GARDEN BIO-CHEM(SZ:300401)2018-04-27 08:17Financial Performance - The company's operating revenue for 2017 was CNY 419,868,699.41, representing a 27.58% increase compared to CNY 329,093,755.62 in 2016[17]. - The net profit attributable to shareholders for 2017 was CNY 130,403,327.65, a significant increase of 197.91% from CNY 43,772,785.03 in 2016[17]. - The net profit after deducting non-recurring gains and losses was CNY 122,807,508.92, up 219.51% from CNY 38,436,637.86 in 2016[17]. - The net cash flow from operating activities reached CNY 146,743,897.35, an increase of 197.86% compared to CNY 49,266,348.80 in 2016[17]. - The total assets at the end of 2017 were CNY 1,394,834,071.76, a 59.02% increase from CNY 877,146,580.49 at the end of 2016[17]. - The net assets attributable to shareholders at the end of 2017 were CNY 1,281,117,280.91, reflecting a 70.12% increase from CNY 753,076,716.91 at the end of 2016[17]. - The basic earnings per share for 2017 were CNY 0.72, a 200.00% increase from CNY 0.24 in 2016[17]. - The diluted earnings per share for 2017 were also CNY 0.72, marking a 200.00% increase from CNY 0.24 in 2016[17]. - The weighted average return on equity for 2017 was 16.07%, up from 5.98% in 2016, indicating improved profitability[17]. Revenue and Sales - Domestic sales reached CNY 118.41 million, a significant increase of 54.24% compared to the previous year, while international sales were CNY 301.46 million, up 19.47%[38]. - The company's operating revenue for 2017 was CNY 419.87 million, an increase of 27.58% compared to the previous year, primarily due to increased sales volume of 25-hydroxyvitamin D3 and higher product prices[34]. - In Q1 2017, the company's operating revenue was approximately ¥86.69 million, while in Q2 it increased to ¥146.29 million, followed by a decrease to ¥77.19 million in Q3, and rebounding to ¥109.70 million in Q4[19]. - The net profit attributable to shareholders for Q2 2017 was ¥54.65 million, representing a significant increase compared to Q1's ¥20.54 million, but decreased to ¥27.25 million in Q4[19]. Cash Flow and Investments - The company reported a net cash flow from financing activities of CNY 403.61 million, a substantial increase of 1,074.55% due to funds raised from a private placement[35]. - The company's cash and cash equivalents increased by 655.86% compared to the previous period, attributed to funds raised from a private placement[27]. - The company's cash flow from investment activities was negative at CNY 158.59 million, a decrease of 47.93% year-on-year, mainly due to an increase in the balance of bank wealth management products[34]. - Investment cash inflow surged to ¥752,941,133.59 in 2017, a staggering increase of 3,434.43% from 2016[51]. Research and Development - Research and development expenses rose to CNY 22.10 million, a 39.58% increase from the previous year, reflecting the company's commitment to enhancing R&D efforts[34]. - The company is focusing on enhancing core technology and product competitiveness through various R&D projects, including the optimization of ultra-pure lanolin technology and the industrialization of active vitamin D3[48]. - The company's R&D investment in 2017 amounted to ¥22,102,535.26, representing 5.26% of total revenue, an increase from 4.99% in 2016[48]. - The number of R&D personnel increased to 78 in 2017, accounting for 16.63% of the workforce, up from 12.96% in 2016[48]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.40 per 10 shares, with no bonus shares issued[7]. - In 2017, the cash dividend represented 20.58% of the net profit attributable to ordinary shareholders, which was RMB 130,403,327.65[80]. - The cash dividend for 2016 was RMB 0.50 per 10 shares, totaling RMB 9,070,000, which accounted for 20.72% of the net profit attributable to ordinary shareholders[78]. - The company is in a growth phase and aims for a minimum cash dividend distribution ratio of 20% during profit distribution[74]. Environmental and Social Responsibility - The company was recognized as a "Demonstration Enterprise for Environmental Protection" in Zhejiang Province, enhancing its corporate image[31]. - The company has installed online monitoring facilities at wastewater discharge points, ensuring compliance with environmental regulations[111]. - No environmental pollution incidents or disputes occurred during the reporting period, and the company did not receive any environmental protection administrative penalties[111]. - The company is classified as a key pollutant discharge unit and adheres to environmental protection standards[109]. Corporate Governance - The company has a clear governance structure that ensures equal rights for all shareholders, particularly minority shareholders[152]. - The company has maintained a continuous relationship with its accounting firm for four years, with an audit fee of ¥600,000[88]. - The company has not faced any regulatory criticism regarding information disclosure practices during the reporting period[154]. - The company has established a performance evaluation and incentive system for senior management, linking their compensation to the achievement of annual operational goals[164]. Employee and Management Structure - The total number of employees in the company is 463, with 295 in the parent company and 168 in major subsidiaries[146]. - The company has established a comprehensive talent training system to support strategic goals and enhance employee capabilities[149]. - The management team includes professionals with backgrounds in economics, engineering, and pharmaceuticals, contributing to the company's strategic direction[138]. - The total remuneration for directors and senior management during the reporting period amounts to 260.62 million yuan[145].