SONGZ(SZ:002454)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was CNY 3,405,998,820.80, representing a decrease of 7.64% compared to CNY 3,687,813,118.04 in 2018[17] - The net profit attributable to shareholders for 2019 was CNY 176,399,664.62, a slight increase of 0.25% from CNY 175,957,093.40 in the previous year[17] - The net profit after deducting non-recurring gains and losses surged by 388.41% to CNY 122,891,264.75 from CNY 25,161,682.14 in 2018[17] - The net cash flow from operating activities decreased by 51.27% to CNY 245,903,570.41, down from CNY 504,646,790.39 in 2018[17] - The total assets at the end of 2019 were CNY 5,807,444,407.87, a decrease of 1.59% from CNY 5,901,274,219.57 at the end of 2018[17] - The net assets attributable to shareholders increased by 4.17% to CNY 3,432,555,809.09 from CNY 3,295,270,581.69 in 2018[17] - The basic earnings per share remained stable at CNY 0.28, unchanged from the previous year[17] - The company reported a total non-operating income of ¥53,508,399.87 in 2019, a decrease from ¥150,795,411.26 in 2018[23] - The company achieved a gross margin of 26.99% for its industrial segment, a slight increase of 2.07% year-on-year[56] - The company reported a total revenue of 42,183 million RMB, with a net profit of -482.6 million RMB for the reporting period[82] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.6 per 10 shares, totaling CNY 37,713,696.00 based on 628,581,600 shares[5] - The cash dividend for 2019 represented 21.38% of the net profit attributable to the parent company's shareholders, which was RMB 176,399,664.62[96] - The cash dividend for 2018 was also RMB 0.60 per 10 shares, amounting to RMB 37,714,896.00, which was 21.43% of the net profit[96] - The total distributable profit available for shareholders as of December 31, 2019, was RMB 1,770,994,569.37[100] - The company has maintained a cash dividend payout ratio of 100% for the total profit distribution[100] Research and Development - The company invested ¥150 million in new research and development equipment, enhancing its testing capabilities for new energy thermal management systems[33] - The company has a strong R&D team with over 500 technical personnel, including more than 30 with doctoral or master's degrees[33] - The company has developed a lightweight and efficient heat exchanger that improves the heat transfer coefficient by over 8% and the energy efficiency ratio by over 5%, while reducing the weight by over 30%[35] - The company is advancing the development of a low-temperature heat pump 4.0 system, capable of operating at -25°C and providing continuous operation at -35°C, addressing the heating needs of electric vehicles in cold regions[35] - The company has made significant progress in the research of new environmentally friendly refrigerants R290 and CO2, which will be used in future air conditioning products[65] - The company has successfully developed an independent liquid cooling battery thermal management product, which has become a standard product for major commercial vehicle manufacturers[67] Market and Sales Performance - The revenue from passenger car air conditioning decreased by 20.34% to approximately ¥1.53 billion, accounting for 44.88% of total revenue[54] - The revenue from the cold chain logistics segment grew by over 30%, with sales exceeding 2,100 units[50] - The company established a strategic partnership with Russia's GAZ Group, marking its first export OEM market project[49] - The company entered the medical cold chain market in 2019, securing logistics orders in several provinces[51] - The company delivered over 48,000 large and medium-sized bus air conditioning units, a decrease of 8% compared to 2018, with over 60% of these being new energy vehicle air conditioning products[48] - The company's battery thermal management system products for new energy vehicles shipped over 4,000 sets, establishing a significant market presence among major domestic bus manufacturers and battery suppliers[48] Risks and Challenges - The company faces risks including fluctuations in operations due to the pandemic, a downturn in the automotive industry, and competition in the automotive air conditioning sector[5] - The company’s mobile air conditioning business is affected by the overall downturn in the automotive industry, impacting its main business revenue[27] Corporate Governance and Compliance - The company has a clear governance structure with independent directors and supervisors overseeing its operations[170] - The company has established a performance evaluation and incentive mechanism for senior management to align corporate and personal development goals[196] - The company has not identified any major internal control deficiencies that could lead to administrative penalties from securities regulatory authorities[198] - The internal control evaluation report was disclosed on April 28, 2020, providing transparency on the company's internal control status[199] Employee and Management Structure - The total number of employees in the company is 3,052, with 756 in the parent company and 2,296 in major subsidiaries[172] - The company has a total of 13.26万元 remuneration for the supervisor, Tang Jianhua[171] - The company’s management team is committed to enhancing operational efficiency and driving growth in the automotive air conditioning sector[169] - The company has a structured remuneration system based on performance evaluations for its directors and senior management[170] Related Party Transactions - The company reported a significant related party transaction amounting to 66,403,000 CNY, which accounted for 43.44% of the approved transaction amount of 100,000,000 CNY[117] - The total amount of related party transactions for the year was reported to be 73,546,000 CNY[118] Financial Position and Cash Flow - The total amount of cash and cash equivalents decreased by ¥83,902,591.40, marking a 1,951.30% increase in net decrease compared to the previous year[72] - The company's monetary funds at the end of 2019 amounted to ¥537,362,141.4, representing 9.25% of total assets, an increase of 0.85% from 2018[76] - The company achieved a 10.38% reduction in raw material costs, amounting to ¥2,207,616,800.15, compared to ¥2,463,251,498.18 in 2018[59] Future Outlook - Future outlook remains cautious as the company adapts to market conditions and potential expansions[162] - The company plans to maintain its market leadership in large buses and expand its market share in joint venture brands for small vehicles in 2020[91]