Rebecca(600439)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,819,293,409.70, a decrease of 3.30% compared to CNY 1,881,348,591.94 in 2018[21]. - The net profit attributable to shareholders for 2019 was CNY 211,789,483.21, down 9.56% from CNY 234,163,898.60 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 204,962,163.73, a decrease of 10.87% compared to CNY 229,956,277.38 in 2018[21]. - Basic earnings per share decreased by 9.57% to CNY 0.1871 in 2019 compared to CNY 0.2069 in 2018[22]. - Diluted earnings per share also decreased by 9.57% to CNY 0.1871 in 2019 compared to CNY 0.2069 in 2018[22]. - The weighted average return on equity fell to 7.23% in 2019, down from 8.51% in 2018, a decrease of 1.28 percentage points[22]. - Overall main business revenue was ¥1,778,528,064.21, a year-on-year decline of 3.59%, with net profit attributable to shareholders at ¥211,789,483.21, down 9.56%[48]. - The company's total revenue for 2019 reached approximately 702.31 million, with a net profit of about 177.58 million, indicating a strong performance in the wig products sector[76]. Cash Flow and Assets - The cash flow from operating activities for 2019 was CNY 151,436,344.53, a significant recovery from a negative cash flow of CNY -106,477,782.76 in 2018[21]. - The total assets at the end of 2019 were CNY 5,025,893,654.70, an increase of 3.31% from CNY 4,864,930,174.68 in 2018[21]. - The net assets attributable to shareholders at the end of 2019 were CNY 2,863,802,659.23, a slight increase of 0.25% from CNY 2,856,519,061.89 in 2018[21]. - The net cash flow from operating activities for 2019 was ¥151,436,344.53, a significant improvement from -¥106,477,782.76 in 2018[193]. - The ending balance of cash and cash equivalents increased to ¥450,288,757.26 in 2019 from ¥340,497,315.80 in 2018, reflecting a growth of about 32.4%[194]. Market and Sales Performance - The decline in revenue was primarily due to a drop in sales in the US market, influenced by changes in consumer demand and the impact of US-China trade tensions[44]. - Sales revenue from the North American market decreased by 10.41%, while the gross margin increased by 6.05 percentage points due to a higher proportion of high-margin human hair wig sales[55]. - Revenue from human hair wigs increased by 34.36% due to strong market demand, while synthetic wigs saw an 8.08% decline attributed to tariff impacts and substitution effects[55]. - The company has established 201 stores in first- and second-tier cities across China, including 76 direct-operated stores and 125 franchise stores[35]. - Revenue from the African market was ¥888,844,359.75, making up 49.98% of total revenue, with a slight decline of 0.73% from the previous year[75]. Research and Development - The company holds 406 patents, including 16 authorized invention patents, showcasing its research and development capabilities[40]. - Research and development expenses totaled 38,928,836.97 RMB, representing 2.14% of total revenue, with 598 R&D personnel making up 6.65% of the total workforce[65]. - The company is committed to enhancing its technological innovation and R&D capabilities to drive growth and maintain competitiveness in the market[81]. Operational Strategies - The company emphasizes the importance of market conditions affecting its future development strategies and operational plans[6]. - The company is transitioning its sales model to include e-commerce and brand retail to adapt to market changes, although progress has been slow due to trade tensions[51]. - The company is focusing on enhancing user experience and exploring new retail solutions in the North American market[34]. - The company aims to enhance its brand strategy and global marketing system, focusing on high-quality and fashionable wig products to capture a larger market share[80]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares, totaling CNY 33,959,563.20, subject to shareholder approval[5]. - The cash dividend for the 2018 fiscal year was 0.50 RMB per 10 shares, totaling 56,599,272.00 RMB, which was 24.17% of the net profit attributable to shareholders[90]. - The board of directors has proposed a three-year shareholder return plan (2018-2020) to enhance transparency in profit distribution[89]. Environmental and Social Responsibility - The company strictly complies with national environmental protection laws and regulations, achieving standard emissions for wastewater with concentrations of 36.02 mg/L for COD and 2.21 mg/L for ammonia nitrogen, below the limits of 50 mg/L and 8-10 mg/L respectively[106]. - The company has established a robust environmental management responsibility system and improved its pollution prevention facilities, ensuring all pollutants are treated and disposed of safely[107]. - The company has actively fulfilled its social responsibilities, with a detailed report available on its website[105]. Governance and Compliance - The governance structure of the company is compliant with relevant laws and regulations, ensuring effective decision-making and protection of shareholder interests[137]. - The company has established a robust information disclosure system, ensuring that disclosures are truthful, accurate, complete, timely, and fair[139]. - The board of directors has established a performance evaluation and incentive mechanism for senior management, linking compensation to company performance and individual objectives[143].