JSSS(SH:600220)2020-04-27 16:00Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of RMB 70,076,297.17, a decrease of 48.47% compared to 2018[4]. - The company's operating revenue for 2019 was RMB 2,349,026,226.65, down 2.94% from RMB 2,420,302,582.38 in 2018[19]. - The net profit after deducting non-recurring gains and losses was RMB 56,906,666.03, reflecting a decline of 55.27% year-on-year[19]. - Basic earnings per share decreased by 48.49% to CNY 0.0393 in 2019 from CNY 0.0763 in 2018[20]. - Diluted earnings per share also decreased by 48.49% to CNY 0.0393 in 2019 from CNY 0.0763 in 2018[20]. - The weighted average return on equity fell by 3.17 percentage points to 3.21% in 2019 from 6.38% in 2018[20]. - The company reported a net profit margin of approximately 4.4% based on the total equity and liabilities[177]. - The company’s net profit for 2018 was RMB 135,986,340.19, with a dividend payout ratio of 39.34%[86]. Cash Flow and Assets - The net cash flow from operating activities increased by 6.36% to RMB 146,756,605.96 compared to RMB 137,976,797.24 in 2018[19]. - Cash and cash equivalents increased by 51.59% to 615.41 million, representing 12.27% of total assets[58]. - The company reported a total cash inflow from investing activities of CNY 56,743,252.65, a substantial increase from CNY 6,726,416.26 in 2018[185]. - The total cash and cash equivalents at the end of the period increased to $245.41 million from $93.35 million at the beginning of the year[187]. - Total assets at the end of 2019 reached RMB 5,013,696,965.61, an increase of 2.85% from RMB 4,874,565,537.26 at the end of 2018[19]. - Current assets totaled CNY 2,332,221,297.96, up from CNY 2,085,393,703.43 in 2018, representing an increase of about 11.8%[171]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.25 per share, totaling RMB 44,583,508.15 based on a total share capital of 1,783,340,326 shares[4]. - The remaining undistributed profit for the parent company after the dividend distribution will be RMB 172,476,252.49, to be carried forward to future years[4]. - The net profit attributable to shareholders for 2019 was RMB 70,076,297.17, with a dividend payout ratio of 63.62%[86]. - The company has adhered strictly to its profit distribution policy since its establishment[83]. Business Segments and Operations - The textile business primarily uses Australian wool, producing various high-end woolen fabrics for domestic and international markets[26]. - The company operates three thermal power plants, with coal prices significantly impacting operating performance[29]. - The textile business generated revenue of CNY 1.64 billion, a decline of 7.44% year-on-year, while the gross margin was 18.37%, down 2.77 percentage points[36]. - The thermal power business reported revenue of CNY 658 million, an increase of 8.96% year-on-year, with a gross margin of 26.87%, up 8.43 percentage points[36]. - The company has invested in product innovation, emphasizing unique and superior offerings in the textile market[31]. Market and Competitive Position - The company maintains a strong competitive edge in the textile industry, focusing on high-tech and high-quality product development[31]. - The company is a leading player in the domestic wool textile industry, focusing on high-end products and maintaining a strong export position[65]. - The textile industry is transitioning from high-speed growth to high-quality development, with overall revenue and profit margins declining[61]. - The company has consistently ranked among the top 10 in competitiveness within the wool textile industry and the top 500 in the textile and apparel sector[65]. Risks and Challenges - The company emphasizes the importance of risk awareness regarding future plans and development strategies due to inherent uncertainties[5]. - The textile industry faces challenges such as rising raw material prices, particularly for wool and coal, which could impact production costs[78]. - The company is exposed to macroeconomic fluctuations and potential impacts from trade tensions and the COVID-19 pandemic[78]. - The company has established operations in Ethiopia, facing risks related to local economic conditions and regulatory environments[78]. Governance and Compliance - The company has a robust internal control system in place, continuously improving governance structures and compliance measures[144]. - The company strictly adheres to legal regulations and internal rules for information disclosure, ensuring transparency and equal access for all shareholders[147]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[157]. - The company has implemented a three-year shareholder return plan for 2019-2021, which was approved during the extraordinary general meeting[149]. Research and Development - Research and development expenses totaled ¥16,640,977.89, representing 0.71% of total revenue, with no capitalized R&D expenditures[54]. - The company applied for 54 patents during the reporting period, indicating a strong focus on technological innovation[34]. - Future product development initiatives are focused on enhancing the quality of fabric and expanding the product line[99]. Environmental Responsibility - The company has established wastewater treatment facilities to pre-treat wastewater before centralized processing, ensuring compliance with environmental standards[110]. - The company has implemented automatic online monitoring systems at all discharge outlets, with data connected to local environmental monitoring platforms[113]. - The company has committed to sustainable development practices, aiming to minimize pollutant emissions during production operations[114].