KangLongDa(SH:603665)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was ¥905.40 million, an increase of 18.00% compared to ¥767.27 million in 2017[20]. - Net profit attributable to shareholders was ¥83.57 million, reflecting a growth of 15.66% from ¥72.25 million in the previous year[20]. - The basic earnings per share for 2018 was ¥0.84, up 9.09% from ¥0.77 in 2017[21]. - The weighted average return on equity decreased to 8.69%, down 0.69 percentage points from 9.38% in 2017[22]. - The total assets at the end of 2018 reached ¥1,334.18 million, a 16.38% increase from ¥1,146.44 million in 2017[20]. - Cash flow from operating activities was ¥57.94 million, a decrease of 24.24% compared to ¥76.48 million in 2017[20]. - The company reported a net profit of ¥16.35 million in Q1 2018, with a steady increase in revenue each quarter, reaching ¥256.22 million in Q4[23]. - The company achieved an operating revenue of CNY 905.40 million in 2018, representing a year-on-year growth of 18.00%[45]. - The net profit attributable to the parent company was CNY 83.57 million, an increase of 15.66% compared to the previous year[45]. - Total assets reached CNY 1.33 billion by the end of 2018, up 16.38% from the previous year[45]. - The company reported a total revenue of 426.78 million RMB for the reporting period[141]. - The total operating revenue for 2018 reached ¥905,396,187.22, an increase of 18.0% compared to ¥767,266,906.76 in the previous year[187]. - Net profit for 2018 was ¥85,235,391.61, representing a growth of 15.0% from ¥73,737,061.21 in the previous year[188]. Dividend Policy - The company plans to distribute a cash dividend of 2 RMB per 10 shares, totaling 20,000,000 RMB, which represents 23.93% of the net profit attributable to shareholders for 2018[5]. - The company implemented a stable cash dividend policy, distributing at least 15% of the distributable profits as cash dividends if there are no major investment plans or cash expenditures[84]. - In 2018, the company distributed cash dividends of 20 million RMB, representing a profit distribution ratio of 23.93%[87]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[88]. Audit and Compliance - The company received a standard unqualified audit report from Zhonghui Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[7]. - The company has not encountered any situations that would lead to a risk of suspension from listing[97]. - There are no significant accounting errors or changes in accounting policies reported for the period[94]. - The company has maintained a commitment to stabilize Kanglongda's stock price for three years post-listing, as per the approved plan[92]. - The company has established a comprehensive governance structure to protect shareholder rights, adhering to relevant laws and regulations[108]. - The company engaged in related party transactions for purchasing raw materials from Shanghai Jiyu and Futong International, as disclosed in previous announcements[102]. Research and Development - The company focuses on providing comprehensive hand protection solutions, with a strong emphasis on R&D and product optimization[29]. - The company has established strong R&D capabilities, with multiple research institutes focused on new materials and technologies for hand protection products, achieving a leading position in domestic R&D[39]. - The company’s research and development expenses increased by 14.21% to CNY 30.29 million, reflecting its commitment to innovation[47]. - R&D investment totaled 30,292,256.38 CNY, accounting for 3.35% of total revenue, with 96 R&D personnel representing 4.23% of the total workforce[56]. - New product development initiatives are underway, with an investment of 50 million allocated for R&D in innovative glove technology[144]. Market Strategy and Expansion - The company operates under various business models including OEM, ODM, and OBM[11]. - The company operates primarily through OEM and ODM models, with a growing OBM segment in overseas markets[29]. - The company has established subsidiaries in the US for managing and operating overseas markets, enhancing its brand presence[29]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2020[143]. - The company aims to enhance its independent innovation capabilities and upgrade its production processes to improve the technical level and quality of its products[75]. - The company will focus on expanding its market presence in Southeast Asia, South America, and Africa while consolidating its position in Europe, North America, and Japan[77]. Financial Position and Assets - The total assets as of December 31, 2018, amounted to CNY 1,334,177,544.37, an increase from CNY 1,146,436,095.96 in the previous year, reflecting a growth of approximately 16.4%[180]. - Current assets totaled CNY 688,913,584.32, slightly down from CNY 690,989,496.47, indicating a decrease of about 0.3%[180]. - Cash and cash equivalents increased to CNY 1,230,536,436.76 from CNY 159,773,168.18, showing a significant rise of approximately 669.5%[180]. - Total liabilities reached CNY 324,677,313.00, up from CNY 209,903,825.91, marking an increase of approximately 55.4%[181]. - Shareholders' equity totaled CNY 1,009,500,231.37, compared to CNY 936,532,270.05, reflecting an increase of about 7.8%[181]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, which could impact its export revenues significantly[80]. - Currency exchange rate fluctuations pose a risk to the company's performance, as most sales are settled in USD[81]. - The company is exposed to raw material price volatility, which constitutes over 50% of its main business costs[81]. - Trade protectionism, particularly from the U.S., poses a risk of increased tariffs on the company's exports, potentially affecting its financial performance[82]. Employee and Management - The company actively maintains employee rights by providing competitive salaries and various benefits, including social insurance and training opportunities[109]. - The management team consists of experienced professionals, with the chairman and general manager being 55 years old[141]. - The company has established a complete employee training mechanism and a performance management and compensation system to enhance employee welfare[152]. - The total number of employees in the parent company is 489, while the total number of employees in major subsidiaries is 1,783, resulting in a combined total of 2,272 employees[150]. Environmental Responsibility - The company emphasizes green and energy-saving practices, implementing multiple environmental protection measures in daily operations[109]. - The company was listed as a key pollutant discharge unit by the Shaoxing Ecological Environment Bureau for 2018, with wastewater discharge totaling 331,486 tons and COD actual discharge at 69.94 tons, well below the permitted limit of 169.04 tons[112]. - The company’s wastewater treatment facility operates with real-time monitoring, utilizing a "hydrolysis + aerobic" process to ensure compliance with discharge standards[114]. - The company has developed an environmental self-monitoring plan, with third-party monitoring of wastewater, waste gas, and noise emissions conducted as per regulatory requirements[118].