SIRIO(SZ:300791)2020-04-23 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,579,562,259.23, a decrease of 0.99% compared to 2018[22]. - The net profit attributable to shareholders for 2019 was ¥142,525,251.97, down 29.87% from the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥130,433,504.15, a decline of 31.51% year-over-year[22]. - The total revenue for 2019 was CNY 1,579,562,259.23, a slight decrease of 0.99% compared to CNY 1,595,399,576.27 in 2018[76]. - The gross margin for the main business was 31.29%, down 1.28% from the previous year, with total costs amounting to CNY 1,045,481,195.61[78]. - The net cash flow from operating activities increased by 26.25% to ¥231,604,560.39 in 2019[22]. - The total assets at the end of 2019 reached ¥2,359,031,560.44, representing a 52.83% increase from the end of 2018[22]. - The net assets attributable to shareholders increased by 148.08% to ¥1,945,023,027.65 at the end of 2019[22]. - The company achieved a net profit of 143.85 million yuan in 2019 after deducting the statutory surplus reserve of 10 million yuan[159]. Investment and R&D - In 2019, the company invested a total of 65.785 million in research and development, with a team of 242 R&D personnel, including 6 PhDs[46]. - The company has established a comprehensive R&D system covering the entire industry chain from raw material application to new product development[35]. - The company has established two research and development platforms, including the "Guangdong Provincial Nutrition and Health Food International Engineering Technology Research Center" and the "Guangdong Provincial Enterprise Technology Center" to enhance product innovation[90]. - The company invested CNY 65,784,960.28 in R&D in 2019, representing 4.16% of its operating revenue, an increase from 3.89% in 2018[96]. - The company is focusing on original technology innovation, particularly in the health food sector, to develop versatile technologies applicable to various product forms[132]. Product Development and Innovation - The company launched new products in 2019, including arginine taurine powder and probiotic gummies, enhancing its product offerings[34]. - The company launched multiple new products, including several probiotic products and complex formula solid beverages, as part of its innovation strategy[66]. - The company is committed to developing new products and assisting clients in product development to lay the foundation for future business growth[64]. - The company has over 4,000 mature nutrition and health food formulations, catering to diverse health needs across different age groups[47]. - The company is implementing an Integrated Product Development (IPD) system to enhance collaboration across sales, marketing, design, and R&D, aiming for improved product innovation efficiency and market positioning[130]. Market and Sales Performance - The North American market saw a revenue increase of 46.93%, reaching CNY 161,864,605.19, while the European market revenue decreased by 3.44% to CNY 437,128,422.28[76]. - The sales volume of soft capsules decreased by 10.14% year-on-year, with a total of 552,308.65 million pieces sold in 2019[79]. - The sales volume of tablets dropped by 9.91% year-on-year, totaling 151,063.34 million pieces sold in 2019[79]. - The sales volume of powders decreased significantly by 33.56% year-on-year, with 1,283,474.43 KG sold in 2019[79]. - The sales volume of gummies increased by 52.15% year-on-year, reaching 1,813.41 million bottles/bags in 2019[79]. - The sales volume of oral liquids surged by 62.02% year-on-year, totaling 2,082.25 million bottles/bags in 2019[79]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans, including product quality management risks and market competition risks[7]. - The company’s future development may face risks such as trade friction and the impact of the COVID-19 pandemic[7]. - The company faces risks related to product quality management, industry regulations, market competition, and trade tensions, and has established measures to mitigate these risks[143][144][145][147]. Shareholder and Dividend Information - The company reported a profit distribution plan for 2019, proposing a cash dividend of 3 RMB per 10 shares and a capital reserve conversion of 5 shares for every 10 shares held[8]. - The total distributable profit at the end of 2019 was 749.16 million yuan, with the cash dividend representing 100% of the profit distribution[159]. - The company plans to distribute cash dividends of no less than 15% of the distributable profits achieved in the current year, with a cumulative distribution of no less than 30% of the average annual distributable profits over three years[175]. Corporate Governance and Compliance - The company has maintained a continuous audit service from Guangdong Zhengzhong Zhujiang Accounting Firm for 10 years[179]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[182]. - There were no significant non-operating fund occupations by controlling shareholders or related parties during the reporting period[177]. - The company has not made any changes to the scope of consolidated financial statements compared to the previous year[178]. - The company has pledged to avoid and minimize related party transactions, ensuring that any unavoidable transactions are conducted at fair market prices[175]. Strategic Development - The company aims to become an innovative leader in the nutrition and health sector, focusing on customer-first strategies[33]. - The company has identified four strategic pillars for its future development: building core competitiveness, covering all customer types, expanding overseas, and developing new business areas[128]. - The company is expanding its open innovation network by collaborating with customers, suppliers, and research institutions to enhance its R&D capabilities and broaden innovation perspectives[131]. - The company is actively seeking opportunities in emerging business areas and plans to invest in brand development in the Chinese market when appropriate[142].