BROS(SH:601339)2019-05-09 16:00Financial Performance - The company's operating revenue for 2018 was CNY 5,997,856,921.82, representing a year-on-year increase of 0.77% compared to CNY 5,952,213,875.26 in 2017[24]. - The net profit attributable to shareholders of the listed company for 2018 was CNY 437,525,800.72, a decrease of 10.30% from CNY 487,743,406.82 in 2017[24]. - The net profit after deducting non-recurring gains and losses was CNY 419,833,233.03, down 2.04% from CNY 428,559,049.06 in the previous year[24]. - The net cash flow from operating activities was negative at CNY -559,618,662.05, a significant decline of 250.16% compared to CNY 372,677,871.29 in 2017[24]. - Basic earnings per share for 2018 were CNY 0.29, down 12.12% from CNY 0.33 in 2017[28]. - The weighted average return on net assets for 2018 was 5.82%, a decrease of 0.87 percentage points from 6.69% in 2017[28]. - The total profit for the year was CNY 40.171 billion, down 2.64% year-on-year[47]. - The company reported a net cash outflow from operating activities of ¥-559,618,662.05, a decrease of 250.16% compared to the previous year, primarily due to a significant increase in raw material purchases[77]. Revenue and Sales - In Q1 2018, the company reported revenue of approximately ¥1.34 billion, with a net profit attributable to shareholders of approximately ¥87.81 million[29]. - In Q3 2018, the revenue increased to approximately ¥1.62 billion, while the net profit attributable to shareholders was approximately ¥139.20 million[29]. - In Q4 2018, the company experienced a net loss attributable to shareholders of approximately -¥27.67 million, despite revenue of approximately ¥1.44 billion[29]. - In 2018, the company's main business revenue from cotton yarn processing was CNY 1,003.185 billion, a decrease of 7.07% compared to the previous year[47]. - The company achieved an export delivery value of CNY 30.893 billion, an increase of 3.61% compared to the same period last year[47]. - The sales volume of yarn reached 178,879 tons, with a production increase of 10.29% year-on-year, attributed to expanded capacity in the Vietnam factory[67]. - The company faced a decline in sales in the domestic market, with revenue from China dropping by 8.36% year-on-year[63]. Assets and Liabilities - The company's total assets at the end of 2018 were CNY 13,510,419,080.01, an increase of 15.76% from CNY 11,670,721,466.86 at the end of 2017[27]. - The net assets attributable to shareholders of the listed company increased by 6.44% to CNY 7,733,564,821.48 from CNY 7,265,894,382.52 in 2017[27]. - Cash and cash equivalents at the end of the period amounted to CNY 1,154,109,150.50, representing 8.54% of total assets, a decrease of 3.21% compared to the previous period[81]. - Inventory increased significantly to CNY 4,500,045,140.71, accounting for 33.31% of total assets, reflecting a 50.06% increase due to higher cotton procurement[81]. - Short-term borrowings increased to CNY 3,058,005,206.94, which is 22.63% of total assets, marking a 63.68% increase attributed to the growth in bank short-term loans[81]. - The company’s total liabilities include CNY 1,598,329,920.53 in bonds payable, which is 11.83% of total assets, showing a slight increase of 0.17%[82]. Research and Development - The company has been focusing on the research, production, and sales of colored spun yarn, leveraging a unique "small batch, multiple varieties, quick response" business model[39]. - The company launched 11 sets of trendy color cards and filed for 3 invention patents during the reporting period[53]. - Research and development expenses totaled ¥141,737,289.37, representing 2.36% of operating revenue, with 967 R&D personnel, accounting for 5.23% of total staff[76]. - The company plans to enhance R&D efforts for new products and technologies, focusing on differentiated product features and quality standardization[100]. Market and Competition - The company faces intense competition in the textile industry, particularly in the color-spun yarn segment, which may increase as more traditional textile companies enter this higher-margin market[101]. - Rising costs of raw materials, energy, and labor are significant risks, with domestic water and electricity prices trending upward and labor shortages becoming more pronounced[101]. - The textile industry is closely linked to macroeconomic conditions and national policies, with a significant impact from the ongoing US-China trade tensions, leading to cautious ordering from downstream customers[101]. Environmental Compliance - The company has implemented strict compliance with environmental laws and regulations for new and expanded projects[197]. - The actual COD discharge from wastewater was 132.18 tons/year, significantly below the permitted 196.07 tons/year[192]. - The actual ammonia nitrogen discharge was 4.03 tons/year, well under the permitted 24.51 tons/year[192]. - The company has established a comprehensive environmental risk emergency mechanism, ensuring efficient response to pollution incidents[198]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.88 per 10 shares, totaling CNY 132,000,000, based on a total share capital of 1,500,000,000 shares[7]. - In 2018, the company distributed a cash dividend of CNY 132,000,000, with a payout ratio of 30.17% of the net profit attributable to shareholders[107]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends reflecting a stable profit distribution strategy[107]. Investment and Financial Management - The company has engaged in cash asset management, with a total of 550 million RMB in entrusted financial management products, yielding annualized returns ranging from 0.54% to 5.20%[141]. - The company has not provided any guarantees to entities other than subsidiaries during the reporting period, nor are there any overdue guarantees[139]. - The company has not reported any significant changes in its financial management strategy[139].