Yanghe(SZ:002304)2019-04-29 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥24.16 billion, representing a 21.30% increase compared to ¥19.92 billion in 2017[13]. - The net profit attributable to shareholders for 2018 was approximately ¥8.12 billion, reflecting a growth of 22.45% from ¥6.63 billion in 2017[13]. - The net cash flow from operating activities reached approximately ¥9.06 billion, an increase of 31.58% compared to ¥6.88 billion in 2017[13]. - Basic earnings per share for 2018 were ¥5.3850, up 22.45% from ¥4.3976 in 2017[13]. - Total assets at the end of 2018 amounted to approximately ¥49.56 billion, a 14.58% increase from ¥43.26 billion at the end of 2017[13]. - The net assets attributable to shareholders at the end of 2018 were approximately ¥33.64 billion, up 13.99% from ¥29.52 billion at the end of 2017[13]. - The company reported a weighted average return on equity of 25.95% for 2018, an increase from 24.08% in 2017[13]. - The net profit after deducting non-recurring gains and losses was approximately ¥7.37 billion, a 20.09% increase from ¥6.14 billion in 2017[13]. - The company reported a net profit of 8,115,189,794.69 CNY for 2018, with cash dividends amounting to 4,822,361,600 CNY, representing 59.42% of the net profit[64]. Revenue and Sales - The company reported a total revenue of 24 million yuan from collective economic income in Qiu Zhuang village, exceeding the annual target[102]. - The liquor segment contributed CNY 23.19 billion, accounting for 95.97% of total revenue, with a year-on-year increase of 19.10%[27]. - The gross profit margin for the liquor segment was 76.16%, with a year-on-year increase of 8.45%[28]. - The company’s sales volume for liquor was 214,051.34 tons, a slight decrease of 0.88% compared to the previous year[29]. - The company’s sales from other businesses grew significantly by 116.40% to CNY 972.90 million, accounting for 4.03% of total revenue[27]. - The company maintained a strong market presence, with 51.02% of revenue generated from domestic sales, reflecting a 15.95% increase year-on-year[27]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of ¥32.00 per 10 shares, totaling approximately ¥4.82 billion based on 1,506,988,000 shares[4]. - The company plans to distribute a cash dividend of 32 CNY per 10 shares for the year 2018, totaling 482,236,160 CNY (including tax) based on a total share capital of 150,698,800 shares as of December 31, 2018[62]. - In 2017, the company distributed a cash dividend of 25.5 CNY per 10 shares, amounting to 384,281,940 CNY (including tax), which represented 57.99% of the net profit attributable to ordinary shareholders[64]. - The cash dividend accounts for 100% of the total profit distribution amount, meeting the minimum requirement of 80% for cash dividends during the mature development stage[66]. Market Position and Brand Value - The company holds two famous Chinese liquor brands and has been ranked third in revenue and profit scale within the liquor industry[20]. - The company was ranked third in the "2018 Global Spirits Brand Value" list by Brand Finance, with a brand value of $7.795 billion[23]. - The company has a strong marketing network with nearly 10,000 distributors and over 30,000 ground promotion personnel, facilitating future market expansion[23]. Operational Efficiency and Cost Management - The company implemented cost reduction projects that saved CNY 22.32 million, contributing to a financial benefit of CNY 43.58 million[25]. - The company’s direct material costs for liquor increased to CNY 4.40 billion, representing 69.21% of total costs, with a year-on-year increase of 3.63%[31]. - Sales expenses increased by 7.29% to ¥2,561,401,628.22, while management expenses rose by 13.13% to ¥1,704,265,102.61[38]. Research and Development - Research and development expenses were ¥27,565,217.63, reflecting a 7.07% increase compared to the previous year[38]. - The number of R&D personnel increased by 12.93% to 393, with R&D investment amounting to ¥32,880,110.63, a decrease of 13.03% from the previous year[40]. Environmental Responsibility - Jiangsu Yanghe Distillery's wastewater treatment plant has a design capacity of 10,000 tons per day, with a total investment of 96 million RMB[108]. - The company has not experienced any environmental pollution incidents or penalties from environmental protection departments in the past three years[108]. - The company was awarded the title of "Green Demonstration Enterprise" in Suqian City in January 2018 and recognized as a "Water-Saving Enterprise" in December 2018[110]. Future Outlook and Strategic Initiatives - The company aims for a revenue growth of over 12% year-on-year in 2019[57]. - The company plans to implement the "1246 project" to drive high-quality and sustainable development[57]. - The company is focusing on digital operations, strategic research, capital management, and supply chain management to create new growth drivers[58]. - The management team emphasized the importance of sustainability in their new strategies, aiming to reduce carbon emissions by 10% over the next three years[136]. Shareholder Structure and Governance - The total number of shares is 1,506,988,000, with 82.43% being unrestricted shares[114]. - The company has maintained a stable management team with no changes in the board of directors and supervisors during the reporting period[129]. - The company has established an independent personnel and salary management system, ensuring that key executives do not receive compensation from the controlling shareholder[148]. Internal Control and Audit - The internal control evaluation report indicates that 99.08% of the total assets and 99.52% of the total revenue are included in the evaluation scope, reflecting a strong internal control framework[156]. - The audit opinion issued was a standard unqualified opinion, confirming that the financial statements fairly present the company's financial position[162]. - The company has not identified any significant internal control deficiencies during the reporting period, indicating a robust internal control environment[156].