SYG(SZ:300740)2018-08-29 16:00Financial Performance - Total revenue for the first half of 2018 reached ¥980,749,136.99, representing a 57.78% increase compared to ¥621,576,050.06 in the same period last year[19]. - Net profit attributable to shareholders was ¥65,033,780.96, up 19.05% from ¥54,628,879.13 year-on-year[19]. - Net cash flow from operating activities was ¥119,021,556.42, an increase of 14.05% compared to ¥104,358,821.21 in the previous year[19]. - Total assets at the end of the reporting period amounted to ¥1,877,864,166.58, a 119.00% increase from ¥857,486,797.89 at the end of the previous year[19]. - Net assets attributable to shareholders increased by 145.83% to ¥1,327,263,937.08 from ¥539,917,333.31 at the end of the previous year[19]. - Basic earnings per share decreased by 23.91% to ¥0.35 from ¥0.46 in the same period last year[19]. - The weighted average return on equity was 5.97%, down 7.52% from 13.49% in the previous year[19]. - The company reported a net profit after deducting non-recurring gains and losses of ¥63,509,482.21, a slight increase of 3.46% from ¥61,387,758.55 in the previous year[19]. - The company reported a total profit for the first half of 2018 of CNY 82,718,483.93, compared to CNY 73,070,910.23 in the same period last year, reflecting an increase of about 13.5%[157]. Market and Sales Strategy - The skincare market in China reached a size of 1866.66 billion, accounting for 52.62% of the total cosmetics market, with a compound annual growth rate of 8.02% from 2012 to 2017[30]. - The facial mask segment of the skincare market had a market size of 207.5 billion in 2017, with a compound annual growth rate of 15.8% from 2012 to 2017, indicating rapid growth[30]. - E-commerce sales in the cosmetics sector grew significantly, with year-on-year growth rates of 26%, 40%, and 45% from 2015 to 2017, indicating a shift towards online shopping[30]. - The company has established partnerships with over 3,000 Watsons stores and 400 Walmart locations, enhancing its offline presence[27]. - The company has a diverse brand portfolio, including "Yunifang," "Xiaomihu," and "Huayaohua," allowing it to target different consumer segments effectively[34]. - The company is focusing on market expansion, targeting an increase in market share by 5% in key regions[83]. - The company plans to enhance its online sales channels, expecting a 50% increase in e-commerce revenue by the end of 2018[83]. Investment and Capital Management - The company completed a capital increase, raising its total share capital from 160 million shares to 272 million shares[18]. - The company raised CNY 84,920.00 million through a public offering, with a net amount of CNY 78,248.01 million after deducting issuance costs[58]. - The company allocated CNY 20,464.91 million of the raised funds during the reporting period[58]. - The total investment during the reporting period was CNY 760,000,000.00, a significant increase of 1,420.00% compared to the previous year[56]. - The company has committed to improving its financing structure and increasing profitability through effective use of raised funds[93]. Research and Development - The company increased its R&D investment by 24.07% to CNY 22.09 million, reflecting a commitment to enhancing product development capabilities[47]. - The company has established a professional R&D team of over 100 personnel, focusing on various aspects of product development and quality control[41]. - Research and development investments increased by 30% in 2018, aimed at enhancing product innovation and technology[89]. - The company aims to enhance its core competitiveness by continuously improving skincare product R&D capabilities and innovating product formulas based on market trends and customer needs[92]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[79]. - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profits for the year after legal reserves are deducted[86]. - The cumulative cash distribution over the first three years post-IPO will not be less than 30% of the average annual distributable profits[87]. - The board will review the shareholder return plan at least every three years and adjust the dividend policy based on shareholder feedback[87]. - The company has committed to avoiding competition with its controlling shareholder's other businesses[86]. Compliance and Governance - The company has established strict compliance measures for shareholders regarding share transfers and lock-up commitments[81]. - The company will ensure fair and transparent transactions with related parties to protect shareholder interests[86]. - The company has committed to strict adherence to legal and regulatory requirements regarding shareholding reductions[91]. - The financial report for the first half of 2018 has not been audited[145]. - The company confirms its ability to continue as a going concern for at least 12 months from the reporting date, with no significant issues affecting this capability[186]. Operational Efficiency - The management emphasized the importance of maintaining operational efficiency, targeting a reduction in costs by 10% in the upcoming quarters[83]. - The company is committed to improving operational efficiency and reducing operating costs to enhance business performance through internal process reengineering and system establishment[92]. - The company aims to enhance its profitability and operational efficiency by improving daily management and internal controls[93]. Risks and Challenges - The company faces risks related to market demand fluctuations, particularly in the skincare market, which may impact financial performance[71]. - The company has a significant reliance on e-commerce platforms, with revenue from Tmall and Vipshop accounting for 61.21%, 57.35%, and 62.97% of total revenue from 2015 to 2017[71]. - The company is expanding its offline sales channels, which presents risks due to limited experience in managing distributors[72]. Miscellaneous - The company has not engaged in any major asset restructuring during the reporting period, but it has applied for a suspension of its stock trading due to planning for asset purchases, starting from June 19, 2018[118]. - The company has not implemented any stock incentive plans or employee stock ownership plans during the reporting period[101]. - The company reported no related party transactions during the reporting period[102].