YZNM(SZ:002652)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,740,464,708.89, representing a 5.03% increase compared to CNY 2,609,151,369.61 in 2017[16]. - The net profit attributable to shareholders decreased by 53.57% to CNY 39,604,398.42 from CNY 85,300,706.19 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 33,371,028.72, down 56.87% from CNY 77,368,645.31 in 2017[16]. - Basic and diluted earnings per share were both CNY 0.08, a decrease of 52.94% from CNY 0.17 in 2017[17]. - The weighted average return on equity was 5.26%, down from 11.82% in the previous year[17]. - The company's total revenue for 2018 was CNY 2,740,464,708.89, representing a year-on-year increase of 5.03%[39]. - The company's net profit attributable to shareholders for 2018 was CNY 39,604,398.42, with a cumulative distributable profit of CNY 202,512,368.15[68]. - The total profit for 2018 was CNY 69,175,536.03, a decrease of 57.5% compared to CNY 162,779,840.81 in 2017[194]. - The company's total operating costs increased to CNY 2,673,065,763.20 in 2018, up from CNY 2,455,966,208.01 in 2017, representing an increase of 8.9%[197]. Cash Flow and Assets - The net cash flow from operating activities increased by 113.29% to CNY 247,782,916.57, compared to CNY 116,169,279.28 in 2017[17]. - The company's cash and cash equivalents decreased by ¥12,318,051.41, an improvement of 71.70% compared to a decrease of ¥43,530,000.38 in 2017[50]. - The total amount of inventory decreased by 7.92% from ¥899,625,621.28 at the beginning of the year to ¥688,356,318.30 at the end of 2018, representing 24.49% of total assets[55]. - Accounts receivable increased by 2.77% from ¥126,417,812.49 to ¥205,647,380.10, accounting for 7.32% of total assets[54]. - The cash received from sales of goods and services was ¥2,686,724,747.13 in 2018, compared to ¥2,587,953,579.54 in 2017, indicating an increase of about 3.8%[199]. - The total cash outflow for purchasing goods and services decreased to ¥2,099,149,113.89 in 2018 from ¥2,209,342,238.87 in 2017, showing a reduction of about 5.0%[199]. Revenue Breakdown - Revenue from organic coated steel plates was ¥1.55 billion, accounting for 56.43% of total revenue, showing a slight increase of 1.42% year-over-year[36]. - Domestic revenue accounted for 59.31% of total revenue, increasing by 12.63% compared to the previous year, while international revenue decreased by 4.37% to 40.69%[39]. - The sales volume of metal products decreased by 14.02% to 610,623.25 tons, and production volume fell by 19.80% to 604,686.38 tons[40]. Research and Development - R&D investment amounted to ¥72,883,143.73 in 2018, a decrease of 1.08% from ¥73,680,532.88 in 2017, representing 2.66% of operating revenue[47]. - The number of R&D personnel decreased by 25% from 48 in 2017 to 36 in 2018, with the proportion of R&D personnel in total workforce dropping from 5.49% to 4.49%[47]. - The company has several ongoing R&D projects, including high-performance coating materials, with some projects in the pilot testing stage and patent applications pending[47]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company emphasizes the importance of risk awareness regarding future development plans and market conditions[4]. - The company is cautiously planning to enter the health and elderly care market, responding to the growing demand in this sector[33]. - The company is expanding its international market presence by relocating its substrate production line to its subsidiary in Russia, aiming for better resource allocation and operational efficiency[26]. - The company aims to continue developing new products and processes to meet diverse market demands, focusing on high-quality and differentiated products[65]. Governance and Compliance - The company has established a robust corporate governance structure, complying with relevant laws and regulations[148]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating fair representation of the company's financial status as of December 31, 2018[164]. - The independent directors' suggestions were accepted by the company, indicating effective governance[155]. - The company has not engaged in any related party transactions that would lead to competition with its controlling shareholders[150]. Shareholder Information - The total number of shareholders at the end of the reporting period was 19,996, a decrease from 20,305[118]. - The largest shareholder, Nanning Yiran Elderly Care Industry Partnership, held 30.00% of the shares, totaling 153,600,000 shares[118]. - The company reported a total of 78,232,915 restricted shares released during the period[115]. - The company has a total of 153,600,000 shares held by its largest shareholder, accounting for 29.9963% of the total share capital[123]. Operational Efficiency - The company plans to optimize asset allocation by relocating the substrate production line to its Russian subsidiary to enhance overall operational efficiency[64]. - Operational efficiency improvements are projected to reduce costs by 5%, contributing to overall profitability[137]. - The company has implemented comprehensive training programs for new employees, covering 100% of key regulations and safety procedures[145].