JSSS(SH:600220)2019-04-17 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 135,986,340.19 for the year 2018, with the parent company reporting a net profit of RMB 140,369,750.92[5]. - Operating revenue for 2018 reached CNY 2,420,302,582.38, a 12.53% increase from CNY 2,150,841,213.13 in 2017[22]. - Net profit attributable to shareholders was CNY 135,986,340.19, reflecting a 12.39% increase from CNY 120,993,936.10 in the previous year[22]. - The operating profit for 2018 was CNY 183 million, representing a year-on-year increase of 52.51%[40]. - The company reported a total of CNY 8,772,216.03 in non-recurring gains and losses for 2018, compared to CNY 5,528,687.69 in 2017[24]. - The company reported a net profit of RMB 150,990,546.34 for 2018, compared to RMB 135,966,833.98 in 2017, reflecting a growth of 11.1%[158]. - Basic and diluted earnings per share for 2018 were both RMB 0.0763, compared to RMB 0.0678 in 2017, indicating an increase of 7.4%[159]. Dividend and Profit Distribution - A cash dividend of RMB 0.30 per 10 shares is proposed, totaling RMB 53,500,209.78 to be distributed to shareholders[5]. - The remaining undistributed profit for the parent company after the dividend distribution will be RMB 163,016,103.77, to be carried forward to future years[5]. - The company reported a retained earnings balance of RMB 163,016,103.77 after the proposed dividend distribution[72]. - The company has not distributed dividends or increased capital reserves in 2017 due to investment needs in its Ethiopia project[72]. Research and Development - The company applied for 63 patents in 2018, with 36 patents granted during the same period[32]. - The company’s R&D expenses increased by 25.07% to CNY 18 million in 2018[39]. - The total R&D expenditure was CNY 18,072,219.29, accounting for 0.75% of total revenue, with a year-on-year increase of 25.07% in R&D expenses[52]. Operational Highlights - The textile manufacturing segment continues to focus on high-end woolen fabrics, with a wide range of products including over a thousand varieties of fine wool and blended fabrics[26]. - The company operates three thermal power plants, generating electricity and steam for local demand, contributing to its diversified business model[28]. - The textile industry generated revenue of CNY 1.77 billion, a 16.05% increase year-on-year, while the gross margin decreased by 2.57 percentage points to 21.14%[37]. - The production volume of fabrics was 2,354.70 million meters, with a sales volume of 2,329.80 million meters, indicating a year-on-year sales increase of 2.71%[44]. Cash Flow and Financial Position - The net cash flow from operating activities decreased by 65.07% to CNY 137,976,797.24 from CNY 394,962,696.82 in 2017[22]. - The company's total assets increased by 3.24% to CNY 4,874,565,537.26 at the end of 2018 compared to CNY 4,721,753,325.44 at the end of 2017[22]. - The company's inventory increased by 35.22% to CNY 1,119,713,009.10, while cash and cash equivalents decreased by 57.48% to CNY 405,981,303.99[54]. - The company reported a significant increase in short-term borrowings by 30.15% to CNY 1,610,878,440.00[54]. Risk Factors and Management - The report includes a risk statement indicating that future plans and strategies are subject to uncertainties and do not constitute a commitment to investors[6]. - The company faces risks from rising raw material prices, particularly wool and coal, which could impact production costs[68]. - Labor costs are increasing, posing a risk to profit growth; the company is investing in automation to mitigate this[68]. - The company has detailed risk factors and countermeasures in the report's section on operational discussions and analyses[7]. Corporate Governance - The company has established a sound corporate governance structure, ensuring compliance with relevant laws and regulations[128]. - The audit report issued by Lixin Certified Public Accountants is a standard unqualified opinion[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by the responsible persons, including the chairman and accounting supervisor[4]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[79]. Environmental Compliance - The company has implemented pollution prevention facilities, including wastewater treatment and flue gas treatment systems, which are operating normally and meet relevant emission standards[95]. - The company has obtained environmental permits for its projects, ensuring compliance with environmental impact assessment regulations[96]. - The company reported no significant environmental issues despite facing fines of RMB 40,000 and RMB 80,000 for environmental violations[99]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 125,130, down from 135,188 at the end of the previous month[105]. - The largest shareholder, Jiangsu Sunshine Group, held 151,272,162 shares, representing 8.48% of total shares, with 150,000,000 shares pledged[107]. - The top ten shareholders collectively held 30.02% of the voting rights at the end of the reporting period[108]. Future Outlook - The company plans to enhance its core competitiveness by focusing on technology, quality, and talent, aiming for high-quality development in 2019[66]. - The company will accelerate its globalization strategy, aiming to establish a strong Chinese high-end brand in international markets[66]. - The company is actively investing in technology upgrades and product innovation to enhance competitiveness in the textile industry[60].