Leysen(SH:603900)2019-04-18 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 209,607,191.10 in 2018, a decrease of 32.21% compared to RMB 309,207,135.57 in 2017[3]. - Total revenue for 2018 was RMB 1,663,265,250.53, down 15.29% from RMB 1,963,559,788.17 in 2017[19]. - Basic earnings per share decreased to RMB 0.62 in 2018 from RMB 0.92 in 2017, reflecting a decline of 32.61%[20]. - The weighted average return on equity decreased to 9.01% in 2018, down 5.34 percentage points from 14.35% in 2017[20]. - The company reported a net profit after deducting non-recurring gains and losses of RMB 169,256,208.65, down 40.96% from RMB 286,684,905.54 in 2017[19]. - The company reported a significant increase in non-operating income, which rose by 104.00% to ¥22,003,912.78[51]. - The company achieved a revenue of 1.663 billion RMB in 2018, a year-on-year decrease of 15.29%[48]. - The net profit attributable to the parent company was 210 million RMB, down 32.21% year-on-year[48]. Cash Flow and Assets - Cash flow from operating activities increased by 4.33% to RMB 168,468,110.91 in 2018 compared to RMB 161,468,480.27 in 2017[19]. - The company's total assets as of the end of 2018 were RMB 2,781,267,718.22, a decrease of 1.75% from RMB 2,830,900,739.81 at the end of 2017[19]. - The company's net cash flow from operating activities increased by 4.33% to ¥168,468,110.91, while the net cash flow from investing activities improved by 86.36% to -¥106,707,116.45[50]. - Cash and cash equivalents decreased significantly from ¥144,333,302.26 to ¥70,722,698.34, a decline of about 51.0%[187]. - Total liabilities decreased from CNY 544,797,353.43 at the beginning of the year to CNY 380,660,103.28 by year-end, a reduction of approximately 30.1%[188]. Market and Product Strategy - The company launched several new product lines, including the "MY QUEEN IRIS" and "Royal Carriage" series, aimed at capturing the luxury market and appealing to modern consumers[27]. - The company aims to leverage its royal brand heritage and innovative product designs to capture a larger share of the growing diamond jewelry market in China[31]. - The company has established a comprehensive marketing network across China, utilizing both direct sales and franchise models, and is actively expanding its online presence through e-commerce initiatives[33]. - The company is focusing on brand upgrade and has established a new brand positioning of "royal quality, cherished for the next generation" after acquiring a Belgian royal jewelry supplier[41]. - The company has optimized its channel strategy, resulting in a 4% year-on-year increase in store efficiency in the top 100 malls[46]. Operational Changes and Management - The company has initiated a "partner project" to enhance operational autonomy and has adopted an amoeba management model to improve business analysis capabilities[40]. - The company is transitioning from a control-oriented organization to an empowerment-oriented one, focusing on customer-centric strategies[40]. - The company has upgraded its CRM and BI systems to enhance data management and improve operational efficiency[47]. - The company has established a comprehensive human resources management and incentive system to protect employee rights and focus on their physical and mental health[126]. - The company has implemented a training system that combines internal and external training to develop high-quality talent[158]. Risks and Compliance - The company has outlined potential risks in its operations, which are detailed in the report[5]. - The company recognizes risks from macroeconomic uncertainties that could impact consumer purchasing power and overall performance[85]. - The company faces intense brand competition in the jewelry industry, necessitating continuous product innovation and brand differentiation[86]. - The company emphasizes the importance of franchise management to maintain brand reputation and market share[87]. - The company strictly complies with environmental laws and regulations, with no administrative penalties from environmental protection departments during the reporting period[126]. Shareholder and Governance - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends, with a proposed dividend of 6.00 yuan per 10 shares for 2018[93]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of stock listing[97]. - The company will announce any planned share reductions three trading days in advance and will comply with relevant laws and regulations[99]. - The company has established a clear framework for compliance with the Securities Law and related regulations during share reductions[99]. - The company has a commitment to use its shareholder rights legally and reasonably, ensuring no actions that could harm normal operations[101].