Geron(SZ:002722)2019-04-03 16:00Dividend Policy - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares to all shareholders, based on a total of 175,466,542 shares[4]. - The company reported a cash dividend of CNY 35,093,308.40 for the fiscal year 2018, which represents 28.87% of the net profit attributable to ordinary shareholders[108]. - The cash dividend distribution plan includes a payout of CNY 2.00 per 10 shares, totaling CNY 35,093,308.40, based on a share capital of 175,466,542 shares[109]. - The total cash dividend (including other methods) accounted for 100% of the profit distribution total[109]. - The company's distributable profit for the year was CNY 399,027,899.40[109]. - The cash dividend for 2017 was CNY 17,546,654.20, which was 20.47% of the net profit attributable to ordinary shareholders[108]. - In 2016, the cash dividend was CNY 22,810,650.40, representing 18.28% of the net profit attributable to ordinary shareholders[108]. - The company did not propose a cash dividend distribution plan for the fiscal year 2018 despite having positive profits[109]. - The company is in a growth phase and has significant capital expenditure plans, which may influence future dividend policies[109]. - The cash dividend distribution is fully compliant with the minimum requirement of 20% for companies in a growth phase[109]. - The company has commitments related to share restrictions and performance obligations that may affect future share distributions[111]. Financial Performance - The company's operating revenue for 2018 was ¥2,280,614,014.38, representing an increase of 8.86% compared to ¥2,094,991,038.31 in 2017[16]. - The net profit attributable to shareholders for 2018 was ¥121,545,335.38, a significant increase of 41.77% from ¥85,735,735.97 in 2017[16]. - The net cash flow from operating activities reached ¥105,793,596.64, marking a substantial increase of 338.91% compared to ¥24,103,586.85 in 2017[16]. - The basic earnings per share for 2018 was ¥0.69, up 40.82% from ¥0.49 in 2017[16]. - Total assets at the end of 2018 amounted to ¥2,825,437,798.49, reflecting a growth of 10.98% from ¥2,545,833,720.14 at the end of 2017[16]. - The net assets attributable to shareholders increased by 6.16% to ¥1,831,473,161.63 at the end of 2018, compared to ¥1,725,276,195.27 at the end of 2017[16]. - The company achieved a revenue of ¥2,280,614,014.38 in 2018, representing a year-on-year growth of 8.86%[50]. - Net profit attributable to shareholders increased by 41.77% to ¥121,545,335.38, primarily due to reduced impairment provisions and increased asset disposal gains[50]. - The total operating costs for 2018 were ¥1,862,501,188.30, reflecting a 9.81% increase from ¥1,696,162,550.74 in 2017[60]. - The main business cost for stainless steel decorative plates was ¥1,357,198,968, accounting for 72.87% of total operating costs, with a 5.11% increase year-on-year[61]. - The company reported a significant increase of 57.01% in other product categories, totaling ¥277,394,773.90 in revenue[53]. Business Operations - The company’s main business consists of the research, production, and sales of textile combing equipment and stainless steel decorative materials since a major asset restructuring in 2015[15]. - The company operates several wholly-owned subsidiaries, including Jinlun Needle Cloth and Chengdu Sentong Stainless Steel[8]. - The company has established stable partnerships with over 5,000 enterprises domestically and internationally, ensuring steady and sustainable business growth[36]. - The company has developed a full range of textile combing equipment products, with over 1,000 specifications and models, enabling rapid response to customer needs[37]. - The company has successfully developed a new generation of oil-repellent and water-repellent stainless steel decorative panels, obtaining relevant national invention and utility model patents[39]. - The company has built a comprehensive sales service system, providing full-process services from pre-sale to after-sale, enhancing customer loyalty[38]. - The company has established a dedicated R&D center in collaboration with Nanjing University, equipped with advanced experimental devices for new product development[39]. - The company’s stainless steel decorative panels are primarily used in elevators, home appliances, kitchenware, and building decoration, with significant growth potential in these sectors[33]. - The company has a diverse product range in stainless steel decorative panels, including mirror panels, brushed panels, and anti-fingerprint panels, catering to various customer needs[41]. - The company has developed advanced manufacturing capabilities and is focusing on high-end product production to address supply shortages in the stainless steel market[48]. - The company has formed a stable customer base, primarily consisting of large elevator manufacturers, ensuring a steady flow of orders[41]. - The company is actively expanding its market presence both domestically and internationally, aiming for sustained and steady growth[48]. Risk Management - The company has experienced risks related to fluctuations in raw material prices, group management due to scale expansion, human resources, goodwill impairment, and liquidity[4]. - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements influenced by macroeconomic and market conditions[4]. - The company faces risks related to raw material price fluctuations, which significantly impact production costs, and plans to monitor price trends closely[100]. - The company is committed to improving its organizational capabilities and management efficiency to mitigate risks associated with its expanding scale[101]. - The company emphasizes the importance of talent acquisition and retention to support its growing business operations[101]. Research and Development - The company has established a research and development center in collaboration with Nanjing University to enhance stainless steel surface treatment and nano-coating technologies[48]. - The company plans to enhance its R&D capabilities and improve product quality to strengthen its market competitiveness in the textile equipment sector[92]. - The company is investing 100 million RMB in research and development for new technologies to improve operational efficiency[112]. Corporate Governance - The company ensures independent financial operations, including separate bank accounts and independent financial decision-making[114]. - The company maintains a complete corporate governance structure, ensuring independent operation of the board and shareholder meetings[114]. - The company commits to independent business operations with the necessary assets, personnel, and capabilities to sustain market engagement[114]. - The company has a robust management team with extensive experience in various sectors, enhancing its operational capabilities[195]. - The company is committed to maintaining strong governance with independent directors overseeing its strategic direction[196]. Market Outlook - The company aims to enhance brand value and international image through systematic brand building efforts during the 13th Five-Year Plan period[37]. - The stainless steel decorative board market is expected to see continuous growth, with the company aiming to increase its market share, which is currently low[94]. - The company will actively explore overseas emerging markets to expand its product presence and market share[92]. - The textile carding equipment industry is projected to grow steadily, supported by the overall development of the textile industry and increasing demand for high-end products[92]. - The company is focusing on developing a B2B comprehensive platform for stainless steel materials through investment in Hangzhou Ruoxing Technology Co., Ltd.[96]. - The company will enhance its resource allocation in the stainless steel sector and explore the construction of an e-commerce platform for stainless steel products[96]. Shareholder Information - The company had a total of 175,466,542 shares, with 50.54% being limited sale shares before the recent changes[174]. - The company’s total number of unrestricted shares increased to 110,918,529 after the recent changes[174]. - The total number of shares held by major shareholders includes 54,527,143 shares (31.08%) held by Nantong Jinlun Holdings[179]. - Anfu International (Hong Kong) Investment Co., Ltd. holds 17,205,904 shares, representing 9.81% of the total shares[180]. - Zhu Shanzhong holds 10,601,423 shares, accounting for 6.04% of the total shares[181]. - The total number of shares with restrictions at the end of the period is 64,548,116 shares, with 25,097,364 shares released during the period[178]. - The company has a total of 29,530 shareholders as of the report date[180]. - The total number of shares held by the second phase employee stock ownership plan is 5,228,525 shares, representing 2.98%[181]. - The total number of shares pledged by Nantong Jinlun Holdings is 40,330,000 shares[181]. Investment and Acquisitions - The company has invested in the establishment of Foshan Steel Gathering Warehouse Co., Ltd. and increased capital in Nantong Seneng Stainless Steel Decoration Materials Co., Ltd. to strengthen its presence in the stainless steel sector[42]. - The company has shifted its main business focus from solely textile combing equipment to include stainless steel cold-rolled sheet surface processing, significantly increasing both revenue and profit levels[80]. - The company has invested in a series of textile e-commerce enterprises and plans to advance online trading based on existing offline supplier and user resources[93]. - The company acquired and increased investment in Nantong Seneng Stainless Steel Decorative Materials Co., Ltd. to implement a "5 million square meters high-end stainless steel decorative board project"[95]. - The company is exploring new technologies and product lines to stay competitive in the market[192]. Employee Engagement and Social Responsibility - The company provided a total of 42,500 yuan in mutual aid funds to 19 employees in 2018[163]. - The company held annual employee representative meetings to gather feedback on important decisions, ensuring employee interests are considered[163]. - The company actively supports employee training and health initiatives, including annual health check-ups[163]. - The company has established mutual aid and rescue funds to assist employees in financial difficulties[163]. - The company has a commitment to social responsibility, focusing on the interests of shareholders, employees, and customers[160].