NAR(SZ:002825)2019-01-31 16:00Financial Performance - The company's operating revenue for 2018 was CNY 788,518,296.12, representing a 22.66% increase compared to CNY 642,853,218.39 in 2017[16]. - The net profit attributable to shareholders for 2018 was CNY 61,986,679.22, a significant increase of 70.60% from CNY 36,334,554.81 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 53,759,967.59, up 78.79% from CNY 30,068,850.30 in 2017[16]. - The basic earnings per share for 2018 was CNY 0.440, reflecting a 69.23% increase from CNY 0.260 in 2017[16]. - The total assets at the end of 2018 amounted to CNY 841,630,525.61, a 12.09% increase from CNY 750,828,281.84 at the end of 2017[16]. - The net assets attributable to shareholders increased by 9.24% to CNY 621,538,087.23 from CNY 568,961,667.79 in 2017[16]. - The net cash flow from operating activities for 2018 was CNY 83,295,311.18, a decrease of 18.00% compared to CNY 101,576,034.39 in the previous year[16]. - The weighted average return on equity for 2018 was 10.43%, an increase from 6.50% in 2017[16]. Dividend Policy - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares to all shareholders, based on a total of 140,130,095 shares[5]. - The proposed cash dividend for the fiscal year 2018 is 1.00 CNY per 10 shares, amounting to 14.01 million CNY, based on a total share capital of 140,130,095 shares[96]. - The cash dividend for 2018 represents 100% of the total distributable profit of 259.50 million CNY[98]. - The net profit attributable to ordinary shareholders for 2018 was 61.99 million CNY, with a cash dividend payout ratio of 22.61%[98]. - The cash dividend payout ratio for 2017 was 27.58%, while for 2016 it was 30.90%[98]. Research and Development - The company has established a strong R&D capability, with 8 new patents granted in the reporting period, including 2 invention patents[30]. - The company is committed to R&D innovation, focusing on the development of new materials and increasing investment in technology and R&D[82]. - Research and development expenses increased by 36.26% year-on-year, amounting to 37,128,462.11 yuan, representing 4.71% of total revenue[56][57]. Market and Product Development - The digital printing materials industry accounted for 100% of the total operating revenue, with the vehicle body stickers contributing CNY 589.43 million, or 74.75% of the total revenue[46]. - The company has a diverse product range with several categories and dozens of sub-products, catering to various customer needs in the digital printing materials industry[32]. - The company launched its second equity incentive plan in 2018, involving 117 core management and technical staff, aimed at enhancing team cohesion and motivation[40]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within three years[171]. - New product development includes the launch of a sustainable packaging line, expected to contribute an additional 200 million RMB in revenue[171]. Operational Efficiency - The company has implemented an ERP management system to enhance precision in managing sales orders and inventory, improving overall management efficiency[35]. - The company aims to enhance operational efficiency by optimizing standard products and improving inventory and accounts receivable management[82]. - The management team emphasized a focus on improving operational efficiency, aiming for a 5% reduction in costs[171]. Corporate Governance - The company has established a comprehensive corporate governance structure to ensure fair treatment of all shareholders[134]. - The company has independent bank accounts, with no shared accounts with other entities or individuals[189]. - The company has established a sound corporate governance structure, with strict adherence to legal procedures for the appointment of directors and senior management[188]. - The company’s audit committee actively reviewed financial management and internal control systems, ensuring compliance with legal requirements[196]. Risk Management - The company does not foresee any significant risks affecting its normal operations[5]. - The company is exposed to policy and environmental risks, particularly related to international trade tensions and economic fluctuations[84]. - The company faces talent risks due to industry competition and the need for a robust talent pipeline[83]. Shareholder Commitments - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[99]. - The controlling shareholder pledged to minimize related transactions with the company and ensure fair pricing based on market standards[100]. - The company will not distribute cash dividends to responsible parties who violate public commitments until they correct their actions[104]. Financial Management - The company engaged in wealth management by investing CNY 41.85 million in bank financial products using raised funds and CNY 32.5 million using self-owned funds, totaling CNY 74.35 million[125]. - The company reported a total of 5,200 million in structured deposits with an annualized return of 4.30%[128]. - The company will actively seek to settle with investors and establish a compensation fund for direct economic losses suffered by investors[102]. Employee Management - Employee training programs were implemented to enhance overall workforce quality, promoting mutual growth between employees and the company[134]. - The company has a total of 62 employees with a bachelor's degree or higher, while 325 employees have an education level below high school[178]. - The total number of employees in the company is 583, with 318 in the parent company and 265 in major subsidiaries[177]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10-12% for the next fiscal year[171]. - The company plans to invest 100 million RMB in R&D for new technologies over the next two years[171].