DAHAO TECHNOLOGY(SH:603025)2020-03-09 16:00Financial Performance - The company's operating revenue for 2019 was CNY 972.86 million, a decrease of 9.48% compared to CNY 1,074.71 million in 2018[17]. - The net profit attributable to shareholders for 2019 was CNY 254.55 million, down 31.12% from CNY 369.57 million in 2018[17]. - The net profit after deducting non-recurring gains and losses was CNY 219.59 million, a decrease of 31.30% compared to CNY 319.63 million in 2018[17]. - The basic earnings per share for 2019 was CNY 0.28, a decline of 30.00% from CNY 0.40 in 2018[18]. - The weighted average return on equity decreased by 5.79 percentage points to 14.45% in 2019 from 20.24% in 2018[18]. - In 2019, the company achieved a total revenue of 49,436.4 billion CNY, a year-on-year decrease of 1.5%[38]. - The total profit for the year was 2,251.4 billion CNY, down 11.6% compared to the previous year[38]. - The company’s net profit for 2019 was reported at 37.26 million yuan, exceeding the performance commitment of 24.58 million yuan by 163.42%[139]. Dividend Policy - The company plans to distribute a cash dividend of 2.2 RMB per 10 shares, totaling approximately 203.75 million RMB to shareholders, pending approval at the annual general meeting[5]. - In 2019, the company distributed cash dividends of 2.2 yuan per 10 shares, totaling approximately 203.75 million yuan, which represents 80.05% of the net profit attributable to ordinary shareholders[135]. - In 2018, the company distributed cash dividends of 3 yuan per 10 shares, totaling approximately 276.57 million yuan, which accounted for 74.83% of the net profit attributable to ordinary shareholders[135]. - The company has a cash dividend policy that mandates a minimum of 30% of distributable profits to be distributed as cash dividends annually from 2018 to 2020[132]. Market Position and Competition - The company maintained a leading market position in the domestic sewing equipment control system sector, with over 80% market share for embroidery machine control systems in 2019[27]. - The market share of the company's embroidery machine electronic control products exceeded 80%, showing a slight increase, while major competitors experienced significant sales declines[35]. - The company’s sock machine control system had a market share of approximately 85% in 2019[38]. - The company’s embroidery machine control system held over 80% market share in the domestic market[45]. - The company has been actively diversifying its product offerings to reduce reliance on embroidery machine control products, with increasing revenue contributions from special industrial sewing machines and other knitting equipment[130]. Research and Development - The company has a strong commitment to research and development, particularly in automated control systems for sewing machines[10]. - The company has over 300 R&D personnel, focusing on the integration of machine vision, artificial intelligence, and industrial internet technologies in product development[49]. - The company’s total R&D investment accounted for 11.43% of operating revenue[67]. - The company has accumulated rich technical reserves and application experience through extensive research and testing in electronic control systems for sewing machinery[35]. - The company is focusing on automation, digitalization, and intelligent transformation in its product development strategy[42]. Operational Risks and Challenges - The company reported no significant risks that could materially affect its operations during the reporting period, although it acknowledged potential risks from industry fluctuations and international market changes[5]. - The overall economic environment for the embroidery machine industry shifted from positive to negative growth in 2019, leading to structural adjustments[32]. - The company faces risks related to performance declines due to fluctuations in downstream industries[128]. - A significant portion of the company's products is exported, making it vulnerable to international political and trade environment changes[130]. - The company has a high business concentration risk, with embroidery machine control products being a major profit contributor, leading to potential revenue volatility[130]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Beijing Xinghua Accounting Firm[4]. - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[4]. - The integrity status of the company and its controlling shareholders is reported as good, with no significant debts unpaid[142]. - The company has not faced any significant litigation or arbitration matters during the reporting period[142]. - The company has not reported any overdue amounts in its wealth management activities[151]. Environmental and Social Responsibility - The company has achieved ISO14001 environmental management system certification, ensuring compliance with environmental regulations[172]. - The company has actively engaged in public welfare activities, including assistance for underprivileged families[171]. - The company has maintained a commitment to social responsibility, focusing on resource conservation and environmental protection[171]. - The company does not fall under the category of key pollutant discharge units as per environmental protection department announcements[172]. Wealth Management and Financial Investments - The company has entrusted a total of RMB 1.36 billion in wealth management, with RMB 1.18 billion from idle self-owned funds and RMB 180 million from idle raised funds[151]. - The company has a remaining balance of RMB 650 million in wealth management products, with RMB 600 million from self-owned funds and RMB 50 million from raised funds[151]. - The annualized return rate for the wealth management products ranges from 3.01% to 8.00%[151]. - The company has engaged in various wealth management plans with different banks, including Agricultural Bank and Industrial Bank, with amounts typically around RMB 100 million[154][157]. Shareholder Structure and Changes - The total number of ordinary shareholders at the end of the reporting period was 20,566, up from 19,327 at the end of the previous month[181]. - Beijing Yiqing Holdings Co., Ltd. holds 296,665,646 shares, representing 32.03% of the total shares, with an increase of 5,737,370 shares during the reporting period[182]. - The company has a significant concentration of ownership, with the top ten shareholders holding a substantial portion of the total shares[182]. - The controlling shareholder, Beijing Yiqing Holdings Co., Ltd., held a total of 32.03% of the company's shares as of December 31, 2019, up from 29.87% at the time of the company's IPO in 2015[195].