Jiangsu Zhongshe (SZ:002883)2019-04-24 16:00Financial Performance - The company's operating revenue for 2018 was ¥270,394,328.64, representing a 16.47% increase compared to ¥232,165,854.83 in 2017[20]. - The net profit attributable to shareholders for 2018 was ¥56,832,819.22, a 15.78% increase from ¥49,087,195.24 in 2017[20]. - The net profit after deducting non-recurring gains and losses was ¥51,099,201.91, up 9.69% from ¥46,584,442.12 in 2017[20]. - The total operating revenue for 2018 was ¥270,394,328.64, representing a year-on-year increase of 16.47% compared to ¥232,165,854.83 in 2017[47]. - The net profit attributable to ordinary shareholders for 2018 was CNY 56,832,819.22, representing a 15.5% increase from CNY 49,087,195.24 in 2017[97]. - The net profit margin for 2018 was 24.47%, up from 22.06% in 2017, reflecting improved operational efficiency[97]. - The company plans to achieve a new business volume growth of 25% to 50% year-on-year in 2019[85]. - The expected revenue growth for 2019 is projected to be between 20% and 35% year-on-year[85]. - The net profit attributable to shareholders is anticipated to grow by 20% to 35% year-on-year[85]. Dividend Policy - The company plans to distribute a cash dividend of 1.60 RMB per 10 shares (including tax) based on the 2018 profit distribution plan[5]. - The cash dividend proposed is CNY 1.60 per 10 shares, with a total cash dividend amounting to CNY 13,907,660.80, which is 100% of the profit distribution total[98]. - The distributable profit for the year was CNY 50,130,902.13, indicating a healthy profit retention strategy[98]. - The company has a stable cash dividend policy, with a proposed cash dividend of 1.60 yuan per 10 shares for 2018, pending shareholder approval[95]. Business Operations and Strategy - The company has not reported any changes in its main business since its listing[17]. - The company's main business has not undergone significant changes since its establishment, focusing on engineering design consulting services[33]. - The company is transitioning its main business from traditional consulting to a full-chain service model, including planning, design, consulting, project management, and general contracting[35]. - The company is focused on expanding its service offerings in engineering consulting, including project management and design services[68]. - The company is actively pursuing new partnerships and collaborations to enhance its market presence and service capabilities[68]. - The company aims to adapt to industry trends by enhancing its comprehensive consulting service capabilities in response to the shift towards quality-focused construction[82]. - The company plans to leverage strategic opportunities arising from regional development initiatives and increased government support for the engineering design industry[82]. Investment and R&D - The company invested 28.8 million yuan in Zhejiang Kexin Engineering Design Consulting Co., with an investment income of 1.1551 million yuan, bringing the total balance to 29.9551 million yuan[36]. - Research and development expenses rose by 29.85% to ¥14,016,140.22, primarily due to increased labor costs in R&D[57]. - The company increased its R&D personnel from 42 to 81, a growth of 92.86%[60]. - R&D investment amounted to ¥13,766,026.96, representing a 35.60% increase from ¥10,152,230.53 in 2017[60]. - The company has completed all R&D projects initiated in 2018, focusing on high-tech service design and energy efficiency technologies[58]. - The company aims to enhance its core competitiveness through increased investment in product development and technology innovation[58]. Market and Competition - The company faces market competition risks, infrastructure investment scale fluctuations, accounts receivable risks, and design product quality responsibility risks[5]. - The company is optimistic about the future growth of the infrastructure investment sector, which is expected to play a crucial role in stabilizing economic growth amid a slowing macroeconomic environment[35]. - The company achieved a revenue distribution of 35% from Wuxi, 38% from Jiangsu Province (excluding Wuxi), and 27% from other provinces, expanding into Henan, Guangxi, Zhejiang, and Guangdong[40]. - The proportion of accounts receivable to revenue is 109.02%, indicating a high level of receivables risk[87]. Shareholder Structure and Management - The company has committed to maintaining its shareholding structure and has not transferred or delegated management of its shares within the specified lock-up period[100]. - The company’s shareholder structure included 11.25% held by state-owned legal entities and 63.75% held by other domestic investors[150]. - The company’s management team has undergone changes, with several key personnel transitioning in and out of their roles as of January 26, 2018[166]. - The total shares held by the current board members increased from 21,625,600 to 34,693,760, reflecting a significant change in ownership structure[165]. - The company continues to expand its leadership team with experienced professionals from various sectors, enhancing its strategic capabilities[167]. Compliance and Governance - The company has maintained a commitment to social responsibility, ensuring compliance with labor laws and protecting employee rights[139]. - The company has not been listed as a key pollutant discharge unit by environmental protection authorities and has complied with relevant environmental laws[142]. - The company has not faced any major litigation or arbitration matters during the reporting period[124]. - The company maintains independence from its controlling shareholder in business, personnel, assets, organization, and finance, with no related party transactions affecting its independence[197].