Kersen(SH:603626)2020-04-27 16:00Financial Performance - In 2019, the company's operating revenue was CNY 2,127,271,802.48, a decrease of 11.67% compared to CNY 2,408,320,131.75 in 2018[21] - The net profit attributable to shareholders was a loss of CNY 184,928,432.30, representing a decline of 248.32% from a profit of CNY 124,682,904.66 in the previous year[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 202,367,759.50, down 282.31% from CNY 110,999,380.52 in 2018[21] - Basic earnings per share decreased by 250% to -0.45 CNY compared to 0.30 CNY in the previous year[23] - The weighted average return on equity dropped by 17.77 percentage points to -10.75% from 7.02% in the previous year[23] - Total revenue for Q4 2019 reached 761,170,713.41 CNY, while the net profit attributable to shareholders was -115,448,955.12 CNY[26] - The net profit attributable to shareholders for the first quarter was 13,073,184.62 CNY, but subsequent quarters showed significant losses[26] - The company reported a total of 17,439,327.20 CNY in non-recurring gains for 2019, compared to 13,683,524.14 CNY in 2018[29] - The company achieved a total revenue of 2.13 billion RMB in the reporting period, a decrease of 11.67% compared to the previous year[48] - The net profit attributable to the parent company was -185 million RMB, representing a decline of 248.19% year-on-year[48] Cash Flow and Assets - The net cash flow from operating activities was CNY 343,971,209.90, an increase of 4.86% compared to CNY 328,027,016.51 in 2018[21] - The company's cash flow from operating activities showed a significant decrease, with cash and cash equivalents at ¥116.16 million, down 81.59% from ¥631.14 million in the previous period[73] - Accounts receivable decreased by 88.48%, from ¥8.29 million to ¥0.96 million, primarily due to the collection of overdue payments[73] - Inventory decreased by 39.20%, from ¥314.97 million to ¥191.50 million, attributed to inventory impairment[73] - The total assets amounted to CNY 4,597,971,601.41, a decrease of 7.32% from CNY 4,961,080,087.07 at the end of 2018[21] - The company's total assets as of December 31, 2019, were 4.598 billion RMB, with a debt-to-asset ratio of 63.01%[175] - The debt-to-asset ratio increased from 60.67% to 63.01%, a rise of 2.34%[186] Research and Development - The company has over 200 authorized patents, including more than 50 invention patents, reflecting its strong R&D capabilities and technological advantages[38] - Total R&D expenses amounted to CNY 181,025,162.64, representing 8.51% of total revenue, with 617 R&D personnel[68] - The company focused R&D efforts on over 30 projects, including precision waterproof mobile phone frames and high-end precision metal electronic cigarette shells[69] - The company has developed a strong R&D team through internal training and external recruitment, ensuring its technological advantage in the market[114] Market and Industry Trends - The global minimally invasive surgical instruments market is projected to grow from $20.1 billion in 2019 to $32.7 billion by 2025, with a CAGR of 8.5%[81] - The smartphone market saw a total shipment of 1.486 billion units in 2019, a 1% decline year-over-year, with the top six manufacturers holding 73% market share[77] - The precision metal structure manufacturing sector is experiencing growth opportunities as consumer demand for electronic cigarette hardware increases, shifting from plastic to metal materials[84] - The medical device market is expected to grow significantly due to rising health awareness and demand for medical services globally[80] Corporate Governance and Compliance - The company has a commitment to ensure the accuracy and completeness of the financial report as stated by the responsible persons[4] - The company has implemented measures to restrict share transfers by executives and major shareholders to maintain market stability[129] - The company has committed to repurchase shares if there are false records or misleading statements in the IPO prospectus, with the repurchase price being the higher of the issuance price or the average trading price over the last 30 trading days prior to the recognition of the violation by the regulatory authority[131] - The company has a long-term commitment to ensure compliance with legal regulations, with specific measures in place to compensate investors for losses due to misleading information in the IPO prospectus[132] Environmental Compliance - The company reported a wastewater discharge of 159 tons for COD and 15 tons for SS, with discharge concentrations of 6.163 and 0.581 mg/L respectively, both within the regulatory limits[160] - The company has established a wastewater treatment station using Fenton + A/O processes, ensuring compliance with discharge standards through annual third-party testing[162] - The company has implemented air pollution control measures, including electrostatic oil mist adsorption and bag dust removal, with annual monitoring confirming compliance with national standards[162] - The company’s hazardous waste management processes are in place, ensuring proper storage and disposal through qualified third-party services[162] Shareholder Information - The largest shareholder, Xu Jingen, holds 36.63% of the shares, totaling 155,220,561 shares[190] - The company has a total of 15,410,065 restricted shares, with 2,670,065 shares released during the year[183] - The company has no preferred shareholders with restored voting rights as of the reporting date[188] - The number of shareholders decreased from 19,182 to 18,524 during the reporting period[188] Strategic Initiatives - The company aims to expand its market share and business scope continuously, leveraging its core competencies in precision manufacturing[41] - The company plans to enhance product competitiveness and optimize asset quality to improve profitability moving forward[54] - The company intends to strengthen its partnerships with leading brands in the electronic cigarette sector, particularly in the heated tobacco product market[98] - The company is actively recruiting international marketing talent to expand its product offerings and increase market share[102]