APLUS(SZ:300163)2019-04-29 16:00Financial Performance - The company's operating revenue for 2018 was ¥586,967,179.08, a decrease of 14.78% compared to ¥688,800,571.33 in 2017[24]. - The net profit attributable to shareholders was -¥201,532,789.93, representing a significant decline of 620.95% from -¥27,953,728.90 in the previous year[24]. - The net cash flow from operating activities was -¥57,155,522.57, a decrease of 632.58% compared to ¥10,731,776.01 in 2017[24]. - The total assets at the end of 2018 were ¥875,655,773.28, down 14.38% from ¥1,022,750,648.90 at the end of 2017[24]. - The company's net assets attributable to shareholders decreased by 29.30% to ¥486,278,083.20 from ¥687,821,302.20 in 2017[24]. - The company reported a basic earnings per share of -¥0.430, a decline of 616.67% from -¥0.060 in 2017[24]. - The company achieved a total operating revenue of CNY 586.97 million in 2018, a decrease of 14.78% compared to CNY 688.80 million in 2017[47]. - The net profit attributable to shareholders was CNY -201.53 million, reflecting a significant decline of 620.95% year-on-year[47]. - The revenue from the shading fabric manufacturing sector was CNY 282.85 million, accounting for 48.19% of total revenue, down 7.38% year-on-year[56]. - The revenue from shading finished products was CNY 304.12 million, representing 51.81% of total revenue, with a decline of 20.68% compared to the previous year[56]. Market and Operational Risks - The company faces market risks related to production capacity, with potential mismatches in resource allocation affecting overall capacity release, particularly in the shading products segment[6]. - The company anticipates ongoing tight supply of skilled labor due to a shift in the labor market, which may impact production capacity and increase overall labor costs[8]. - The company has experienced foreign exchange risks, with significant fluctuations in the RMB/USD exchange rate affecting export profitability; the company recorded foreign exchange gains in the reporting period, contrasting with losses in the previous year[9]. - The company is undergoing a major asset restructuring, with certain uncertainties regarding the approval and execution of the transaction, which may pose investment risks[11]. - The company is expanding its overseas customer base, increasing the demand for sales personnel familiar with different regional markets, which may strain human resources[8]. Strategic Focus and Development - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment rather than shareholder returns[12]. - The company has made technical preparations and capacity investments for new energy-saving products in response to domestic policy directions, although there are risks of underutilization if policy implementation is slow[10]. - The company is focusing on the development of integrated energy-saving windows and external shading products, which are expected to meet growing market demand[10]. - The company continues to enhance its product offerings and market presence through international exhibitions and local market adaptations[48]. - The company aims to enhance its international market presence by focusing on product adaptability, local dealer growth, and brand influence[93]. Asset Management and Restructuring - The company plans to sell its subsidiary KRS due to continuous losses over the past three years, which have significantly impacted overall profitability[36]. - The sale of KRS's assets is expected to improve the company's financial condition by reducing operational burdens and allowing a focus on the development of sunshade fabric[37]. - The company plans to reduce investment in the KRS business to mitigate the negative impact on profitability and optimize resource allocation[52]. - The company has a controlling subsidiary in Australia, KRS, which is a leading manufacturer and seller of window coverings in the region[34]. - The company is in the process of divesting its subsidiary KRS due to ongoing losses, which have significantly impacted overall performance[47]. Research and Development - The company developed four innovative new polymer composite shading materials during the reporting period, enhancing its product portfolio[33]. - The company holds a total of 107 domestic patents and 48 foreign patents, indicating a strong focus on technological innovation[41]. - The company has developed several advanced technologies, including functional high-performance composite materials and multi-system co-extrusion technology, which are at the international leading level[43]. - The company's R&D expenditure amounted to ¥17,338,060.89, accounting for 2.95% of total revenue, an increase from 2.20% in the previous year[69]. - Research and development expenses accounted for 5% of total revenue, reflecting the company's commitment to innovation and new product development[116]. Governance and Management - The company has established a fair but differentiated compensation policy to motivate employees while controlling overall labor costs[189]. - The governance structure includes a general meeting of shareholders, a board of directors, a supervisory board, and a management team, complying with relevant regulations[193]. - The company has established specialized committees under the board of directors, including strategy, audit, nomination, and compensation committees[193]. - The company emphasizes information disclosure, adhering to regulations and maintaining accurate and timely communication with investors[198]. - The company has seen a significant turnover in its management team, with multiple key positions changing hands in late 2018[170]. Shareholder and Equity Information - The company did not propose any profit distribution or capital reserve transfer for the fiscal year 2018, with a total distributable profit of 92,895,007.45 yuan[104]. - The company did not distribute cash dividends in 2017 and 2018, maintaining a cash dividend of RMB 23.7 million in 2016, which accounted for 34.89% of the net profit attributable to ordinary shareholders[109]. - The company’s total cash dividends over the past three years have been significantly low, with only 2016 showing a distribution, while 2017 and 2018 reported zero cash dividends[109]. - The company reported a total of 474 million shares outstanding, with 30.47% being restricted shares and 69.53% being unrestricted shares[148]. - The largest shareholder, Lu Xianfeng, holds 27.44% of the shares, totaling 130,086,103 shares, with a decrease of 42,871,875 shares during the reporting period[157].