Jangho(SH:601886)2020-03-30 16:00Financial Performance - The company's operating revenue for 2019 was CNY 18,805,181,163.52, representing a 17.26% increase from CNY 16,037,261,681.39 in 2018[20]. - The net profit attributable to shareholders of the listed company decreased by 42.02% to CNY 352,843,338.36 in 2019 from CNY 608,606,499.03 in 2018[20]. - The net cash flow from operating activities was CNY 991,005,281.30, down 29.65% from CNY 1,408,596,697.72 in the previous year[20]. - The total assets at the end of 2019 were CNY 28,634,212,470.23, an increase of 4.93% compared to CNY 27,288,722,479.43 at the end of 2018[20]. - The basic earnings per share for 2019 was CNY 0.31, a decrease of 41.51% from CNY 0.53 in 2018[22]. - The weighted average return on net assets was 4.70% in 2019, down 4.24 percentage points from 8.94% in 2018[22]. - The company reported a net profit of CNY 114,818,690.40 in Q1 2019, with a significant drop to -CNY 112,833,696.63 in Q4 2019[22]. - The net profit after deducting non-recurring gains and losses was CNY 365,589,435.71, down 35.41% from CNY 566,044,104.93 in 2018[20]. - The company reported a total revenue of 20,583,923.42 in the current period, compared to 24,111,508.86 and 25,430,084.52 in the previous periods, indicating a decline[24]. - The company achieved a revenue of RMB 18.8 billion in 2019, representing a year-on-year growth of 17.26%, with the construction decoration segment contributing RMB 17.947 billion (up 17.84%) and the healthcare segment contributing RMB 849 million (up 7.38%)[60]. - Net profit decreased by 26.91% to RMB 540 million, with a significant drop in net profit attributable to shareholders by 42.02% to RMB 353 million, primarily due to goodwill impairment of approximately RMB 440 million related to Vision[60]. Dividends and Share Buybacks - The profit distribution plan for 2019 is to distribute a cash dividend of 3 RMB per 10 shares (including tax) due to the company's share buyback[4]. - The company distributed a cash dividend of 3 RMB per 10 shares, totaling 339,900,618 RMB based on a total share capital of 1,154,050,000 shares after accounting for repurchased shares[122]. - The cash dividend for 2019 represented 117.32% of the net profit attributable to ordinary shareholders, indicating a strong return to shareholders[125]. - The company completed a share repurchase totaling 156,910,287.91 RMB, with 74,067,864.44 RMB repurchased in 2019, which is included in the cash dividend calculation[126]. - The company has a cash dividend policy that aligns with the regulations set by the China Securities Regulatory Commission, ensuring a clear standard and ratio for dividends[124]. - The company maintained a stable cash dividend payout ratio of nearly 60% over the past three years, distributing a total of approximately 339.9 million RMB in cash dividends during the reporting period[68]. Business Segments - The company operates in two main business segments: construction decoration and healthcare services, with a focus on green building systems and high-quality medical services[27]. - The construction decoration segment includes high-end curtain wall projects, interior decoration, and design services, targeting premium markets[28][30]. - The healthcare segment focuses on comprehensive ophthalmology services and third-party medical testing, with a dual-brand strategy for regional expansion[32][36]. - The construction decoration segment secured new orders worth approximately RMB 22.4 billion, a year-on-year increase of 5.78%, with curtain wall system orders reaching RMB 13.3 billion (up 20.24%)[64]. - The healthcare segment is focused on high-quality medical services, particularly in ophthalmology, and has introduced advanced medical technologies and equipment[60]. Risks and Challenges - The company may face significant risks including policy risks and market competition risks[5]. - The company faces potential risks from fluctuations in raw material prices, which could adversely affect its profitability if prices rise significantly[112]. - The company recognizes the risks associated with policy changes in the healthcare sector, which could impact its operations and is actively seeking to adapt its business model accordingly[115]. - The company acknowledges the significant impact of the COVID-19 pandemic on global economic conditions, which poses challenges to its operational performance[103]. Legal and Compliance - The company is involved in a lawsuit regarding a construction contract dispute, with a claim for 8,955,511.28 RMB in unpaid project fees currently under litigation[142]. - Another lawsuit related to the same construction contract has a claim amounting to 19,980,000 RMB for breach of contract and repair costs, which is also under litigation[142]. - The company is involved in multiple ongoing litigation cases, including a construction contract dispute with a total claim of 34,675,503.48 yuan against Wuxi World Trade Center Co., Ltd. due to delayed payments[147]. - The company has filed a lawsuit against Mingyu Real Estate Group Jilin Real Estate Development Co., Ltd. for a total of 48,910,000 yuan, seeking payment for completed engineering work[145]. - A lawsuit against Xiamen Ruxin Maternity Hospital Co., Ltd. involves a claim of 17,275,286.40 yuan for overdue payments related to an interior decoration contract[146]. - The total amount claimed in the ongoing disputes reflects significant financial implications for the company, with claims exceeding 100 million yuan across various cases[145][147]. Corporate Governance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[3]. - The company has confirmed that there are no violations of decision-making procedures for providing guarantees[5]. - The company has a robust mechanism for cash dividend decision-making, allowing minority shareholders to express their opinions effectively[124]. - The company has committed to ensuring that any new business ventures do not compete with Jianghe Group, prioritizing the interests of Jianghe Group in such cases[131]. - The company has established a long-term commitment to avoid related party transactions that could harm the interests of Jianghe Group and its subsidiaries[131]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating 2 million RMB to Tsinghua University Affiliated Primary School and investing 730,800 RMB in targeted poverty alleviation efforts[69]. - The company provided financial assistance to 162 impoverished students, amounting to RMB 66,800[163]. - A total of 283 registered impoverished individuals were helped to escape poverty through the company's initiatives[163]. - The company organized job fairs in Inner Mongolia to provide employment opportunities for local graduates and disabled individuals[159]. - The company has established partnerships with local villages to support poverty alleviation efforts[159]. Innovation and Development - The company has added over 100 new patents during the reporting period, enhancing its technological capabilities in the construction decoration sector[48]. - The company has received numerous national awards, including 32 new awards in 2019, bringing the total to 199, showcasing its competitive strength in the market[64]. - The company is focusing on technological innovation and green development in the curtain wall industry, aiming for sustainable growth[99]. - The trend towards prefabricated decoration is expected to transform the interior design industry, with the company enhancing its capabilities in this area[99]. Employee and Management - The total number of common shareholders at the end of the reporting period was 25,209, an increase from 24,425 at the end of the previous month[169]. - The company has implemented a comprehensive training program for different management levels, enhancing employee skills[197]. - The total remuneration for all directors, supervisors, and senior management amounted to RMB 11,288,968.64[192]. - The company employs 3,834 technical personnel, 1,654 administrative personnel, and 503 sales personnel among its total workforce[195].