SYG(SZ:300740)2018-09-05 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 in the previous 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 same period last 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 reached ¥1,327,263,937.08, reflecting a 145.83% increase 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 excluding non-recurring gains and losses of ¥63,509,482.21, a slight increase of 3.43% from ¥61,405,190.95 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 previous year, reflecting an increase of approximately 13.5%[157]. - The company incurred sales expenses of CNY 370,347,896.04, which is a significant rise from CNY 189,093,890.77 in the previous year, indicating an increase of about 96.1%[157]. Market and Product Development - 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 e-commerce channel for cosmetics saw sales growth rates of 26%, 40%, and 45% from 2015 to 2017, significantly outpacing offline channels[31]. - The company has established partnerships with over 3,000 Watsons stores and 400 Walmart locations, enhancing its offline presence[27]. - The company has increased its investment in product research and development, focusing on unique formulations and product upgrades to enhance consumer experience[31]. - The company has developed a strong brand presence with multiple brands, including "Yunifang" and "Huayao Flower," catering to different consumer segments[34]. - The company successfully signed exclusive agency agreements for KIKO and OGX brands, expanding its product offerings in the Chinese market[42]. - New product launches are expected to contribute an additional 200 million RMB in revenue by the end of 2018[83]. - The company is focusing on market expansion, targeting a 15% increase in market share in the next fiscal year[83]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[90]. Financial Management and Investments - The company completed a capital increase, raising total share capital from 16 million shares to 27.2 million shares[18]. - The company has reported an increase in prepaid marketing expenses, reflecting its commitment to brand promotion[32]. - The company invested CNY 760,000,000.00 during the reporting period, a significant increase of 1,420.00% compared to the previous year[56]. - The company reported investment income for the period of CNY 6,055,682.20, representing a 7.32% return from financial products[52]. - The company recorded an asset impairment of CNY 4,122,752.20, accounting for 4.98% of total assets due to inventory and receivables provisions[52]. - The company has established a fundraising management policy to ensure the legal and compliant use of raised funds, which will be deposited in a designated account[93]. Shareholder and Compliance Matters - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its public offering[80]. - The company has established strict compliance measures for shareholders regarding share transfers and commitments[81]. - The company will not repurchase shares that were issued prior to the public offering[80]. - The company has committed to avoiding competition with its controlling shareholder's other businesses[86]. - 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 a profit distribution policy that aligns with regulatory requirements, ensuring the protection of investors' rights[93]. Operational Challenges and Risks - The company faces risks related to market demand fluctuations, particularly in the skincare sector, which is dependent on macroeconomic conditions and consumer purchasing power[71]. - The company has a high reliance on e-commerce platforms, with sales from Tmall and Vipshop accounting for 62.97% of total revenue in 2017, indicating potential risks if relationships with these platforms deteriorate[71]. - The company is expanding its offline sales channels but faces challenges due to limited experience in managing distributors across various retail formats[72]. - The company reported a significant increase in cash outflow related to investment activities, totaling ¥766,921,203.41, compared to ¥91,573,329.27 in the previous year[166]. Legal and Regulatory Compliance - The half-year financial report has not been audited[95]. - The company is currently involved in several legal disputes, with amounts involved including 1.2 million yuan, 566,700 yuan, and 150,000 yuan[98]. - The company has not undergone any bankruptcy restructuring during the reporting period[96]. - The company has not faced any media scrutiny during the reporting period[99]. - The company reported no related party transactions during the reporting period[102]. Future Outlook - The company provided a positive outlook for the second half of 2018, projecting a revenue growth rate of 20% to 25%[83]. - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue by the end of 2018[90]. - The company aims to enhance its profitability and operational efficiency by improving daily management and internal controls[93].