Vanward(SZ:002543)2020-04-29 16:00Financial Performance - The company reported a total revenue of 743.6 million CNY for the year 2019, with a cash dividend of 3.3 CNY per 10 shares distributed to shareholders[6]. - The company's operating revenue for 2019 was CNY 6,219,710,301.45, a decrease of 10.04% compared to 2018[6]. - The net profit attributable to shareholders was CNY 598,082,302.18, an increase of 22.33% from the previous year[6]. - The basic earnings per share for 2019 was CNY 0.80, up 21.21% from CNY 0.66 in 2018[6]. - The company achieved a weighted average return on equity of 17.18%, an increase from 15.43% in the previous year[6]. - Operating profit increased by 19.03% to ¥708,472,746.00, while total profit rose by 22.34% to ¥728,283,531.47[62]. - The total operating revenue for 2019 was CNY 6,219,710,301.45, a decrease of 10.04% compared to CNY 6,913,881,265.18 in 2018[78]. - The industrial segment contributed CNY 6,128,574,043.98, accounting for 98.53% of total revenue, down 10.14% from the previous year[82]. - The life water segment generated CNY 3,355,674,462.85, representing 53.95% of total revenue, with a year-on-year increase of 6.34%[82]. - Kitchen appliances revenue was CNY 2,579,811,527.33, which is 41.48% of total revenue, showing a decline of 9.47%[82]. - Domestic sales accounted for CNY 4,036,112,306.77, or 64.89% of total revenue, down 10.39% from the previous year[82]. - Export sales were CNY 2,092,461,737.21, making up 33.64% of total revenue, a decrease of 9.63%[82]. Market Strategy and Operations - The company has maintained its main business operations without any changes since its listing[22]. - The company emphasizes the importance of market conditions in achieving its future plans, which are subject to various risks[6]. - The company has outlined its future development outlook and potential risks in detail in the report[6]. - The company is focusing on expanding its market presence in lower-tier cities and rural areas, leveraging new retail models[38]. - The company aims to maintain its leading position in the gas water heater market by enhancing user experience and engagement[39]. - The company has established a comprehensive sales channel network covering 32 provinces and over 330 cities, achieving a 100% coverage rate in primary markets[54]. - The company has expanded its product offerings into new kitchen appliance categories, including water purifiers, electric ovens, and dishwashers, capitalizing on consumer upgrade trends[42]. - The company is actively exploring markets in the EU and along the "Belt and Road" initiative, focusing on internal growth and technological leadership[41]. - The company has a strong commitment to product quality and innovation, recognized as a national high-tech enterprise and a strategic partner of China's aerospace industry[52]. - The company has implemented a strategy of differentiated sales channels to adapt to changing consumer behaviors and improve product appeal[42]. Research and Development - A total of 513 patents were applied for, with 317 new patents granted, bringing the total number of effective patents to 1,645[73]. - Research and development expenses amounted to ¥257,943,652.72, a 7.89% increase from the previous year[97]. - The number of R&D personnel increased by 39.68% to 778, representing 14.97% of the total workforce[97]. - The company aims to increase R&D investment to improve core competitiveness and transition to a more efficient management model[131]. Cash Dividends and Shareholder Returns - A cash dividend of CNY 3.30 per 10 shares (including tax) was declared, totaling CNY 245,388,000.00, which represents 41.03% of the net profit attributable to shareholders[153]. - The cash dividend payout ratio for 2019 was 100% of the total distributable profit, with no stock dividends or capital increases planned[156]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends as a percentage of net profit being 41.03% in 2019, 50.31% in 2018, and 53.22% in 2017[152]. - The total number of shares for dividend distribution was 743,600,000, with no share buybacks or other forms of cash dividends reported[153]. Compliance and Governance - The company has committed to not engaging in any business that competes with its operations, ensuring compliance with commitments made by major shareholders[161]. - The company has a clear strategy to continue its existing production and operational strategies post-share transfer, ensuring stability in its business direction[161]. - The company guarantees that no shares will be sold within six months post-transfer, ensuring stability for shareholders[165]. - Compliance with the Company Law and regulations regarding share trading by directors and senior management was reiterated, limiting annual share transfers to 25% of total holdings[165]. - The company has committed to not engaging in competitive businesses that could conflict with its current operations[165]. - The company has maintained a commitment to transparency and timely disclosure of any changes in shareholding structure[165]. Risks and Challenges - The company faces risks from international operations due to increasing reliance on international markets, with significant revenue coming from Southeast Asia, North America, and Europe, which may impact export business and profitability[135]. - The company's main products, water heaters and kitchen appliances, are heavily influenced by the real estate market; economic downturns could slow consumer demand and affect performance[136]. - Fluctuations in raw material prices, including stainless steel and copper, directly impact product costs and profitability; the company has established pricing agreements to mitigate this risk[140]. - The company’s export business is significantly affected by foreign exchange rate fluctuations, which can lead to direct impacts on net profit[141]. - The COVID-19 pandemic delayed the company's resumption of operations by about one week, affecting supply chain recovery and operational efficiency[142]. Financial Reporting and Standards - The company adopted new financial instrument standards effective January 1, 2019, which require a shift to an expected credit loss model for impairment accounting[174]. - The new financial instrument standards classify financial assets into three categories, impacting how the company measures and recognizes financial assets[174]. - The company reported a book value of financial assets under the old financial instrument standards as 1,144,146,296.00 CNY and under the new standards as 999,597,874.17 CNY for other non-current financial assets[179]. - The impairment provision for accounts receivable was adjusted to 39,416,205.46 CNY as of January 1, 2019[183]. - The company appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the auditor for the 2019 fiscal year, with an audit fee of 950,000 RMB[196].