SNS(SZ:300470)2019-04-23 16:00Financial Performance - The company reported a total revenue of 196,747,100 RMB for the year 2018, with a cash dividend of 1.70 RMB per 10 shares distributed to all shareholders[7]. - The company's operating revenue for 2018 was ¥704,579,552.09, representing a 42.09% increase compared to ¥495,877,419.98 in 2017[26]. - The net profit attributable to shareholders for 2018 was ¥170,450,921.41, up 41.99% from ¥120,044,787.28 in 2017[26]. - The net profit after deducting non-recurring gains and losses for 2018 was ¥171,593,764.70, a 46.59% increase from ¥117,054,306.67 in 2017[26]. - The total assets at the end of 2018 were ¥1,528,114,593.15, reflecting a 26.31% increase from ¥1,209,838,962.33 at the end of 2017[26]. - The net assets attributable to shareholders at the end of 2018 were ¥1,130,666,785.71, which is a 14.55% increase from ¥987,061,039.03 at the end of 2017[26]. - The basic earnings per share for 2018 was ¥0.8877, an increase of 41.99% compared to ¥0.6252 in 2017[26]. - The company reported a net cash flow from operating activities of ¥52,554,609.76 for 2018, down 27.21% from ¥72,202,714.97 in 2017[26]. - The comprehensive gross profit margin for products was 53.33%, with a decrease attributed to the growth of lower-margin incremental business revenue[64]. - The company achieved operating revenue of 704.58 million yuan, a year-on-year increase of 42.09%[46]. - Net profit attributable to shareholders reached 170.45 million yuan, reflecting a year-on-year growth of 41.99%[46]. Market Strategy and Expansion - The company is actively engaged in market expansion, targeting both incremental markets for new projects and existing markets for replacement products[15]. - The company plans to expand its market presence in industries with good growth prospects, such as nuclear power and aerospace[39]. - The company has established long-term stable partnerships with major clients, including Sinopec and CNOOC, enhancing its market presence[46]. - The company aims to enhance its R&D capabilities to further improve high-end product technology and reduce reliance on imported seals[56]. - The company plans to expand its market presence in sectors like military, nuclear power, and overseas markets to mitigate risks from market fluctuations[162]. Research and Development - The company has a strong commitment to research and development, particularly in new sealing technologies, to enhance product offerings and maintain competitive advantage[15]. - R&D investment consistently accounts for approximately 5% of operating revenue, supporting ongoing technological innovation and product development[53]. - The company has completed 38 major scientific research projects and obtained 175 authorized patents, including 22 invention patents and 153 utility model patents[55]. - The company is currently in the R&D phase for several key projects, including the CEFR600 fast reactor demonstration project, which aims to enhance its position in fourth-generation nuclear technology[100]. - The company has successfully implemented a long-term incentive mechanism for core employees, fostering a strong and cohesive management and technical team[48]. Acquisitions and Investments - The company has expanded its market presence through acquisitions, holding a 98.66% stake in Huayang Sealing, which has strong technical capabilities in high-end sealing products[60]. - The company completed the acquisition of Huayang Sealing, gaining control of 98.66% of its shares, which contributed a sales revenue of 47.86 million yuan and a net profit of 13.23 million yuan during the consolidation period[75]. - The company plans to establish a dry gas seal repair factory in the Middle East and service centers in Brunei and Malaysia to support its international business expansion[69]. - The company acquired Youtai Technology to enter the rubber and plastic sealing sector, which is expected to experience substantial growth due to rising demand from engineering machinery[154]. - The acquisition of Huayang Sealing is expected to enhance the company's competitiveness in high-end sealing products, with a projected net profit increase of ¥6,457,705.65 from this acquisition[149]. Operational Efficiency - The company maintains a production model focused on "order-based production" with a combination of customized and standardized component procurement[41][42]. - The company is implementing a production line layout adjustment to improve efficiency and management through increased automation and information technology[64]. - The company is implementing an intelligent manufacturing project to enhance operational efficiency and reduce labor costs, with a goal of full information management within two years[158]. - The company has established a comprehensive management system that integrates quality assurance and safety standards, enhancing operational efficiency[58]. Risk Management - The company emphasizes the importance of risk management in its operations, detailing potential risks and corresponding mitigation strategies in its annual report[7]. - The company anticipates risks related to revenue and profit growth not meeting expectations due to macroeconomic fluctuations affecting the petrochemical and coal chemical industries[161]. - The company faces risks related to product quality and timely order delivery, which could impact its reputation and operational efficiency[163]. - The company faces risks related to high accounts receivable, which may impact cash flow and operational efficiency, necessitating strict credit control and collection efforts[164]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 1.70 yuan per 10 shares, totaling 33,447,007 yuan (including tax) for the fiscal year 2018[182]. - The total distributable profit for the company as of December 31, 2018, is 531,587,878.30 yuan, with the cash dividend representing 100% of the total profit distribution[180]. - The company’s net profit attributable to shareholders for 2018 is 170,450,921.41 yuan, with a cash dividend payout ratio of 19.62%[185]. - The company’s cash dividend policy complies with relevant regulations and ensures the protection of minority shareholders' rights[176]. - The company’s independent directors have fulfilled their responsibilities and played a significant role in the decision-making process regarding profit distribution[176].