AIM(SZ:300446)2018-03-19 16:00Revenue and Profitability - The company's revenue growth is significantly driven by the stable sales of thermal magnetic tickets, which are entirely sold to printing enterprises under China Railway Corporation[5]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[81]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2017, representing a year-over-year increase of 10%[151]. - The company achieved a total operating revenue of CNY 258.23 million, a decline of 1.23% from CNY 261.44 million in the previous year[43]. - The net profit attributable to shareholders for 2017 was ¥104,378,756.34, down 3.33% from the previous year[23]. - The company reported a net profit margin of 12% for 2017, up from 10% in the previous year[151]. - The company plans to increase cash dividends, aiming for a level not lower than the previous year's standard after the completion of the current issuance[92]. Research and Development - The company is actively developing new products such as electromagnetic wave protection films and pressure testing films, which are seen as potential growth drivers[9]. - The company has made significant progress in R&D projects, including electromagnetic wave protection films and magnetic water treatment resins, entering trial production stages[38]. - The company has committed to investing 100 million RMB in R&D for new technologies over the next three years[83]. - The company has obtained 4 new patents during the reporting period, bringing the total number of patents to 27[35]. - The company has a total of 9 board members, including 3 independent directors[147]. Market and Sales Strategy - The company is focused on expanding its market share in other applications for magnetic stripe products to mitigate the impact of EMV migration[8]. - The company is actively pursuing market expansion, targeting an increase in international sales by 30% over the next year[81]. - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue by the end of the next fiscal year[81]. - The company is expanding its market presence, targeting a 25% increase in market share in the Asia-Pacific region over the next two years[98]. - The company aims to enhance product quality and reduce costs through improved production processes and quality control measures[69]. Financial Position and Cash Flow - The total assets at the end of 2017 increased by 12.81% to ¥612,640,114.37 compared to the end of 2016[23]. - The cash flow from operating activities for 2017 was ¥117,496,336.87, a decrease of 1.73% from 2016[23]. - The total current assets increased from ¥396,673,664.10 at the beginning of the year to ¥467,014,369.16 at the end of the year, representing an increase of approximately 17.7%[199]. - Cash and cash equivalents decreased from ¥84,262,582.84 to ¥28,751,649.36, a decline of about 65.9%[199]. - The company has ongoing projects reflected in construction in progress, which increased from ¥7,436,876.84 to ¥18,175,847.38, a growth of about 144.5%[200]. Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[3]. - The company has established a framework for managing related party transactions to prevent conflicts of interest[86]. - The company has committed to maintaining the integrity and accuracy of its financial disclosures[89]. - The independent directors have not raised any objections to company matters during the reporting period, indicating a consensus on governance[175]. - The company has adhered to all commitments made to minority shareholders, ensuring transparency and trust[98]. Dividend Policy - The company plans to distribute a cash dividend of 4.00 RMB per 10 shares (including tax) based on 122,800,000 shares[10]. - The cash dividend represents 47.06% of the net profit attributable to ordinary shareholders, which is RMB 104,378,756.34 for 2017[79]. - The total distributable profit for the year 2017 is RMB 352,937,475.38, with cash dividends accounting for 100% of the profit distribution[77]. - The company maintains a profit distribution policy that requires a minimum cash dividend ratio of 20% when there are significant capital expenditure arrangements[74]. Operational Efficiency - The company reduced inventory for magnetic stripe products by 71.43%, optimizing stock management[46]. - The company has strengthened internal management systems, enhancing risk control and operational efficiency across various departments[39]. - The company is implementing cost-cutting measures aimed at reducing operational expenses by 8% in the next fiscal year[151]. - The company has established an annual training plan focusing on management, technical skills, and legal training to enhance employee capabilities[159]. Shareholder Structure - The total number of shares before the change was 122,800,000, with 38.70% being restricted shares and 61.30% being unrestricted shares[128]. - The largest shareholder, China Lucky Group Co., Ltd., holds 30.61% of the shares, totaling 37,590,154 shares, with no change during the reporting period[134]. - The company has a total of 47,517,880 restricted shares, with 853,762 shares being unlocked, resulting in 46,664,124 remaining[131]. - The company has not issued any new securities or made significant changes to its asset and liability structure during the reporting period[132]. Risk Management - The company acknowledges the risk of declining prices for thermal magnetic tickets due to increased bargaining power of downstream customers[7]. - The company has not sold any significant assets or equity during the reporting period[65][66]. - The company confirmed that it will not use related transactions to transfer profits from its subsidiary, ensuring the protection of shareholder rights[88]. - The company will ensure that any related transactions are conducted on a fair and reasonable basis, adhering to market prices[87].