Jasan Group(SH:603558)2020-03-10 16:00Financial Performance - The company achieved operating revenue of CNY 1,780,368,877.71, representing a year-on-year increase of 12.86% compared to CNY 1,577,468,307.46 in 2018[23]. - The net profit attributable to shareholders was CNY 273,312,959.07, up 32.39% from CNY 206,442,424.06 in the previous year[23]. - The net cash flow from operating activities reached CNY 350,866,739.71, reflecting a 36.23% increase from CNY 257,563,652.31 in 2018[23]. - The total assets of the company at the end of 2019 were CNY 3,762,635,799.12, a 3.94% increase from CNY 3,620,042,070.25 in 2018[23]. - The net assets attributable to shareholders increased to CNY 3,048,721,188.23, marking a 5.77% rise from CNY 2,882,330,664.27 in the previous year[23]. - Basic earnings per share rose to CNY 0.68, a 36.00% increase compared to CNY 0.50 in 2018[24]. - The diluted earnings per share for 2019 was CNY 0.68, an increase of 36% compared to CNY 0.50 in 2018[25]. - The weighted average return on equity increased to 9.33% in 2019, up from 7.24% in 2018, indicating improved profitability[25]. - The company reported a total operating income of CNY 403,189,271.27 in Q1 2019, with a quarterly growth trend observed throughout the year[26]. - The net profit attributable to shareholders for Q4 2019 was CNY 45,709,853.96, with a total annual revenue of CNY 1,780,369,877.71, reflecting a steady performance[26]. Market and Sales - The average export price of socks increased from USD 0.351 per pair in 2018 to USD 0.354 per pair in 2019, showing a 1% rise[35]. - The total export volume of socks reached 152.2 million pairs in 2019, representing a 10% year-on-year growth[35]. - The company exported 6.28 billion seamless garments in 2019, with an export value of 12.32 billion USD, a year-on-year decrease of 1.92% and 3.34% respectively[37]. - The company's revenue from overseas markets accounted for 88.75% of total revenue, with Europe contributing CNY 630,631,985.45, a year-over-year increase of 10.97%[76]. - The textile and apparel industry in China faced a slight decline in export value, with a total of USD 271.8362 billion in 2019, down 1.89% year-on-year[35]. Production and Operations - The company operates production bases in multiple locations, including Vietnam, enhancing its market expansion strategy[34]. - The production base in Vietnam produced 146 million pairs of socks in 2019, representing a growth of over 30% compared to 2018[46]. - The company completed the construction of the Jiangshan Industrial Park, with an annual production capacity of approximately 120 million pairs of cotton socks and over 3,000 tons of cotton yarn and nylon dyeing[50]. - The company improved its production efficiency through automation, with six new automated systems implemented in production lines[50]. - The production volume of cotton socks reached 294,806,202 pairs, with a sales volume of 290,829,500 pairs, marking a production increase of 5.15%[57]. Research and Development - The company established a creative R&D center and hired a Korean design team, leading to an increase in ODM orders[51]. - Research and development expenses rose by 24.27% to CNY 50,384,780.47, representing 2.83% of total revenue[62][63]. - The number of R&D personnel increased to 421, accounting for 4.92% of the total workforce[63]. - The company is transitioning from OEM to ODM, enhancing product development and increasing customer loyalty and brand recognition[83]. Corporate Governance and Compliance - The company has committed to not engaging in competitive businesses with its subsidiaries and will take measures to ensure compliance[92]. - The company has a long-term commitment to minimize related party transactions and ensure fairness in dealings[92]. - The company has confirmed that there are no violations regarding the occupation of funds by related parties as of the date of the commitment letter[92]. - The company has established measures to prevent any conflicts of interest or competition with its subsidiaries, reinforcing its commitment to corporate governance[93]. - The internal control self-assessment report was disclosed on March 11, 2020, with no significant deficiencies reported during the reporting period[197]. Environmental Responsibility - The company has established a wastewater treatment facility with a daily processing capacity of 1,000 tons since 2012, ensuring compliance with GB 4287-2012 standards for textile dyeing and finishing industry wastewater discharge[142]. - The company has received environmental impact assessment approvals for multiple projects, including a 35 million meter annual production capacity project[148]. - The company has a valid pollutant discharge permit effective until December 31, 2020, ensuring compliance with environmental regulations[149]. - The company has implemented a solid waste classification system, with 129.9 tons of waste fabric sold to recycling companies annually[145]. - The company has no major litigation or arbitration matters in the current year[108]. Social Responsibility - The company has sponsored a total of ¥2.88 million in its poverty alleviation efforts, helping 21 registered impoverished individuals to escape poverty[129]. - The company has committed to a financial contribution of ¥2 million to Zhejiang Sci-Tech University as part of its talent cultivation plan[127]. - The company has committed to continuing its poverty alleviation efforts in 2020, aligning with government initiatives[131]. - In 2019, the company invested a total of 2,105,000 in funding for impoverished students, benefiting 15 individuals[130]. Shareholder Information - The company has a total of 11,736 common stock shareholders at the end of the reporting period, an increase from 10,774 at the end of the previous month[164]. - The largest shareholder, Zhang Maoyi, holds 147,462,262 shares, representing 35.42% of the total shares, with 77,040,000 shares pledged[167]. - The total number of shares held by the chairman and general manager, Zhang Maoyi, remained unchanged at 147,462,262 shares, with a total pre-tax remuneration of 900,000 CNY[177]. - The company has maintained its ordinary share capital structure without any changes during the reporting period[161]. - The company does not have any strategic investors or general corporations among its top ten shareholders[169].