AIM(SZ:300446)2019-04-22 16:00Financial Performance - The company reported a stable growth in revenue, primarily driven by the consistent sales of thermal magnetic tickets, which are entirely sold to printing enterprises under China Railway Corporation[7]. - The company's operating revenue for 2018 was ¥264,459,595.89, representing a year-on-year increase of 2.41% compared to ¥258,233,136.25 in 2017[28]. - The net profit attributable to shareholders for 2018 was ¥103,062,780.20, a decrease of 1.26% from ¥104,378,756.34 in 2017[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥97,134,722.84, down 2.37% from ¥99,492,155.09 in 2017[28]. - The company's total assets increased by 8.23% to ¥663,031,717.81 at the end of 2018, compared to ¥612,640,114.37 at the end of 2017[28]. - The net assets attributable to shareholders rose by 9.55% to ¥618,819,019.61 at the end of 2018, up from ¥564,876,239.41 at the end of 2017[28]. - The company achieved total operating revenue of 264.46 million yuan in 2018, representing a year-on-year increase of 2.41%[57]. - The total non-recurring gains and losses for 2018 amounted to ¥5,928,057.36, compared to ¥4,886,601.25 in 2017[34]. Market Risks and Challenges - The company faces risks due to the concentration of its market, as a significant reduction in orders from China Railway Corporation could severely impact its operating performance[7]. - The company acknowledges the risk of new products not achieving expected sales volumes due to increasing market competition and potential price declines[10]. - The implementation of the EMV migration policy is expected to decrease the demand for magnetic stripe cards, which may impact future revenue; the company plans to explore other applications for magnetic stripes to mitigate this risk[10]. - The company has signed long-term sales contracts for its main products, but potential price declines in the thermal magnetic ticket market could negatively affect its gross margin and profitability[9]. Product Development and Innovation - New product launches, such as electromagnetic wave protection films and pressure testing films, have begun mass production, but their sales performance has not yet significantly impacted overall business results[10]. - The company is actively working to expand its market share and develop new magnetic stripe products to counteract the effects of the EMV migration policy[10]. - The company has actively expanded its product development in electromagnetic wave protection films and pressure testing films, achieving stable formulations and beginning mass production[40]. - The company aims to enhance its R&D capabilities and accelerate the construction of the Sichuan Meishan electronic materials R&D and industrial base project[108]. - The company plans to increase investment in new product development and improve production processes to enhance product quality and reduce costs[109]. Profit Distribution and Shareholder Returns - The company proposed a profit distribution plan, distributing cash dividends of 3.00 RMB per 10 shares and issuing 3 bonus shares for every 10 shares held, based on a total of 122,800,000.00 RMB[10]. - The company distributed cash dividends of RMB 36,840,000, accounting for 35.75% of the net profit attributable to ordinary shareholders in 2018[126]. - The cash dividend per 10 shares was RMB 3.00 (including tax), with a stock bonus of 3 shares and a capital reserve increase of 2 shares per 10 shares[125]. - The total distributable profit for the year was RMB 396,573,980.27, with cash dividends representing 100% of the total profit distribution[122]. - The company’s profit distribution policy mandates a minimum cash dividend ratio of 20% for growth-stage companies with significant capital expenditure[122]. Research and Development - The company’s R&D expenses for the reporting period amounted to 28.61 million yuan, an increase of 34.28% year-on-year[51]. - R&D expenses increased by 34.28% year-on-year to ¥28,611,280.86, representing 10.82% of total revenue[73][76]. - The company has established a strong R&D team by hiring foreign experts and introducing experienced talent[44]. - The company’s R&D personnel accounted for 22.73% of total employees, with a total of 60 R&D staff in 2018[77]. Market Presence and Competition - The company is the largest producer of magnetic stripe products in China, holding over half of the domestic market share and being a key player in the international market[39]. - Domestic revenue reached ¥251,240,285.72, accounting for 95.00% of total revenue, with a year-on-year increase of 2.38%[60]. - International revenue was ¥13,219,310.17, representing 5.00% of total revenue, with a year-on-year increase of 3.03%[60]. - The company is expanding its market presence, targeting a 10% increase in market share within the next year through strategic partnerships and marketing initiatives[178]. Financial Management and Compliance - The company’s financial report emphasizes the importance of maintaining accurate and complete financial disclosures to ensure investor confidence[5]. - There were no significant changes in accounting policies that would affect the financial statements, ensuring consistency in reporting[188]. - The company has not faced any penalties or rectification issues during the reporting period[198]. - The company has not experienced any issues with the use and disclosure of raised funds[96]. Strategic Commitments - The company has committed to avoiding any competition with its subsidiaries and will not engage in any business that may compete with its main operations[133]. - The company has committed to strict adherence to all promises made in the prospectus, with measures in place for any potential breaches[171]. - The company promises to distribute at least 20% of its distributable profits as dividends, with cash dividends accounting for no less than 20% of the total distribution[163].