ZJQY(SH:600210)2019-04-29 16:00Financial Performance - The company achieved a consolidated net profit attributable to shareholders of 432,742,261.14 RMB in 2018, a decrease of 22.00% compared to 554,803,048.18 RMB in 2017[6]. - Total operating revenue for 2018 was 9,009,856,257.37 RMB, representing a year-on-year increase of 5.90% from 8,507,610,491.66 RMB in 2017[24]. - The net cash flow from operating activities was 997,989,536.41 RMB, down 5.92% from 1,060,837,615.26 RMB in the previous year[24]. - The net profit after deducting non-recurring gains and losses was 268,348,988.13 RMB, which is a 29.71% increase from 206,877,938.89 RMB in 2017[24]. - Basic earnings per share decreased by 22.13% to CNY 0.285 compared to CNY 0.366 in 2017[26]. - Diluted earnings per share also decreased by 22.13% to CNY 0.285 from CNY 0.366 in 2017[26]. - The weighted average return on equity decreased by 3.05 percentage points to 9.91% from 12.96% in 2017[26]. - Operating profit decreased by 17.34% to 554 million RMB, while net profit attributable to shareholders fell by 22.00% to 433 million RMB[48]. Assets and Liabilities - The net assets attributable to shareholders at the end of 2018 were 4,469,125,496.99 RMB, an increase of 4.81% from 4,264,144,353.71 RMB at the end of 2017[24]. - The total assets of the company at the end of 2018 amounted to 10,374,314,906.91 RMB, reflecting a 3.35% increase from 10,038,000,949.63 RMB in 2017[24]. - The company reported a total of 1,546,446,540.60 CNY in accounts receivable and notes receivable for the current period, compared to 1,478,220,323.74 CNY in the previous period, reflecting an increase of approximately 4.6%[149]. - The company’s accounts payable and notes payable combined amounted to 1,154,268,911.15 CNY in the current period, up from 1,120,817,055.20 CNY in the previous period, indicating a growth of about 3.0%[149]. Dividends and Shareholder Returns - The company proposed a cash dividend of 1.50 RMB per 10 shares, totaling 227,510,423.70 RMB, subject to approval at the shareholders' meeting[6]. - In 2018, the company declared a cash dividend of 1.5 RMB per 10 shares, amounting to 227,510,423.70 RMB, which represents 52.57% of the net profit attributable to ordinary shareholders[141]. - The cash dividend policy stipulates that the company should distribute at least 30% of the average distributable profit over the last three years in cash dividends, provided that the annual distributable profit is positive[137]. - The company has distributed a total of 3,005,159,512.75 RMB in cash dividends since its listing in 1999[140]. Operational Highlights - The company’s main business is packaging, with a focus on PET bottles and related products, contributing significantly to revenue[34]. - The beverage packaging division successfully established strategic partnerships with brands such as Yili and Vitasoy, contributing to market expansion[42]. - The company achieved a sales volume of 11 billion standard bottles in its beverage OEM business in 2018, indicating strong growth in this segment[119]. - The company’s aluminum-plastic film sales reached 8.835 million square meters, a year-on-year increase of 30.7%[43]. - The company’s core business focuses on packaging, particularly in the beverage packaging sector, which is a key growth area[88]. Research and Development - A total of 81 patents were applied for in 2018, with 81 patents granted, including 8 invention patents[46]. - R&D investment totaled CNY 159.21 million, accounting for 1.77% of operating revenue, with 453 R&D personnel representing 6.71% of total staff[68]. - The focus on R&D is evident with numerous patents aimed at improving packaging quality and functionality[90]. Environmental Responsibility - The company invested 29.51 million RMB in environmental protection initiatives, reflecting its commitment to social responsibility[47]. - The company has implemented significant environmental protection measures in response to new regulations, enhancing its compliance and operational standards[84]. - The company has maintained a commitment to environmental quality and social responsibility throughout its operations[174]. - Several subsidiaries are listed as key pollutant discharge units by environmental protection authorities, including Shanghai Ziquan Beverage Industry Co., Ltd. and Shenyang Zijiang Packaging Co., Ltd.[174]. Market Position and Strategy - The company emphasizes a competitive advantage in customer resources, production networks, and technology, positioning itself as a leader in the industry[39]. - The company is focusing on expanding its market presence in emerging markets and new customer segments over the next 2-3 years, particularly in bottled water, condiments, dairy products, cosmetics, and cooking oil[119]. - The company plans to enhance its production capabilities by adding a new film line and a flexo printing line in Shanghai in 2019[100]. - The company is exploring market expansion opportunities through new product development and strategic partnerships[90]. Risk Management - The company has identified various risk factors that may adversely affect its future development, which are detailed in the report[8]. - The company will closely monitor international crude oil prices to manage raw material cost fluctuations effectively[129]. - The company aims to mitigate risks from seasonal fluctuations in beverage sales by diversifying product offerings[132].