Saurer Intelligent(SH:600545)2020-06-29 16:00Financial Performance - In 2019, the company achieved total revenue of CNY 8.58 billion, a decrease of 6.9% compared to CNY 9.22 billion in 2018[6]. - The net profit attributable to shareholders was CNY 610 million, down 24.8% from CNY 810 million in 2018[6]. - The company's operating revenue for 2019 was CNY 8,575,309, a decrease of 7.0% compared to CNY 9,220,759 in 2018[30]. - The net profit attributable to shareholders for 2019 was CNY 608,934, down 24.9% from CNY 810,294 in 2018[30]. - The net cash flow from operating activities for 2019 was CNY -252,733, an improvement from CNY -1,042,763 in 2018[30]. - The total assets at the end of 2019 were CNY 13,203,971, a decrease of 8.4% from CNY 14,415,706 at the end of 2018[30]. - The basic earnings per share for 2019 was CNY 0.3218, down 24.7% from CNY 0.4275 in 2018[31]. - The weighted average return on equity for 2019 was 12.69%, a decrease of 17.89 percentage points from 30.58% in 2018[31]. - The company reported a quarterly revenue of CNY 2,751,451 in Q4 2019, which was the highest among the four quarters[34]. - The net profit attributable to shareholders in Q4 2019 was CNY 241,816, showing a significant recovery compared to previous quarters[34]. Market and Sales Performance - Sales revenue in Asia, including China and India, grew by 4.6%, with China, the largest market, increasing by 17%[6]. - The spinning division reported revenue of 7.303 billion CNY, a decrease of 1.6% year-on-year[53]. - The technology division's revenue was 1.327 billion CNY, down 29.3%, primarily due to significant losses in the embroidery business[54]. - The company’s revenue in Turkey and India decreased by 67.4% and 32.7% respectively, while revenue in China grew by 16.9%[51]. - The company signed new product contracts and orders worth over 200 million euros at the ITMA exhibition, which will contribute to performance in the second half of 2019 and 2020[52]. Innovation and Product Development - The company launched several innovative products at the Barcelona International Textile Machinery Exhibition, including the Autocard cotton carding machine and the Autoairo air spinning machine[5]. - The company introduced the Autolab series of laboratory equipment and the world's first sensor capable of measuring tension and monitoring twisting machines[5]. - The company launched the Autoairo fully automatic air spinning machine, which can connect 24 spindles simultaneously, doubling the connection capacity of traditional machines and reducing space by 40%[44]. - The company established the Senses data platform to enhance operational efficiency and transparency in spinning mills[55]. - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[30]. Financial Strategy and Stability - The company plans to enhance its financial stability and risk resistance by not distributing profits or increasing share capital in light of the economic pressures from the COVID-19 pandemic[13]. - The total amount spent on share repurchases in 2019 was CNY 108.93 million, accounting for 17.89% of the distributable profit for the year[13]. - The company achieved a performance commitment completion rate of 107.85% for the years 2017 to 2019, with net profit exceeding the promised amount[51]. - The company plans to continue increasing R&D investment to enhance core competitiveness[71]. - The company aims to increase its parts sales and service revenue, which is expected to enhance customer loyalty and has a relatively high gross margin[90]. Corporate Governance and Compliance - The company has established an independent financial accounting department and a separate financial management system[106]. - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and protecting the rights of minority shareholders[167]. - The company has maintained a good integrity status during the reporting period, with no significant debts or court judgments outstanding[114]. - The company has not faced any penalties from securities regulatory agencies in the past three years[161]. - The company has implemented measures to enhance employee rights and promote workplace equality[127]. Social Responsibility and Sustainability - The company donated 5 million RMB to support medical institutions in Jiangsu Province during the COVID-19 pandemic[129]. - The company implemented the E³+I concept in product development, focusing on energy efficiency, economic efficiency, ergonomics, and intelligence to reduce energy consumption[130]. - The company actively promotes paperless office practices and encourages employees to recycle[130]. - The company participated in various social welfare activities, including book donations and care for the elderly[129]. - The management team has emphasized the importance of sustainability, aiming for a 40% reduction in carbon emissions by 2025[154]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 4,959, with 2,240 in production roles and 501 in research and development[162]. - The company has established a competitive compensation and benefits policy, providing annual performance bonuses based on employee performance and company results[163]. - The company has implemented a training system to help employees acquire new skills and knowledge, including on-the-job training and participation in industry training[164]. - The company’s board consists of experienced professionals from various industries, enhancing its strategic decision-making capabilities[152]. - The company has a diverse board with members holding significant positions in other organizations, which may provide valuable insights and networking opportunities[152]. Related Party Transactions - The company reported a total of RMB 2,591.96 million in transactions with related parties during the year, including RMB 2,211.96 million in payments and receipts related to equipment sales[180]. - The company agreed to refund RMB 936.66 million to Xinjiang Litai Silk Road Investment Co., Ltd. and RMB 34 million to Kuitun Litai Silk Road Investment Co., Ltd. for equipment procurement payments[180]. - The company maintained effective internal control over financial reporting, as confirmed by PwC's audit report[175]. - The company identified one significant internal control deficiency related to insufficient supporting documents for transactions with related parties[174]. - The company recognized revenue from sales to related parties without fixed payment terms, leading to audit concerns regarding the nature of these transactions[183].