CHERVON-AUTO(SH:603982)2020-04-23 16:00Financial Performance - The company reported a total distributable profit of RMB 256,995,927.68 as of December 31, 2019[5]. - The company's total revenue for 2019 was approximately CNY 1.25 billion, representing a 4.01% increase compared to CNY 1.20 billion in 2018[26]. - Net profit attributable to shareholders decreased by 6.27% to CNY 85.89 million from CNY 91.63 million in the previous year[26]. - The company's net profit for 2019 was RMB 8,589.08 million, a decrease of 6.27% compared to the previous year[58]. - The company's net cash flow from operating activities surged to CNY 285.49 million, a substantial increase from CNY 18.95 million in 2018[26]. - Total assets increased by 11.83% to CNY 2.12 billion from CNY 1.89 billion in 2018[26]. - The company's net assets attributable to shareholders rose by 58.09% to CNY 1.46 billion compared to CNY 926.47 million at the end of 2018[26]. - Basic earnings per share decreased by 22.43% to CNY 0.4739 from CNY 0.6109 in 2018[27]. - The weighted average return on equity fell to 6.86%, down 3.55 percentage points from 10.41% in 2018[27]. - The company's total operating revenue increased by 4.01% to CNY 1,250.52 million, while operating costs rose by 2.98% to CNY 936.28 million[65]. Dividend Policy - A cash dividend of RMB 1.50 per 10 shares (including tax) is proposed, amounting to a total of RMB 30 million, representing a cash dividend ratio of 34.93% for the year[5]. - The company plans to maintain the total distribution amount unchanged even if there are changes in the total share capital before the dividend distribution date[5]. - The cash dividend payout ratio for the year 2019 is 34.93%, with a net profit attributable to ordinary shareholders of RMB 85,890,783.15[111]. - The company has a cash dividend policy that mandates at least 20% of the distributable profit to be distributed as cash dividends, ensuring a stable return to investors[106]. - The cash dividend distribution proposal has been approved by the board and will be submitted for shareholder approval[110]. Business Growth and Expansion - The automotive parts business grew by 10.53%, while the new energy vehicle parts business saw a significant increase of 29.33%[28]. - The company is expanding its business into new areas such as electromechanical modules and heavy-duty reducers, which are expected to drive future growth[39]. - The company is focusing on technological innovation and integrated resource investment to strengthen its manufacturing capabilities and product development[39]. - The company is adapting to industry trends by developing new products in the fields of intelligent driving and high-power electronic device cooling modules[39]. - The company aims to enhance its manufacturing capabilities and global automotive supply chain positioning through continuous innovation and customer collaboration[51]. Risks and Challenges - The company has detailed potential risks in the report, which investors should pay attention to[8]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a substantive commitment to investors[6]. - The company is facing increasing competition in the automotive parts industry due to globalization and stricter emission regulations, necessitating rapid adjustments in product and technology[44]. - The company faces risks from the potential phase-out of fuel vehicles in China, which could negatively impact its operational performance if product structure adjustments are not timely made[99]. - The company reported a receivables balance of ¥461,271,960.05 at the end of 2019, with 99.27% of this amount being less than one year old, suggesting a low risk of bad debts[103]. Environmental and Social Responsibility - The company paid over 6.2 million RMB in environmental protection-related expenses in 2019[155]. - The company has established a complete energy management system and obtained ISO 50001 certification[155]. - The company is committed to sustainable development and has taken measures to reduce energy consumption[155]. - The company has achieved a "blue enterprise" environmental credit rating, indicating compliance and trustworthiness[163]. - The company conducts annual self-monitoring of emissions through third-party agencies, confirming compliance with national standards[165]. Corporate Governance - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[7]. - The company has not engaged in share repurchase activities that would count towards cash dividends during the reporting period[113]. - The actual controller and shareholders have committed to not transferring or managing their shares for 36 months post-listing[114]. - The company will comply with any additional requirements from regulatory authorities regarding share lock-up periods[115]. - The company has a commitment to timely disclose information regarding share reductions by major shareholders[119]. Research and Development - Research and development investment reached CNY 79.54 million, accounting for 6.36% of operating revenue, with 21 new utility model patents granted during the year[61]. - The company is investing in R&D, allocating $F million towards the development of new technologies aimed at enhancing product offerings[198]. - The company plans to enhance research in electric vehicles and autonomous driving technologies[96]. - The company is exploring new market opportunities to further expand its reach and influence in the industry[194]. Leadership and Management - The leadership team includes experienced professionals with extensive backgrounds in international trade and investment management, contributing to strategic decision-making[194]. - The management team has been in place for several years, ensuring stability and continuity in leadership[194]. - The long tenures of the directors reflect a commitment to the company's vision and long-term growth strategy[199][200].