Keli Sensing Technology (Ningbo) (SH:603662)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was CNY 740,456,071.73, representing a 4.38% increase compared to CNY 709,417,664.84 in 2018[22]. - Net profit attributable to shareholders for 2019 was CNY 183,088,874.87, a 30.02% increase from CNY 140,817,008.06 in 2018[22]. - The net profit after deducting non-recurring gains and losses was CNY 133,281,918.08, up 29.37% from CNY 103,024,239.66 in 2018[22]. - The company's net cash flow from operating activities reached CNY 172,525,428.78, a 25.21% increase from CNY 137,784,475.79 in 2018[22]. - The net assets attributable to shareholders increased by 70.60% to CNY 1,751,872,330.75 at the end of 2019, compared to CNY 1,026,879,952.37 at the end of 2018[22]. - Total assets grew by 57.10% to CNY 2,091,712,621.42 at the end of 2019, up from CNY 1,331,444,113.82 at the end of 2018[22]. - Basic earnings per share for 2019 were CNY 1.84, a 17.20% increase from CNY 1.57 in 2018[22]. - The company achieved a revenue of ¥740,456,071.73, representing a year-on-year growth of 4.38%[62]. - The net profit attributable to shareholders reached ¥183,088,874.87, an increase of 30.02% compared to the previous year[62]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥133,281,918.08, up 29.37% year-on-year[62]. Dividend Policy - The company plans to distribute a cash dividend of 5 RMB per 10 shares (including tax) and to convert 4 shares from capital reserves for every 10 shares held[6]. - The company has a profit distribution policy that emphasizes stable returns to investors, with cash dividends prioritized when conditions allow[114]. - Cash dividends should not exceed the cumulative distributable profits, with a minimum of 10% of distributable profits allocated for cash dividends if no major investment plans are in place[114]. - In mature stages without significant capital expenditures, cash dividends should constitute at least 80% of the profit distribution; in growth stages with major expenditures, at least 20%[114]. - The company plans to issue stock dividends if rapid growth or other factors justify it, while maintaining a minimum of 25% of the capital before any capital increase[114]. - The board of directors must propose profit distribution plans to the shareholders' meeting for approval, with dividends distributed within two months post-approval[114]. - The company plans to distribute cash dividends amounting to at least 10% of the distributable profits for the year, provided there are no significant investment plans or cash expenditures[117]. - In 2019, the company distributed a cash dividend of 5 RMB per 10 shares, totaling 59,700,227 RMB, which represents 32.61% of the net profit attributable to ordinary shareholders[118]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[8]. - The company has detailed potential risks in the section discussing future development[8]. - The company has established a risk management framework to mitigate potential impacts from regulatory changes in the industry[136]. - The company faces market competition risks, particularly from international leaders, which may impact its sales if competitive advantages are not maintained[108]. - The company is exposed to macroeconomic cycle fluctuations, which can affect demand for its products based on the economic environment[108]. - Raw material costs account for over 70% of production costs, and significant price fluctuations could adversely affect production budgets and profitability[108]. - Labor costs are expected to rise due to increased living standards and social security, potentially impacting the company's profitability[108]. - The company's foreign sales account for approximately 20% of total revenue, making it sensitive to exchange rate fluctuations, particularly the appreciation of the RMB[111]. - The global COVID-19 pandemic has negatively impacted economic operations, with ongoing severe conditions in many countries affecting the company's export business[111]. Corporate Governance - The board of directors and senior management have guaranteed the accuracy and completeness of the annual report[4]. - The company has committed to considering the opinions of independent directors and external supervisors in its profit distribution policy[114]. - The board will communicate with shareholders, especially minority shareholders, to gather feedback on profit distribution policies[114]. - The company has established a structured decision-making process for profit distribution, requiring majority approval from the board and supervisory committee[114]. - The company has implemented strict measures to avoid conflicts of interest and ensure that no competitive business activities occur during the holding period of shares[129]. - The company has clarified that there are no disputes or potential disputes arising from shareholding arrangements, ensuring a clear governance structure[126]. - The company has emphasized its commitment to compliance with legal and regulatory requirements in all its operations[130]. Research and Development - The company is committed to continuous innovation in product development, particularly in digital sensors and IoT applications[33]. - The company has established multiple R&D platforms, including a provincial-level IoT research institute and three provincial-level technology centers, enhancing its innovation capabilities[52]. - R&D expenses accounted for over 5% of the company's annual revenue, reflecting a strong commitment to product development and technological innovation[52]. - The company has completed the development of core technologies including self-fault diagnosis and unattended system material image recognition[77]. - Future R&D directions include promoting multi-physical quantity sensors and integrating wireless technology for real-time data access[94]. - The company plans to invest in research and development to support new product launches[184]. Market Strategy - The company focuses on the development, production, and sales of strain sensors, primarily strain weighing sensors, and has implemented IoT upgrades to its products[33]. - Sales strategies include direct sales for domestic customers and a combination of direct and distributor sales for international markets, covering regions such as Europe and Southeast Asia[36]. - The marketing strategy focuses on developing stable customer relationships and expanding into industries such as logistics, marine engineering, and healthcare[36]. - The company is actively expanding its international market presence, with clients in over 100 countries across five continents[56]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in sales from this region by the end of 2020[136]. - The company is considering potential mergers and acquisitions to strengthen its market position[184]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development, implementing a circular economy plan based on "reduction, reuse, and resource utilization"[154]. - The company has established a robust environmental management system compliant with GB/T24001-2016/ISO 14001:2015 standards[155]. - The company is actively involved in social responsibility initiatives, contributing to public welfare and community development[154]. Shareholder Information - The company is listed on the Shanghai Stock Exchange under the stock code 603662[19]. - The total number of ordinary shares increased to 119,400,454 after the issuance of 29,850,114 new shares[161]. - The largest shareholder, Ke Jiandong, holds 53,694,944 shares, representing 44.97% of total shares[167]. - The company has no pledged or frozen shares reported among the top shareholders[167]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.6213 million yuan[198].