JACK(SH:603337)2020-03-30 16:00Financial Performance - The company's operating revenue for 2019 was CNY 360,805.74 million, a decrease of 13.09% compared to CNY 415,150.07 million in 2018[22]. - The net profit attributable to shareholders for 2019 was CNY 30,143.86 million, down 33.64% from CNY 45,424.86 million in 2018[22]. - The basic earnings per share for 2019 was CNY 0.68, a decrease of 33.33% from CNY 1.02 in 2018[23]. - The weighted average return on equity for 2019 was 11.86%, down 7.95 percentage points from 19.81% in 2018[23]. - The company's net profit after deducting non-recurring gains and losses for the year was CNY 27,856.90 million, a decrease compared to the previous year[26]. - The company achieved a net profit of 301.44 million RMB for the year 2019, with a cash dividend distribution of 1.40 RMB per 10 shares, totaling 62.23 million RMB[110]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 25,138.56 million in 2019, compared to a negative CNY 2,082.53 million in 2018[22]. - The total assets of the company increased by 4.99% to CNY 417,667.10 million at the end of 2019, up from CNY 397,820.42 million at the end of 2018[22]. - The company's net assets attributable to shareholders increased by 6.70% to CNY 265,707.46 million at the end of 2019[22]. - As of the end of 2019, the company's cash and cash equivalents amounted to ¥378,954,728.30, representing a 108.50% increase compared to ¥181,752,084.87 in the previous year[76]. Market and Industry Trends - The overall market for sewing machinery in China saw a decline in both production and sales, with a 10.40% decrease in main business income in 2019[34]. - The industrial sewing machine production in China decreased by 22.52% in the first ten months of 2019, totaling 345.91 million units[34]. - The production volume of industrial sewing machines decreased by 22.30% year-on-year, with sales volume down by 21.68%[62]. - Domestic revenue decreased by 22.20%, while foreign revenue decreased by 4.05% year-on-year[61]. Research and Development - In 2019, the company applied for a total of 595 patents, including 335 invention patents, 241 utility model patents, and 10 design patents, and was granted 352 patents[38]. - The company has established multiple R&D bases in various locations, including Germany and Italy, to enhance technological innovation and product competitiveness[37]. - The total research personnel count was 805, making up 14.25% of the company's total workforce[73]. - Research and development expenses amounted to CNY 203,966,478.24, representing 5.65% of total revenue[73]. Strategic Initiatives - The company plans to submit the profit distribution proposal to the 2019 annual general meeting for approval[5]. - The company aims to enhance its R&D capabilities and focus on high-quality development, with a strategic direction of "focusing on the mid-range and expanding into the mid-to-high-end market"[93]. - The company is focusing on developing complete solutions for intelligent manufacturing in the apparel sector, including smart sewing machines and related technologies[93]. - The company has established a joint venture with Italian partners to accelerate technology transfer and localization efforts[55]. Quality Control and Customer Service - The company has implemented a comprehensive quality control system, enhancing product quality through rigorous management and supplier collaboration[40]. - The company has launched a rapid service platform and a 400 service hotline to improve customer service and support[43]. - The company emphasizes the importance of customer-first principles and aims to optimize its Integrated Product Development (IPD) operations[95]. Environmental Responsibility - The company discharged a total of 32,280.8 tons of wastewater from the Xiachen plant in 2019, with an average COD concentration of 96.16 mg/L, resulting in a total COD discharge of 3.104 tons[165]. - The company reported a total wastewater discharge of 40,628 tons from the Jiaojiang plant in 2019, with an average COD concentration of 230.86 mg/L, leading to a total COD discharge of 9.379 tons[166]. - The company has established a wastewater treatment system at the Xiachen plant with a processing capacity of 120 tons per day, and a production wastewater treatment system at the Jiaojiang plant with a capacity of 90 tons per day[168]. - The company has not faced significant administrative penalties from environmental authorities during the reporting period, indicating compliance with environmental laws and regulations[174]. Shareholder Commitments - The company committed to a minimum cash dividend ratio of 20% in profit distribution over the next three years[115]. - The controlling shareholders and related parties have committed to not reducing their shareholdings for three years post-IPO, with specific conditions for any future reductions[115]. - The company has established a long-term commitment to avoid any losses from land and property defects, ensuring full compensation for any related costs[115]. - The company has confirmed that no commitments have been violated during the reporting period[115]. Financial Management and Investments - The company engaged in cash asset management, with a total of RMB 89.88 million in bank financial products and RMB 10.42 million in fundraising financial products[146]. - The company has a diversified investment strategy, including high-credit-rated bonds and bond funds[149]. - The company reported a total investment income of 545.00 million with a yield of 2.00% as of November 11, 2019[153]. - The company plans to continue investing in high-quality credit bonds and low-risk financial products to secure stable returns[153]. Social Responsibility - The company has helped 87 registered impoverished individuals to escape poverty through various initiatives[162]. - The total amount allocated for social poverty alleviation efforts was 4,503,655.49 RMB, benefiting 87 individuals[162]. - The company has received recognition as an advanced collective for assisting disabled individuals in Zhejiang Province[162].