Fynex Textile(SH:600493)2020-04-17 16:00Financial Performance - The company achieved a total revenue of ¥1,023,581,621.88 in 2019, representing a 1.87% increase compared to ¥1,004,814,069.36 in 2018[21]. - The net profit attributable to shareholders was ¥25,953,606.96, a decrease of 15.19% from ¥30,603,297.65 in the previous year[21]. - The basic earnings per share decreased to ¥0.0954, down 15.20% from ¥0.1125 in 2018[22]. - The company reported a significant decline in cash flow from operating activities, which amounted to ¥14,303,808.92, a decrease of 53.93% from ¥31,048,472.04 in 2018[21]. - The weighted average return on equity decreased to 3.5717% from 4.3190% in the previous year, reflecting a decline of 0.75 percentage points[22]. - The company’s operating costs rose by 2.84% to ¥858.52 million, while sales expenses increased by 11.82% to ¥28.74 million[49]. - The gross margin for the textile segment decreased by 0.73 percentage points, indicating a slight decline in profitability[50]. - Revenue from printed products surged by 65.38%, driven by increased exports, with a corresponding gross margin increase of 3.12 percentage points[50]. - Domestic revenue fell by 7%, while international revenue grew by 13.23%, highlighting a shift towards foreign markets[51]. Assets and Investments - The total assets of the company increased by 22.98% to ¥1,688,374,429.65 at the end of 2019, compared to ¥1,372,853,199.05 at the end of 2018[21]. - The company’s retained earnings at the end of 2019 were ¥104,090,992.85, available for distribution in future years[6]. - The company’s other equity investments increased from ¥44.14 million at the beginning of the year to ¥49.81 million by year-end, reflecting a gain of ¥5.68 million[27]. - The total assets of the company saw a significant increase in other current assets, rising by 254.72% to ¥66.04 million, primarily due to changes in accounting standards[33]. - The construction in progress surged by 304.33% to ¥276.05 million, attributed to the investment in the new factory in Andong[33]. - The company’s intangible assets increased by 151.69% to ¥195.42 million, mainly due to the completion of land use rights in Anyang, Henan[33]. Cash Dividends and Payouts - The company plans to distribute a cash dividend of ¥0.3 per 10 shares, totaling ¥8,160,000 (including tax) based on a total share capital of 272,000,000 shares[6]. - The cash dividend payout ratio for the year was 31.44%, which is the proportion of the total cash dividend to the net profit attributable to shareholders[6]. - In 2019, the company distributed a cash dividend of 0.4 RMB per share, totaling 108 million RMB based on 270 million shares[119]. - The company’s cash dividend distribution strategy is designed to ensure long-term stability and competitiveness while providing returns to shareholders[122]. - The company plans to maintain a cash dividend ratio of no less than 40% in future profit distributions due to significant capital expenditures and competitive pressures in the textile industry[122]. Research and Development - The company completed 18 invention patent applications and received 3 authorized invention patents, including a process for treating dyeing wastewater that won an award from the China Textile Industry Association[39]. - The company has developed a new dyeing technology that eliminates the need for post-treatment washing, reducing energy consumption and processing steps significantly[38]. - The total R&D investment amounted to 19,622,858.76 RMB, representing 1.92% of total revenue[62]. - R&D expenses rose by 2.09% to 1,962.29 million RMB, reflecting increased spending on salaries and outsourced development[60]. - The number of R&D personnel was 131, making up 8.79% of the total workforce[63]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection, adhering to national policies and implementing clean production processes[92]. - The wastewater treatment system is designed to meet a COD standard of 30mg/L, exceeding domestic discharge standards, with a wastewater reuse rate of 50%[36]. - The company reported no exceedances in pollutant emissions during the reporting period, with COD average discharge concentration at 35.69 mg/L, significantly below the standard limit of 200 mg/L[153]. - The total annual investment in environmental protection measures was ¥1,204.59 million in 2019, a slight decrease from ¥1,214.71 million in 2018[155]. - The company invested a total of ¥2,163,315.85 in targeted poverty alleviation in 2019, with ¥682,135.95 allocated for vocational skills training, benefiting 308 individuals[148]. Market and Industry Trends - The textile industry faces challenges from global economic slowdown, trade disputes, and rising competition from emerging markets like Vietnam and India[91]. - The textile industry in China faced significant challenges in 2019, with a total revenue of 49,436.4 billion RMB, a decrease of 1.5% year-on-year, and a profit total of 225.14 billion RMB, down 11.6% compared to the previous year[96]. - The textile industry maintained a profitability rate of 4.6%, a decline of 0.5 percentage points from the previous year, indicating increased operational pressure[96]. - The company aims to enhance brand building and marketing management, implementing a large brand consumption upgrade strategy to strengthen its market position[92]. - The company plans to increase its overseas market share, targeting key clients as a primary growth driver for export business[108]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring equal rights for all shareholders, especially minority shareholders[190]. - The board of directors has established various committees, including an audit committee and a remuneration and assessment committee, to enhance governance and oversight[191]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period was 4.9751 million yuan[182]. - The company has a structured process for setting performance evaluation standards and remuneration policies for its executives[182]. - The management team has extensive experience in the textile industry, which supports the company's strategic direction[178]. Future Outlook - The company plans to invest in a modern dyeing factory in Andong, focusing on smart and green technologies to become a benchmark in the dyeing industry[93]. - The company aims to leverage its existing resources to improve operational efficiency and profitability[177]. - Future outlook includes potential investments in new technologies and product development to drive growth[177]. - The company is actively pursuing technological upgrades and green development strategies to adapt to the evolving textile industry landscape and regulatory environment[77]. - The company will implement strict cost control measures to manage expenses related to water, electricity, and materials[108].