SPM(SH:601900)2019-04-17 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥5.60 billion, representing a 6.60% increase compared to ¥5.25 billion in 2017[25]. - Net profit attributable to shareholders for 2018 was approximately ¥655.29 million, a 7.18% increase from ¥611.42 million in 2017[25]. - The net profit after deducting non-recurring gains and losses for 2018 was approximately ¥536.74 million, showing a significant increase of 23.60% from ¥434.27 million in 2017[25]. - The net cash flow from operating activities for 2018 was approximately ¥473.36 million, a 42.41% increase compared to ¥332.39 million in 2017[25]. - The company's total assets at the end of 2018 were approximately ¥9.32 billion, reflecting a 2.39% increase from ¥9.10 billion at the end of 2017[25]. - The weighted average return on equity for 2018 was 12.66%, a decrease of 2.02 percentage points from 14.68% in 2017[26]. - Basic earnings per share for 2018 was ¥0.73, a slight increase of 1.39% from ¥0.72 in 2017[26]. - The company achieved a net profit of 655 million yuan, representing a year-on-year growth of 7.18%[69]. - Total revenue for the company reached 5.6 billion yuan, an increase of 6.60% compared to the previous year[70]. Dividend Distribution - The company plans to distribute a cash dividend of 2.20 CNY per 10 shares, totaling 197,092,844.52 CNY based on the total share capital of 895,876,566 shares as of the end of 2018[6]. - For the year 2018, the proposed cash dividend is RMB 2.20 per 10 shares, amounting to a total distribution of RMB 197,092,844.5, pending shareholder approval[141]. - The cash dividends for 2018 and 2017 represented 30.08% and 30.01% of the net profit attributable to ordinary shareholders, respectively[141]. - The total number of shares for dividend calculations is 895,876,566 shares for both 2017 and 2018[140]. - The company did not propose any stock dividends or capital reserve transfers for the years 2017 and 2018[140]. Audit and Compliance - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[5]. - The board of directors and senior management confirmed the accuracy and completeness of the financial report, assuming legal responsibility for any misstatements[4]. - The company is committed to ensuring the financial report's authenticity and accuracy, as stated by the responsible personnel[5]. - The company has committed to maintaining compliance with laws and regulations regarding related party transactions during the reporting period[145]. - The company has ensured that there are no direct or indirect competitive activities with its controlling shareholder, Guangban Group[145]. Business Operations and Strategy - The company published 3,576 general books, 205 audio-visual products, and 254 electronic publications in 2018, emphasizing the strategy of strengthening the main business and expanding the industry[38]. - The company secured its position as the total supplier of free textbooks, with a total of 16.474 million copies confirmed, generating a value of approximately 1.22381 billion yuan, an increase of 9.19% year-on-year[47]. - The market share of the People's Education Edition textbooks reached new highs, with 67.59% for compulsory education and 70.23% for high school education, completing the printing of 109.1 million copies with a total value of 841 million yuan, representing year-on-year growth of 11% and 13% respectively[47]. - The company has developed 19 types of self-owned new curriculum standard textbooks, used in 30 provinces, achieving a high market share both in Guangdong and nationwide[42]. - The company is actively advancing its cultural real estate strategy, with the South Media Square project officially breaking ground on December 28, 2018[68]. - The company is focused on becoming the "total supplier of digital textbooks" in Guangdong, aiming for a breakthrough in market scale[135]. - The company plans to enhance its product line in the education sector, expanding into educational equipment and digital education products[135]. Market and Sales Performance - The distribution of primary and secondary school textbooks achieved a scale exceeding 1.7 billion yuan, representing a year-on-year growth of 9.5%[53]. - The revenue from higher education textbooks reached 220 million yuan, with a year-on-year increase of 22.8%[53]. - The company’s large customer business generated 197 million yuan in revenue, reflecting a growth of 26.5% and maintaining high growth for six consecutive years[53]. - The education equipment market saw a revenue of 84.31 million yuan, marking a significant year-on-year growth of 164.9%[53]. - The company operates 112 central bookstores, including 12 "Four Read" bookstores, and has expanded its network by adding 57 new outlets, netting a total of 964 sales points[108]. Financial Management and Investments - The company has entrusted a total of RMB 912.24 million in self-owned funds for bank financial management, with an outstanding balance of RMB 2 million[185]. - The company has also entrusted RMB 115.24 million in raised funds for bank financial management, with no outstanding balance[185]. - The company reported a total of 5,800 million in financial products with a return rate of 4.90%[189]. - The company achieved a recovery of 135.11 million in principal and interest from financial products[189]. - The company made significant equity investments, including 416.56 million RMB in Guangzhou Bank, acquiring a 1.13% stake, and 87.68 million RMB in Heilongjiang Publishing Media Co., Ltd., acquiring a 4.41% stake[120]. Risks and Challenges - The company faces risks related to tax policy changes, digital transformation challenges, and potential increases in raw material costs[136]. - The company is facing significant litigation matters, which have been disclosed in temporary announcements[158]. Corporate Governance - Guangban Group guarantees the independence of the company in terms of personnel, assets, finance, and operations post-transaction[145]. - The company has committed to providing accurate and complete information in its restructuring disclosures, ensuring no misleading statements or omissions[145].