YONGXING MATERIALS(SZ:002756)2019-04-15 16:00Financial Performance - The net profit attributable to shareholders for 2018 was 387 million RMB, representing a growth of 10.13% compared to 2017 and 74.78% compared to 2015[3]. - The company's operating revenue for 2018 was CNY 4,794,349,604.01, representing an increase of 18.93% compared to CNY 4,031,240,286.92 in 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 387,296,112.91, reflecting a growth of 10.13% from CNY 351,659,567.82 in 2017[17]. - The net cash flow from operating activities increased by 41.09% to CNY 506,730,134.35 in 2018, up from CNY 322,464,767.29 in 2017[17]. - The total assets at the end of 2018 amounted to CNY 4,344,057,084.58, a 9.64% increase from CNY 3,961,997,765.46 at the end of 2017[18]. - The net assets attributable to shareholders at the end of 2018 were CNY 3,404,941,813.08, showing a slight increase of 0.92% from CNY 3,373,777,891.76 in 2017[18]. - The basic earnings per share for 2018 was CNY 1.08, which is a 10.20% increase compared to CNY 0.98 in 2017[17]. - The company reported a total of CNY 80,687,931.93 in non-recurring gains and losses for 2018, significantly higher than CNY 35,998,740.37 in 2017[22]. - The company experienced a decrease of 2.87% in net profit attributable to shareholders after deducting non-recurring gains and losses, totaling CNY 306,608,180.98 in 2018[17]. - The weighted average return on equity for 2018 was 11.53%, an increase from 10.96% in 2017[17]. Business Expansion and Strategy - The company launched a project with an annual production capacity of 250,000 tons of high-quality stainless steel and special alloy bars, addressing previous capacity shortages and expanding product variety[3]. - The company plans to produce 10,000 tons of battery-grade lithium carbonate and 1.2 million tons per year of lithium ore efficient selection and comprehensive utilization projects in 2019[4]. - The company aims to enhance its leading position in high-end special stainless steel materials in response to the domestic import substitution policy[4]. - Significant progress has been made in the development of new products for import substitution, including SP2215 materials for ultra-supercritical high-pressure boilers and large-diameter super austenitic stainless steel for nuclear power plants[3]. - The company emphasizes a dual-main business strategy focusing on high-end special steel materials and lithium battery materials to drive stable and rapid growth[5]. - The company has established a joint innovation center with the Steel Research Institute to accelerate product strategy upgrades and the development of high-precision new products[3]. - The company has expanded its business scope to include alloy smelting and the research, production, and sales of lithium-ion batteries during the reporting period[15]. - The company has established a full industrial chain layout for lithium battery new energy, from resource selection to deep processing of lithium carbonate[26]. - The company is a leading player in the stainless steel long products market, with a domestic market share consistently ranking in the top two[27]. - The company’s lithium battery new energy sector is positioned for significant growth, driven by national strategic plans and increasing market competition[28]. Market and Sales Performance - The domestic market share for stainless steel bars has consistently ranked second in the industry, while the market share for duplex stainless steel pipe blanks ranks first[3]. - The company maintained a "sales-driven production" model, effectively mitigating raw material price fluctuation risks[24]. - In 2018, the company achieved a product sales volume of 280,600 tons, representing a year-on-year increase of 12.2%[39]. - The revenue from bar products was CNY 2,682,983,633.20, accounting for 55.96% of total revenue, with a year-on-year growth of 23.56%[47]. - The sales volume of products increased by 12.20% to 280,571.65 tons, while the production volume rose by 11.24% to 282,474.83 tons[49]. - The total sales amount from the top five customers reached ¥1,789,857,366.86, accounting for 37.33% of the annual total sales[55]. Research and Development - R&D expenditure amounted to 157.08 million yuan, accounting for 3.28% of the company's operating revenue[40]. - The company added 4 new invention patents and received 7 various patent authorizations during the reporting period[33]. - The company has established a technology innovation center for special stainless steel and alloy materials, enhancing its R&D capabilities[41]. - The company is committed to increasing research and development investments to strengthen its innovation capabilities and improve product quality and manufacturing efficiency[96]. - New product development includes the promotion of new types of austenitic heat-resistant steel and super austenitic stainless steel, with sales expected to exceed 1,000 tons for certain products[96]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and safety production, integrating these responsibilities into performance evaluations and linking them to employee compensation[99]. - The company has completed the installation of high-efficiency low-nitrogen combustion devices and other environmental protection facilities, effectively reducing pollutant emissions and production costs[135]. - The company achieved a total pollutant discharge of 7.067 tons for particulate matter, 11.332 tons for nitrogen oxides, and 0.331 tons for sulfur dioxide, all within the regulatory limits[135]. - The company has a 97% recycling rate for hot-rolled direct cooling water, with minimal compliant wastewater discharged into the municipal sewage system[137]. - The company has actively participated in social responsibility initiatives, including poverty alleviation and charitable projects in the Lishui region[45]. - The company has not reported any environmental protection issues during the reporting period, maintaining compliance with environmental regulations[135]. Corporate Governance and Shareholder Relations - The company’s financial report was confirmed to be true, accurate, and complete by its board of directors and senior management[7]. - A cash dividend of 1.00 RMB per 10 shares (including tax) is proposed for distribution to all shareholders[8]. - The cash dividend for 2018 represents 92.95% of the net profit attributable to the company's ordinary shareholders, which is RMB 387.3 million[105]. - The company has maintained a consistent cash dividend policy, distributing at least 20% of the distributable profits when no major capital expenditures occur[103]. - The company has conducted multiple institutional research and communication activities throughout the reporting period[101]. - The company emphasizes the importance of reasonable returns to investors and aims to maintain a stable profit distribution policy[103]. - The company held three shareholder meetings during the reporting period, discussing key matters such as the annual report and profit distribution[180]. - The independent directors attended all board meetings, with no instances of consecutive absences, demonstrating strong governance[185]. - The company maintained a 100% response rate to investor inquiries, enhancing investor relations and communication[181]. Investment and Financial Management - The company has invested in advanced low-nitrogen combustion devices and pure oxygen combustion systems to reduce pollutant emissions[45]. - The company’s investment activities generated a net cash outflow of ¥111,879,874.01, a 77.40% improvement compared to the previous year[63]. - The company’s total investment during the reporting period was 196.29 million yuan, a decrease of 43.36% compared to the previous year[71]. - The company acquired a 93.63% stake in Xuli Mining for 296.29 million yuan, focusing on lithium resource development and sales[73]. - The company has not engaged in any asset or equity acquisition or sale related party transactions during the reporting period[121]. - The company has not reported any significant contracts that would impact profit by more than 10% of total profit for the reporting period[125]. Employee Management and Welfare - The company employed a total of 1,121 staff members, including 736 production personnel and 251 technical staff[132]. - The company is committed to employee welfare, providing various social insurance benefits and free accommodation[132]. - The company has established a comprehensive employee training system to enhance core competitiveness and meet strategic development goals[178]. - The professional composition includes 736 production personnel, 251 technical personnel, and 26 sales personnel[175]. - The total remuneration for directors and senior management in 2018 was 926.19 million CNY, with the highest individual remuneration being 120.5 million CNY for a director and vice general manager[173][174]. Risk Management - The company acknowledges potential risks in the lithium battery new energy sector, including market price fluctuations and production ramp-up challenges post-project completion[100]. - The main raw materials, including stainless scrap, nickel alloys, and ferrochrome, account for approximately 90% of production costs, exposing the company to price fluctuation risks[100].