WLM(SZ:300591)2019-03-11 16:00Financial Performance - The company's operating revenue for 2018 was CNY 693,399,606.66, representing a 14.77% increase compared to CNY 604,143,896.88 in 2017[16] - The net profit attributable to shareholders for 2018 was CNY 37,797,261.11, a slight increase of 1.25% from CNY 37,332,410.09 in 2017[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 37,597,046.05, up 8.34% from CNY 34,703,061.72 in 2017[16] - The total assets at the end of 2018 were CNY 1,110,464,587.75, reflecting a 9.02% increase from CNY 1,018,583,520.79 at the end of 2017[16] - The net assets attributable to shareholders increased by 8.24% to CNY 493,852,171.27 from CNY 456,268,744.93 in 2017[16] - The basic earnings per share for 2018 decreased by 14.29% to CNY 0.12 from CNY 0.14 in 2017[16] - The weighted average return on equity for 2018 was 7.95%, down from 8.67% in 2017[16] - The total operating cost for 2018 was CNY 460,809,235.26, representing a 9.69% increase from CNY 420,103,480.45 in 2017[96] - The company reported a significant increase in sales expenses, rising by 21.58% to CNY 110,026,194.13, primarily due to the acquisition of Chaoqi E-commerce[102] - Research and development expenses increased by 46.25% to CNY 19,642,205.84, reflecting the company's commitment to enhancing its product offerings[102] Cash Flow and Investments - The net cash flow from operating activities improved significantly to -CNY 87,726,059.01, a 66.18% reduction in losses compared to -CNY 259,386,742.01 in 2017[16] - The company’s cash and cash equivalents decreased by 56.02% compared to the beginning of the year, primarily due to slow collection of receivables[61] - Accounts receivable increased by 37.69% compared to the beginning of the year, also attributed to slow collection of receivables[61] - The cash outflow from investing activities increased by 77.48% year-on-year, primarily due to the acquisition of Chaoqi E-commerce[106] - The cash inflow from financing activities decreased by 32.22% compared to the previous year, mainly due to funds raised in the previous period[106] - The cash outflow from financing activities increased by 67.08% year-on-year, primarily due to an increase in loan repayments during the current period[107] - The company raised a total of 184,200,000.00 yuan from its initial public offering, with 151,088,500.00 yuan available for use after deducting issuance costs[119] Acquisitions and Strategic Developments - The acquisition of the new retail e-commerce company, Chaoqi E-commerce, was completed in March 2018, focusing on mid-to-high-end lifestyle brands in the maternal and outdoor sports sectors[30] - The company completed the acquisition of Chaoqi E-commerce in March 2018, enhancing its e-commerce channel profitability through effective integration of resources[41] - The company acquired a controlling stake in Chaoqi E-commerce to enhance its online sales capabilities and accelerate the integration of online and offline channels[79] - The company acquired Guangzhou Chaoqi E-commerce Co., Ltd., which contributed CNY 46,046,402.42 in revenue and CNY 10,085,672.61 in net profit for the year[98] - The company acquired a 51% stake in Chaoqi E-commerce after the completion of the acquisition[126] Market Position and Strategy - The company operates under three self-owned brands: "Wanlima," "Saint Jack," and "COOME," with a diverse product line including handbags, wallets, suitcases, shoes, and belts[27] - The company has established a multi-brand strategy with three proprietary brands and multiple agency brands, covering various market segments to meet differentiated demands[32] - The company has a stable customer base in group purchasing, primarily consisting of military, government agencies, and large state-owned enterprises, contributing significantly to business scale[33] - The company is actively pursuing a multi-brand, multi-channel strategy to adapt to the evolving retail landscape and consumer preferences[74] - The company aims to enhance its competitive edge through quality upgrades and precise marketing strategies in both group purchasing and fashion consumer goods[33] E-commerce and Sales Channels - The company has a diverse sales channel structure, including group purchasing, direct sales, e-commerce, wholesale agents, and ODM, driving steady revenue growth[39] - The e-commerce sales management includes partnerships with major platforms such as Taobao, Tmall, Vipshop, and JD, allowing for differentiated product strategies[41] - E-commerce channel revenue for 2018 was 71.88 million yuan, representing a significant growth of 80.18% from 39.89 million yuan in 2017[54][55] - The company completed the acquisition of Chaoqi E-commerce in March 2018, which is expected to enhance operational efficiency and revenue growth[54] - The company has signed contracts with outdoor brands like ARCTERYX and Salomon, and baby brands like GRACO, expanding its product offerings in the e-commerce sector[42] Risk Management and Future Outlook - The company has outlined potential risks and strategies for future development in its report[5] - The company recognizes the risk of macroeconomic fluctuations affecting consumer demand for leather goods and aims to strengthen its core competitiveness to mitigate this risk[164] - The company plans to enhance its group purchasing business by focusing on military and police system products, leveraging its R&D and quality advantages to develop specialized protective gear, aiming for a comprehensive growth in group purchasing channels[153] - The company aims to enhance its e-commerce channels and leverage digitalization across marketing, logistics, and data in 2019[151] Shareholder and Dividend Policies - The company does not plan to distribute cash dividends or issue bonus shares for the year[6] - The company did not distribute cash dividends or issue new shares in 2018, with total cash dividends amounting to ¥0.00[179] - The company plans to retain the undistributed profits from 2018 to support daily operational funding and implement automation upgrades in 2019[182] - The company will prioritize cash dividends when conditions for cash distribution are met, and may consider stock dividends under specific circumstances[189] - The company has committed to maintaining communication with shareholders, especially minority shareholders, through various channels[190]