Shanghai Jahwa(600315)2019-03-12 16:00Financial Performance - The company's operating revenue for 2018 was CNY 7,137,947,377.14, representing a 10.01% increase compared to CNY 6,488,246,212.14 in 2017[21] - The net profit attributable to shareholders of the listed company was CNY 540,379,997.40, a 38.63% increase from CNY 389,801,890.38 in the previous year[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 456,760,277.01, up 37.82% from CNY 331,428,864.65 in 2017[21] - The basic earnings per share for 2018 was CNY 0.81, a 39.66% increase from CNY 0.58 in 2017[22] - The weighted average return on net assets increased to 9.68%, up 2.52 percentage points from 7.16% in the previous year[25] - The net cash flow from operating activities was CNY 894,674,627.73, showing a slight increase of 0.18% compared to CNY 893,076,418.96 in 2017[21] - The total assets at the end of 2018 were CNY 10,160,072,259.23, reflecting a 5.79% increase from CNY 9,603,959,103.00 in 2017[21] - The net assets attributable to shareholders of the listed company were CNY 5,813,061,293.81, an 8.12% increase from CNY 5,376,551,846.61 in 2017[21] Dividend Policy - The company plans to distribute a cash dividend of CNY 2.50 per 10 shares to shareholders[6] - In 2018, the company distributed a cash dividend of RMB 2.50 per 10 shares, totaling RMB 167,812,115.25, which accounted for 31.05% of the net profit attributable to ordinary shareholders[133] - The company has a cash dividend policy that mandates a minimum of 30% of the net profit attributable to shareholders be distributed as cash dividends each year[132] Revenue and Profit Growth - The company achieved a total revenue of 7.138 billion RMB in 2018, representing a year-on-year growth of 10.01%[41] - Operating profit reached 646 million RMB, an increase of 34.01% year-on-year[41] - Net profit attributable to shareholders was 540 million RMB, up 38.63% compared to the previous year[41] - The net profit after deducting non-recurring gains and losses was 457 million RMB, reflecting a growth of 37.82%[41] Market and Competitive Position - The cosmetics industry saw a year-on-year growth of 9.6% in retail sales, indicating a favorable market environment for the company's products[36] - The company has a strong competitive edge with a comprehensive R&D system, brand assets, channel coverage, and production capabilities[39] - The retail sales of Baicaoji's solid essence mask exceeded 3 million pieces within 10 months of its launch[42] - The company expanded its offline distribution network to approximately 200,000 supermarkets and nearly 90,000 rural outlets[47] Research and Development - The company initiated 39 research projects in 2018, with 15 new projects added, resulting in 52 patent applications[83] - The company established a joint laboratory with Fudan University to enhance research in skin health and product safety[46] - The total R&D investment was ¥167,781,711.06, representing 2.35% of total revenue, with 145 R&D personnel, making up 4.14% of the total workforce[68] Operational Efficiency - The company has implemented advanced MES manufacturing management systems to enhance production process automation and digital management[87] - The new factory's production capacity and supply assurance capabilities were significantly enhanced, achieving digital and automated operations[50] - The company is focusing on expanding its product lines, particularly in creams and liquid washes, to improve production efficiency and response speed[90] Social Responsibility - In 2018, the company engaged in targeted poverty alleviation projects, contributing 402 million RMB in funds and 44 million RMB in material donations[174] - The company supported 1,300 impoverished students through educational assistance, with a total investment of 5 million RMB specifically for student aid[174] - The company has committed to ongoing social responsibility efforts, particularly in education and health sectors in targeted poverty-stricken regions[172] Environmental Initiatives - The new factory has adopted green building standards and received the LEED Gold certification from the U.S. Green Building Council[180] - The company aims to reduce pollutant emissions through clean production, water recycling, and solar energy projects[180] - The company emphasizes the establishment of a green supply chain, achieving LEED Gold certification for new factory projects, and reducing environmental impact through advanced production equipment and eco-friendly materials[104] Financial Investments - The company’s total investment in financial assets reached approximately RMB 2.31 billion, with a fair value change of RMB 21.65 million during the reporting period[110] - The company has invested a total of 1.2 billion RMB in various financial products, achieving an average annual return rate of 4.5%[167] - The actual returns from financial investments amounted to approximately 30 million RMB, with all funds successfully recovered[167] Future Outlook - The company aims for a double-digit revenue growth in 2019, based on its brand growth strategies and market conditions[122] - The company intends to leverage AI, AR, and VR technologies to enhance consumer interaction and improve operational efficiency[121] - The company is exploring new market expansion opportunities and potential mergers and acquisitions to enhance growth[167]