Whirlpool (China) (SH:600983)2020-04-29 16:00Financial Performance - In 2019, the company reported a net profit of -322,839,167.01 RMB, a decrease of 223.30% compared to the previous year[4]. - The total operating revenue for 2019 was 5,281,658,055.31 RMB, reflecting a decline of 15.97% from 2018[21]. - The basic earnings per share for 2019 was -0.42 RMB, a drop of 223.53% compared to 0.34 RMB in 2018[22]. - The weighted average return on equity was -8.21% in 2019, down 14.75 percentage points from the previous year[22]. - The net profit attributable to shareholders for Q4 2019 was -¥253,630,539.55, contributing to an annual net loss of -¥322,839,176.01[25]. - The company reported a net cash flow from operating activities of -¥109,448,371.36, a significant decline of 262.11% compared to the previous year[65]. - The company achieved a total of 1,800,000,000 in structured deposits with a yield of 3.65% as of December 2019[107]. Assets and Liabilities - The company's total assets decreased by 8.58% year-on-year, amounting to 7,582,845,817.74 RMB at the end of 2019[21]. - The company's net assets attributable to shareholders decreased by 8.77% to 3,754,626,617.79 RMB at the end of 2019[21]. - The total liabilities decreased to CNY 3,828,219,199.95 in 2019 from CNY 4,178,687,561.70 in 2018, a reduction of about 8.4%[179]. - The total equity attributable to shareholders decreased to CNY 3,754,626,617.79 in 2019 from CNY 4,115,710,531.27 in 2018, reflecting a decline of approximately 8.8%[179]. Revenue and Costs - Total revenue for 2019 was ¥5,281,658,055.31, a decrease of 15.97% from ¥6,285,633,179.42 in 2018[186]. - Total operating costs for 2019 were ¥5,515,950,283.94, down from ¥6,116,943,035.29 in 2018, reflecting a reduction of 9.85%[186]. - The company's revenue from home appliance manufacturing reached ¥5,281,658,055.31, a decrease of 13.53% compared to the previous year, with a gross margin of 23.67%[56]. Market and Industry Trends - In 2019, the home appliance industry experienced its first negative growth since 2013, with overall retail consumption demand weak and market performance flat[35]. - The company faced challenges with a 3.9% decline in the overall Chinese home appliance market, marking the first negative growth since 2013[47]. - The kitchen appliance segment saw a year-on-year decline of 6.6% due to sluggish demand in the real estate market[47]. Strategic Initiatives - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares, totaling 38,321,950.00 RMB[4]. - Whirlpool (China) focused on smart technology research and high-quality product manufacturing, enhancing brand and product strength to capture market demand[35]. - The company aims to expand its export business by leveraging Whirlpool's global resources and enhancing local manufacturing cost competitiveness, targeting growth in the Asia-Pacific region to mitigate potential declines due to the pandemic[82]. Research and Development - Total R&D expenditure was ¥150,681,562.90, accounting for 2.85% of total revenue, with 362 R&D personnel, representing 14% of the total workforce[64]. - The company launched a series of core health smart technology products, including the "Emperor" washing machine and "Frozen Age PRO" refrigerator, showcasing innovative features[37]. Environmental Responsibility - The company discharged a total of 223,785.6 tons of wastewater from the Nangang Industrial Park in the reporting period, with a chemical oxygen demand (COD) average concentration of 207.1 mg/L, which is below the discharge permit limits[111]. - The company has invested in advanced pollution control technologies, including activated carbon adsorption and biological treatment processes, to enhance its environmental performance[112]. Governance and Compliance - The company has a clear governance structure with independent directors and a supervisory board, ensuring compliance and oversight[132]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[139]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[163].