Aokanginternational(SH:603001)2020-04-27 16:00Financial Performance - In 2019, the company's operating revenue was CNY 2,726,480,726.05, a decrease of 10.41% compared to CNY 3,043,138,242.59 in 2018[20] - The net profit attributable to shareholders was CNY 22,497,156.13, down 83.57% from CNY 136,946,493.70 in the previous year[20] - The net profit after deducting non-recurring gains and losses was CNY -30,078,528.55, a decline of 133.09% compared to CNY 90,902,611.95 in 2018[20] - The net cash flow from operating activities was CNY 111,180,719.72, a decrease of 65.16% from CNY 319,129,263.31 in 2018[20] - The total assets at the end of 2019 were CNY 4,484,655,090.70, down 8.06% from CNY 4,877,869,034.72 at the end of 2018[20] - The net assets attributable to shareholders were CNY 3,778,158,935.57, a decrease of 4.68% from CNY 3,963,739,201.77 in 2018[20] - Basic earnings per share were CNY 0.0580, down 83.06% from CNY 0.3423 in 2018[21] - The weighted average return on net assets was 0.58%, a decrease of 2.82 percentage points from 3.40% in 2018[21] - The total operating revenue for the company was ¥2,697,599,035.09, with a gross profit margin of 34.89%, reflecting a decrease of 10.55% year-on-year[72] - The gross profit margin for the footwear industry was 34.89%, a decrease of 0.58 percentage points from the previous year[42] Revenue and Sales - In Q1 2019, the company reported revenue of approximately CNY 735.80 million, with a net profit attributable to shareholders of CNY 79.14 million[23] - The company experienced a significant decline in Q4 2019, reporting a net profit loss of CNY 83.44 million, marking a substantial decrease compared to previous quarters[23] - The total revenue for the year 2019 was impacted by non-recurring losses, including a loss from the disposal of non-current assets amounting to CNY 55,446.17[24] - Government subsidies recognized in 2019 amounted to CNY 15.02 million, which was lower than the CNY 23.06 million received in 2018[24] - Revenue in the South China region decreased by 43.84% compared to the same period last year, primarily due to the recovery of distribution rights for the Aokang and Kanglong brands in Dongguan[45] - Total production volume for 2019 was 1,700.71 million pairs, with a slight increase of 0.17% compared to 2018, while sales volume decreased by 7.99% to 1,647.16 million pairs[46] - The company reported a 106.59% increase in export revenue, indicating a strong performance in international markets[43] - Online sales contributed CNY 414,264,288.69, representing 15.36% of total revenue, with a gross margin of 33.94%[76] Costs and Expenses - The operating cost was CNY 1,772.91 million, down 9.34% compared to the previous year[38] - Main business costs for the footwear industry amounted to ¥1,756,300,818.29, a decrease of 9.74% from ¥1,945,843,589.19 in the previous year[50] - Total sales expenses decreased by 0.50% to ¥458,835,300.27, mainly due to reductions in asset amortization and depreciation[54] - R&D expenses increased by 16.85% to ¥47,216,820.25, driven by higher salaries for R&D personnel and increased investment in R&D materials[60] Investments and Assets - The company’s investment in equity instruments increased from CNY 229.47 million at the beginning of the year to CNY 244.45 million by year-end, reflecting a gain of CNY 14.98 million[26] - The company’s total assets included CNY 207.60 million in overseas assets, accounting for 4.63% of total assets[33] - The company reported a long-term equity investment impairment loss of ¥102,612,202.16, which accounted for 158.49% of total profit[64] - The company’s long-term equity investment in LightInTheBox Holding Co., Ltd had a book value of RMB 424,977,764.99, with an impairment provision of RMB 217,402,973.34 as of December 31, 2019[176] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 5 per 10 shares, totaling CNY 191,393,134.50, based on the adjusted share count[5] - The cash dividend distribution for 2019 was set at 3 RMB per 10 shares, totaling 116.72 million RMB, which accounted for 85.23% of the net profit attributable to shareholders[98] - The company reported a net profit of 191.39 million RMB for 2019, with a cash dividend payout ratio of 85.74%[99] - The company has distributed a total of approximately 1.3 billion RMB in cash dividends since its listing in 2012, with cash dividends from 2014 to 2018 accounting for over 77% of the net profit attributable to shareholders[128] Market Strategy and Operations - The company operates under a multi-brand strategy, with the main brand "Aokang" targeting mid-to-high-end consumers aged 25-35, with price ranges between CNY 299-699[28] - The company has adopted a mixed production model, combining in-house production with outsourced manufacturing to meet diverse consumer demands[29] - The online sales channels include major platforms such as Taobao, Tmall, and JD.com, contributing to the company's market expansion strategy[30] - The company is expanding its retail channels, including the introduction of C2M franchise stores to improve consumer experience[36] - The company is focusing on channel expansion and exploring new retail models, including "cloud+" marketing strategies to enhance consumer engagement[94] Corporate Governance and Compliance - The company has not reported any non-standard audit opinions from its accounting firm[104] - The company has maintained a good integrity status with no significant debts or court judgments unfulfilled[109] - The company has not faced any risks of suspension or termination of its listing status[109] - The company has engaged in bank wealth management products with a total amount of 1.54 billion RMB and an outstanding balance of 355 million RMB[112] - The company has not reported any major accounting errors or corrections for the year[107] Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 5,511, with 2,317 in the parent company and 3,194 in subsidiaries[156] - The professional composition includes 2,694 production personnel, 1,816 sales personnel, 191 technical personnel, 158 financial personnel, and 652 administrative personnel[156] - The company has established a differentiated incentive compensation system to attract and retain key talent, aligning individual and company strategic goals[157] - Training programs such as "Aokang Lecture Hall" and "Talent Ladder Construction" are in place to enhance employee competencies and retention rates[158] Future Outlook and Strategic Plans - The company plans to implement a "light asset" operation model in 2020, focusing on a dual-driven approach of "self-operated + distribution" to enhance profitability[94] - The company is focusing on expanding its financial product offerings to enhance revenue streams[117] - The company has outlined a strategic plan for future growth, including potential mergers and acquisitions to expand its market share[116] - The company is actively pursuing new strategies for growth, including potential mergers and acquisitions[117]