WXHS(SH:603090)2020-04-17 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥490.76 million, representing an 18.22% increase compared to ¥415.14 million in 2018[21]. - The net profit attributable to shareholders decreased by 4.88% to approximately ¥31.03 million in 2019 from ¥32.62 million in 2018[21]. - The basic earnings per share for 2019 was ¥0.31, down 6.06% from ¥0.33 in 2018[22]. - The total assets increased by 13.07% to approximately ¥750.60 million at the end of 2019, compared to ¥663.83 million at the end of 2018[21]. - The company reported a net cash flow from operating activities of approximately ¥26.13 million in 2019, a decrease of 2.76% from ¥26.87 million in 2018[21]. - The weighted average return on equity for 2019 was 6.33%, a decrease of 0.62 percentage points from 6.95% in 2018[22]. - The gross profit margin for the main business was 24.85%, a decrease of 2.15 percentage points compared to the previous year[41]. - The total cost of sales for the company was ¥363,343,766.52, which is an increase of 23.35% year-over-year[46]. - The company achieved a main business revenue of 483.48 million yuan in 2019[139]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, totaling 10,000,000.00 RMB based on a total share capital of 100,000,000 shares as of December 31, 2019[5]. - The company has a cash dividend policy that includes a distribution of 1 RMB per 10 shares for the 2018 fiscal year, with a total cash dividend of 10 million RMB[71]. - The total number of ordinary shareholders increased from 10,824 to 11,507, representing a growth of approximately 6.3%[100]. - The largest shareholder, Niu Yuxia, holds 54,675,000 shares, accounting for 54.68% of the total shares[102]. - The second largest shareholder, Niu Faqing, holds 4,643,700 shares, representing 4.64% of the total shares[102]. Risk Factors and Industry Outlook - The company has outlined potential industry and policy risks in its report, advising investors to be cautious[7]. - The company emphasizes the importance of risk factors that may impact its operations, detailed in the discussion and analysis section of the report[7]. - The company faces risks related to exchange rate fluctuations, as 60% of its export business is settled in USD, which could impact its pricing advantage if the RMB appreciates significantly[68]. - The cost of aluminum, which constitutes about 65% of the manufacturing cost of the company's main products, poses a risk if prices rise significantly, potentially reducing profit margins[68]. - The company is actively seeking mergers and acquisitions to enhance its long-term competitive advantage and achieve greater economies of scale[67]. Governance and Compliance - The company received a standard unqualified audit report from Zhongxinghua Accounting Firm, ensuring the financial report's authenticity and completeness[4]. - The company has established a strong governance structure with all board members present at the board meeting, ensuring effective oversight[8]. - The company has committed to strictly implement the "Stabilization Plan for Company Stock Price after Listing" for three years post-IPO, ensuring compliance from key personnel[74]. - The company has confirmed that neither the actual controller nor related entities are involved in any competing businesses[74]. - The company has not reported any non-standard audit opinions from the accounting firm[78]. Research and Development - The company has established a leading R&D capability in the plate fin heat exchanger sector, significantly shortening the new product development cycle[34]. - Research and development expenses totaled ¥20,662,675.41, accounting for 4.21% of total revenue, with 95 R&D personnel representing 13.21% of the total workforce[52]. - The company entered the cryogenic equipment market since 2018, enhancing its competitiveness through talent acquisition and increased R&D investment[33]. - The company aims to enhance its competitive advantage in the aluminum plate fin heat exchanger market by developing high-pressure plate fin heat exchangers and electric vehicle thermal management systems[67]. Financial Management and Investments - The company has a clear strategy for managing its financial products, focusing on both self-owned and raised funds[88]. - The company is actively monitoring the performance of its financial investments to optimize returns[88]. - The company raised a total of RMB 160 million through brokerage financial products, with no overdue amounts reported[88]. - The company has self-owned funds amounting to RMB 350 million in bank financial products, with an outstanding balance of RMB 56 million[88]. - The company reported a total of 5,000,000.00 in self-owned funds for national contracts with a return rate of 2.50% and a revenue of 13,972.60[89]. Environmental and Social Responsibility - The company donated 100,000 RMB to the Wuxi Binhu District Charity Foundation for various charitable projects[94]. - The company has implemented a "rainwater and sewage diversion" system, resulting in no production wastewater discharge[95]. - The company has engaged in safe disposal of hazardous waste through authorized companies[95]. Employee and Management Information - The number of employees in the parent company is 446, while the total number of employees in the parent and major subsidiaries is 719[121]. - The company has a training program for employees, focusing on modern management and technical skills to enhance overall employee capabilities[123]. - Total compensation for all directors, supervisors, and senior management amounted to 406.47 million[118]. - Chairman and General Manager Niu Faqing received a pre-tax remuneration of 600,000 RMB during the reporting period[113]. Audit and Internal Control - The internal control audit report confirmed the effectiveness of the company's internal controls for the year 2019[140]. - The company has not identified any significant deficiencies in internal controls during the reporting period[141]. - The audit opinion stated that the financial statements fairly reflect the company's financial position as of December 31, 2019[136].