Apple Group(SH:603020)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥2.47 billion, a decrease of 1.00% compared to ¥2.50 billion in 2018[24]. - Net profit attributable to shareholders increased by 37.80% to approximately ¥151.79 million in 2019 from ¥110.16 million in 2018[24]. - Basic earnings per share rose by 37.80% to ¥0.4743 in 2019, compared to ¥0.3442 in 2018[25]. - The weighted average return on equity increased by 1.72 percentage points to 7.43% in 2019 from 5.71% in 2018[26]. - The total assets of the company reached approximately ¥2.63 billion at the end of 2019, reflecting a 9.78% increase from ¥2.40 billion at the end of 2018[24]. - The net cash flow from operating activities was approximately ¥214.37 million in 2019, a significant recovery from a negative cash flow of ¥36.56 million in 2018[24]. - Total revenue for the year reached approximately 3.87 billion RMB, with a year-on-year growth of 31.96%[86]. - The gross profit margin for the main business was 20.02%, reflecting a decrease of 2.87% year-on-year[88]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders, totaling 48,000,000 RMB (including tax) based on a total share capital of 320,000,000 shares as of December 31, 2019[7]. - The company does not plan to increase capital through capital reserves or issue bonus shares, focusing solely on cash dividends[7]. - In 2019, the company distributed cash dividends amounting to 48 million RMB, representing 31.62% of the net profit attributable to shareholders[117]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be paid as cash dividends when conditions are met, with higher percentages for mature stages without major capital expenditures[116]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, which requires disclosure of reasons and future plans[118]. Audit and Compliance - The company has received a standard unqualified audit report from its accounting firm, affirming the accuracy of its financial statements[6]. - The company reported no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[9]. - The company has committed to maintaining transparency and accuracy in its financial reporting, as stated by its management[4]. - There were no major litigation or arbitration matters during the reporting period[131]. - The company and its controlling shareholders maintained a good integrity status, with no significant debts unpaid[131]. Operational Strategy - The company has outlined potential risks in its operations, advising investors to pay attention to these risks as detailed in the report[9]. - The company has not disclosed any significant changes in its business strategy or market expansion plans in the report[9]. - The company’s main business includes the research, development, manufacturing, and sales of flavors, fragrances, and food ingredients, with a focus on high-quality products and technology solutions[34]. - The company employs a "sales-driven production" model, ensuring that manufacturing aligns closely with customer orders[35]. - The company has established a strict supplier management system to ensure the quality of raw materials used in production[38]. Market and Competitive Landscape - The domestic flavor and fragrance market is in a growth phase, with increasing competition and market saturation[44]. - The company has a strong competitive advantage in the food ingredient manufacturing and distribution sector, supported by a comprehensive sales network[53]. - International flavor and fragrance companies are increasing investments in China, establishing world-class R&D centers and production facilities, intensifying competition in the domestic market[95]. - Domestic companies are underinvesting in innovation and technology, with only a few having significant capabilities in detection and analysis[96]. Research and Development - The company submitted 6 domestic invention patent applications and 10 utility model patent applications in 2019, totaling 46 invention patents by the end of the reporting period[55]. - Research and development expenses amounted to approximately ¥33.02 million, representing 1.33% of total revenue, with 124 R&D personnel making up 9.85% of the total workforce[73]. - The company plans to invest 200 million RMB in R&D for new technologies aimed at improving production efficiency and product quality over the next three years[190]. Environmental Compliance - The company has achieved ISO14001:2015 certification, but stricter future regulations may impact operations[105]. - The company has implemented a comprehensive environmental monitoring plan, including regular third-party assessments of wastewater and air emissions[157]. - The company has a wastewater treatment capacity of 300 tons per day, ensuring effective management of wastewater and compliance with environmental regulations[150]. - The company reported a total COD emission of 4.1 tons, which is below the regulatory limit of 500 mg/l, indicating no exceedance of pollution standards[149]. Shareholder and Governance - The controlling shareholder, Wei Zhonghao, has pledged not to reduce his shareholding below the issue price during the first two years post-listing[119]. - The company has established a commitment to avoid competition with its controlling shareholder, ensuring no direct or indirect involvement in competing businesses[121]. - The company has implemented measures to ensure compliance with share transfer regulations among its directors and senior management[121]. - The total number of ordinary shareholders at the end of the reporting period was 21,246, down from 23,721 the previous month[173]. Future Outlook - The company provided a positive outlook for 2020, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[191]. - New product development efforts included the introduction of three innovative flavor products, which are expected to contribute an additional 100 million RMB in revenue in 2020[192]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2022[193].