Hisense V.T.(SH:600060)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥34.10 billion, a decrease of 2.91% compared to ¥35.13 billion in 2018[16]. - The net profit attributable to shareholders for 2019 was approximately ¥556.07 million, an increase of 41.71% from ¥392.40 million in 2018[16]. - The net cash flow from operating activities was approximately ¥1.78 billion, a significant recovery from a negative cash flow of ¥87.14 million in 2018[16]. - The total assets at the end of 2019 were approximately ¥29.27 billion, a slight decrease of 0.42% from ¥29.40 billion at the end of 2018[16]. - The net assets attributable to shareholders increased to approximately ¥14.58 billion, reflecting a growth of 3.46% from ¥14.09 billion in 2018[16]. - Basic earnings per share for 2019 were ¥0.425, representing a 41.67% increase from ¥0.300 in 2018[17]. - The weighted average return on net assets for 2019 was 3.87%, an increase of 1.07 percentage points compared to 2.80% in 2018[17]. - The company's overall operating performance improved, with a gross margin of 19.21%, up 3.39 percentage points year-on-year, and a net profit of 556 million yuan, an increase of 41.71%, despite a revenue decline of 2.91% to 34.105 billion yuan[28]. Cash Flow and Investments - The net cash flow from operating activities in Q1 2019 was CNY 1,433,746,837.25, but it turned negative in Q2 2019 with a cash outflow of CNY 572,257,891.41[19]. - The net cash flow from operating activities was ¥1,784,426,922.61, a decrease of ¥87,138,040.21 compared to the same period last year[43]. - The net cash flow from investing activities was -¥1,672,712,330.00, compared to -¥1,495,500,829.51 in the previous year[43]. - The net cash flow from financing activities was -¥475,543,562.54, down from ¥2,630,520,017.28 in the previous year[43]. - The company reported a total cash inflow from investment activities of CNY 18,133,171,163.28, compared to CNY 17,920,138,027.82 in 2018[146]. - The net cash flow from investment activities was CNY -1,672,712,330.00, worsening from CNY -1,495,500,829.51 in 2018[146]. Market and Product Development - The average size of televisions sold in 2019 surpassed 50 inches, reaching 50.6 inches, indicating a trend towards larger screens in consumer preferences[25]. - Laser televisions saw a retail volume increase of 105.95% year-on-year, reflecting strong consumer demand for innovative display products[25]. - The company aims to leverage AI and IoT technologies in its display products, creating new market opportunities amidst industry challenges[25]. - The company launched the industry's first 75-inch full-color laser TV, which quickly became the top-selling product within two weeks of its release, and received multiple awards for its innovation and quality[29]. - The company is expanding its smart display solutions in various sectors, including smart education and intelligent meeting solutions, enhancing its product offerings and market reach[32]. - In 2019, Hisense achieved a sales volume growth of 52.47% for TVs 65 inches and above, and 178.88% for TVs 80 inches and above, maintaining the highest market share in these segments[33]. Research and Development - Research and development expenses increased by 19.48% to approximately 1.43 billion yuan, representing 4.18% of total revenue[42]. - The company applied for a total of 607 patents during the reporting period, including 418 invention patents, demonstrating a strong commitment to technological innovation[28]. - The company plans to enhance its chip product R&D capabilities, focusing on panel control chips, image quality chips, and backlight control chips, with an emphasis on AI-based display quality processing technology[53]. - The company introduced the third-generation ultra-high-definition image processing chip, which enhances color, clarity, contrast, and smoothness, reducing reliance on imported chips[30]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥1.27 per 10 shares, which accounts for 30% of the net profit attributable to shareholders[5]. - The company reported a cash dividend of 1.27 RMB per 10 shares for 2019, representing 30% of the net profit attributable to shareholders[56]. - In 2019, the company distributed a total of 166,821,580.28 RMB in cash dividends, based on a net profit of 556,071,934.25 RMB[57]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. - There are no significant risks or violations in decision-making procedures regarding external guarantees reported[6]. - The company has committed to maintaining its independence and avoiding competition with its controlling shareholder, Hisense Electronics Holdings[59]. - The company ensures that all related party transactions are conducted at fair market prices and in compliance with legal regulations[60]. - The company has not reported any major litigation or arbitration matters during the reporting period[67]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 19,461, with 7,400 in the parent company and 12,061 in subsidiaries[115]. - The total remuneration for all directors, supervisors, and senior management was 6.4503 million yuan[112]. - The company has established a training plan focusing on professional and management skills through its internal training institution, Hisense Academy[117]. - The company has undergone changes in its board and management, with several appointments and dismissals due to work adjustments[113]. Financial Position and Assets - Total assets amounted to ¥29,274,919,328.19, a slight decrease from ¥29,399,374,261.14 in the previous year, reflecting a decrease of approximately 0.4%[136]. - The company's total equity increased to ¥16,266,748,855.74 from ¥15,357,816,525.64, reflecting an increase of approximately 5.9%[136]. - The total liabilities decreased to ¥13,008,170,472.45 from ¥14,041,557,735.50, representing a reduction of about 7.3%[136]. - The company's retained earnings rose to ¥9,301,713,863.33 from ¥8,829,163,582.58, an increase of approximately 5.3%[136]. Strategic Outlook - The company plans to continue expanding its market presence and is focusing on new product development and technological advancements[106]. - The company aims to create value for shareholders by providing high-tech products and personalized services[52]. - The company emphasizes sustainable development, integrating environmental, social, and economic benefits into its operations[87].