SENSSUN(SZ:002870)2018-03-19 16:00Financial Performance - The company's operating revenue for 2017 was CNY 929,119,063.18, representing a 12.21% increase compared to CNY 828,019,408.58 in 2016[18]. - The net profit attributable to shareholders decreased by 31.34% to CNY 71,489,595.08 from CNY 104,125,815.48 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 61,505,662.51, down 37.49% from CNY 98,387,424.43 in 2016[18]. - The net cash flow from operating activities was CNY 45,925,506.50, a decline of 42.59% compared to CNY 79,989,823.58 in 2016[18]. - Basic earnings per share fell to CNY 0.72, down 42.40% from CNY 1.250 in the previous year[18]. - Total revenue for the year was approximately ¥1,007,119,503, with a quarterly breakdown of ¥191,473,892.19 in Q1, ¥238,539,280.87 in Q2, ¥257,154,559.18 in Q3, and ¥241,951,330.94 in Q4[22]. - Net profit attributable to shareholders for the year was ¥71,489,595.08, with quarterly figures of ¥20,346,108.79 in Q1, ¥20,179,457.48 in Q2, ¥20,410,529.59 in Q3, and a significant drop to ¥10,553,499.22 in Q4[22]. - The gross profit margin declined due to rising raw material costs and increased R&D expenditures[47]. - The company's main business revenue reached ¥921.14 million, an increase of 12.07% year-over-year, with a gross margin of 30.02%, down 4.92% from the previous year[54]. Assets and Liabilities - Total assets increased by 91.21% to CNY 978,966,975.37 at the end of 2017, compared to CNY 511,972,806.18 at the end of 2016[18]. - The net assets attributable to shareholders rose by 131.90% to CNY 806,352,070.84 from CNY 347,711,572.00 in 2016[18]. - The total inventory increased by 32.65% to 266,420 units, indicating a potential buildup of stock[56]. - Accounts receivable increased to ¥60,863,605.90, accounting for 6.22% of total assets, reflecting a rise in external operating income[68]. - Inventory increased to ¥132,153,580.80, representing 13.50% of total assets, driven by higher sales revenue[68]. - Fixed assets rose to ¥180,213,280.50, accounting for 18.41% of total assets, due to the completion of fundraising project construction and the addition of production equipment[68]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, totaling CNY 22,224,480.00 based on 111,122,400 shares[5]. - The cash dividend distribution plan includes a total cash dividend of 22,224,480.00 RMB, representing 21% of the total profit distribution[103]. - The company is in a growth phase and has significant capital expenditure plans, ensuring that cash dividends will not fall below 20% of the profit distribution[103]. - The company has established a profit distribution policy to ensure stable returns to investors, adhering to its guidelines without adjustments during the reporting period[99]. Research and Development - The company has established a comprehensive R&D system, ensuring efficient management of research and development funds and adherence to ISO9001 standards[29]. - R&D expenditure for the year was ¥36.04 million, accounting for 3.88% of total revenue, reflecting a 32.91% increase compared to the previous year[64]. - The company has developed a strong product R&D capability, holding 289 valid domestic patents and 8 overseas patents, including 5 invention patents[35]. - Research and development investments increased by 30%, focusing on innovative technologies in measurement solutions[195]. Market Position and Strategy - The company maintains a leading position in the household scale market, with sales volume and revenue ranking first among domestic peers for 11 consecutive years from 2006 to 2016[27]. - The company has successfully opened sales channels on major e-commerce platforms such as eBay and Amazon, significantly enhancing brand recognition[42]. - The company plans to expand its overseas e-commerce marketing efforts, particularly in emerging markets, to increase market share[49]. - The company aims to maintain its leading position in the global health product market while striving for growth in the commercial weighing sector[90]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[195]. Risks and Challenges - The company recognizes the risks associated with international market fluctuations and intensified domestic competition, which could impact its revenue[91]. - The company's export business accounts for over 60% of total revenue, primarily settled in USD, exposing it to exchange rate fluctuation risks[92]. - The company faces risks related to raw material price fluctuations, particularly for metals and plastics, which could impact operational performance despite efforts to optimize production costs[92]. - Labor costs have been rising in China, particularly in manufacturing hubs, which may affect profitability if these costs continue to increase[93]. Corporate Governance and Compliance - The company has committed to ensuring that any future equity incentive plans will be linked to the execution of return measures[130]. - The company actively improved its corporate governance structure and internal control system to protect investors' rights[160]. - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[133]. - The company has not experienced any major accounting errors that require retrospective restatement during the reporting period[138]. Environmental and Social Responsibility - The company has established a complete environmental management system to control and reduce pollutant emissions[162]. - The company is committed to sustainability initiatives, with a goal to reduce carbon emissions by 20% over the next five years[195]. - The company donated a total of 340,000 RMB to the "Zhongshan Charity Ten Thousand People Walk" and 100,000 RMB to the "Zhongchao Charity Love Fund" during the reporting period[162].