Whirlpool (China) (SH:600983)2021-04-23 16:00Financial Performance - In 2020, Whirlpool (China) Co., Ltd. reported a net profit of -149,701,660.11 CNY, an improvement of 53.63% compared to the previous year's loss of -322,839,167.01 CNY[6]. - The company's operating revenue for 2020 was 4,944,067,835.28 CNY, representing a decrease of 6.39% from 5,281,658,055.31 CNY in 2019[25]. - The net cash flow from operating activities was -794,260,315.40 CNY, a significant decline compared to -109,448,371.36 CNY in 2019, marking a decrease of 625.69%[25]. - As of the end of 2020, the total assets amounted to 7,013,158,653.76 CNY, down 7.51% from 7,582,845,817.74 CNY at the end of 2019[25]. - The net assets attributable to shareholders were 3,551,258,303.61 CNY, a decrease of 5.42% from 3,754,626,617.79 CNY in 2019[25]. - Basic earnings per share for 2020 was -0.20 CNY, an improvement of 53.61% compared to -0.42 CNY in 2019[26]. - The net profit for 2020 was -149.7 million CNY, compared to a net profit of 261.8 million CNY in 2018, reflecting significant losses over the past three years[29]. - The weighted average return on equity improved to -4.10% in 2020 from -8.20% in 2019, an increase of 4.1 percentage points[29]. - The net profit attributable to shareholders was -¥149,701,660.11, an increase of 53.63% year-on-year[44]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥325,697,299.85, an increase of 14.73% compared to the previous year[44]. Shareholder Actions - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares, totaling 38,321,950.00 CNY, based on a total share capital of 766,439,000 shares[6]. - The cash dividend for 2020 represents -25.60% of the net profit attributable to ordinary shareholders, reflecting the company's financial challenges[105]. Regulatory and Compliance Issues - The company has faced regulatory scrutiny due to allegations of false disclosures in previous financial reports, leading to an investigation by the China Securities Regulatory Commission[10]. - The company emphasizes that forward-looking statements in the report do not constitute a commitment to investors, highlighting the associated investment risks[7]. - The company has not reported any non-standard audit opinions from the accounting firm[111]. - There were no significant changes in accounting policies or estimates that affected the financial statements[111]. - The company has not reported any funds being occupied or overdue receivables during the reporting period[111]. Market and Sales Performance - The company reported a total revenue of 4.944 billion CNY in 2020, down from 5.282 billion CNY in 2019, indicating a declining trend[29]. - The company experienced a quarterly revenue increase, with Q4 2020 revenue reaching 1.414 billion CNY, up from 1.374 billion CNY in Q3 2020[30]. - The company reported a significant increase in export business, contributing to the overall revenue growth trend observed in 2020[29]. - The company achieved a revenue of ¥4,944,067,835.28, a decrease of 6.39% compared to the previous year[44]. - The company’s revenue from the Chinese market decreased by 35.64%, while revenue from international markets increased by 16.17%[63]. Product Development and Innovation - The company launched over ten new products featuring core health technologies, including the Fresh refrigerator with independent three-system and full-temperature zone capabilities[45]. - The company aims to enhance brand recognition and preference for the Whirlpool brand, focusing on health-oriented product innovation and consumer engagement[90]. - The company is committed to integrating smart and health-focused features into its product offerings, aligning with consumer trends towards integrated and customized home solutions[87]. - The company plans to launch the high-end Aurora dishwasher in Q2 2021, featuring a stainless steel panel and a capacity of 15 sets, aiming to drive sales growth in the kitchen appliance sector[96]. Marketing and Brand Strategy - Brand awareness for Whirlpool increased threefold compared to 2018, with brand preference doubling[44]. - The company focused on enhancing its flagship brand and upgraded the "Whirlpool Healthy Home" brand concept to drive sales growth[44]. - The company plans to enhance marketing efforts and product R&D to drive domestic sales growth and improve overall performance in 2021[29]. - The company will continue to strengthen its marketing strategies by leveraging data-driven sales management and enhancing customer service experiences[95]. Operational Efficiency and Cost Management - The company is committed to improving operational efficiency and reducing costs amid rising raw material and labor costs, which pose significant challenges[102]. - The company aims to control costs through measures such as resource conservation, optimized supply chain partnerships, and implementation of World Class Manufacturing (WCM) projects[98]. - The company reported a significant increase in accounts receivable financing, rising by 520.21% to approximately ¥296.03 million, which is 4.22% of total assets[75]. - The company reported a decrease in gross margin for major products, with washing machines down 7.30 percentage points to 19.71%[60]. Environmental Responsibility - The company has implemented a comprehensive environmental management system, ensuring compliance with pollution discharge standards across its facilities[148]. - The company reported a total of 41.80 tons of COD discharge from the Nankang Industrial Park, which is within the permitted limits[148]. - The company has established a wastewater treatment facility at the Nankang Phase I site, operational since October 2010, with a normal operational status[149]. - The company’s environmental report is available on the Shanghai Stock Exchange website, highlighting its commitment to social responsibility[146]. Employee Management and Development - The total number of employees in the parent company is 2,012, while the total number of employees in major subsidiaries is 3,174, resulting in a combined total of 5,186 employees[197]. - The company has established a performance evaluation system to enhance internal efficiency and align individual performance with company performance[198]. - Whirlpool (China) launched a learning and development project with a professional consulting management agency to enhance organizational and personnel capabilities[199]. - The training programs aimed to cultivate high-performance teams and systematic thinking among managers[199]. Strategic Focus and Future Plans - The company is focusing on expanding its market presence in the Asia-Pacific region, leveraging the experience of its executives[180]. - The company has plans for strategic acquisitions to bolster its market position and product offerings[180]. - Whirlpool (China) will enhance local R&D and leverage global resources to boost export business, with a focus on cross-border e-commerce to capitalize on market trends[97].