Newamstar(SZ:300509)2019-04-25 16:00Financial Performance - The company's operating revenue for 2018 was CNY 556,488,724.80, representing an increase of 11.19% compared to CNY 500,484,643.95 in 2017[17]. - The net profit attributable to shareholders decreased by 27.36% to CNY 43,070,554.64 from CNY 59,293,626.32 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 33,457,365.66, down 32.13% from CNY 49,297,581.07 in 2017[17]. - The net cash flow from operating activities was CNY 47,906,241.38, a decline of 44.28% compared to CNY 85,978,603.79 in the previous year[17]. - Basic earnings per share decreased by 28.21% to CNY 0.28 from CNY 0.39 in 2017[17]. - Total assets at the end of 2018 reached CNY 1,380,264,692.99, an increase of 10.90% from CNY 1,244,561,880.47 in 2017[17]. - The net assets attributable to shareholders were CNY 597,035,134.62, a slight decrease of 0.85% from CNY 602,130,508.87 in the previous year[17]. - The weighted average return on equity was 7.28%, down from 10.04% in 2017[17]. - The company reported a total non-operating income of approximately 9.61 million in 2018, a decrease of 3.85% from 9.99 million in 2017[23]. - Government subsidies recognized in the current period amounted to approximately 9.48 million, down from 10.24 million in 2017, indicating a decline of 7.41%[23]. Business Strategy and Operations - The company’s main business focuses on the research, production, and sales of liquid food packaging machinery, with a commitment to high value-added and intelligent products[25]. - The company aims to enhance its independent R&D capabilities and actively expand both domestic and international markets for sustainable long-term development[25]. - The integrated liquid packaging solution provided by the company covers the entire process of liquid food packaging, offering comprehensive technical support to clients[26]. - The company employs a "make-to-order" production model, which helps to reduce operational risks by producing based on actual orders[27]. - The procurement strategy includes direct and indirect purchasing methods, ensuring a reliable supply of raw materials[26]. - Quality control measures are established at various stages, including raw material inspection and product testing, to maintain high standards[28]. - The sales model primarily focuses on direct sales, supplemented by agency sales, utilizing trade shows and online platforms to acquire orders[28]. - The company has established a robust supplier evaluation system to ensure the quality of raw materials and components used in production[27]. Research and Development - The company holds a total of 552 valid patents as of December 31, 2018, including 135 invention patents, ranking among the top in the industry[34]. - The company has significantly increased its fixed assets due to the purchase of property and equipment installation in Shanghai[32]. - The company is recognized as a high-tech enterprise by multiple government bodies in Jiangsu Province, indicating its strong technological innovation capabilities[34]. - The company has participated in the formulation of several national or industry standards for liquid food packaging equipment, showcasing its leadership in the sector[34]. - The company aims for an average annual growth rate of 7% in the food industry by 2020, with a focus on improving quality and efficiency[31]. - The company is involved in the development of intelligent manufacturing systems and aims to enhance its production capabilities through technology upgrades[31]. - The company has established high-level R&D platforms, including the "Jiangsu Provincial Enterprise Technology Center"[34]. - The company plans to increase R&D investment significantly to enhance product innovation and technology development[48]. - The main research directions include high-speed blow molding equipment and high-precision filling equipment[48]. - Research and development expenses rose by 62.69% to ¥31,383,290.25, reflecting the company's commitment to innovation and new product development[68]. Market Position and Competition - The company is recognized as an excellent supplier of filling equipment in the beverage industry, further solidifying its market position[34]. - The company has successfully broken the international monopoly on PET bottle sterile cold filling technology in the liquid food packaging sector[41]. - The company has a competitive advantage in product cost and pricing, with domestic lower labor and material costs allowing for a strong price advantage over foreign products[42]. - The company faces market competition risks due to the increasing number of small-scale producers in the liquid food packaging machinery industry, which may affect its market position if it fails to innovate[95]. - The company has a relatively high inventory balance due to the long production cycles of its customized machinery, which could impact operational performance if not managed properly[96]. Financial Management and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.50 per 10 shares, with a total base of 152,000,000 shares[5]. - The company has a cash dividend policy that includes a distribution of 2.50 yuan per 10 shares, with a total cash dividend amounting to 38 million yuan, representing 100% of the profit distribution[102]. - The company distributed cash dividends of ¥48,000,000 in 2017, which accounted for 80.95% of the net profit attributable to shareholders[108]. - The company has a history of increasing cash dividends over the past three years, reflecting a commitment to shareholder returns[108]. - The company is focused on balancing immediate and long-term shareholder interests through its profit distribution strategy[105]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditures[104]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure fair information disclosure[142]. - The company has maintained a good integrity status without any unfulfilled court judgments or significant overdue debts during the reporting period[127]. - The company has not experienced any penalties or rectification situations during the reporting period[126]. - The company has established measures to stabilize its stock price in accordance with regulatory requirements, should the stock price fall below the net asset value[111]. - The company’s management has made commitments regarding share transfer limits and conditions to protect investor interests[111]. - The company has implemented a performance evaluation and incentive mechanism for directors and senior management, ensuring transparency in the hiring process[196]. - The company adheres to strict information disclosure regulations, ensuring timely and accurate communication with shareholders[197]. Employee Management and Development - The company provides competitive salaries and benefits to employees, including free meals and housing subsidies[143]. - The training program includes knowledge, skills, and quality training, aimed at enhancing employee capabilities and work efficiency[189]. - The company has established a comprehensive compensation system, providing competitive salaries and diverse benefits, including free meals and transportation subsidies[188]. - The company has a total of 881 employees, with 412 in production, 28 in sales, 230 in technical roles, 9 in finance, and 202 in administration[186]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 4.5114 million yuan[185]. Subsidiaries and Investments - The company established a new subsidiary in Ethiopia with an investment of $765,000, representing a 51% stake in the joint venture[64]. - The company established a new subsidiary, Zixing Packaging Industrial Co., Ltd., with a total investment of USD 1.5 million, of which the company's investment is USD 765,000, accounting for 51%[122]. - The company invested in Suzhou Xingmeida Import and Export Co., Ltd., with a registered capital of CNY 1 million in August 2018[123]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development, adhering to ISO9001 and ISO14000 standards in its operations[145]. - The company has not engaged in any precision poverty alleviation initiatives during the reporting year[146]. - The company has not faced any penalties for violating environmental protection laws during the reporting period[147].