Financial Performance - In the fiscal year 2018, the company's revenue reached RMB 5,389.6 million, representing a growth of 49.6% compared to the previous year[60] - The gross profit margin improved to 49.4% in 2018, up from 43.0% in 2017[60] - The company's EBITDA for 2018 was RMB 948.7 million, showing significant growth from RMB 503.3 million in 2017[60] - The net cash position improved to RMB 802.3 million in 2018, compared to a net cash deficit of RMB 367.8 million in 2017[60] - The profit attributable to equity holders of the parent company surged by 106.1% to RMB 635.1 million[65] - The revenue for the year 2018 was RMB 5,389.6 million, an increase of RMB 1,463.1 million or 37.3% compared to RMB 3,926.5 million in 2017[127] - The profit attributable to equity holders of the company for 2018 was RMB 635.1 million, an increase of RMB 327.0 million or 106.1% compared to 2017[140] - The adjusted profit attributable to ordinary shareholders increased to RMB 581.5 million, up RMB 273.4 million or 88.7% compared to 2017[142] Acquisitions and Investments - The company completed the acquisition of the remaining 15% stake in the Hong Kong and China Hyproca Group, enhancing synergies within the group[36] - The company plans to expand its nutritional product business by acquiring the remaining 25% stake in NCP and 30% stake in Ausnutria Nutrition, both located in Australia[36] - The company acquired a Dutch company to enhance internal integration and expand its global sales network[66] - The company has taken strategic actions, including the acquisition of the remaining 15% stake in the Hyproca Group, with a total consideration capped at 400.87 million HKD, based on a multiple of 8.5 times the audited net profit for 2017[100] - The acquisition of 50% stake in Ausnutria Joannusmolen B.V. was completed for €4.4 million (approximately RMB 33.9 million), aimed at expanding the company's sales and distribution network in Europe[97] - The acquisition of Ozfarm was completed on June 29, 2018, with a total cash consideration of AUD 11.0 million (approximately RMB 56.4 million) for the initial 50% stake[104] - The company acquired the remaining 44% stake in Holland Goat Milk B.V. for €7.0 million (approximately RMB 53.9 million) to strengthen its control over high-quality goat milk supply[91] Product Development and Market Expansion - The company introduced a comprehensive customized operational management system, AOPEX, to improve personnel, operations, and asset management[36] - The company launched a series of children's and maternal supplements under the Kidsbon brand, available on major Chinese e-commerce platforms, responding to the growing health awareness among Chinese consumers[99] - The company expanded its goat milk powder sales to 66 countries and regions, aiming to become a global leader in infant goat milk nutrition products[90] - The group plans to expand its market share in China by launching new formula milk products, including adult formula goat milk powder and organic goat milk powder[122] - The company aims to leverage Ozfarm's reputation to expand and develop markets in Australia, China, and overseas[105] Operational Efficiency and Quality Control - The company maintained a 100% pass rate in monthly quality inspections, reflecting its commitment to product quality control[67] - The company has improved operational efficiency, with increased yield rates and factory efficiency in its Dutch and Chinese facilities[82] - The company initiated the Ausnutria Operations Excellence (AOPEX) project to enhance operational management and improve customer experience and market competitiveness[112] - HGM has secured long-term supply contracts with 53 Dutch goat milk farmers, delivering approximately 65 million kilograms of goat milk, accounting for about 20% of the total goat milk production in the Netherlands for 2018[92] Corporate Governance and Management - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced composition[170] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and best practices[168] - The board is responsible for leading and supervising the group's affairs, focusing on sustainable development and value creation[173] - The independent auditor, Ernst & Young, has confirmed the board's responsibility for preparing the financial statements in accordance with applicable accounting standards[174] - The company has established a three-year service agreement with all executive directors, with remuneration based on experience, contribution, and performance[175] Employee Development and Corporate Culture - The total number of full-time employees increased to 3,803 in 2018 from 3,092 in 2017, with total employee costs amounting to RMB 671.0 million in 2018, up from RMB 484.4 million in 2017[112] - The company established a training center named Ausnutria University in Changsha, China, aimed at enhancing employee skills and organizational performance, receiving awards for its programs in 2018[112] - The company plans to continue promoting its training programs to overseas employees, particularly in the Netherlands, to strengthen corporate culture and strategy execution[113] Financial Position and Cash Flow - Total assets as of December 31, 2018, reached RMB 6,829.0 million, an increase from RMB 5,621.1 million in 2017[143] - Cash and cash equivalents increased by RMB 864.4 million in 2018, compared to RMB 130.3 million in 2017[146] - The current ratio improved to 1.6 times as of December 31, 2018, compared to 1.2 times in 2017, reflecting better liquidity management[144] - The company raised RMB 1,144.8 million from the CITIC subscription, significantly impacting financing cash flow[150] Market Trends and Challenges - In 2019, the company aims to enhance customer satisfaction to international industry standards amid external pressures such as declining birth rates and increased competition[74] - The infant formula market in China is projected to grow at a rate of approximately 9.3% in 2018, reaching a market size of about RMB 162.6 billion, despite a decline in newborn numbers[116] - The company emphasizes the importance of innovation and strategic focus to navigate the challenges in the infant formula market[74]