentration of 18 mg/l, complying with the "Battery Industry Pollutant Discharge Standards" (GB30484-2013)[126]. - The company has a hazardous waste management system in place and has obtained a hazardous waste operation license[128]. Management and Governance - The company has a diverse management team with various educational backgrounds and professional qualifications[168]. - The total remuneration for directors, supervisors, and senior management amounted to 3.9425 million yuan[171]. - The company has established an incentive mechanism linking remuneration to company performance and individual performance[171]. - The company has not faced any significant discrepancies in governance compared to the regulatory standards set by the China Securities Regulatory Commission[183]. - The independent directors attended all board meetings and shareholder meetings, demonstrating their commitment to corporate governance[190]. Future Outlook and Strategy - The company aims to enhance its market presence in the communication and power sectors while expanding into new markets such as data centers and lithium-ion battery markets[70]. - The company plans to focus on technology innovation and product improvement, particularly in backup and energy storage lithium battery systems[71]. - The strategic direction includes "new energy, new technology, internationalization, and cross-border" to ensure sustainable development[69]. - The company anticipates that the energy storage industry will transition from demonstration applications to the early stages of commercialization in 2019[64].