ARGUS(SH:603790)2020-04-27 16:00Financial Performance - In 2019, the company's operating revenue was RMB 956,557,941.11, representing a year-on-year increase of 1.66% compared to RMB 940,969,258.44 in 2018[22]. - The net profit attributable to shareholders of the listed company decreased by 9.22% to RMB 117,275,852.35 in 2019 from RMB 129,186,765.73 in 2018[23]. - The basic earnings per share for 2019 was RMB 0.61, down 26.51% from RMB 0.83 in 2018[24]. - The cash flow from operating activities increased significantly by 127.52% to RMB 93,880,757.16 in 2019, compared to RMB 41,262,538.46 in 2018[23]. - The total assets of the company at the end of 2019 were RMB 1,328,907,687.98, reflecting a 5.85% increase from RMB 1,255,404,926.43 at the end of 2018[23]. - The company's weighted average return on equity decreased to 10.84% in 2019, down 6.86 percentage points from 17.70% in 2018[24]. - The net profit after deducting non-recurring gains and losses was RMB 102,017,329.16, a decrease of 14.37% from RMB 119,142,169.75 in 2018[23]. - The company achieved a total operating revenue of CNY 956.56 million in 2019, representing a year-on-year growth of 1.66%[49]. - Net profit attributable to shareholders was CNY 117 million, a decrease of 9.22% compared to the previous year[54]. Cash Flow and Investments - The company reported a significant increase in cash flow from operating activities, indicating improved operational efficiency[23]. - The total cash outflow from investment activities was ¥1.68 billion, reflecting a 159.98% increase year-on-year, primarily due to investments in financial products[71]. - Cash and cash equivalents decreased by 39.10% to ¥135.75 million, primarily due to the implementation of new financial instrument standards[74]. - Trading financial assets increased to ¥198.64 million, accounting for 14.95% of total assets, due to idle funds being invested in financial products[74]. - The company has entrusted cash asset management with a total amount of 1,262 million RMB from temporarily idle funds, with a remaining balance of 161 million RMB[144]. Market and Industry Overview - The company operates in the dye and textile auxiliary industry, providing integrated solutions and services to printing and dyeing enterprises, focusing on mid-to-high-end products[35]. - The dye industry in China showed a slight growth during the 13th Five-Year Plan, with total industrial output values of 62.1 billion yuan, 68.75 billion yuan, and 70.98 billion yuan for the years 2017, 2018, and 2019 respectively[37]. - The printing and dyeing industry in China produced 53.763 billion meters of dyed fabric in 2019, generating CNY 283.153 billion in revenue, which positively impacts the demand for dyes and textile auxiliaries[110]. - The textile industry in China accounts for over 50% of the world's total production, with a significant increase in fiber processing and export value, indicating strong market demand for dyes and textile auxiliaries[109]. Research and Development - The company has 151 R&D and technical personnel, accounting for 26.12% of total employees, with 127 authorized patents, including 97 invention patents[43]. - The company’s R&D expenses increased by 12.14% to CNY 42.44 million, reflecting its commitment to innovation[56]. - The company has developed multiple core technologies for high-end dyes and textile auxiliaries, including various active, acid, and disperse dye series[44]. - The company is focused on improving its corporate governance structure in compliance with relevant laws and regulations[154]. Strategic Initiatives - The company aims to enhance competitiveness through digital and intelligent upgrades in the dyeing process, responding to market demands for small batches and rapid response[37]. - The company plans to leverage its extensive marketing network and technical capabilities to expand sales and improve customer satisfaction in the dye and textile auxiliary sector[112]. - The company is committed to upgrading dye and textile auxiliary technologies to meet the diverse needs of downstream printing and dyeing industry clients[113]. - The company plans to achieve total operating revenue of 800 million to 900 million CNY and a net profit attributable to shareholders of 85 million to 95 million CNY in 2020[116]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares to all shareholders, subject to approval at the shareholders' meeting[6]. - The proposed cash dividend for 2019 is RMB 2.00 per 10 shares, totaling RMB 38.27 million, which represents 32.63% of the net profit attributable to ordinary shareholders[126]. - The company has a stable and continuous profit distribution policy that considers the long-term interests of all shareholders[124]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[131]. Risks and Challenges - The company has outlined potential risks in its report, advising investors to be cautious regarding investment risks[8]. - The company faces market risks due to potential fluctuations in demand influenced by macroeconomic conditions[117]. - The company is exposed to risks from raw material price volatility, which significantly impacts production costs[118]. - The company has implemented environmental protection measures but remains at risk of increased costs due to stricter regulations and potential accidents[120]. Corporate Governance - The company emphasizes the protection of shareholder and creditor rights, ensuring timely and accurate information disclosure[154]. - The company has engaged Lixin Accounting Firm for auditing services for 5 years, with an audit fee of RMB 700,000[135]. - The governance structure has been continuously improved to enhance internal control systems and reduce operational risks[198]. - The company has a diverse board with members holding positions in different sectors, enhancing its strategic capabilities[190].