NWM(SH:603700)2020-04-09 16:00Financial Performance - The total net profit attributable to shareholders for 2019 was 212,296,685.71 RMB[5]. - The net profit attributable to shareholders reached CNY 212,296,685.71, an increase of 54.72% compared to the previous year, primarily driven by the rapid development of the smart water meter business[23]. - The company achieved total operating revenue of CNY 1,371,124,665.82 in 2019, representing a year-on-year growth of 33.21%[21]. - The net cash flow from operating activities was CNY 139,720,756.72, up 36.79% year-on-year, attributed to increased cash receipts from sales of goods and services[23]. - The company's total assets at the end of 2019 were CNY 1,700,511,780.22, a 106.23% increase from the previous year[22]. - The net assets attributable to shareholders increased by 143.52% to CNY 1,244,167,921.79 by the end of 2019, mainly due to funds raised from the IPO and rapid business growth[23]. - Basic earnings per share for 2019 were CNY 1.39, reflecting an 18.80% increase from CNY 1.17 in 2018[22]. - The weighted average return on equity decreased to 18.96%, down 11.07 percentage points from 30.03% in 2018[22]. Dividend Policy - The company plans to distribute a cash dividend of 3 RMB per 10 shares, totaling 46,902,000 RMB, which represents 22.09% of the net profit attributable to shareholders for 2019[5]. - The cash dividend ratio for 2019 was 22.09%, with a total of 46,902,000.00 RMB in cash dividends distributed[133]. - The company aims to distribute at least 20% of the annual distributable profit as cash dividends if there are no major capital expenditures planned in the next 12 months[130]. - The company’s profit distribution policy emphasizes consistency and stability while balancing long-term interests and sustainable development[129]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, as it is focusing on reinvestment[135]. Market and Business Strategy - The company is focused on expanding its market presence and developing new technologies in the water meter industry[11]. - The company plans to continue expanding its smart water meter business and explore new market opportunities in the coming years[23]. - The company is actively pursuing research and development in smart and IoT water meter technologies[11]. - The company is committed to enhancing operational efficiency and reducing costs through smart water management solutions[11]. - The company is positioned as a pioneer in the smart water meter sector, having led the industry in setting standards and establishing testing laboratories for NB-IoT terminal products[48]. Research and Development - The company invested 41,960,200 CNY in R&D, a year-on-year increase of 32.73%, and applied for 9 invention patents and 15 utility model patents[63]. - The company is committed to continuous innovation and has set up a technology pre-research department to explore emerging industry topics for future breakthroughs in smart water management[54]. - The company is focusing on the development of next-generation smart water meter products and advanced water parameter measurement sensor technology, expanding its R&D scope and application scale[115]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[7]. - The company faces risks related to macroeconomic fluctuations, which could impact product demand, and is implementing strategies to mitigate these risks[123]. - The company is also addressing potential risks from raw material price fluctuations and currency exchange rate changes through improved procurement strategies and contract management[125]. - The impact of the COVID-19 pandemic is being monitored, with the company taking measures to manage risks while ensuring continued operations in the essential water meter industry[126]. Corporate Governance - The company has established measures to ensure compliance with regulatory requirements and protect shareholder rights[155]. - The company has made commitments to avoid conflicts of interest and ensure that its executives do not engage in activities that could harm the company's interests[154]. - The company has maintained transparent information disclosure practices to protect shareholder rights and enhance corporate governance[181]. - The company actively engages with shareholders through various investor relations activities to provide comprehensive insights into its operations[181]. Shareholder Information - The company reported a stock lock-up period of 36 months for shareholders, during which they cannot transfer or manage their shares[140]. - The largest shareholder, Zhang Shihua, holds 30,948,967 shares, representing 19.80% of total shares[197]. - The total number of ordinary shareholders increased from 8,160 to 13,917 during the reporting period[195]. - The top ten shareholders hold a combined total of 79,000,000 shares, accounting for 50.53% of total shares[197]. Social Responsibility - The company signed a partnership agreement with Ceheng County, Guizhou Province, to assist in poverty alleviation efforts, continuing its commitment to social responsibility[177]. - In the reporting period, the company invested a total of 10 million RMB in social poverty alleviation initiatives, specifically through the East-West poverty alleviation collaboration[179]. - The company has established a charity fund in Ningbo Jiangbei District to support various charitable activities, including education and medical assistance[183]. - The company will continue to fulfill its poverty alleviation commitments and respond to other calls for precise poverty alleviation in more regions[180]. Production and Operations - The company has a full production capacity with a flexible production process that meets customer demands, resulting in high gross margins[37]. - The production volume of smart water meters reached 3,284,063 units, a year-on-year increase of 59.01%[78]. - The company plans to increase production capacity by upgrading existing production layouts and introducing automated equipment, with a target of producing 405,000 smart water meters annually starting in 2020[116]. Contracts and Partnerships - The company signed a procurement contract with Beijing Water Group for the supply and installation of remote water meters, totaling CNY 36,816,032[173]. - The company entered into a government procurement contract with Qitaihe Water Supply Company for NB-IoT wireless water meters, with a total contract value of CNY 54,640,200[174]. - The company was awarded a contract for the NB-IoT water meter procurement project from Tianjin Binwei Company, with a bid amount of CNY 55,594,000[176].