Yanjan(SZ:300658)2019-03-29 16:00Financial Performance - The company's operating revenue for 2018 was CNY 766,272,161.60, an increase of 3.81% compared to CNY 738,147,186.42 in 2017[15]. - The net profit attributable to shareholders of the listed company decreased by 46.07% to CNY 48,611,398.15 from CNY 90,130,041.18 in the previous year[15]. - The net cash flow from operating activities was CNY 39,466,823.03, down 49.16% from CNY 77,636,176.75 in 2017[15]. - Basic earnings per share fell by 52.24% to CNY 0.32 from CNY 0.67 in 2017[15]. - The total assets at the end of 2018 were CNY 1,230,913,201.50, representing a 19.70% increase from CNY 1,028,338,683.87 at the end of 2017[15]. - The net assets attributable to shareholders of the listed company increased by 3.02% to CNY 773,303,647.90 from CNY 750,625,357.05 in 2017[15]. - The company reported a significant decline in net profit from recurring operations, which was CNY 33,596,668.65, down 58.51% from CNY 80,980,606.67 in 2017[15]. - The weighted average return on net assets decreased to 6.44% from 17.08% in the previous year, a drop of 10.64 percentage points[15]. - The company reported a net profit of CNY 15,014,729.50 in 2018, an increase of 64.5% compared to CNY 9,149,434.51 in 2017[22]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[112]. Dividend Policy - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares, totaling CNY 22,500,000.00 based on 150,000,000 shares[5]. - The total distributable profit for the year is reported at 200,509,502.83 CNY, with the cash dividend representing 100% of the profit distribution[108]. - The cash dividend for 2018 represents 46.29% of the net profit attributable to the parent company[110]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends increasing from 25,000,000 CNY in 2016 to 30,000,000 CNY in 2017 and 22,500,000 CNY in 2018[110]. - The company maintains a cash dividend policy, distributing at least 15% of its distributable profits as cash dividends annually, with a minimum of 20% in each distribution[105]. Market and Product Development - The company’s main products include 3D perforated non-woven fabric and PE perforated film, primarily used in high-end disposable hygiene products[25]. - The disposable hygiene products market in China is expected to grow at a rate of 6.8% in 2018, driven by the "two-child" policy and consumption upgrades[28]. - The compound annual growth rate (CAGR) for the female hygiene products market from 2013 to 2018 was 12.9%, indicating a stable demand despite market saturation[29]. - The baby diaper market experienced a CAGR of 19.7% from 2013 to 2018, although growth slowed to only 1.2% in 2018 due to increased competition and price wars[29]. - The company aims to enhance its global supply system and deepen cooperation with international clients[48]. - The company is committed to increasing R&D investment and launching new product series to meet customer demands[45]. - New product development efforts have led to the introduction of three innovative materials, which are expected to contribute an additional 200 million RMB in revenue over the next year[115]. - The company is planning to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the region by 2020[112]. International Expansion - The company has expanded its export capabilities, establishing overseas production bases to enhance global supply[28]. - The company's overseas business accounted for 54.68% of total sales, an increase of 12.97% year-on-year[48]. - The subsidiary in Egypt achieved operating revenue of 21.34 million CNY and net profit of 1.82 million CNY during the reporting period[49]. - The subsidiary in the United States generated operating revenue of 27.38 million CNY within five months of operation[49]. - The company plans to officially launch its Indian subsidiary in mid-2019, targeting a growing market[49]. - The company aims to become a global leader in innovative hygiene product surface materials, focusing on high-quality and cost-effective products[97]. Research and Development - The company holds 8 invention patents, 28 utility model patents, and 12 design patents as of December 31, 2018, with 1 invention patent, 10 utility model patents, and 8 design patents added in 2018[36]. - The company has established a technology development platform to enhance R&D capabilities and meet market demands[50]. - The company is committed to investing 100 million RMB in R&D for new technologies over the next two years to maintain competitive advantage[114]. - Research and development expenses for 2018 were ¥41,242,300.30, representing 5.38% of total revenue, with an increase of 63.82% compared to ¥25,175,176.55 in 2017[73][74]. Operational Challenges - The company faces challenges from increased competition and market reshuffling due to a large number of brands and capital influx in the industry[30]. - The Chinese diaper market has become increasingly competitive, with over 2,000 brands leading to market fragmentation and price wars, affecting the company's sales of perforated non-woven fabric[56]. - The company recognizes the challenges posed by currency fluctuations, logistics, and overseas operations while pursuing sustainable growth strategies[60]. - The company is exposed to raw material price volatility, with material costs accounting for approximately 72% of its main business costs[101]. Corporate Governance - The company has established a complete internal control system to ensure compliance with relevant laws and regulations, enhancing governance levels[196]. - The company maintains independence in business, personnel, assets, institutions, and finance, ensuring no interference from the controlling shareholder[197]. - The company has established specialized committees under the board, including an audit committee, to provide professional oversight and recommendations[194]. - The company actively engages with investors through various channels to enhance information transparency and protect minority shareholders' rights[196]. Employee Management - The company employed a total of 1,133 staff, with 778 in production, 121 in technical roles, and 15 in sales[185]. - The company emphasizes competitive salaries and a fair performance evaluation mechanism for employees[186]. - The company has established a comprehensive training system to enhance employee skills and overall quality[189]. - The company adheres to national labor laws and provides social security benefits to employees[186]. Financial Management - The company has invested a total of 68.3 million RMB in entrusted financial management, with 6 million RMB remaining due[135]. - The company reported a total investment amount of 5,000 million in various financial products, with an expected annualized return rate of 3.80%[137]. - The actual return for the investment made in March 2018 was 15.1 million, achieving a return rate of 15.1%[137]. - The company has engaged in multiple financial products with China Construction Bank, with a total of 3,500 million invested in a product with a return rate of 4.00%[139].