Tederic(SH:603289)2020-04-17 16:00Financial Performance - The company reported a distributable profit of RMB 345,463,863.89 as of December 31, 2019[5]. - The proposed cash dividend for 2019 is RMB 2.00 per 10 shares, totaling RMB 53,360,000.00 based on a total share capital of 266,800,000 shares[5]. - The company's operating revenue for 2019 was CNY 803.5 million, representing a 1.41% increase compared to CNY 792.3 million in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 114.8 million, which is a 14.18% increase from CNY 100.6 million in 2018[24]. - The basic earnings per share for 2019 was CNY 0.43, up 13.16% from CNY 0.38 in 2018[25]. - The total assets at the end of 2019 were CNY 1.41 billion, reflecting a 7.14% increase from CNY 1.31 billion at the end of 2018[24]. - The net cash flow from operating activities for 2019 was CNY 94.2 million, an increase of 13.34% compared to CNY 83.1 million in 2018[24]. - The overall gross margin improved to 30.80%, up from 28.91% in the previous year, benefiting from product structure optimization and cost control[98][104]. - The company reported a government subsidy of ¥9,370,587.66, which grew by 34.07% year-on-year[98]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The board of directors has confirmed the accuracy and completeness of the annual report, with no false records or misleading statements[7]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The independent directors agreed that the profit distribution plan does not harm the rights of shareholders, especially minority shareholders[169]. - The company has not reported any situations that would harm the legal rights of shareholders during the reporting period[169]. Business Overview and Strategy - The company specializes in the manufacturing and solution services of injection molding machines, which are crucial for various industries including automotive, home appliances, and medical sectors[35]. - The company aims to support the automation and informationization of the plastic processing industry, aligning with China's "Made in 2025" strategy[35]. - The company is focused on expanding its market presence and enhancing product offerings through continuous innovation and development of new technologies[35]. - The company is actively pursuing intelligent manufacturing technologies, including digital control and real-time monitoring systems, to improve production processes[57]. - The company aims to become a leading global supplier of injection molding machines and a provider of intelligent, automated production solutions in the plastic injection molding sector[151]. Product Development and Innovation - The company has developed various application software for its injection molding machines, enhancing compatibility and enabling smart factory production[72]. - The company invests in advanced equipment and collaborates with universities to strengthen its R&D capabilities and shorten product development cycles[74]. - The company has accumulated 15 invention patents and 55 utility model patents, along with 18 software copyrights, showcasing its commitment to innovation[94]. - The company is focusing on developing new products and technologies, including the DT series and multi-material system turntable structures[114]. - The company plans to introduce smart injection molding machines and solutions for smart factories, integrating real-time data collection and analysis to enhance operational efficiency[94]. Market Trends and Demand - The global demand for plastic processing machinery is projected to grow at an annual rate of 5.6%, with an expected market size of $37.5 billion by 2021[60]. - The injection molding machine sector is the largest and highest value segment within the plastic machinery industry, accounting for the majority of production and export[60]. - The automotive industry is increasingly utilizing engineering plastics to reduce vehicle weight and costs, with a growing market for plastic components driven by the rise of electric vehicles[67]. - The home appliance industry is a key sector for plastic applications, with a focus on innovation in plastic processing equipment to meet evolving market demands for eco-friendly and lightweight materials[67]. Financial Management and Investment - The company plans to invest RMB 600 million in a new headquarters and smart factory, with an estimated fixed asset investment of RMB 400 million, to enhance its production capacity[133]. - The company has established a wholly-owned subsidiary, Tederic Machinery Korea Co., Ltd., in South Korea with an investment of $2 million to expand its overseas market[130]. - The company approved an investment of up to €25 million to establish a Luxembourg fund, aiming for strategic overseas investments and acquisitions, representing 12.5% of the fund size[130]. - The company will implement a profit distribution mechanism to enhance investor returns[181]. Risks and Challenges - The company faces risks from fluctuations in downstream industries, which may lead to decreased demand for its products if economic growth slows[158]. - Approximately 30%-40% of the company's revenue comes from export business, exposing it to risks from trade protectionism and potential trade disputes[159]. - Direct material costs account for about 90% of the main business costs, making the company vulnerable to fluctuations in raw material prices, particularly steel[160]. Shareholder and Governance Policies - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed in cash when profits are positive, with a total cash dividend of 53,360,000 RMB distributed for the 2018 fiscal year[166][167]. - The company plans to maintain its dividend distribution total despite potential changes in total share capital due to share buybacks or incentive plans[168]. - The company will announce any share reduction intentions three trading days in advance, and failure to do so will result in a public apology and explanation[177]. - The company has made irrevocable commitments to avoid harming the interests of the issuer and other shareholders through related party transactions[177]. Financial Reporting and Standards - The company adopted new accounting standards effective January 1, 2019, impacting the classification and measurement of financial assets[186]. - The financial report for 2018 was adjusted to reflect changes in accounts receivable and payable, with accounts receivable reported at approximately 278 million and accounts payable at approximately 293 million[186]. - The implementation of the new financial instrument standards resulted in a significant adjustment of financial assets and liabilities, with total financial assets measured at amortized cost amounting to ¥726,648,560.40 as of January 1, 2019[188].