JACK(SH:603337)2021-04-26 16:00Financial Performance - In 2020, the company achieved operating revenue of 3,521.42 million CNY and a net profit attributable to shareholders of 313.70 million CNY[7]. - The company's operating revenue for 2020 was CNY 352,141.65 million, a decrease of 2.40% compared to CNY 360,805.74 million in 2019[31]. - The net profit attributable to shareholders for 2020 was CNY 31,370.36 million, representing an increase of 4.07% from CNY 30,143.86 million in 2019[31]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 17,016.59 million, a significant decrease of 38.91% compared to CNY 27,856.90 million in 2019[31]. - The net cash flow from operating activities for 2020 was CNY 91,436.22 million, a substantial increase of 263.73% from CNY 25,138.56 million in 2019[31]. - The total assets at the end of 2020 were CNY 509,752.29 million, reflecting a growth of 22.05% from CNY 417,667.10 million at the end of 2019[31]. - The net assets attributable to shareholders at the end of 2020 were CNY 292,463.77 million, an increase of 10.07% from CNY 265,707.46 million at the end of 2019[31]. - The basic earnings per share for 2020 were CNY 0.71, up by 4.41% from CNY 0.68 in 2019[31]. - The weighted average return on net assets for 2020 was 11.28%, a decrease of 0.58 percentage points from 11.86% in 2019[31]. - The company achieved a net profit attributable to the parent company of CNY 313.70 million for the year 2020[154]. Dividend Policy - The cash dividend distribution plan for 2020 proposes a cash dividend of 2.60 CNY per 10 shares, totaling 115.93 million CNY, with a cash dividend ratio of 36.95%[15]. - The cash dividend payout ratio for 2020 was 36.95%, compared to 20.64% in 2019 and 35.21% in 2018[155]. - The company has committed to maintaining a minimum cash dividend ratio of 20% in future profit distributions over the next three years[163]. - The company has established a cash dividend policy prioritizing cash dividends when conditions allow, ensuring consistency and stability in profit distribution[171]. - The company plans to roll over any undistributed profits to the next fiscal year[154]. Market and Industry Trends - In 2020, the production of clothing in China decreased by 8.58% year-on-year, with the total output reaching 22.373 billion pieces[55]. - The industry saw a 31.9% year-on-year decline in actual investment in the clothing sector in 2020[55]. - The export value of sewing machinery products in China was USD 2.363 billion in 2020, down 4.94% compared to the previous year[55]. - The production of step control intelligent sewing machines increased by over 70% year-on-year, with their share in automatic sewing machines exceeding 30%[56]. - The proportion of automatic sewing equipment in the industry rose from 60% in 2015 to 90% in 2020, indicating a significant shift towards automation[56]. - The overall revenue of the sewing machinery industry declined by 3.49% year-on-year, with a total revenue of ¥265.90 billion for 238 large-scale enterprises[117]. - The production of sewing machinery decreased by 4.06% year-on-year, with an estimated total output of approximately 620,000 units, marking an 11.04% decline[118]. Technological Innovation and R&D - The company accelerated technological innovation in 2020, continuously optimizing end-to-end processes and launching new products in the sewing machine and intelligent cutting business[7]. - A large R&D management platform will be established to create differentiated and customized garment manufacturing solutions[8]. - The company has a strong focus on R&D, having introduced the IPD product development model in 2006 and optimized it in collaboration with Huawei in 2018[63]. - The company established a large R&D platform to accelerate new product development and enhance the competitiveness of its products[77]. - Total R&D investment amounted to ¥206,683,104.37, representing 5.87% of operating revenue, with 787 R&D personnel accounting for 12.12% of total staff[105]. Strategic Planning and Future Goals - In 2021, the company plans to focus on five key areas, including empowering the garment industry with intelligent upgrades and building an industrial internet platform[8]. - The company aims to achieve a revenue target of RMB 7.06 billion in 2021, representing a 100% year-on-year growth, and a net profit target of RMB 666 million, reflecting a 110% increase compared to the previous year[143]. - The company plans to develop 2,000 new distribution channels in the mid-range market to enhance store efficiency and market share[137]. - The company is focusing on building an ecosystem for garment intelligent manufacturing to meet high-quality and personalized consumer demands[133]. - The company will enhance its strategic insight capabilities and update its strategic planning to monitor industry dynamics and identify market opportunities[136]. Operational Efficiency - The company made progress in industrial layout with the launch of the Taizhou Bay New Area factory, enhancing efficiency and capacity[7]. - The company has developed advanced automated production lines, significantly improving production capacity and efficiency[69]. - The company is committed to expanding production capacity while ensuring product quality through automation and lean production practices[138]. - The company actively engaged in capacity planning and supplier collaboration to ensure sufficient parts supply for the recovery of the industry in 2021[76]. Risk Management - The company acknowledges risks related to market competition, operational challenges, and potential impacts from global events such as the COVID-19 pandemic[144]. - The company has committed to implementing measures for compensating investors in case of losses due to non-compliance with regulations[166]. - The company has no outstanding debts or court judgments against it during the reporting period[188]. Corporate Governance - The company has appointed Lixin Accounting Firm for auditing, with a remuneration of 95 million RMB for the current year, and has maintained this auditor for 18 years[185]. - There are no significant lawsuits or arbitration matters reported for the year[188]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[187].