TIANMA TECH(SH:603668)2019-04-29 16:00Financial Performance - The company’s financial report covers the period from January 1, 2018, to December 31, 2018[12]. - The company's operating revenue for 2018 was approximately ¥1.51 billion, representing a year-over-year increase of 32.55% compared to ¥1.14 billion in 2017[21]. - Net profit attributable to shareholders decreased by 19.06% to approximately ¥73.55 million in 2018 from ¥90.86 million in 2017[21]. - The net cash flow from operating activities significantly increased by 168.54% to approximately ¥244.01 million in 2018, compared to ¥90.87 million in 2017[21]. - The company's total assets grew by 28.74% to approximately ¥2.13 billion at the end of 2018, up from ¥1.66 billion at the end of 2017[21]. - The basic earnings per share decreased by 19.35% to ¥0.25 in 2018 from ¥0.31 in 2017[21]. - The weighted average return on equity was 8.3% in 2018, down from 12.01% in 2017, primarily due to increased expenses related to the "Ten Fish" strategy and the establishment of 24 sub-business units[21]. - The company achieved a revenue of CNY 1,506.18 million in 2018, representing a year-on-year growth of 32.55%[62]. - The total profit for the period was CNY 84.86 million, a decrease of 20.21% compared to the previous year[62]. - The net profit attributable to the parent company was CNY 73.55 million, down 19.06% year-on-year[62]. Dividend Policy - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders, pending approval at the 2018 annual general meeting[6]. - The cash dividend for 2018 is calculated based on a total share capital of 299,769,202 shares, with the actual amount to be confirmed on the record date[121]. - The cash dividends for the past three years were 0.65 RMB (2017), 0.50 RMB (2018), and 0.80 RMB (2016) per 10 shares, with corresponding payout ratios of 21.23%, 20.38%, and 21.12% respectively[119]. - The total cash dividends paid in 2017 represented 21.23% of the net profit attributable to ordinary shareholders[119]. - The company does not plan to issue new shares or convert capital reserves into share capital for the 2018 fiscal year[120]. Audit and Compliance - The company reported a standard unqualified audit opinion from its accounting firm, ensuring the accuracy and completeness of the financial report[5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not conducted any capital reserve transfers to increase share capital during the reporting period[6]. - The company has appointed Deloitte Touche Tohmatsu CPA Ltd. as its auditing firm for the reporting period[19]. - The company has not encountered any non-standard audit opinions from its accounting firm[129]. - The company has not reported any significant accounting errors or changes in accounting policies that would affect its financial statements[132]. Research and Development - The company plans to continue expanding its sales and technical teams to enhance research and development capabilities as part of its long-term strategy[21]. - The company invested approximately 55.95 million yuan in R&D for high-efficiency feed products, focusing on species like eel and grouper[52]. - The company’s R&D expenses increased by 50.63% to CNY 55.95 million, reflecting a focus on innovation[64]. - The company has established strategic partnerships with several universities and research institutions to enhance its research and development capabilities[44]. - The company established a research and development team consisting of professionals in animal nutrition, aquaculture, and aquatic disease management, enhancing its innovation capabilities[46]. Market Position and Strategy - The company is a national high-tech enterprise specializing in the research, production, and sales of special aquatic feed, with a comprehensive product range covering five major series[33]. - The core product, eel feed, has maintained the highest sales volume in the country, while other products like yellow croaker and grouper feed rank among the top in the domestic market[33]. - The company is actively expanding into the animal health and food industries, extending its feed industry chain both vertically and horizontally[33]. - The company aims to achieve the top market share in ten specific varieties of special aquatic feed products in the short term, enhancing its competitive position[55]. - The company will implement a "Ten Fish" strategy to become the market leader in ten specific types of special aquatic feed products[102]. Operational Management - The company has established a "center + subsidiary" operational model, with 10 wholly-owned subsidiaries and 3 controlling subsidiaries to support its business development[35]. - Over 90% of the company's raw material procurement is conducted through a centralized purchasing model, ensuring quality control and cost reduction[35]. - The company employs an order-based production model, requiring customers to provide feed demand information at least 3 days in advance[36]. - The sales strategy combines direct sales and distribution, adapting to market maturity and scale of aquaculture operations in different regions[36]. - The company has implemented a procurement management model combining centralized and authorized purchasing, effectively controlling raw material costs and ensuring stable supply[47]. Environmental and Social Responsibility - The company invested CNY 1.86 million in the installation of three sets of flue gas treatment equipment for steam boilers, ensuring compliance with national emission standards[160]. - The company actively participated in environmental protection initiatives, including a public welfare activity for marine debris cleanup and a feed bag recycling program[160]. - The company has committed to increasing its poverty alleviation efforts and enhancing measures to ensure the long-term stability of poverty alleviation projects[154]. - The company provided CNY 1.501 million to support the basic security for impoverished disabled individuals and contributed CNY 840,000 for charitable activities during the Double Ninth Festival[161]. - The company has established the "Chen Shanfu Teaching Award Fund" to support educational public welfare initiatives[151]. Shareholder and Governance - The company has committed to not transferring or entrusting shares held by major shareholders for a period of 36 months post-IPO[123]. - The company has a plan to ensure that any violations of share transfer commitments will result in penalties, including forfeiture of cash dividends equivalent to the amount gained from unauthorized share sales[123]. - The company will announce any share reduction intentions three trading days in advance, ensuring transparency in its shareholding changes[123]. - The company has established a policy to ensure compliance with legal regulations regarding share reductions after the lock-up period[125]. - The company has implemented an equity incentive plan, with various shareholders having shares that will unlock in a phased manner over the next 48 months[192].