FLYCO(SH:603868)2020-04-23 16:00Financial Performance - In 2019, the company's operating revenue was approximately RMB 3.76 billion, a decrease of 5.46% compared to 2018[16]. - The net profit attributable to shareholders was approximately RMB 685.82 million, down 18.83% from the previous year[16]. - The basic earnings per share for 2019 was RMB 1.57, reflecting a decline of 19.07% compared to 2018[17]. - The company's cash flow from operating activities was approximately RMB 467.32 million, a decrease of 15.64% from 2018[16]. - The company's weighted average return on equity was 27.38% in 2019, down 7.08 percentage points from the previous year[17]. - The gross profit margin for the small home appliances segment was 38.62%, which decreased by 0.37 percentage points year-on-year[44]. - The company's operating revenue for the reporting period was CNY 3,759,367,800.79, a decrease of 5.46% compared to the previous year[42]. - The net profit for 2019 was approximately CNY 683.52 million, down 19% from CNY 843.66 million in 2018[172]. - The total comprehensive income for 2019 was approximately CNY 683.52 million, compared to CNY 843.66 million in 2018[173]. Dividend Policy - The company plans to distribute a cash dividend of 10 RMB per 10 shares, totaling 435.6 million RMB based on a total share capital of 435,600,000 shares as of December 31, 2019[3]. - The cash dividend for 2018 was 15 RMB per 10 shares, amounting to 653,400,000 RMB, which represented 77.33% of the net profit attributable to ordinary shareholders[82]. - The company's cash dividend policy remained unchanged during the reporting period, ensuring the protection of minority shareholders' rights[81]. - The net profit attributable to ordinary shareholders for 2019 was 685,823,718.67 RMB, with a dividend payout ratio of 63.51%[82]. - The cash dividend for 2019 is subject to approval by the shareholders' meeting[81]. Market and Competitive Position - The company achieved a market share of 46.15% in online retail and 39.15% in offline retail for its "FLYCO" brand electric shavers in 2019[21]. - The small home appliance market in China is projected to exceed RMB 640 billion by 2023, with a compound annual growth rate of 13.39% from 2012 to 2019[25]. - The company expanded its online sales channels, collaborating with major e-commerce platforms and exploring new retail models, accumulating nearly 600,000 users on its online store[38]. - The company implemented a dual-brand strategy with the introduction of the "Bole" sub-brand to compete in the mid-to-low-end market[35]. - The company is targeting key overseas markets, including the US, Europe, Russia, India, and Southeast Asia, to boost international sales and brand presence[70]. Research and Development - Research and development expenses increased by 60.51% year-on-year to RMB 84,489.00 million, with the number of R&D personnel rising to 165[33]. - The company aims to enhance its core competitiveness through increased R&D investment and product innovation, focusing on the small home appliance sector[66]. - Continuous investment in technology R&D is planned to accelerate the launch of new products, particularly in personal care and kitchen appliances[71]. - The company launched new products including extension sockets, health scales, and upgraded versions of existing products such as lint removers and hair dryers[33]. Financial Management and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[2]. - The company has a dedicated board of directors and supervisory board ensuring the accuracy and completeness of the annual report[2]. - The company has no major accounting errors to correct during the reporting period[105]. - The company has complied with environmental protection regulations and is not classified as a key pollutant discharge unit[114]. - The company is committed to ensuring compliance with the revised accounting standards and maintaining transparency in its financial reporting[100]. Operational Efficiency - The company completed automation upgrades in its main factories to improve production efficiency and reduce costs[73]. - The company focused on cost control measures, including outsourcing production and centralized procurement, to maintain product cost advantages[31]. - The company has established a competitive and incentive-based remuneration policy for employees, focusing on performance contributions and job responsibilities[141]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[132]. Shareholder and Governance Matters - The company has a commitment to not transfer or manage shares held directly or indirectly for 36 months post-IPO, ensuring stability in shareholding[85]. - The controlling shareholder commits to increase their stake in the company using profits from the previous year, limited to the latest net asset value price[87]. - The company will announce the implementation of stock price stabilization measures and disclose the performance of these measures in regular reports[88]. - The company accepts supervision from relevant authorities regarding the fulfillment of stock price stabilization commitments[89]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, which could impact consumer demand for personal care and household appliances[74]. - Rising labor costs and raw material price volatility are ongoing challenges that the company aims to mitigate through strategic adjustments and cost control measures[79]. - The concentration of sales in electric shavers and hair dryers poses a risk, prompting the company to diversify its product offerings[75].