KDXC(SZ:002669)2018-10-25 16:00Financial Performance - Total assets increased by 27.78% to CNY 2,257,677,850.26 compared to the end of the previous year[7] - Operating revenue for the period reached CNY 354,551,745.45, a 127.26% increase year-on-year[7] - Net profit attributable to shareholders rose by 89.82% to CNY 20,714,908.07 for the period[7] - The net profit after deducting non-recurring gains and losses surged by 324.08% to CNY 19,976,654.95[7] - Basic earnings per share increased by 82.98% to CNY 0.0860[7] - The weighted average return on equity improved to 1.10%, up from 0.43%[7] Cash Flow - The net cash flow from operating activities was negative at CNY -15,091,652.63, a decline of 166.02% compared to the same period last year[7] - The net cash flow from operating activities decreased by 249.43% to -¥87,621,908.35, mainly due to increased prepayments for trade orders[17] - The net cash flow from investing activities improved by 70.74% to -¥67,076,355.07, primarily due to a reduction in the amount spent on principal-protected financial products[17] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,852[11] - The largest shareholder, Lu Qiting, holds 15.56% of the shares, with 37,518,011 shares pledged[11] - The chairman plans to increase her shareholding in the company by purchasing shares worth between RMB 4 million and RMB 6 million at a price not lower than RMB 15.00 per share[20] Acquisition and Investment - The company completed the acquisition of Bikon Technology in April 2018, which has contributed to its electromagnetic compatibility business performance[25] - The company paid a total cash consideration of ¥41,313,632.14 to the original shareholders of Bikon Technology as part of the acquisition agreement[18] - The goodwill generated from the acquisition of Bikon Technology amounted to ¥328,270,889.64, reflecting the strategic expansion into new markets[15] - The company has invested RMB 20 million in bank wealth management products, with a remaining balance of RMB 17.5 million[29] Operational Metrics - Accounts receivable increased by 75.13% to ¥750,947,589.42, attributed to higher sales revenue and the acquisition of Bikon Technology[15] - Inventory rose by 67.60% to ¥152,394,107.28, primarily due to the consolidation of Bikon Technology[15] - Operating revenue increased by 72.43% to ¥695,811,255.57, driven by enhanced sales efforts and the acquisition of Bikon Technology[16] - Operating costs grew by 76.60% to ¥507,692,456.33, reflecting the increase in revenue and the consolidation of Bikon Technology[16] - Research and development expenses increased by 47.41% to ¥31,605,459.43, due to higher investment in R&D and the acquisition of Bikon Technology[16] Government and Regulatory Matters - The company received government subsidies amounting to CNY 2,262,318.69 during the reporting period[8] - The company has been recognized as a National Enterprise Technology Center, which allows it to enjoy relevant national incentive policies[20] - The company has revised its Articles of Association in accordance with regulatory requirements[22] - The company has not reported any overdue commitments or non-operating fund occupation by controlling shareholders during the reporting period[24][27] Future Outlook - The company expects a net profit attributable to shareholders for 2018 to increase by 65% to 115%, with an estimated range of RMB 74.23 million to RMB 94.12 million, compared to RMB 43.78 million in 2017[25] - The company continues to focus on its strategic positioning of "military industry + new materials," increasing sales efforts in new energy, food soft packaging, high-speed rail, and military sectors[25] - The company won a bid for the "2018 Industrial Strong Foundation Project" for special epoxy adhesives and silicone sealants, although the contract has not yet been signed[22] - The company plans to provide a guarantee for its subsidiary, Bikon Technology, for a credit limit of up to RMB 28 million from Shanghai Bank[20]