BROS(SH:601339)2019-03-21 16:00Financial Performance - In 2018, the company achieved a revenue of CNY 5,997,856,921.82, representing a 0.77% increase compared to CNY 5,952,213,875.26 in 2017[24]. - The net profit attributable to shareholders was CNY 437,525,800.72, a decrease of 10.30% from CNY 487,743,406.82 in the previous year[24]. - The net cash flow from operating activities was negative at CNY -559,618,662.05, a decline of 250.16% compared to CNY 372,677,871.29 in 2017[24]. - The company's total assets increased by 15.76% to CNY 13,510,419,080.01 from CNY 11,670,721,466.86 in 2017[27]. - The basic earnings per share decreased by 12.12% to CNY 0.29 from CNY 0.33 in 2017[28]. - The weighted average return on equity was 5.82%, down from 6.69% in the previous year, a decrease of 0.87 percentage points[28]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to CNY 419,833,233.03, a 2.04% decline from CNY 428,559,049.06 in 2017[24]. - The company achieved a total revenue of 5.998 billion RMB in the reporting period, a slight increase of 0.77% compared to the previous year[53]. - The net profit for the year was 438 million RMB, reflecting a stable performance amidst rising production costs[52]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.88 per 10 shares, totaling CNY 132,000,000[7]. - In 2018, the company distributed cash dividends of RMB 132,000,000, representing 30.17% of the net profit attributable to shareholders[101]. Industry Overview - The textile industry in China faced challenges in 2018, with the main business income for cotton spinning declining by 7.07% year-on-year to CNY 1,003.19 billion[39]. - The overall industrial added value of textile enterprises increased by 2.9% year-on-year, with the chemical fiber industry growing by 7.6%[39]. - Online retail sales of clothing and textiles grew by 22% year-on-year, indicating a strong market demand[39]. - In 2018, the textile industry achieved a total revenue of 5,370.35 billion RMB, a year-on-year increase of 2.9%[42]. - The total profit for the textile industry reached 276.61 billion RMB, with a year-on-year growth of 8.0%, accelerating by 1.1 percentage points compared to the previous year[42]. Production and Inventory - The company focuses on a production model based on sales, with raw materials accounting for approximately 70% of operating costs, primarily cotton[39]. - The sales volume of yarn reached 178,879 tons, with a production increase of approximately 10.29% year-on-year[60]. - The company reported a 26.92% increase in finished product inventory in Q4 2018 due to the impact of the US-China trade war and slowing domestic consumption growth[48]. - Inventory increased by 50.06% to ¥4,500,045,140.71, attributed to a substantial rise in raw cotton purchases[75]. Investment and R&D - The company invested 149 million RMB in technological upgrades for production lines and dyeing processes to enhance product quality and innovation[46]. - R&D expenses totaled ¥141,737,289.37, accounting for 2.36% of operating revenue, with 967 R&D personnel representing 5.23% of total employees[70]. - The company aims to enhance its innovation capabilities and product differentiation to maintain its leadership in the global color-spun yarn market[91]. - The company plans to increase R&D investment in new materials and processes to improve the proportion of new products in its offerings[91]. Risks and Challenges - The company has outlined potential risks in its future development strategies, which investors should be aware of[9]. - The company faces risks from macroeconomic fluctuations and competition within the textile industry[95]. - The company is expanding its overseas operations, which may introduce management challenges due to differing legal and economic environments[96]. - The company has a significant net exposure to foreign currency due to international procurement and exports, which may impact profitability[95]. Environmental Initiatives - The company invested over 6 million RMB in environmental protection initiatives, including a 7-kilometer sewage pipeline to achieve "zero discharge"[51]. - The company has established a comprehensive environmental risk emergency mechanism, ensuring efficient response to pollution incidents[191]. - The company employs advanced testing instruments for environmental monitoring, including the TOC-4200 COD analyzer and NHN-4210 ammonia nitrogen analyzer[192]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 32,243, a decrease from 32,672 at the end of the previous month[199]. - The largest shareholder, New National Investment Development Limited, holds 29.72% of the shares, totaling 445,799,814 shares[199]. - The second-largest shareholder, Yang Weixin, holds 18.26% of the shares, totaling 273,852,704 shares[199]. Financial Management - The company has invested a total of 1.4 billion RMB in various bank financial products, achieving annualized returns ranging from 0.54% to 5.20%[134]. - The company plans to continue its financial management strategy, focusing on bank financial products to optimize returns[134]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period was 3.966 billion RMB, accounting for 51.27% of the company's audited net assets[129].