BOSUN(SZ:002282)2019-04-15 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,054,038,647.69, representing a 78.04% increase compared to CNY 592,010,244.24 in 2017[15]. - The net profit attributable to shareholders for 2018 was CNY 86,172,167.50, a 68.70% increase from CNY 51,079,344.83 in 2017[15]. - The net profit after deducting non-recurring gains and losses was CNY 78,882,109.99, showing a significant increase of 451.89% compared to CNY 14,293,203.57 in 2017[15]. - The net cash flow from operating activities was CNY 70,307,141.77, up 83.71% from CNY 38,271,622.01 in the previous year[15]. - The total assets at the end of 2018 were CNY 2,643,568,702.87, a 12.32% increase from CNY 2,353,678,585.71 at the end of 2017[15]. - The net assets attributable to shareholders increased by 21.32% to CNY 2,131,998,474.09 from CNY 1,757,307,077.19 in 2017[16]. - The basic earnings per share for 2018 was CNY 0.20, reflecting a 33.33% increase from CNY 0.15 in 2017[15]. - The diluted earnings per share also stood at CNY 0.20, consistent with the basic earnings per share[15]. - The weighted average return on equity was 4.16%, down from 5.69% in the previous year[15]. Revenue Breakdown - The company's total revenue for the first quarter was ¥237.58 million, with a peak of ¥301.61 million in the second quarter, followed by ¥266.87 million in the third quarter and ¥247.98 million in the fourth quarter[20]. - The net profit attributable to shareholders for the second quarter was ¥36.21 million, while the annual total net profit was ¥86.17 million, showing a significant increase compared to previous years[20]. - The company achieved a total revenue of 1,054.04 million RMB in 2018, representing a year-on-year growth of 78.04%[40]. - The diamond tools segment generated ¥337,968,809.39, accounting for 32.06% of total revenue, with a slight decrease of 0.17% compared to the previous year[53]. - The abrasive tools segment saw significant growth, with revenue of ¥583,106,211.40, representing a 424.15% increase year-over-year[50]. - Domestic market sales reached 642.16 million RMB, a 125.51% increase year-on-year, making up 60.92% of total revenue[46]. - International market sales amounted to 411.88 million RMB, growing by 34.05% year-on-year, accounting for 39.08% of total revenue[46]. Investments and Acquisitions - The acquisition of Jin Niu Grinding contributed significantly to the company's revenue and profit, marking the first full accounting year of consolidated financial statements[31]. - The company invested ¥69.99 million in Wenshang Shanghai Wei Machine, increasing its stake to 13.47%, indicating strategic expansion in its investment portfolio[32]. - The company completed the acquisition of 100% equity in Changzhou Jinniu Grinding Co., Ltd. in January 2018, with a transaction value of 82.68 million yuan[165]. - The company made a significant equity investment of ¥69,998,880.00, acquiring a 13.47% stake in a high-speed train component manufacturer[83]. Research and Development - The company holds 130 valid national patents, including 28 invention patents, indicating a strong focus on R&D and innovation[36]. - The company is actively developing high-speed train brake pad products, with several projects passing provincial evaluations[68]. - R&D expenses rose by 50.05% to ¥33,458,530.34, reflecting increased investment in product development and the full-year consolidation of Jin Niu Grinding[70]. - The company launched over ten new products in 2018, including advanced ceramic abrasives and zirconia alumina products, which received positive market feedback[44]. Market Strategy and Expansion - The company plans to expand its market presence globally, leveraging its established sales network in North America, Europe, and Southeast Asia[36]. - The company operates a global sales network with subsidiaries in the U.S., Canada, and other regions, positioning itself as a leading player in the diamond tool industry[27]. - The company aims to enhance the operational quality of its diamond tool business and integrate resources across its overseas subsidiaries to improve market competitiveness[47]. - The company plans to enhance the operational quality of its hardware tools segment, which requires urgent improvement, and optimize asset structure to increase operational efficiency[117]. Financial Management and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares, based on a total of 437,738,511 shares[4]. - The total distributable profit available for shareholders is 86,172,167.50 CNY[145]. - The cash dividend distribution does not exceed the profit balance available for distribution as of the end of 2018[145]. - The company is in a mature development stage and has significant capital expenditure plans, with a minimum cash dividend ratio of 40% during profit distribution[145]. Risks and Challenges - The company faces risks related to raw material price fluctuations, which account for over 60% of total product costs[129]. - The company recognizes the challenges posed by market expansion and competition in the hardware tools industry, particularly in achieving sales targets[131]. - The company has implemented measures to mitigate export risks, including producing diamond saw blades in Thailand to reduce anti-dumping risks in the U.S.[125]. Subsidiary Performance - The company’s subsidiary, Pioneer Tools Ltd., reported a revenue of 135.91 million CNY in 2018, an increase of 20.79% year-on-year[110]. - The revenue of the U.S. subsidiary, NANO, reached 16.67 million CNY in 2018, marking a growth of 59.28% year-on-year[110]. - The overall performance of the company’s subsidiaries in North America showed mixed results, with some achieving significant growth while others faced challenges[109]. Share Capital and Structure - The total number of shares increased from 413.15 million to 437.74 million due to the issuance of 24.58 million new shares[190]. - The company issued a total of 24,583,965 shares to raise supporting funds, increasing the total share capital from 413,154,546 shares to 437,738,511 shares[194]. - The basic earnings per share for 2018, calculated before the issuance, was 0.2086 RMB, while after the issuance, it decreased to 0.1978 RMB[196]. - The company has a high executive lock-up rate, with 75% of shares locked for executives, allowing only 25% to be transferable annually[199].