CRUN(SZ:002272)2020-04-26 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥877.07 million, representing a 33.01% increase compared to ¥659.40 million in 2018[19]. - The net profit attributable to shareholders for 2019 was approximately ¥64.71 million, a 43.84% increase from ¥44.99 million in 2018[19]. - The net cash flow from operating activities improved significantly to approximately ¥37.59 million, a 268.42% increase from -¥22.32 million in 2018[19]. - The basic earnings per share for 2019 was ¥0.1533, up 43.00% from ¥0.1072 in 2018[19]. - Total assets at the end of 2019 were approximately ¥1.85 billion, a 3.79% increase from ¥1.79 billion at the end of 2018[19]. - The net assets attributable to shareholders increased by 6.78% to approximately ¥1.31 billion at the end of 2019, compared to ¥1.23 billion at the end of 2018[19]. - The company reported a significant recovery in net profit after deducting non-recurring gains and losses, reaching approximately ¥6.47 million in 2019, compared to a loss of ¥76.67 million in 2018[19]. - The weighted average return on net assets for 2019 was 5.11%, an increase from 3.75% in 2018[19]. - The comprehensive gross profit margin increased by 3.38% year-on-year, indicating improved operational efficiency[45]. - The gross profit margin improved to 21.42%, up by 3.42% year-on-year[57]. Revenue and Sales - The company achieved total operating revenue of 87,706.71 million RMB, a year-on-year increase of 33.01%[45]. - The hydraulic lubrication equipment segment generated revenue of 628,842,638.60 yuan, accounting for 71.70% of total operating revenue, with a year-on-year growth of 54.77%[54]. - The company reported a significant increase in sales from the eastern region, totaling CNY 410,489,418.06, which is 53.19% higher than the previous year[57]. - The company’s sales in the southern region increased by 65.49% year-on-year, reaching CNY 140,606,279.83[57]. - The company confirmed sales revenue from the wind power segment amounting to 2,167.81 million yuan in July 2019[146]. Investments and Acquisitions - The company has completed a 75% equity acquisition of Ousheng Hydraulic, enhancing its capabilities in hydraulic components[31]. - The company completed the acquisition of 75% of Ousheng Hydraulic for 4,125 million yuan, enhancing its core competitiveness in high-end equipment manufacturing[48]. - The company acquired 100% equity of Hefei Jiumingyang New Energy Co., Ltd. for CNY 0, with a fair value of identifiable net assets at CNY 234,450.41[64]. - The company signed a strategic framework agreement with Mingyang Smart Energy for wind turbine components worth 26,689.54 million yuan for 2019-2020[47]. Research and Development - The company invested 32,867,189.90 yuan in R&D, reflecting a 12.88% increase compared to the previous year, focusing on technological innovation and product development[52]. - The company has a strong R&D capability with 112 technology patents, including 26 invention patents, indicating a robust innovation pipeline[37]. - The company implemented 9 new R&D projects in 2019 and filed 26 new patent applications, including 6 invention patents and 20 utility model patents[68]. - The company aims to enhance its product development in offshore wind power and high-value-added products to capture market opportunities[30]. Market and Industry Outlook - The revenue from high-end equipment manufacturing and industrial services is expected to grow, particularly in the renewable energy sector, with wind power market capacity reaching 30 GW in 2020[30]. - The industrial internet sector is expected to reach a market size of approximately ¥3.1 trillion in 2020, reflecting a year-on-year growth of about 47.9%[32]. - The company plans to further develop overseas sales platforms and expand into the East China market[39]. - The company is focusing on market expansion and new product development in the hydraulic sector[146]. Financial Management and Governance - The company has committed to avoiding any business competition with its own products and services as it expands its product and business scope[112]. - The actual controller and major shareholders have adhered to their commitments regarding non-competition and shareholding restrictions[114]. - The company has maintained a consistent policy of not distributing cash dividends over the past three years[109]. - The company reported a net profit available for distribution to ordinary shareholders but did not propose a cash dividend distribution plan due to ongoing operational pressures and cash flow constraints[110]. Employee and Corporate Social Responsibility - Employee benefits include compliance with labor laws, provision of social insurance, and regular safety training to ensure a safe working environment[149]. - The company has engaged in various cultural activities and welfare programs, such as providing educational subsidies to children of employees in need[150]. - The company donated a total of CNY 276,000 for educational support and community welfare initiatives during the reporting period[152]. Shareholder and Equity Structure - The total number of common shareholders at the end of the reporting period was 27,328, while the total number of common shares was 32,389,000[169]. - The largest shareholder, Luo Lihua, holds 17.99% of the shares, amounting to 77,399,150 shares, with 50,659,300 shares pledged[170]. - The company has a total of 12,972,758 shares held by the employee stock ownership plan[170]. - The company reported no significant related party transactions during the reporting period[129]. Management and Board Structure - The current board of directors consists of 9 members, including 3 independent directors, with the current term lasting from March 14, 2019, to March 13, 2022[185]. - The company appointed new directors and management, including the reappointment of 罗永忠 as Chairman and General Manager, and the appointment of new independent directors[183]. - The company has a structured approach to governance, with clear roles defined for both the board of directors and the supervisory board[192]. - The company has a total remuneration for directors and senior management during the reporting period amounted to CNY 4.9067 million[200].