TECHMATION(SH:603015)2020-04-28 16:00Financial Performance - In 2019, the company's operating revenue was approximately CNY 600.54 million, a decrease of 12.41% compared to 2018[22]. - The net profit attributable to shareholders was CNY 33.14 million, down 43.65% from the previous year[22]. - The basic earnings per share (EPS) for 2019 was CNY 0.08, a decline of 42.86% compared to 2018[22]. - The net cash flow from operating activities was CNY 81.10 million, an increase of 31.82% year-on-year[22]. - The total assets at the end of 2019 were CNY 1.74 billion, reflecting a growth of 9.35% from the previous year[22]. - The company reported a weighted average return on equity of 2.74%, down 2.17 percentage points from 2018[23]. - The decline in revenue and profit was primarily due to a decrease in sales orders for the company's main business in industrial control and drive systems[23]. - The company maintained a net asset value of CNY 1.21 billion at the end of 2019, a slight decrease of 0.06% from 2018[22]. - The company’s revenue decreased by 12.41% year-on-year, and net profit attributable to the parent company fell by 43.65% due to market environment impacts[52]. - The shipment volume of the plastic machine control system and servo system decreased by 15.57% and 14.02% respectively compared to the previous year[52]. Risk Management - There are no significant risks that materially affect the company's operations during the reporting period[7]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The company has detailed various risks and countermeasures in the report, particularly in the section discussing operational risks[7]. - The company has a comprehensive risk statement regarding future plans and development strategies, emphasizing the importance of investor awareness of investment risks[6]. - The company is committed to optimizing its internal control and risk management systems to mitigate operational and financial risks[105]. Corporate Governance - The company received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company has committed to minimizing related party transactions and ensuring fairness in any unavoidable transactions[115]. - The company has not reported any significant deficiencies in its internal control system during the reporting period[192]. - The company has implemented a cash dividend policy in accordance with its Articles of Association and the profit distribution regulations outlined in the future dividend plan for 2017-2021, emphasizing investor returns[183]. - The company has established an information disclosure management system to ensure compliance with legal regulations, maintaining transparency and fairness in its reporting practices[183]. Research and Development - R&D investment accounted for 9.74% of the company's revenue in 2019, with R&D personnel making up 45.45% of the total workforce[42]. - The company has established strategic partnerships with institutions such as Siemens and various universities to enhance its R&D capabilities[39]. - The company is actively developing new energy solutions, including photovoltaic inverters and energy management systems, to capitalize on the growing demand for renewable energy[37]. - The company has committed to developing a comprehensive smart factory solution to support the digital transformation of the plastic processing industry[96]. Market Position and Strategy - The company is focused on the automation and intelligent transformation of the plastic processing industry, aiming to enhance its market position in high-end automation solutions[32]. - The company has been recognized as a leading enterprise in the injection molding control system sector in China, with a significant market share[32]. - The company is targeting a market expansion in the renewable energy sector, particularly in Italy, as part of its strategy to enhance its competitive edge through collaboration and resource sharing[97]. - The company aims to provide comprehensive smart manufacturing solutions to plastic processing manufacturers, integrating robotic systems and management software to create fully digitalized smart factories[102]. Shareholder Information - The company plans not to distribute profits for the year 2019 and will not increase capital through capital reserves[5]. - The company reported a positive profit for the reporting period, but did not propose a cash profit distribution plan for ordinary shareholders[111]. - The company distributed a cash dividend of 0.12 CNY per share, totaling 48,858,120 CNY based on a total share capital of 407,151,000 shares[144]. - The company has a cash dividend policy prioritizing cash distributions, with a total cash dividend of 48,858,120 RMB distributed for the 2018 fiscal year, amounting to 0.12 RMB per share[108]. Legal and Compliance - The company reported no significant litigation or arbitration matters during the year, indicating a stable legal environment[119]. - The company has not encountered any issues related to the suspension or termination of its stock listing, reflecting a solid compliance status[119]. - The company has not reported any instances of fund occupation or collection progress issues, suggesting effective cash flow management[116]. - The company will ensure fair and transparent related party transactions, adhering to legal and regulatory requirements[114]. Employee and Management - The total number of employees in the parent company is 292, while the total number of employees in major subsidiaries is 467, resulting in a combined total of 759 employees[175]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 6.8482 million yuan (before tax)[172]. - The company has established a salary policy that balances internal equity and market competitiveness, aimed at retaining and attracting talent[176]. - The company has implemented a detailed annual training plan covering management, technology, and corporate culture to enhance employee value[177]. Financial Management - The company has engaged in structured deposits amounting to 1,092,500,000 RMB from its own funds, with an outstanding balance of 186,000,000 RMB[137]. - The company has consistently utilized self-owned funds for its structured deposit investments, ensuring guaranteed returns upon maturity[138]. - The structured deposits have been managed through reputable banks, ensuring compliance with legal procedures and full recovery of principal and interest[139]. - The company plans to continue its strategy of investing in guaranteed return financial products in the future[138].