JACK(SH:603337)2020-04-19 16:00Financial Performance - In 2019, the company's operating revenue was CNY 360,805.74 million, a decrease of 13.09% compared to 2018[22]. - The net profit attributable to shareholders was CNY 30,143.86 million, down 33.64% from the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 27,856.90 million, a decline of 36.78% year-on-year[22]. - The company's total assets increased to CNY 417,667.10 million, reflecting a growth of 4.99% compared to the end of 2018[22]. - The weighted average return on equity decreased by 7.95 percentage points to 11.86% in 2019[22]. - The company reported a net cash flow from operating activities of CNY 25,138.56 million in 2019, a significant recovery from a negative cash flow in 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]. - The operating cost decreased by 14.27% to CNY 2,559,741,245.84, indicating improved cost management[82]. - The gross margin for industrial sewing machines increased by 0.71 percentage points to 26.46%, attributed to favorable exchange rates[85]. Dividend Distribution - The company plans to distribute a cash dividend of 1.40 RMB per 10 shares, totaling 62,228,350.80 RMB, resulting in a cash dividend payout ratio of 20.64% for the year[6]. - In 2019, the company distributed a cash dividend of 1.40 RMB per 10 shares, totaling 62,228,350.80 RMB, which represents 20.64% of the net profit attributable to ordinary shareholders[154]. - The cash dividend in 2018 was 5.20 RMB per 10 shares, with a total of 159,926,832.00 RMB, accounting for 35.21% of the net profit attributable to ordinary shareholders[154]. - The company has committed to maintaining a minimum cash dividend ratio of 20% in future profit distributions over the next three years[159]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[155]. Operational Highlights - The production of industrial sewing machines was 156.55 million units, down 22.30% year-on-year[48]. - The export proportion increased from 49.74% to 54.97% year-on-year[48]. - The revenue share of smart cutting beds and automatic sewing equipment rose from 14.80% to 18.02%[48]. - The company launched 28 new sewing machine models and several derivative products, enhancing its product line[73]. - The company established a general technology platform for IoT sewing machines and launched 9 IoT sewing machine products for mass production[73]. - The company has over 7,000 dealers and distribution points in more than 130 countries, ensuring rapid access to products and services[56]. - The company has set up over 10 overseas offices to enhance local service capabilities and improve response times[60]. Research and Development - The company applied for 595 patents in 2019, including 335 invention patents[51]. - R&D expenses totaled CNY 203,966,478.24, representing 5.65% of operating revenue[106]. - The company maintained a workforce of 805 R&D personnel, making up 14.25% of total employees[106]. - The company is focused on optimizing its IPD process to enhance R&D quality and accelerate product development[72]. - The company plans to enhance its R&D efforts and accelerate the upgrade of intelligent manufacturing to adapt to the changing garment industry[130]. Risk Management - The company has outlined potential risks in its business operations and future development in the report[8]. - The company emphasizes the importance of investment risk awareness for investors based on its forward-looking statements[7]. - The company faces risks from raw material price fluctuations, which could impact profitability[144]. - The company is addressing potential risks from natural disasters and the ongoing COVID-19 pandemic, which could affect operations[146][147]. Corporate Governance - The company has confirmed that all board members attended the board meeting for the annual report[5]. - The company has not violated any decision-making procedures regarding external guarantees[8]. - The company has a commitment to ensuring the accuracy and completeness of its financial reports[4]. - The domestic accounting firm, Lixin Certified Public Accountants, has been engaged for 17 years, with an audit fee of 950,000 RMB[178]. - The company has not encountered any non-standard audit opinions during the reporting period[176]. Market Strategy - The company aims to optimize channel management and expand into the mid-to-high-end market, with over 7,000 distributors globally[76]. - The company intends to accelerate structural adjustments and deepen industry integration to increase market share[137]. - The company aims to become a provider of complete solutions for intelligent manufacturing in the garment equipment sector, focusing on high-quality development and expanding into mid-to-high-end markets[132]. Social Responsibility - The company is committed to social responsibility and actively participates in public welfare initiatives, promoting traditional culture[66]. - The company invested RMB 3 million to establish the "Zhejiang Filial Piety Sewing Charity Foundation," contributing RMB 2 million, which is approximately 66.67% of the total investment[194].