Eddie Precision(SH:603638)2019-03-19 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥1.02 billion, representing a 59.15% increase compared to ¥641.33 million in 2017[23]. - Net profit attributable to shareholders for 2018 was approximately ¥225.17 million, a 61.20% increase from ¥139.69 million in 2017[23]. - The basic earnings per share for 2018 was ¥0.86, up 56.36% from ¥0.55 in 2017[24]. - The weighted average return on equity increased to 24.17% in 2018, up 6.07 percentage points from 18.10% in 2017[24]. - The net cash flow from operating activities for 2018 was approximately ¥65.39 million, a decrease of 46.82% compared to ¥122.95 million in 2017[23]. - Total assets at the end of 2018 were approximately ¥1.69 billion, a 72.36% increase from ¥979.13 million at the end of 2017[23]. - The net assets attributable to shareholders at the end of 2018 were approximately ¥1.02 billion, reflecting a 21.58% increase from ¥841.09 million at the end of 2017[23]. - The company achieved operating revenue of 1,020.65 million RMB, a year-on-year increase of 59.15%[91]. - Operating profit reached 260.53 million RMB, reflecting a growth of 61.29% compared to the previous year[91]. - Net profit attributable to shareholders was 225.17 million RMB, up 61.20% year-on-year[91]. Dividend Policy - The company plans to distribute cash dividends of RMB 2.00 per 10 shares, totaling RMB 52,096,000.00, and to increase capital by 4.8 shares for every 10 shares held, resulting in a total increase of 125,030,400 shares[4]. - In 2018, the company approved a cash dividend of RMB 2.00 per 10 shares, totaling RMB 52,096,000 (including tax), representing 23.14% of the net profit attributable to ordinary shareholders[181]. - The company has committed to a stable dividend policy, ensuring long-term returns for shareholders while expanding its operational goals[176]. - The company’s total cash dividends distributed over the past three years were RMB 52,800,000 in 2016, RMB 44,000,000 in 2017, and RMB 52,096,000 in 2018[181]. - The company’s net profit attributable to ordinary shareholders for 2018 was RMB 225,174,133.27, with a dividend payout ratio of 23.14%[181]. Audit and Compliance - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The board of directors and senior management have guaranteed the accuracy and completeness of the annual report[4]. - The current auditor, Ruihua Certified Public Accountants, has an audit fee of CNY 742,000 and has been engaged for 6 years[195]. - There are no significant lawsuits or arbitration matters reported for the year[196]. - The company has no outstanding court judgments or significant overdue debts[198]. - The company has confirmed that its prospectus for the IPO does not contain any false records or misleading statements[190]. Operational Risks and Management - The company reported no significant risks that could materially affect its operations during the reporting period[4]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[4]. - The company has outlined potential risks in its operations, which can be found in the section discussing operational conditions[4]. - The company recognizes the risk of macroeconomic fluctuations affecting product demand, as its performance is closely tied to fixed asset investment levels[172]. - The company faces competition risks in the hydraulic breaker and component market, which is still in its growth phase, potentially impacting product promotion[173]. Product and Market Development - The company is primarily engaged in the research, development, production, and sales of hydraulic technology and products, including hydraulic demolition tools and components[33]. - The company has developed over 20 series of hydraulic breakers, including light, medium, and heavy types[36]. - Hydraulic breakers are widely used in construction, municipal engineering, mining, metallurgy, and transportation sectors[35]. - The company emphasizes a stable supply chain by establishing long-term relationships with multiple suppliers to ensure quality and timely delivery of raw materials[48]. - The sales strategy combines direct sales and distribution through dealers, enhancing market coverage and reducing costs[50]. - The company has successfully exported products to over 60 countries, expanding its brand recognition globally[73]. - The company plans to enhance its R&D capabilities and product differentiation to capture market share in the hydraulic breaker segment[85]. Research and Development - The company reported a significant increase in R&D expenses by 61.67%, indicating a commitment to innovation and product development[92]. - The company has increased its investment in R&D, with 190 personnel dedicated to this area, representing 12.58% of total employees[111]. - The company emphasizes technology innovation as a key competitive advantage, planning to increase R&D investment to expand its product range[153]. - The company has established a dedicated product R&D team to cater to international market demands, focusing on targeted product design and development to enhance competitiveness[156]. - The company is committed to increasing R&D efforts for new products and technologies to ensure strong competitiveness in the international market[156]. Market Trends and Competition - The hydraulic industry is experiencing a shift towards high-end products, which have higher profit margins compared to standard hydraulic products[141]. - The domestic hydraulic breaking hammer market has seen a rapid increase in demand since 2000, with domestic brands gaining substantial market share due to improved technology and product quality[60]. - The market for hydraulic breaking hammers is characterized by low concentration, with hundreds of brands competing, and domestic brands have significantly increased their market presence[61]. - The global hydraulic breaking hammer market is dominated by approximately 30 manufacturers, with major brands including Rammer, Atlas Copco, and Montabert, primarily concentrated in Europe and North America[59]. - Domestic hydraulic breaking hammer manufacturers have improved their competitiveness, achieving a significant increase in market share and brand influence in recent years[61]. Financial Position and Assets - The company's total assets reached ¥1,600,000,000, with a notable increase in fixed assets due to enhanced investment in equipment and infrastructure[120]. - Cash and cash equivalents rose by 86.27% to ¥122,592,027.13 from ¥65,814,428.94 year-over-year[118]. - Accounts receivable increased by 71.85% to ¥182,917,994.86 from ¥106,442,910.80 due to higher sales volume[120]. - Inventory surged by 119.50% to ¥367,151,327.16 from ¥167,267,955.12, reflecting expanded sales scale[120]. - Short-term borrowings increased significantly by 2,746.31% to ¥284,631,072.00 from ¥10,000,000.00, driven by increased procurement needs[120].