QSY Tech(SZ:300437)2019-03-28 16:00Dividend Distribution - The company plans to distribute a cash dividend of 2.30 RMB per 10 shares to all shareholders, based on a total of 218,321,965 shares [4]. - The total distributable profit for 2018 is 254,481,235.13 yuan, after accounting for a net profit of 84,325,964.28 yuan and a legal reserve of 8,432,596.43 yuan [109]. - The cash dividend for 2018 represents 20.33% of the consolidated net profit attributable to ordinary shareholders [112]. - In 2017, the company distributed a cash dividend of 1.1 yuan per 10 shares, totaling 24,015,416.15 yuan, which was 21.20% of the consolidated net profit [112]. - The cash dividend policy requires a minimum of 20% of distributable profits to be distributed as cash dividends if there are no major investments or expenditures [107]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with no capital reserve increases [110]. - The total cash dividends distributed over the last three years were 50,214,051.95 yuan in 2018, 24,015,416.15 yuan in 2017, and 17,465,757.20 yuan in 2016 [112]. - The company’s cash dividend distribution plan is in accordance with its articles of association and relevant regulations [107]. Financial Performance - The company's operating revenue for 2018 was CNY 1,712,117,473.81, representing a 103.55% increase compared to 2017 [16]. - The net profit attributable to shareholders for 2018 was CNY 247,012,482.19, an increase of 118.10% from the previous year [16]. - The net cash flow from operating activities reached CNY 84,705,030.81, showing a significant increase of 220.96% year-on-year [16]. - The total assets at the end of 2018 amounted to CNY 3,911,495,365.44, reflecting a 26.67% growth compared to the end of 2017 [16]. - The basic earnings per share for 2018 was CNY 1.1314, up 118.08% from CNY 0.5188 in 2017 [16]. - The weighted average return on equity for 2018 was 18.90%, an increase of 9.43 percentage points from the previous year [16]. - The company achieved a project investment progress of 101.57% for the R&D center construction project, with a total investment of RMB 4,570.59 [78]. - The company reported a total of CNY 9,279,375.24 in government subsidies related to its business operations for 2018 [22]. Business Expansion and Strategy - The report indicates that the company is focused on expanding its market reach and developing new technologies [4]. - The company has engaged Zhongyuan Securities as its financial advisor and sponsor, ensuring ongoing compliance and support [15]. - The company is currently one of the leading manufacturers of water treatment chemicals in China, with products exported to multiple countries [25]. - The company is expanding its production capacity with an 18,000-ton water treatment agent expansion project, which is currently under construction [39]. - The company has established a research and development center in collaboration with the Chinese Academy of Sciences, receiving a government subsidy of 1 million yuan for soil pollution remediation projects [31]. - The company is actively developing new products and technologies, including a project for soil remediation in collaboration with the Chinese Academy of Sciences [59]. - The company aims to strengthen its core water treatment agent production and expand its market share and competitiveness by providing value-added services [93]. - The company plans to enhance its industrial wastewater treatment and zero discharge business, focusing on developing core technologies and teams [97]. Risk Management - The company emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting potential risks and countermeasures in future operations [4]. - The company has a comprehensive risk management strategy detailed in the report, which investors are encouraged to review [4]. - The company is at risk of product price fluctuations due to raw material price volatility and downstream industry conditions [100]. - The company is experiencing an increase in accounts receivable as it expands into the environmental comprehensive governance sector, which may impact cash flow management [101]. Corporate Governance and Compliance - The company’s financial report has been confirmed as true, accurate, and complete by its management team, ensuring accountability [3]. - The independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy [107]. - The company has committed to avoiding or reducing related party transactions with its subsidiaries [116]. - The company guarantees that related party transaction prices will be determined based on market principles to ensure fairness [116]. - The company has established a commitment to ensure that all information provided is free from false records or misleading statements [121]. Environmental and Community Engagement - The company actively engages in environmental protection and community development initiatives [164]. - The company donated a total of 250,000 RMB to support infrastructure projects in impoverished areas during the reporting period [161]. - The company provided a set of integrated treatment equipment valued at 960,000 RMB for rural sewage treatment in a poverty-stricken village [161]. - The company helped 116 registered impoverished individuals to escape poverty during the reporting period [162]. Shareholder Structure and Changes - The total number of shares before the change was 218,321,965, with 54.79% being limited shares and 45.21% being unrestricted shares [176]. - Limited shares decreased by 33,917,500, resulting in a total of 85,697,500 limited shares after the change, which is 39.25% of total shares [176]. - The largest shareholder, Wang Zhiqing, holds 43.64% of the shares, totaling 95,270,000 shares [181]. - The top ten shareholders include entities such as Penghua Asset and Henan Jingwei Investment Consulting, with holdings ranging from 1.25% to 3.54% [181]. - The company has not undergone any changes in its controlling shareholder during the reporting period [183]. Personnel and Management - The company experienced several personnel changes, including the resignation of the general manager and two vice general managers on May 22, 2018, due to job transfers [190]. - New appointments included Wang Jing as a board member and Song Jianbang as a supervisor, both effective February 7, 2018 [190]. - The company’s board of directors includes members with extensive backgrounds in water treatment and management, enhancing its operational expertise [191]. - The management team is composed of individuals with significant experience in the water treatment industry, contributing to the company's strategic direction [191].