Youngor(SH:600177)2020-04-29 16:00Financial Performance - In 2019, the company achieved a net profit of CNY 2,803,999,405.86, with a profit distribution plan proposing a cash dividend of CNY 2.00 per 10 shares, totaling CNY 925,800,594.60, which accounts for 23.31% of the net profit attributable to shareholders[6]. - The company implemented a share repurchase amounting to CNY 1,482,974,318.01, resulting in a total cash dividend of CNY 2,408,774,912.61 for the year, representing 60.64% of the net profit attributable to shareholders[6]. - The company's operating revenue for 2019 was CNY 12,421,171,432.59, representing a 28.91% increase compared to CNY 9,635,479,253.14 in 2018[19]. - Net profit attributable to shareholders for 2019 was CNY 3,972,408,923.47, an increase of 8.04% from CNY 3,676,929,188.56 in 2018[19]. - The net profit after deducting non-recurring gains and losses was CNY 3,591,218,171.90, up 15.88% from CNY 3,099,071,190.08 in 2018[19]. - The company generated a net cash flow from operating activities of CNY 2,764,431,913.33, a slight increase of 1.57% from CNY 2,721,612,786.83 in 2018[19]. - The total assets at the end of 2019 were CNY 80,661,323,032.65, reflecting a 6.68% increase from CNY 75,612,003,575.99 at the end of 2018[19]. - The basic earnings per share for 2019 was CNY 0.81, a 10.96% increase from CNY 0.73 in 2018[20]. - The weighted average return on equity for 2019 was 14.14%, an increase of 0.15 percentage points from 13.99% in 2018[20]. Strategic Initiatives - The company has transitioned its production center to lower-cost regions, achieving initial results in its relocation efforts[2]. - The transformation strategy focuses on smart manufacturing and intelligent marketing, with goals of standardization, automation, and digitalization[2]. - The company plans to promote younger leadership by elevating employees born in the 1980s and gradually introducing those born in the 1990s into leadership roles[3]. - The company aims to become a world-class fashion group within the next 30 years, reflecting on its 40-year history and setting future aspirations[2]. - The company has adopted a dual-channel marketing strategy, integrating online and offline platforms to enhance customer experience and responsiveness[2]. - The company is committed to investing in information technology infrastructure to support organizational restructuring and talent development[3]. - The company emphasizes the importance of adapting to new market conditions and uncertainties, aiming to emerge stronger from the ongoing changes[3]. Market Conditions - The company has faced challenges due to the COVID-19 pandemic, leading to a significant drop in daily sales, prompting a shift to online sales strategies[2]. - The domestic retail sales growth for clothing and textiles was only 2.9% in 2019, significantly lower than the previous year's growth rate, indicating a slowdown in consumer demand[32]. - The overall economic environment in 2019 showed a GDP growth of 6.1%, with retail sales growth slowing down, impacting the apparel sector significantly[32]. - In 2019, the online retail sales of apparel products increased by 15.4% year-on-year, significantly outpacing the offline growth rate[33]. Investment and Assets - The company holds overseas assets valued at ¥1,182,403.16 million, accounting for 14.66% of total assets, including shares in CITIC and Midea[35]. - The company has established a comprehensive product R&D and technology innovation system, focusing on new materials and functional products[36]. - The company reported a decrease in structured deposits from CNY 291.96 million to CNY 222.04 million, a decline of 24%[29]. - The fair value changes of investment properties resulted in significant losses, reflecting the volatility in the real estate market[27]. - The company’s investment in CITIC shares saw a decrease of CNY 602.64 million, indicating a substantial decline in value[29]. Shareholder Engagement - The company has a history of prioritizing investor returns, having distributed cash dividends 21 times since its listing, totaling 16.928 billion RMB[96]. - The company reported a significant change in accounting policies, implementing new financial reporting formats as per the Ministry of Finance's notifications issued on April 30, 2019, and September 19, 2019[100]. - The company has not faced any major litigation or arbitration matters during the reporting period[109]. - The company has maintained its accounting firm, Lixin Accounting Firm, for 15 years without any changes during the reporting period[108]. Environmental and Social Responsibility - The company has established a wastewater treatment facility with a daily capacity of 1,000 tons, consistently meeting the indirect discharge standards of the textile dyeing and finishing industry[121]. - The company has implemented an environmental self-monitoring plan in accordance with the guidelines for the textile dyeing industry[124]. - Wastewater monitoring data is publicly disclosed through the national pollution source monitoring information management and sharing platform[124]. - The company has complied with environmental protection laws and regulations in its construction projects[122]. Human Resources and Governance - The company employed a total of 22,022 staff, with 10,764 in sales and 6,950 in production roles[153][154]. - The company has a total of 65 employees with a master's degree or higher, reflecting a focus on skilled labor[154]. - The company’s management compensation structure includes a fixed salary and performance-based bonuses, enhancing competitiveness and talent retention[155]. - The company has established a strategic development committee to assist in decision-making and monitoring functions[159].