Kehua Holdings(SH:603161)2020-03-30 16:00Financial Performance - The net profit attributable to shareholders for 2019 was RMB 82,427,742.59, with undistributed profits amounting to RMB 381,647,729.49 as of December 31, 2019[5]. - The company's operating revenue for 2019 was CNY 1,623,346,375.21, representing a year-on-year increase of 17.95% compared to CNY 1,376,269,131.52 in 2018[22]. - The net profit attributable to shareholders for 2019 was CNY 82,427,742.59, a decrease of 21.19% from CNY 104,584,371.25 in 2018[22]. - The basic earnings per share for 2019 was CNY 0.62, down 22.50% from CNY 0.80 in 2018[23]. - The company reported a decrease in net profit after deducting non-recurring gains and losses by 30.99%, mainly due to rising labor and material costs[23]. - The company experienced a decrease in net profit in the fourth quarter of 2019, attributed to rising raw material prices and increased overseas service and testing fees[26]. - The weighted average return on net assets for 2019 was 6.53%, down 2.43 percentage points from 8.96% in 2018[23]. - The company reported a net profit margin improvement, with retained earnings increasing to CNY 381,647,729.49 from CNY 350,034,695.00, a rise of approximately 9.1%[190]. Dividend Policy - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves for the 2019 profit distribution plan[5]. - The company plans to distribute at least 10% of its annual distributable profit as cash dividends, provided conditions are met[104]. - The company reported a net profit attributable to ordinary shareholders of RMB 82.43 million in 2019, with a profit distribution ratio of 0%[109]. - The company does not plan to distribute cash dividends or stock dividends for the 2019 fiscal year[108]. - The company plans to retain undistributed profits for daily operations, future investments, and development to ensure long-term sustainable growth[109]. - The company emphasizes the importance of cash dividends to shareholders while balancing long-term growth strategies[110]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[4]. - The board of directors and supervisory board confirm the accuracy and completeness of the annual report, assuming legal responsibility for any misstatements[7]. - The company's financial report has been audited and confirmed by the accounting firm, ensuring its reliability[4]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2019[176]. - The company confirmed that there were no significant deficiencies in internal controls during the reporting period[172]. - The company has not reported any significant legal or compliance issues during the reporting period[168]. Risk Management - The company has outlined potential risks in the report, which can be found in the section discussing operational conditions[8]. - The annual report emphasizes the importance of risk awareness for investors regarding the company's future business developments[6]. - The report includes a forward-looking statement risk declaration, indicating that future strategies and financial conditions are based on current information and do not constitute a commitment to investors[6]. Market and Industry Context - In 2019, the automotive industry in China saw a decline in production and sales, with total vehicle production and sales down by 7.5% and 8.2% respectively[34]. - The turbocharger market in China is expected to grow significantly, with the configuration rate projected to reach 48% by 2021, indicating strong demand[36]. - The company aims to enhance its market share domestically and internationally over the next two years, focusing on high-quality turbocharger components[95]. Research and Development - The company invested RMB 62,451,600 in R&D during the reporting period, with 48 patent applications filed and 15 patents granted[47]. - The company’s R&D capabilities are strengthened by advanced technologies such as 3D printing and software tools like UGNX, which shorten product development cycles[39]. - Research and development expenses increased to RMB 62,451,566.29 in 2019, compared to RMB 58,611,869.26 in 2018, reflecting a growth of 4.7%[195]. Production and Operations - The company’s production model is based on "order-based production," allowing for dynamic adjustments based on customer demand[33]. - The production capacity utilization rate was 83.49%, with a total production capacity of 981.49 million units[80]. - The company achieved operating revenue of RMB 1,623,346,375.21, representing a year-on-year growth of 17.95%[52]. - The production volume of turbo shells and components increased by 15.36%, while the sales volume rose by 25.63%[60]. Financial Position - The total assets at the end of 2019 were CNY 3,390,578,124.38, reflecting a 2.61% increase from CNY 3,304,296,998.21 at the end of 2018[22]. - The company's net assets attributable to shareholders increased by 3.28% to CNY 1,287,482,372.01 at the end of 2019[22]. - Total liabilities amounted to CNY 2,103,095,752.37, a slight increase from CNY 2,057,749,895.03 in the previous year, reflecting a growth of approximately 2.3%[190]. - The company's cash and cash equivalents decreased to RMB 243,439,209.69 from RMB 349,699,782.51, representing a decline of about 30.4% year-over-year[188]. Shareholder Information - The total number of ordinary shareholders increased from 13,143 to 14,300 during the reporting period, indicating a growing interest in the company's stock[139]. - The largest shareholder, Chen Hongmin, holds 47,360,000 shares, representing 35.50% of the total shares[141]. - The company does not have any controlling shareholders or significant changes in shareholder structure during the reporting period[144]. Corporate Social Responsibility - The company has been actively fulfilling its social responsibilities, including providing scholarships and support for employees' children[129]. - In 2019, the company was recognized as a green manufacturing enterprise by the Ministry of Industry and Information Technology, becoming the only company in Liyang to be included in the "Fourth Batch of Green Factories" list[131]. - The company achieved compliance with national standards for all emission indicators in 2019, demonstrating its commitment to environmental protection and sustainable practices[131].