ANJI FOOD(SH:603696)2019-04-02 16:00Financial Performance - The company's operating revenue for 2018 was RMB 339,010,123.47, representing a 33.58% increase compared to RMB 253,785,916.92 in 2017[20]. - The net profit attributable to shareholders for 2018 was RMB 39,482,338.77, a decrease of 4.26% from RMB 41,237,289.90 in 2017[20]. - The net profit after deducting non-recurring gains and losses was RMB 31,198,185.52, down 10.58% from RMB 34,888,845.01 in 2017[20]. - Basic earnings per share decreased by 4.00% to CNY 0.24 in 2018 from CNY 0.25 in 2017[22]. - Diluted earnings per share also decreased by 4.00% to CNY 0.24 in 2018 from CNY 0.25 in 2017[22]. - Net profit attributable to shareholders for Q4 2018 was CNY 8,888,544.33, down from CNY 9,360,611.77 in Q3 2018[23]. - Total revenue for Q4 2018 reached CNY 107,483,838.94, showing an increase compared to CNY 77,151,582.45 in Q3 2018[23]. - The gross margin for the main business was 36.69%, down by 2.93 percentage points year-on-year[38]. - The gross profit margin decreased by 2.93 percentage points to 36.69% compared to the previous year[43]. - The company's main business revenue for 2018 was RMB 277,418,070.13, primarily from the sales of condiments[167]. Cash Flow and Assets - The net cash flow from operating activities was RMB 34,202,997.38, a significant increase of 142.37% compared to a negative cash flow of RMB -80,723,327.55 in 2017[21]. - The company reported a net cash flow from operating activities of CNY -158,220,884.98 for the year 2018[24]. - The total assets were RMB 695,898,137.96, a decrease of 8.99% from RMB 764,630,205.81 at the end of 2017[21]. - The net assets attributable to shareholders decreased by 10.23% to RMB 646,689,888.84 from RMB 720,406,229.98 at the end of 2017[21]. - Cash and cash equivalents at the end of 2018 were RMB 257,983,460.13, down from RMB 282,418,552.60, a decrease of about 8.6%[175]. - The total liabilities at the end of 2018 were RMB 49,208,249.12, compared to RMB 44,223,975.83 at the beginning of the year, indicating an increase of about 11.2%[176]. - The total equity attributable to shareholders decreased from RMB 720,406,229.98 to RMB 646,689,888.84, representing a decline of approximately 10.2%[177]. Investments and R&D - The company invested RMB 9,038.45 million in the construction of a production project for 10,000 tons of seasoning bone soup[36]. - R&D expenses totaled 10,605,433.06, representing 3.13% of total revenue, with a year-on-year increase of 24.86%[54][55]. - The company has 8 patents and is a key drafter of several industry standards, showcasing its R&D capabilities[32]. - The company plans to expand its product structure and invest in R&D to enhance market competitiveness while focusing on the seasoning industry and developing health and nutrition products[78]. Market and Sales - The company expanded its product line to include over 500 varieties of seasonings and five types of probiotic solid beverages in the health food category[28]. - The company expanded its sales network, covering 2,217 NKA stores, 3,842 BC supermarkets, and 12,840 distribution points[35]. - The company reported a 205.95% increase in e-commerce channel sales, indicating strong growth in online sales[38]. - The overseas market saw a significant revenue increase of 163.79%, totaling 121.29 million, driven by expansion in Southeast Asia[45]. - The company is focusing on overseas market expansion, particularly in Southeast Asia, by establishing subsidiaries in Hong Kong, Cambodia, and New Zealand[79]. Shareholder and Governance - The company plans to distribute a cash dividend of RMB 5.85 per 10 shares, totaling RMB 98,280,000, and will increase its share capital by 4 shares for every 10 shares held[5]. - The company has established a profit distribution policy that emphasizes continuous and stable cash dividends, with a minimum cash distribution of 30% of the distributable profit when the net profit is positive[84]. - In 2018, the company distributed a total of 39,482,338.77 RMB in cash dividends, representing 11.85% of the net profit attributable to shareholders[85]. - The company has committed to not transferring or entrusting the management of its shares for a period of 36 months post-IPO, ensuring stability in shareholding[87]. - The company has implemented measures to stabilize its stock price, which will be activated if the closing price remains below the audited net asset value per share for the previous fiscal year after the stabilization measures are completed[93]. Risks and Challenges - The company faced challenges including rising raw material prices and trade frictions, impacting overall profitability[34]. - The company faces risks related to food safety control, raw material price fluctuations, and potential declines in industry prosperity due to macroeconomic conditions[81]. Compliance and Internal Control - There were no significant lawsuits or arbitration matters during the reporting period[106]. - The company has not reported any significant issues regarding the integrity of its controlling shareholders or actual controllers[106]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year[164]. - There were no significant deficiencies in internal control reported for the year 2018[161].