MY GYM(SZ:002621)2019-06-21 16:00Dividend and Capital Distribution - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares to all shareholders, based on a total share capital of 347,595,000 shares[8]. - The company will increase its capital reserve by converting 7 shares for every 10 shares held by shareholders[8]. - The cash dividend for 2018 represents 2.16% of the total distributable profit of 322,550,822.99 yuan[94]. - The company’s cash dividend payout ratio for 2018 was 22.03% of the net profit attributable to shareholders[93]. - The company’s total share capital as of December 31, 2018, was 347,595,000 shares[91]. - The company’s cash dividends for the past three years have been 6,951,900 yuan in 2018, 0 yuan in 2017, and 0 yuan in 2016[93]. Financial Performance - The company's operating revenue for 2018 was CNY 265,356,399.69, representing a 49.78% increase compared to CNY 177,168,879.23 in 2017[19]. - The net profit attributable to shareholders for 2018 was CNY 31,551,543.65, a 71.90% increase from CNY 18,354,447.60 in 2017[19]. - The net cash flow from operating activities reached CNY 179,586,446.30, a significant increase of 464.38% compared to CNY 31,820,216.57 in 2017[19]. - The total assets at the end of 2018 amounted to CNY 4,175,892,348.07, a 220.72% increase from CNY 1,302,043,173.99 at the end of 2017[19]. - The basic earnings per share for 2018 was CNY 0.09, an 80.00% increase from CNY 0.05 in 2017[19]. - The weighted average return on equity for 2018 was 2.60%, up from 1.62% in 2017[19]. Acquisitions and Restructuring - The company completed a major asset restructuring in November 2018, acquiring Tianjin Meijiem Education Technology Co., further expanding its presence in the education sector[17]. - The acquisition of Meijiem, a leading early education brand, significantly enhanced the company's education segment, with Meijiem achieving revenue of CNY 362.40 million and net profit of CNY 190.55 million in 2018, exceeding performance commitments[37]. - The company completed the acquisition of Tianjin Meijiem Education Technology Co., Ltd., which contributed revenue of 33.01 million yuan, accounting for 12.44% of the consolidated revenue, and net profit of 21.59 million yuan, accounting for 55.34% of the consolidated net profit[49][50]. - The company completed the acquisition of Meijiem's 100% equity, with total investments in related projects amounting to 506 million yuan[74]. Strategic Focus and Market Expansion - The company plans to accelerate the operation of "Meijiem" franchise and direct stores in 2019, supporting the opening of new direct and franchise stores[85]. - The company will actively expand into overseas markets such as India, Russia, and Hong Kong, increasing market share[85]. - In 2019, the company will increase capital and resources towards the education industry, enhancing its revenue and profit contribution from this sector[84]. - The early childhood education market in China is expected to maintain long-term, rapid, and healthy growth due to increasing demand driven by the two-child policy and rising disposable income[37]. Research and Development - Research and development expenses amounted to 12.67 million yuan, representing 4.78% of operating revenue, a decrease from 8.46% in the previous year[54]. - The company is investing 200 million CNY in R&D for new technologies aimed at enhancing product efficiency[155]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product efficiency[157]. Governance and Compliance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no misleading statements or omissions[5]. - The company has maintained a strong governance structure, ensuring compliance with relevant laws and regulations, with no significant discrepancies from regulatory requirements[175]. - The independent directors attended all board meetings and did not raise any objections to company matters during the reporting period[180]. Management and Personnel - The company experienced a change in management, with several key personnel, including General Manager Jin Bingduo, leaving due to term expiration[148]. - The company has a diverse management team with backgrounds in finance and technology, enhancing its strategic decision-making capabilities[149]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 6.3879 million[162]. Internal Control and Audit - The audit opinion issued for the financial statements was a standard unqualified opinion[191]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018, and its operating results for the year[192]. - There were no significant internal control deficiencies identified during the reporting period[185]. Future Outlook - The company provided a forward guidance of 1.8 billion CNY in revenue for the next fiscal year, indicating a projected growth of 20%[155]. - The company plans to enhance its supply chain efficiency, targeting a 10% reduction in operational costs[155]. - The company aims to leverage its management expertise to drive future growth and innovation in its product lines[149].