Kersen(SH:603626)2020-06-05 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥2.13 billion, a decrease of 11.67% compared to ¥2.41 billion in 2018[23]. - The net profit attributable to shareholders was a loss of approximately ¥184.93 million, representing a decline of 248.32% from a profit of ¥124.68 million in 2018[23]. - The basic earnings per share for 2019 was -¥0.45, down 250% from ¥0.30 in 2018[24]. - The total assets at the end of 2019 were approximately ¥4.60 billion, a decrease of 7.32% from ¥4.96 billion at the end of 2018[23]. - The net cash flow from operating activities for 2019 was approximately ¥343.97 million, an increase of 4.86% from ¥328.03 million in 2018[23]. - The weighted average return on equity for 2019 was -10.75%, a decrease of 17.77 percentage points from 7.02% in 2018[24]. - The company reported a significant loss due to multiple factors affecting the industry and its own operations[25]. - The net profit attributable to shareholders for the fourth quarter was a loss of approximately ¥115.45 million, following losses in previous quarters[27]. - Non-recurring losses for 2019 included a loss of approximately ¥6.64 million from the disposal of non-current assets[29]. - The total non-recurring profit and loss for 2019 amounted to approximately ¥17.44 million, which includes various adjustments and government subsidies[30]. Research and Development - The company has over 200 authorized patents, including more than 50 invention patents, reflecting its strong R&D capabilities and commitment to innovation[39]. - R&D expenses increased by 21.12% to 181 million RMB, reflecting the company's commitment to innovation[59]. - The number of R&D personnel reached 617, making up 13.95% of the total workforce[74]. - The company invested in over 30 R&D projects, including precision components for various electronic devices[75]. - The company has ongoing investments in new technologies, including high-precision manufacturing processes for various electronic devices[79]. Market and Industry Trends - The global smartphone market saw a total shipment of 1.486 billion units, a year-on-year decline of 1%[88]. - The global tablet market shipped 144 million units in 2019, down 1.5% from 2018[88]. - The global PC market experienced a shipment of over 261 million units in 2019, marking a 0.6% increase from 2018[88]. - The minimally invasive surgical instrument market is projected to grow from $20.1 billion in 2019 to $32.7 billion by 2025, with a compound annual growth rate (CAGR) of 8.5%[92]. - The electronic cigarette market is rapidly growing, with traditional and new heating non-combustion products gaining traction as consumers seek healthier alternatives[94]. Customer and Sales Performance - The company provides precision metal and plastic components for well-known clients such as Apple, Amazon, Google, and Medtronic, focusing on consumer electronics, medical devices, and automotive sectors[34]. - The company's revenue from the top five customers accounted for over 50% of total income, a decrease from 30% in 2018[116]. - Revenue from the medical device segment continued to grow steadily, surpassing 100 million RMB in 2018, supported by the integration into the Medtronic supply chain[51]. - The acquisition of Yuancheng Electronics contributed over 300 million RMB in revenue, providing new growth momentum for the company[52]. Financial Management and Policies - The company did not propose any profit distribution or capital reserve transfer for 2019[6]. - The company emphasizes a stable and continuous profit distribution policy, prioritizing cash dividends over stock dividends[130]. - The company has a cash dividend policy that requires a positive distributable profit and sufficient cash flow to ensure ongoing operations[134]. - The board of directors aims for a minimum cash dividend ratio of 80% for mature companies without significant capital expenditures, and 40% if there are major expenditures[135]. - The company has a commitment to not transfer or manage its shares for 36 months post-listing[141]. Environmental Responsibility - Environmental protection measures include wastewater treatment facilities that utilize Fenton + A/O processes, ensuring compliance with discharge standards[178]. - The company has implemented air pollution control measures, including electrostatic oil mist adsorption and bag dust removal methods, with annual third-party monitoring confirming compliance with national standards[178]. - The company has established a management process for hazardous waste, ensuring proper storage and disposal through qualified third-party vendors[178]. - The company has a commitment to environmental responsibility, conducting regular inspections and maintenance of pollution control facilities to ensure compliance with environmental regulations[178]. Corporate Governance and Compliance - The company received a standard unqualified audit report from its accounting firm[5]. - The company has a comprehensive disclosure policy, utilizing platforms like China Securities Journal and Shanghai Securities Journal[18]. - The company has not faced any risks of suspension or termination of its listing status[164]. - The company has retained the auditing firm for six years, with an audit fee of 637,000 RMB for the current year[163]. - There are no significant litigation or arbitration matters reported for the year[164].