Fynex Textile(SH:600493)2019-03-29 16:00Financial Performance - The company achieved a net profit of CNY 15,118,668.72 for the year 2018, with a profit available for distribution to shareholders amounting to CNY 104,120,096.58 after accounting for previous year’s retained earnings and dividends paid [5]. - Total revenue for 2018 was CNY 1,004,814,069.36, representing a year-on-year increase of 22.36% compared to CNY 821,179,833.14 in 2017 [19]. - The net profit attributable to shareholders increased by 23.26% to CNY 30,603,297.65 in 2018 from CNY 24,827,833.04 in 2017 [19]. - Basic earnings per share for 2018 were CNY 0.1125, up 23.22% from CNY 0.0913 in 2017 [20]. - The net profit after deducting non-recurring gains and losses was CNY 26,342,953.59, reflecting a 16.49% increase from CNY 22,613,391.50 in 2017 [19]. - The company reported a net loss from the disposal of non-current assets amounting to -2,881,265.73 RMB in 2018, an improvement from -3,484,137.19 RMB in 2017 [23]. - The company achieved a consolidated revenue of RMB 1,004.81 million, representing a year-on-year increase of 22.36% due to growth in both domestic and international sales [40]. - The operating profit reached RMB 43.97 million, an increase of 26.23% compared to RMB 34.83 million in the previous year, driven by higher selling prices and improved machine efficiency [40]. - The company’s total assets rose to CNY 1,372,853,199.05, marking a 26.12% increase from CNY 1,088,494,988.95 in the previous year [19]. - The company’s retained earnings at the end of 2018 were CNY 93,240,096.58, available for future distribution [5]. Cash Flow and Investments - The net cash flow from operating activities was CNY 31,048,472.04, a decrease of 32.35% compared to CNY 45,898,672.67 in 2017 [19]. - The net cash flow from financing activities surged by 1,335.48% to ¥78.01 million, compared to ¥5.43 million in the previous year [42]. - The net cash flow from investing activities worsened by 82.27%, reaching -¥87.44 million [65]. - The company has invested approximately RMB 850 million in the relocation project of the new factory in Fujian Jinjiang Economic Development Zone, with an annual production capacity of 100,000 tons of knitted printed fabric [135]. - The company plans to invest CNY 30 million in equipment procurement and CNY 150 million in the construction of the Antong project in 2019, funded by self-owned funds and bank financing [108]. Research and Development - Research and development expenses rose significantly by 34.21% to ¥19.22 million, compared to ¥14.32 million in the previous year [42]. - The company completed 15 patent applications in 2018, including 12 invention patents and 3 utility model patents, with 3 invention patents granted [34]. - The company has committed to increasing its technological innovation and product development efforts [103]. - The company is investing 50 million RMB in R&D for new technologies aimed at improving production efficiency and reducing waste [171]. Market and Sales - The company maintains a focus on high-end product markets, with 70-80% of its products indirectly exported to regions including Hong Kong, the Middle East, Europe, and Japan [26]. - Domestic revenue increased by 21.25%, while international revenue rose by 23.80% compared to the previous year [46]. - The company plans to enhance its market share by focusing on high-quality, innovative mid-to-high-end products [105]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on sustainable textile solutions [171]. Environmental and Social Responsibility - The company has focused on sustainable development, implementing technology upgrades to reduce water and energy consumption in production processes [38]. - The company has established a robust wastewater treatment facility with a capacity of 25,000 tons per day, ensuring effective waste management [146]. - The company has invested a total of RMB 1,744,285.87 in targeted poverty alleviation efforts during 2018, with RMB 849,335.25 allocated for vocational skills training, benefiting 378 individuals [141]. - The company has committed to enhancing its social responsibility efforts and fostering a positive environment for poverty alleviation within its operations [144]. Governance and Shareholder Relations - The company has a clear governance structure with independent directors and a diverse board composition [169]. - The company maintains a good relationship with shareholders, ensuring equal rights for all shareholders, especially minority shareholders [181]. - The board of directors has established various committees, including an audit committee and a remuneration and assessment committee, to enhance governance [182]. - The company will provide various channels for communication with shareholders, especially minority shareholders, to gather their opinions on dividend proposals [116]. Future Outlook and Challenges - The company faces risks from international market uncertainties, cotton price fluctuations, RMB exchange rate volatility, and increased environmental regulatory pressures in 2019 [106]. - The company recognizes the challenges posed by international trade protectionism and aims to adapt its strategies accordingly [102]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% [171]. - The management team emphasized the importance of sustainability in future operations, with a goal to reduce carbon emissions by 25% over the next five years [171].