LANCY(SZ:002612)2019-03-11 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares (including tax) based on a total of 400,000,000 shares[6] - The cash dividend amount for 2018 was CNY 60,000,000, which is 100% of the distributable profit[155] - The cash dividend for 2017 was CNY 60,000,000, with a payout ratio of 31.99%[154] - The cash dividend for 2016 was CNY 20,000,000, with a payout ratio of 12.19%[154] - The net profit attributable to ordinary shareholders for the year 2018 was CNY 210,453,089.65, representing a 47.52% payout ratio for cash dividends[154] - The total number of shares for the cash dividend distribution was based on 400,000,000 shares, with a proposed cash dividend of CNY 1.50 per 10 shares[155] - The retained earnings after the cash dividend distribution for 2018 were CNY 93,811,607.61[155] Company Ownership and Investments - The company holds a 16.43% stake in Guangzhou Ruoyuchen Technology Co., Ltd.[13] - The company has a 70% ownership in Sichuan Milan and Shenzhen Milan medical beauty clinics[15] - The company has a 20% stake in Dream Medical Group Co., Ltd. (DMG) through its subsidiary Dream Korea Holdings Co., Ltd.[13] - The company has a 72.42% stake in Beijing Lancy Hanya Asset Management Co., Ltd.[15] - The company holds a 9.1% stake in L&P Cosmetic Co., Ltd.[13] - The company has a 45% stake in Zhuhai Guangfa Lancy Internet Fashion Industry Fund Management Co., Ltd.[13] - The company has a 70% ownership in multiple medical beauty clinics under the brand "Jingfu"[15] - The company has a 14.18% stake in Jiangsu Zhonghan Chenhui Lancy Equity Investment Fund (Limited Partnership)[15] - The company has a 58.81% stake in Lancy Medical Management Co., Ltd.[13] - The company holds a 26.53% stake in Akabang, a leading children's clothing brand in South Korea, which reported a net loss of 91.16 million yuan in 2018[46] Financial Performance - The company's operating revenue for 2018 was ¥2,661,549,902.78, representing a 13.10% increase from ¥2,353,265,951.40 in 2017[25] - The net profit attributable to shareholders for 2018 was ¥210,453,089.65, up 12.20% from ¥187,571,319.95 in 2017[25] - The net profit after deducting non-recurring gains and losses was ¥189,569,930.80, a significant increase of 29.22% compared to ¥146,700,426.79 in 2017[25] - The company's cash flow from operating activities decreased by 57.96% to ¥54,383,382.87 from ¥129,370,750.75 in 2017[25] - The total assets at the end of 2018 were ¥7,282,045,242.65, reflecting a 4.96% increase from ¥6,937,963,035.99 at the end of 2017[25] - The basic earnings per share for 2018 was ¥0.5261, an increase of 12.20% from ¥0.4689 in 2017[25] - The weighted average return on equity for 2018 was 7.59%, slightly up from 7.37% in 2017[25] - The company achieved a total revenue of 2.66 billion CNY in 2018, representing a year-on-year growth of 13.10%[60] - The overall net profit attributable to shareholders reached 210.45 million CNY, marking a growth of 12.20% year-on-year[60] Market Expansion and Strategy - The company has established a multi-industry interconnected fashion ecosystem, focusing on high-end women's fashion, green baby products, medical beauty, and asset management[35] - The Lancy brand has ranked among the top five high-end women's fashion brands in major retail enterprises in China for several consecutive years, with nearly 70% of its stores in top ten rankings within their malls[36] - The company invested approximately RMB 310 million to become the largest shareholder of the Korean children's clothing brand Agabang, expanding its reach into the baby and children's apparel market[37] - The Chinese maternal and infant market is projected to reach RMB 3 trillion by 2020, with a growing demand for branded and high-quality products[38] - The company has expanded its medical beauty services, acquiring 100% of the shares of "Gao Yisheng Medical Beauty," increasing its medical beauty institutions to ten[40] - The medical beauty industry in China is rapidly growing, with a focus on professionalization and standardization, and the company aims to become a leading player in the market within three to five years[40] - The company aims to create a fashion ecosystem that integrates online and offline resources across multiple fashion sectors, including women's fashion, children's products, and medical beauty[43] - The company is committed to expanding its children's business, leveraging the brand advantages of Agabang to enhance domestic market penetration[67] - The company aims to accelerate the national layout of its mid-to-high-end maternal and infant brand, Akabong, by utilizing existing channels and customer resources, targeting cities with consumption potential[135] Research and Development - The company holds 2 national invention patents, 28 software copyrights, 12 design patents, and 8 utility model patents as of the end of the reporting period[55] - The number of R&D personnel decreased by 12.90% to 297, while the proportion of R&D personnel to total employees was 9.07%[99] - The company has established 17 R&D projects over the past three years, focusing on enhancing fabric comfort and quality management[95] - The company has set up a "Talent Cultivation Class" to nurture young designers, aiming to inject fresh ideas into product development[144] Operational Challenges and Risks - The company faces risks from rising labor costs, with a 6% increase in the minimum wage in Beijing, impacting operational costs and profitability[138] - The company acknowledges the risks associated with medical accidents and personnel turnover in the medical beauty sector, emphasizing the need for strict adherence to standards and quality control[140] - The company is monitoring foreign exchange markets to mitigate risks associated with currency fluctuations due to its overseas investments[145] - The company is committed to enhancing its operational performance while managing risks, particularly in the context of macroeconomic and regulatory changes[142] Governance and Compliance - The company has committed to avoiding competition and reducing related party transactions as part of its governance[157] - The company has a long-term commitment to fulfill its promises regarding related party transactions and competition avoidance[157] - The company has maintained good compliance with its commitments as of the report date[157] - The company emphasizes investor protection and has established comprehensive governance structures to safeguard shareholder rights[200] Financial Adjustments and Reporting - The company has made adjustments to its financial reporting format, including the reclassification of research and development expenses[162] - The company has not experienced any non-operating fund occupation by controlling shareholders during the reporting period[161] - The company did not propose any cash dividend distribution plan for ordinary shares despite having a positive net profit[154] - The company has established new subsidiaries, including Langzi Hanya (Hong Kong) Investment Management Co., Ltd., to support business expansion[168] Asset Management and Investments - The asset management business started in June 2017, providing professional consulting services and participating in strategic investments through partnerships[41] - The asset management industry in China is experiencing rapid growth, driven by policy adjustments and increasing competition in asset management talent[42] - The establishment of a national-level postdoctoral research station by Langzi Hanya Asset Management Co., Ltd. aims to attract and retain high-level asset management talent[43] - The company's asset management business is expanding, with significant investments in equity investments by its subsidiary Langzi Hanya Asset Management[45] - Investment income reached 301,108,712.67 CNY, accounting for 132.37% of total profit, driven by asset management company project returns[103]