TONGDA STOCK(SZ:300321)2019-04-17 16:00Financial Performance - The company's operating revenue for 2018 was ¥469,213,838.72, representing a 7.43% increase compared to ¥436,750,584.30 in 2017[23]. - The net profit attributable to shareholders for 2018 was ¥28,798,197.26, up 17.62% from ¥24,484,663.33 in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥25,014,907.28, a 31.50% increase from ¥19,023,058.93 in 2017[23]. - The net cash flow from operating activities increased by 56.07% to ¥39,117,985.19 in 2018 from ¥25,064,866.44 in 2017[23]. - The total assets at the end of 2018 were ¥734,621,342.67, a 1.81% increase from ¥721,589,835.65 at the end of 2017[23]. - The net assets attributable to shareholders at the end of 2018 were ¥616,323,917.85, reflecting a 3.96% increase from ¥592,853,720.59 at the end of 2017[23]. - The company's total cash and cash equivalents decreased by ¥15.46 million, a reduction of 45.22% year-on-year[58]. - The company reported a total comprehensive income of 28,798,197.26 CNY for the year[183]. Dividend Distribution - The company reported a profit distribution plan of 0.60 RMB per 10 shares for all shareholders, based on a total of 88,800,000 shares[12]. - The cash dividends in 2018, 2017, and 2016 were consistent, indicating a stable dividend policy despite fluctuations in net profit percentages[76]. - In 2018, the cash dividend amount was 5,328,000, representing 18.50% of the net profit attributable to ordinary shareholders[76]. - The total cash dividend for 2018 represents a consistent policy aligned with the company's charter and shareholder interests[72]. Environmental Compliance - The company has established a comprehensive environmental management system to comply with national environmental laws and regulations, with no major safety or environmental violations reported during the reporting period[7]. - The company emphasizes the importance of adhering to environmental laws and regulations to reduce safety and environmental risks in its operations[9]. - The company aims to maintain compliance with environmental regulations while managing production costs effectively[9]. - The company has invested significantly in upgrading its boiler system for three consecutive years to meet environmental standards, mitigating risks related to energy supply[11]. Market and Industry Position - The company operates in the ecological ultra-fiber synthetic leather industry, which is experiencing growth due to increasing environmental regulations and demand for high-fidelity materials[31]. - The ecological ultra-fiber synthetic leather is positioned as a substitute for natural leather and early-generation synthetic leathers, with significant growth potential in various applications[33]. - The company is recognized as a leading player in the ultra-fiber synthetic leather industry, alongside competitors like Huafeng Super Fiber and Shuangxiang Co., Ltd[32]. - The company expanded its market presence, with overseas sales accounting for 37.00% of total revenue, amounting to CNY 173.64 million, a 4.53% increase from the previous year[46]. Research and Development - R&D investment amounted to ¥24.07 million, up 9.35% year-on-year, accounting for 5.13% of total operating revenue[54]. - The company holds 10 core patented technologies and has participated in the formulation of 16 national and industry standards[36]. - The company completed 4 patent applications and received over CNY 1 million in government support and awards[40]. - The company completed the optimization of 8 mainstream product processes and developed 9 new products during the reporting period[54]. Risk Management - The company is closely monitoring raw material prices, which are influenced by supply-side reforms and economic cycles, to mitigate potential cost pressures[10]. - The company plans to continue exploring energy supply solutions to address potential risks associated with energy sourcing and costs[11]. - The company is prepared to engage in forward foreign exchange transactions to hedge against currency fluctuations that could impact its financial performance[6]. - The company’s risk management strategy includes monitoring foreign currency exposure to mitigate potential financial impacts[200]. Corporate Governance - The company has established a robust governance structure with independent committees for strategy, remuneration, audit, and nominations[135]. - The company has a clear and transparent information disclosure policy, ensuring timely and accurate communication with investors[136]. - The company maintains effective internal controls over financial reporting as of December 31, 2018, with no significant deficiencies identified[150]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating fair representation of the company's financial position and results for the year ended December 31, 2018[156]. Employee and Management Information - The total number of employees in the company is 582, with 387 in production, 16 in sales, 102 in technical roles, 7 in finance, and 70 in administration[129]. - The total remuneration for directors, supervisors, and senior management in 2018 amounted to 2.4621 million yuan[128]. - The company has implemented a comprehensive talent management system, including internal and external training programs to enhance employee skills[131]. - The company’s board of directors consists of nine members, including three independent directors, ensuring compliance with relevant laws and regulations[135].