MILKYWAY(SH:603713)2019-03-21 16:00Financial Performance - The company achieved a net profit of ¥22,934,347.52 for the year 2018, with a 10% statutory surplus reserve of ¥2,293,434.75, resulting in a total distributable profit of ¥66,345,391.14 at year-end[7]. - The company's operating revenue for 2018 was approximately RMB 1.78 billion, an increase of 38.16% compared to RMB 1.29 billion in 2017[30]. - The net profit attributable to shareholders for 2018 was approximately RMB 132.16 million, representing a growth of 57.91% from RMB 83.69 million in 2017[30]. - The net profit after deducting non-recurring gains and losses for 2018 was approximately RMB 136.36 million, up from RMB 86.22 million in 2017[30]. - The net cash flow from operating activities for 2018 was approximately RMB 130.14 million, a decrease of 9.27% compared to RMB 143.44 million in 2017[30]. - The total assets at the end of 2018 were approximately RMB 1.86 billion, reflecting a 63.29% increase from RMB 1.14 billion at the end of 2017[30]. - The net assets attributable to shareholders at the end of 2018 were approximately RMB 1.25 billion, an increase of 73.23% from RMB 722.89 million at the end of 2017[30]. - The company's weighted average return on equity was 13.84%, an increase of 1.37 percentage points year-on-year[35]. - The company reported a total revenue of 29,080.89 million for the year, with a significant increase of 44710.31 million in total assets[14]. - The company achieved a net profit of 704.70 million, reflecting a strong performance in the logistics sector[14]. Dividend Policy - A cash dividend of ¥1.30 per 10 shares (including tax) is proposed for shareholders, based on a total share capital of 152,473,984 shares[7]. - The proposed cash dividend for 2018 is ¥1.30 per 10 shares, amounting to a total cash distribution of ¥19,821,617.92, which represents 15% of the net profit attributable to ordinary shareholders[190]. - The company plans to distribute cash dividends of at least 10% of the distributable profits each year, contingent on achieving positive net profits and receiving an unqualified audit report[184]. - The company has not adjusted its cash dividend policy during the reporting period, maintaining its commitment to shareholder returns[188]. - The cash dividend distribution is subject to approval at the annual general meeting[189]. - The company’s cash dividend policy is designed to balance immediate shareholder interests with long-term growth, ensuring sufficient cash for normal operations[188]. - The company will consider its industry characteristics, development stage, and significant capital expenditure plans when determining future dividend policies[185]. - The company’s cash dividend distribution is planned to occur annually following the approval of the annual general meeting[188]. - The company’s cash dividend policy stipulates that in the absence of significant capital expenditures, at least 80% of profits should be distributed as cash dividends during mature stages of development[185]. - The company has a three-year dividend return plan post-IPO, as approved by the annual general meeting[198]. Operational Strategy - The company plans to continue its normal operations while ensuring long-term development[7]. - The company plans to expand its market presence and enhance its supply chain services in the coming years[24]. - The company is focusing on the development of new technologies and products to improve operational efficiency[24]. - The company aims to enhance its supply chain services by integrating logistics and chemical trading, responding to the increasing demand for specialized logistics from downstream chemical enterprises[53]. - The company is actively pursuing new business strategies and market opportunities to enhance its competitive position in the logistics sector[150]. - The company is committed to maintaining compliance with regulatory requirements for all its operations, ensuring sustainable growth[31]. - The company aims to achieve mid-to-high-speed profit growth by completing the one-stop chemical logistics density construction in China and preparing for globalization, with a nationwide layout of 11 clusters to reach full production capacity[171]. - The company plans to ensure mid-to-high-speed revenue growth by forming influential trading segments and implementing full supply chain services, including profitable centralized procurement and online-to-offline distribution channels[174]. - The company is focused on enhancing core capabilities while maintaining operational excellence, emphasizing asset efficiency, quality, and user experience to create a healthy ecosystem in the chemical supply chain[174]. - The company will prioritize effective implementation of its "Five-Five" strategic plan (2019-2023) to drive transformation and future growth, ensuring alignment and active execution across the organization[175]. Risk Management - The report includes a detailed discussion of various operational risks the company may face in the future, highlighting the need for investors to understand the differences between plans, forecasts, and commitments[8]. - The company emphasizes the importance of balancing immediate and long-term shareholder interests in its profit distribution plan[7]. - The company has established a comprehensive safety management system to mitigate risks associated with the storage and transportation of hazardous chemicals, ensuring compliance with relevant regulations[180]. - The company recognizes the challenge of human resource management and talent acquisition as it expands its business, emphasizing the need for skilled professionals in the chemical supply chain sector[181]. - The company faces market risks related to the chemical industry, as its logistics demand is closely tied to the production and sales of chemical products, which can be affected by macroeconomic fluctuations[179]. Acquisitions and Partnerships - The company acquired 100% equity of Tianjin Zhiyuan for RMB 205.842 million in September 2018, funded through self-raised capital[55]. - The company purchased 82% equity of Zhenjiang Baohua Logistics for RMB 144,995,294.12, with the acquisition completed on December 25, 2018; however, no net profit was recorded for Baohua Logistics in 2018[139][140]. - The acquisition of Tianjin Zhiyuan and Baohua Logistics is part of the company's strategy to expand its market presence and enhance operational capabilities[134][139]. - The company has established long-term partnerships with major global chemical firms, enhancing its market presence[45]. - The company has established long-term partnerships with renowned chemical enterprises such as BASF, Dow Chemical, and AkzoNobel, ensuring stable and high-quality customer resources[65]. Market Outlook - The logistics industry in China saw a total logistics volume increase from RMB 125.4 trillion in 2010 to RMB 252.8 trillion in 2017, with an average annual growth rate of 10.53%[51]. - The company is positioned in a market with high potential and a high degree of professionalism in logistics services[129]. - The company anticipates a positive outlook for the next fiscal year, projecting a revenue growth of 15% based on current market trends[31]. - Future outlook remains cautiously optimistic, with ongoing investments in technology and service improvements aimed at driving revenue growth[150]. - The company is actively pursuing market expansion strategies, including the establishment of new subsidiaries and partnerships[18].