JAFRON(300529)2019-03-25 16:00Financial Performance - The company achieved a revenue of 1.2 billion RMB in 2018, representing a 30% increase compared to 2017[8]. - The company's operating revenue for 2018 was ¥1,016,508,792.15, representing a 41.48% increase compared to ¥718,491,131.27 in 2017[13]. - The net profit attributable to shareholders for 2018 was ¥401,979,957.01, up 41.34% from ¥284,413,992.87 in 2017[13]. - The company reported a net profit margin of 18% for the fiscal year 2018, up from 15% in 2017[8]. - The total revenue for the year was approximately RMB 319.77 million, with a net profit of RMB 3.06 million, representing a significant increase of 8% compared to the previous year[64]. - The total comprehensive income for the year reached CNY 400,945,459.64, an increase from CNY 284,451,941.06 in the previous year, reflecting a growth of approximately 40.9%[199]. - The basic and diluted earnings per share increased to CNY 0.97 from CNY 0.69, representing a growth of about 40.4%[199]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in 2019, aiming for a 15% increase in market share[8]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, targeting a deal by the end of 2019[8]. - The company has expanded its overseas sales to 34 countries, with overseas sales revenue increasing by 69.90%[35]. - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue[8]. - The company has established a new subsidiary in Guangzhou to enhance market presence and service capabilities[35]. - The company aims to maintain a robust governance structure with independent directors ensuring oversight and accountability[146]. Research and Development - The company is investing in R&D for new blood purification technologies, with an expected launch in Q4 2019[8]. - Research and development expenses for the company amounted to RMB 46,137,850.28, accounting for 4.54% of total revenue during the reporting period[29]. - The company employs a combination of independent and collaborative research and development models to enhance R&D efficiency and reduce risks[23]. - The company has established a professional academic promotion team of over 700 people to enhance market penetration and product recognition[31]. - The company aims to enhance its R&D capabilities by establishing various technology platforms, focusing on developing new blood purification products for critical and complex diseases[76]. Product and Sales Performance - The sales revenue from disposable blood perfusion devices was ¥924,837,742.20, accounting for 91.23% of the company's main business revenue[21]. - Blood perfusion product sales volume increased by 44.21% to 2,011,102 units in 2018, driven by enhanced market promotion and R&D investment[42]. - The sales revenue from disposable plasma bilirubin adsorbers was ¥44,780,100.82, representing 4.42% of the company's main business revenue[21]. - The company’s blood perfusion products are classified as Class III medical devices, subject to strict regulatory oversight[24]. Cash Management and Dividends - The company proposed a profit distribution plan to distribute a cash dividend of 6.00 RMB per 10 shares (including tax) to all shareholders[3]. - The cash dividend payout ratio has increased from 41.22% in 2016 to 62.28% in 2018, demonstrating a stronger return to shareholders[86]. - The company has maintained a consistent increase in cash dividends over the past three years, reflecting a commitment to returning value to shareholders[86]. - The company is focusing on cash management of idle funds to enhance financial efficiency while ensuring operational safety[66]. Corporate Governance and Compliance - The company has established a complete independent financial department and accounting system, ensuring independent financial decision-making and compliance with tax regulations[164]. - The board of directors consists of 9 members, including 3 independent directors, enhancing the board's decision-making capabilities and professionalism[163]. - The company has implemented strict information disclosure practices, ensuring timely and accurate communication with investors[163]. - The independent directors attended 13 board meetings, with 2 in-person and 11 via communication, ensuring compliance with regulations[167]. Employee and Talent Management - The company has a structured remuneration decision process based on performance and responsibilities[153]. - The company plans to enhance its talent acquisition strategy by implementing long-term incentive mechanisms and stock options to attract high-level talent, particularly in sales and R&D[78]. - The company has a total of 1,561 employees, with a professional composition of 375 production staff, 755 sales personnel, 261 technical staff, 54 financial staff, and 116 administrative staff[157]. - The company aims to support talent development through various training programs, including online learning plans for different levels of management[160]. Risk Management - The company has maintained a strict quality control system for its main product, blood perfusion devices, which are classified as Class III medical devices, ensuring compliance with national quality standards[78]. - The company has not experienced any medical incidents due to product quality issues since its establishment, highlighting its commitment to quality control[78]. - The company operates under a distributor buyout model, which poses inherent risks for revenue recognition due to potential inventory accumulation by distributors[183]. Financial Position - The company's total assets at the end of 2018 were ¥2,051,958,224.36, a 20.53% increase from ¥1,702,400,294.92 at the end of 2017[13]. - The company's total liabilities amounted to CNY 330,041,791.92, up from CNY 310,903,663.51, indicating an increase of about 6.5%[193]. - The total equity attributable to shareholders of the parent company was CNY 1,698,478,517.26, compared to CNY 1,391,088,218.86 at the start of the year, reflecting a growth of approximately 22.0%[193].