Apple Group(SH:603020)2023-04-26 16:00Financial Performance - The company's operating revenue for 2019 was approximately CNY 2.47 billion, a decrease of 1% compared to 2018[23]. - The net profit attributable to shareholders for 2019 was approximately CNY 115.55 million, representing a 5.48% increase from the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 84.81 million, a decrease of 20.32% compared to 2018[23]. - The net cash flow from operating activities for 2019 was approximately CNY 214.37 million, a significant improvement from a negative cash flow in 2018[23]. - The total assets at the end of 2019 were approximately CNY 2.60 billion, an increase of 8.38% from the end of 2018[23]. - The weighted average return on equity for 2019 was 5.71%, an increase of 0.04 percentage points from 2018[25]. - The basic earnings per share for 2019 was CNY 0.3611, reflecting a 5.49% increase from 2018[24]. - The company reported a total of CNY 30.74 million in non-recurring gains for 2019, compared to CNY 3.10 million in 2018[28]. - The company's total revenue for the reporting period increased by 31.96% year-on-year, reaching 35,034 tons in production and 32,646 tons in sales[85]. - The revenue from the top five customers accounted for 21.54% of the total annual revenue, with no related party sales[68]. 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[6]. - 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[116]. - In 2019, the company distributed cash dividends of 1.50 RMB per 10 shares, totaling 48 million RMB, representing 41.54% of the net profit attributable to shareholders[117]. - The company has not proposed a cash dividend distribution plan for the reporting period despite 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[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible persons[6]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has maintained a good integrity status during the reporting period, with no significant legal judgments or large debts unpaid[133]. - The company has not faced any penalties from securities regulatory agencies in the past three years[199]. Market Position and Strategy - The company has a strong competitive advantage in the food ingredient manufacturing and distribution sector, supported by a comprehensive sales network[52]. - The domestic market for flavors, fragrances, and food ingredients is in a growth phase, with increasing competition and market saturation[43]. - The company has established strategic partnerships with globally recognized enterprises for importing products and raw materials[41]. - The company aims to strengthen its brand influence through comprehensive solutions and timely product technology services[100]. - The company plans to replace imported raw materials with local manufacturing, optimizing processes to reduce costs and enhance market share[99]. 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[54]. - Research and development expenses amounted to CNY 33.02 million, representing 1.33% of total revenue[72]. - New product development initiatives are underway, with an investment of 50 million RMB allocated for R&D in flavor technology[193]. Environmental Compliance - The company emphasizes environmental protection and has obtained ISO14001:2015 certification, but may face stricter regulations in the future[105]. - The company has implemented a comprehensive environmental monitoring plan, including regular third-party assessments of wastewater and air emissions[158]. - The company reported a total COD emission of 4.1 tons, with a concentration of 100 mg/l, well below the standard of 500 mg/l, indicating no exceedance of emission limits[150]. - The company has successfully maintained compliance with environmental regulations, receiving necessary permits and approvals for its operations[153]. Employee and Management Structure - The total number of employees in the parent company is 428, while the main subsidiaries employ 831, resulting in a total of 1,259 employees[200]. - The professional composition includes 468 production personnel, 169 sales personnel, 202 technical personnel, 71 financial personnel, and 349 administrative personnel[200]. - The remuneration for directors, supervisors, and senior management is determined based on their specific positions and performance evaluations according to the company's compensation management system[197]. - There were changes in the board, with Qi Qingzhong resigning as an independent director and two new independent directors, Tao Ningping and Lu Peng, being elected[198]. Risks and Challenges - The company faces risks related to food safety, quality, and policy changes that could impact its future development[101]. - The company is exposed to market competition risks due to the increasing presence of international companies in the domestic market[104]. - The main raw materials for the company's products are subject to price fluctuations influenced by macroeconomic factors, which could impact profitability despite risk mitigation measures[111]. - The company has developed proprietary core technologies and obtained patents for some, but faces risks of technology leakage due to the difficulty in patenting certain key formulas[108].