Kersen(SH:603626)2018-02-12 16:00Financial Performance - The company achieved a net profit of CNY 123,085,778.16 for the year 2017, with a distributable profit of CNY 110,777,200.34 after allocating 10% to statutory surplus reserves[5]. - The company's operating revenue for 2017 was approximately CNY 2.165 billion, representing a year-on-year increase of 66.18% compared to CNY 1.303 billion in 2016[24]. - The net profit attributable to shareholders for 2017 was approximately CNY 222.4 million, an increase of 17.74% from CNY 188.9 million in 2016[24]. - The net cash flow from operating activities decreased by 56.39% to approximately CNY 174.5 million in 2017, down from CNY 400.1 million in 2016[24]. - The total assets of the company at the end of 2017 were approximately CNY 3.441 billion, a 130.85% increase from CNY 1.490 billion at the end of 2016[24]. - The weighted average return on equity for 2017 was 15.18%, a decrease of 21.72 percentage points from 36.90% in 2016[25]. - The basic earnings per share for 2017 was CNY 0.78, down 9.30% from CNY 0.86 in 2016[25]. - The company reported a significant increase in external cooperation costs, which rose by 86.56% to ¥345,150,025.75 from ¥185,005,869.05 year-over-year[65]. - The company reported a net profit margin of 12% for 2017, which is an improvement from 10% in 2016, reflecting better cost management and pricing strategies[171]. Dividend and Profit Distribution - A cash dividend of CNY 2.50 per 10 shares (including tax) will be distributed to shareholders, totaling CNY 74,219,200.00[5]. - The company has a profit distribution policy prioritizing cash dividends, with a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[109]. - The company reported a cash dividend of 2.50 CNY per 10 shares for the year 2017, amounting to a total cash distribution of 74,219,200 CNY, which represents 33.37% of the net profit attributable to ordinary shareholders[111]. - The company’s cash dividend distribution for the past three years has been at least 30% of the average annual distributable profit[108]. Capital Structure and Shareholder Information - The company plans to increase its capital stock by 118,750,720 shares through a stock dividend, with no bonus shares being issued[5]. - The total number of ordinary shares increased from 158,000,000 to 296,876,800, representing a 88.0% increase[144]. - The company’s total share capital after the issuance and conversion activities is 296,876,800 shares, fully reflecting the changes in ownership structure[144]. - The largest shareholder, Xu Jingen, holds 109,922,301 shares, representing 37.03% of the total shares, with 109,200,000 shares pledged[157]. - The company’s shareholder structure includes significant holdings by state-owned and private entities, with 75.16% of shares being subject to restrictions[144]. Research and Development - The company is engaged in the development of new technologies and products, although specific details were not disclosed in the report[10]. - R&D expenses rose by 79.35% to ¥113,793,472.66, reflecting the company's commitment to innovation and the development of new products[56]. - The company has developed over 5,000 products, showcasing its extensive experience in product design and manufacturing[46]. - The company holds more than 100 authorized patents, including over 20 invention patents, reflecting its strong R&D capabilities[45]. Market Presence and Operations - The company operates subsidiaries in North America, Taiwan, and other regions, indicating a broad market presence[12]. - The company serves high-end clients including Apple, Sony, Medtronic, and Johnson & Johnson, which enhances its competitive advantage[42]. - The company is focusing on smart manufacturing projects to reduce labor costs and improve product quality through automation[52]. - The company expanded its smart home business by providing metal structural components for a well-known e-commerce technology company, indicating growth in this sector[51]. Risk Management and Compliance - The company has outlined potential risks in its annual report, which investors should be aware of[8]. - The company emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting the importance of investment risk awareness[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[8]. Corporate Governance - The company has a structured corporate governance framework, including a board of directors and various committees to ensure effective decision-making and risk control[186]. - The company has not reported any significant differences in governance practices compared to the requirements set by the China Securities Regulatory Commission[188]. - The company has a robust internal control system, with no significant deficiencies reported during the evaluation period[192]. Future Outlook and Strategic Plans - Future plans include expanding product categories and market share while developing new applications in the AI sector[93]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 150 million allocated for potential mergers and acquisitions in 2018[171]. - The management highlighted a focus on research and development for new technologies, aiming to enhance product offerings and improve operational efficiency[170]. - The company plans to issue convertible bonds, with approval from the China Securities Regulatory Commission pending[152].