Aokanginternational(SH:603001)2020-06-16 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] - The basic earnings per share were CNY 0.0580, down 83.06% from CNY 0.3423 in 2018[21] - The diluted earnings per share were also CNY 0.0580, reflecting the same percentage decrease as basic earnings[21] - The weighted average return on net assets was 0.58%, a decrease of 2.82 percentage points from 3.40% in 2018[21] Cash Dividends - 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 after buybacks[5] - The cash dividend distribution for 2019 was CNY 191.39 million, which accounted for 22.50% of the net profit attributable to shareholders[127] - The company distributed a cash dividend of CNY 3 per 10 shares in 2019, totaling CNY 116.72 million, which is 85.23% of the net profit for 2018[125] - The company reported a cash dividend amount of CNY 125.07 million in 2019, representing 555.94% of the net profit attributable to ordinary shareholders[129] Sales and Revenue Trends - The company achieved operating revenue of CNY 2,726.48 million, a year-on-year decrease of 10.41%[38] - The operating cost was CNY 1,772.91 million, down 9.34% compared to the previous year[38] - 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 Southeast region generated CNY 1,117.41 million in revenue, with a decrease of 8.44% year-on-year[43] - Revenue in the South China region decreased by 43.84% year-on-year, primarily due to the recovery of distribution rights for the Aokang and Kanglong brands in Dongguan[45] Inventory and Production - The total production volume for 2019 was 1,700.71 million pairs, a slight increase of 0.17% compared to 1,697.88 million pairs in 2018[48] - Men's shoe sales volume decreased by 13.15% to 967.03 million pairs, while women's shoe sales volume increased by 0.50% to 680.13 million pairs[46] - The company's self-produced shoe volume decreased by 12.15% to 623.57 million pairs, while external procurement increased by 9.02% to 1,077.14 million pairs[50] - Women's shoe inventory increased by 24.60% to 321.24 million pairs due to production exceeding sales volume[51] - The total inventory value as of December 31, 2019, was CNY 926,330,410.48, with a total impairment provision of CNY 114,175,050.55[103] Research and Development - The company reported a 16.85% increase in R&D expenses, amounting to CNY 47.22 million, indicating a focus on product innovation[39] - The total R&D investment for the period was 47,216,820.25 RMB, accounting for 1.73% of the operating revenue, with 270 R&D personnel, representing 4.90% of the total workforce[76] Marketing and Brand Strategy - 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 launched the "Slip-resistant Shoes" 2.0 series, promoting it through a marketing campaign and a challenge event[36] - The company focused on enhancing its brand value, with the "Aokang" brand valued at CNY 21.25 billion in 2019, maintaining its leading position in the footwear industry[34] - The company has expanded its sales channels to include online platforms such as Taobao, Tmall, and JD.com, enhancing its market reach[30] Financial Management and Investments - The company has invested a total of 154,010,000 RMB in bank wealth management products, with an outstanding balance of 35,500,000 RMB[142] - The annualized return rate for the bank wealth management products ranges from 3.10% to 4.90%[143] - The company has a structured approach to managing its commitments and ensuring compliance with regulations, enhancing corporate governance[132] Corporate Governance - The company has established a framework to minimize and regulate related party transactions, ensuring fairness and compliance with legal standards[132] - The company has retained Tianjian Accounting Firm (Special General Partnership) for the 2019 audit, with an audit fee of 1.8 million RMB[137] - The company has implemented a governance structure that includes a compensation and assessment committee to oversee remuneration matters[182] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,589, down from 17,615 at the end of the previous month[162] - The largest shareholder, Aokang Investment Holdings Co., Ltd., holds 111,181,000 shares, accounting for 27.73% of total shares[164] - The company has a share repurchase account with 18,193,731 shares held, indicating ongoing buyback activities[164] Future Outlook - Future outlook indicates a focus on market expansion and the development of new products and technologies[1] - The company plans to implement a "light asset" operation model in 2020, focusing on self-operated and authorized distribution channels[121] - The management team emphasizes the importance of strategic initiatives to drive growth and profitability[1]