JACK(SH:603337)2018-04-25 16:00Financial Performance - The company's operating revenue for 2017 was CNY 278,662.31 million, representing a 50.05% increase compared to CNY 185,713.47 million in 2016[18]. - The net profit attributable to shareholders of the listed company was CNY 32,405.47 million, up 47.02% from CNY 22,041.57 million in the previous year[18]. - The net cash flow from operating activities reached CNY 62,493.60 million, a significant increase of 123.22% compared to CNY 27,996.81 million in 2016[18]. - Basic earnings per share for 2017 increased by 12.68% to CNY 1.60 compared to CNY 1.42 in 2016[20]. - Diluted earnings per share for 2017 also rose by 12.68% to CNY 1.60 from CNY 1.42 in 2016[20]. - The net profit after deducting non-recurring gains and losses for 2017 was CNY 1.53 per share, up 13.33% from CNY 1.35 in 2016[20]. - The company achieved a net profit attributable to the parent company of 324.05 million RMB for the year 2017[120]. - The company reported a total profit of 2.04 billion RMB, which is a 29.09% increase from the previous year[96]. Assets and Liabilities - The total assets of the company at the end of 2017 were CNY 359,383.95 million, an increase of 80.73% from CNY 198,853.32 million at the end of 2016[19]. - The net assets attributable to shareholders of the listed company increased to CNY 213,105.17 million, reflecting a growth of 111.37% compared to CNY 100,819.18 million at the end of 2016[19]. - The company's total liabilities increased from RMB 980.48 million to RMB 1,462.79 million during the reporting period[193]. - The debt ratio decreased from 49.31% to 40.70%[193]. Dividends and Share Capital - The company plans to distribute a cash dividend of CNY 4.80 per 10 shares, totaling CNY 99,201.60 million, and will also increase the share capital by 4.80 shares for every 10 shares held[3]. - The total share capital will increase from 20.67 million shares to 30.59 million shares following the capital reserve conversion plan[120]. Market and Production - The total industrial output value of the sewing machinery industry in China reached CNY 18.838 billion in 2017, a year-on-year increase of 27.71%[31]. - The production of industrial sewing machines in 2017 was 4.3218 million units, reflecting a growth of 32.47% compared to the previous year[31]. - The company sold 6.066 million sewing machines, with a year-on-year growth of 19.53% and a production and sales rate of 99.0%[32]. - The export of sewing machines reached 2.33 billion USD, an increase of 5.44% year-on-year, with industrial sewing machine exports growing by 11.55%[32]. - The production volume of industrial sewing machines and cutting tables (including spreading machines) reached 1,425,300 units and 983 units, respectively, with year-on-year growth of 67.32% and 63.02%[57]. Research and Development - The company applied for a total of 502 patents in 2017, including 325 invention patents, and held 878 valid patents by the end of the year[39][40]. - The company’s R&D expenditure reached CNY 134,732,827.04, up 49.07% from the previous year[66]. - The number of R&D personnel reached 651, representing 11.96% of the total workforce[83]. - The company launched 22 new sewing machine models in 2017, enhancing its product offerings and technological capabilities[60]. Strategic Initiatives - The company has implemented the "81042 Project" aimed at enhancing its information technology infrastructure, which includes the development of various systems to support operations[9]. - The company plans to expand its product offerings in the smart sewing equipment sector, leveraging its R&D capabilities across multiple international bases[38][42]. - The company aims for a GDP growth rate target of 6.5% for 2018, focusing on high-quality development and improving the business environment[102]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[101]. Environmental Management - The company has established a wastewater treatment system with a capacity of 120 tons per day at the Xichen plant[175]. - The company has implemented 2 sets of spray paint waste gas treatment facilities and 1 set of production wastewater treatment facilities at the Xichen plant[176]. - The company has a pollution discharge permit number: Zhe JB2016A0116, Zhe JA2015B0105[177]. - The company has completed environmental impact assessments for several projects, including a 700,000 units/year industrial sewing machine technical transformation project[177]. - The company has established emergency response plans for environmental incidents to prevent pollution accidents[177]. Risk Management - The company faces industry and market risks due to high competition and product homogeneity in the sewing machinery sector[116]. - The company is exposed to foreign exchange risks as its products are primarily settled in USD and EUR, which may affect profitability due to currency fluctuations[116]. - Rising raw material costs, particularly for pig iron, pose a risk to the company's profit margins[117]. - Fixed costs are expected to increase due to automation and technological upgrades in production processes[117]. Corporate Governance - The board of directors and management have confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements[6]. - The company has not reported any non-standard audit opinions from its accounting firm[130]. - The company has no major litigation or arbitration matters in the current year[132]. - The company has no issues with the integrity of its controlling shareholders or actual controllers during the reporting period[132]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period is 8,132, an increase from 6,847 at the end of the previous month[194]. - The top ten shareholders hold a total of 210,000,000 shares, with the largest shareholder, Taizhou Jack Investment Co., Ltd., owning 88,551,500 shares, representing 42.85% of the total[196]. - The company has a total of 88,551,500 restricted shares that will become tradable on January 19, 2020, as part of the initial public offering[199].