JACK(SH:603337)2019-03-19 16:00Financial Performance - The company's operating revenue for 2018 was CNY 415,150.07 million, representing a 48.98% increase compared to CNY 278,662.31 million in 2017[29]. - The net profit attributable to shareholders of the listed company was CNY 45,424.86 million, a 40.18% increase from CNY 32,405.47 million in the previous year[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 44,065.70 million, up 42.33% from CNY 30,959.32 million in 2017[29]. - The basic earnings per share for 2018 was RMB 1.49, reflecting a 39.25% increase from RMB 1.07 in 2017[30]. - The weighted average return on equity increased to 19.81%, up 2.97 percentage points from 16.84% in 2017[30]. - The company achieved operating revenue of RMB 4,151.50 million in 2018, representing a year-on-year increase of 48.98%[40]. - The net profit attributable to the parent company was RMB 454.25 million, up 40.18% compared to the previous year[40]. - The company's operating costs rose to 2.99 billion yuan, an increase of 54.68% year-on-year, which was higher than the revenue growth rate[70]. - The industrial sewing machine segment generated revenue of 3.53 billion yuan, with a gross margin of 25.75%, down 1.97 percentage points from the previous year[70]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 2,082.53 million, compared to a positive CNY 62,493.60 million in 2017[29]. - Total assets at the end of 2018 were CNY 397,820.42 million, reflecting a 10.70% increase from CNY 359,383.95 million in 2017[29]. - The net cash flow from operating activities was -20,825,293.14 RMB, a significant decrease compared to 624,935,994.80 RMB in the same period last year[89]. - The net cash flow from investing activities was -11,782,443.51 RMB, an improvement from -1,375,712,688.05 RMB year-on-year[89]. - The net cash flow from financing activities was 90,121,753.72 RMB, down 86.65% from 675,206,123.87 RMB in the previous year[89]. - Accounts receivable increased by 61.31% to 484,307,014.43 RMB, reflecting growth in sales scale[90]. - Inventory rose by 38.14% to 908,176,549.19 RMB, attributed to seasonal sales patterns in the sewing machine market[90]. Strategic Initiatives - The company plans to distribute a cash dividend of CNY 5.20 per 10 shares, totaling CNY 159.93 million, and to increase the share capital by 4.50 shares for every 10 shares held[7]. - The company plans to enhance its focus on intelligent sewing solutions to strengthen its market position globally[47]. - The company launched a quick repair platform in 2018, allowing customers to easily place repair orders online[53]. - The company plans to enhance its R&D capabilities and accelerate the launch of new products, including automatic sewing equipment for shirts and jeans, to support high-quality development[113]. - The company aims to strengthen its brand image through the collaborative development of multiple brands, enhancing sales synergy and resource sharing[115]. Research and Development - The company applied for a total of 454 patents in 2018, including 277 invention patents, 159 utility model patents, and 18 design patents[48]. - As of December 31, 2018, the company held a total of 1,147 valid patents, comprising 309 invention patents, 650 utility model patents, and 188 design patents[48]. - The company’s R&D team grew to 862 engineers, an increase of 211 from the previous year[58]. - R&D expenses increased by 52.08% year-over-year, totaling ¥204,898,150.63, representing 4.94% of total revenue[86]. - The company established a central research institute to enhance R&D capabilities and foster collaboration among various departments[65]. Market and Sales - The company exported 3.74 million industrial sewing machines, with an export value of USD 1.11 billion, marking a year-on-year increase of 20.18%[40]. - The company’s foreign sales revenue reached RMB 2,063.24 million, an increase of 31.19% year-on-year[40]. - Industrial sewing machine production increased by 41.36% year-over-year, with sales up by 41.15%[74]. - Cutting and spreading machine production rose by 44.46%, while sales increased by 50.67% compared to the previous year[74]. - The company expanded its market presence by establishing overseas offices and optimizing channel management, leading to improved brand influence[66]. Risks and Challenges - The company has outlined potential risks in its future development strategies, which are detailed in the report[9]. - The company faces significant industry and market risks due to the highly competitive and cyclical nature of the sewing machinery industry, which may impact procurement, production, and sales management[117]. - The company is exposed to exchange rate fluctuations, particularly with USD and EUR, which can impact profitability due to the international nature of its sales[120]. - Rising raw material costs and fixed costs associated with automation and technological upgrades pose risks to the company's profitability[120]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not faced any risks of suspension or termination of listing during the reporting period[156]. - There are no major litigation or arbitration matters reported for the year[156]. - The company has not engaged in any competing business activities during the relevant period[145]. Shareholder and Dividend Policies - The company has implemented a cash dividend policy that emphasizes continuity and stability, focusing on reasonable returns for investors[123]. - The company commits to a minimum cash dividend distribution of 20% of profits during the next three years following its IPO[132]. - Shareholders holding more than 5% of the company’s shares, including Jack Investment and others, will not reduce their holdings within three years post-IPO[132]. - The company will prioritize cash dividends when conditions allow, ensuring consistency and stability in its cash dividend policy[138]. Financial Management - The total amount of guarantees provided by the company, including those to subsidiaries, is 26,483.60 million RMB, which accounts for 10.44% of the company's net assets[170]. - The company has invested a total of 97,946.66 million RMB in bank wealth management products, with an outstanding balance of 62,298.01 million RMB[171]. - The expected annualized return rate for various entrusted financial management products is around 3% to 3.7%[175]. - The company has not reported any overdue amounts in its entrusted financial management activities[171].