Rapoo(SZ:002577)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was ¥449,680,144.28, a decrease of 5.25% compared to ¥474,604,061.56 in 2018[17] - The net profit attributable to shareholders was -¥173,866,140.00, representing a significant decline of 2,254.96% from a profit of ¥8,068,197.65 in the previous year[17] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥92,924,018.57, a decrease of 266.86% compared to -¥25,329,394.59 in 2018[17] - The basic earnings per share for 2019 was -¥0.61, a decline of 2,133.33% from ¥0.03 in 2018[17] - The weighted average return on net assets was -15.93%, a decrease of 16.61% compared to 0.68% in 2018[17] - The company achieved a total revenue of CNY 449.68 million in 2019, a decrease of 5.25% compared to CNY 474.60 million in 2018[47] - The net profit attributable to shareholders was CNY -17.39 million, representing a significant decline of 2,254.96% year-on-year[47] - The company's total revenue for 2019 was approximately CNY 413.53 million, a decrease of 25.71% compared to the previous year[56] - The gross profit margin for the computer peripheral manufacturing segment was 11.82%, down 7.82% year-on-year[56] - The company reported a significant reduction in sales expenses by 27.07% to CNY 50.42 million due to declining sales revenue[65] Cash Flow and Assets - The net cash flow from operating activities improved to ¥49,493,316.91, a 324.90% increase from -¥22,006,836.09 in 2018[17] - The total assets at the end of 2019 were ¥1,106,403,316.10, down 15.66% from ¥1,311,800,714.96 at the end of 2018[17] - The net cash flow from investment activities was ¥13,358,895.22, up 230.12% year-over-year, mainly due to reduced cash payments for fixed assets, intangible assets, and other long-term assets[71] - The net increase in cash and cash equivalents was ¥64,827,040.39, representing a 298.11% increase from the previous year, attributed to decreased cash payments for purchasing goods and services[71] - The company's monetary funds at the end of 2019 amounted to ¥373,636,865.60, accounting for 33.77% of total assets, an increase of 12.41% from the beginning of the year[76] - The company's inventory decreased by 6.36% to ¥27,181,167.01, due to a change in business model that reduced inventory levels[76] Market and Industry Outlook - The gaming and esports industry is projected to grow, with global gaming revenue expected to reach 148.8 billion in 2019, a 7.2% increase year-over-year[36] - The global esports market is anticipated to grow from 951 million in 2019 to 1.1 billion in 2020, reflecting a year-on-year growth of 15.7%[36] - The global gaming market is projected to achieve a compound annual growth rate (CAGR) of 9.0% according to Newzoo, benefiting the gaming peripheral hardware sector[84] - The number of global smartphone users is expected to reach 3.2 billion in 2019, representing an 8.3% year-over-year growth, driving demand for mobile peripheral products[86] - The company anticipates growth in the gaming and internet mobile device industries, driven by the development of the esports sector in China[83] Business Strategy and Operations - The company has adopted an order-driven business model, aligning production closely with sales[28] - The company aims to expand its market presence through technological innovation and product development in response to consumer needs[32] - The company plans to diversify its product offerings, including wireless headphones and power banks, to meet consumer demand[48] - The company has shifted to an outsourcing production model, resulting in the disposal and leasing of idle assets to improve asset efficiency[40][51] - The company has implemented various information technology systems to enhance operational efficiency and supply chain management[44] - The company is focusing on improving management efficiency through a flat management structure and exploring cost-saving measures to strengthen its competitive advantage[90] Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[5] - The company decided not to distribute profits for the fiscal year 2018 due to a total undistributed profit of -83.87 million yuan and earnings per share of 0.03 yuan, which is below the required 0.1 yuan[101] - For the fiscal year 2019, the company also did not distribute profits, with an undistributed profit of -257.74 million yuan, and the proposal is pending approval from the shareholders' meeting[103] - The company has not distributed any cash dividends for the past three years, with the total undistributed profits as of December 31, 2019, being -152.08 million yuan[102] - The total cash dividend amount for 2019 was 0.00 yuan, with a net profit of -173.87 million yuan, resulting in a cash dividend ratio of 0.00%[105] Governance and Compliance - The company has established a governance structure to protect shareholder rights and ensure transparent information disclosure[136] - The company has maintained compliance with environmental regulations and is not classified as a key pollutant unit[141] - The company has not faced any major litigation or arbitration during the reporting period[118] - The company has not reported any penalties or rectification measures during the reporting period[119] - The company has confirmed that all commitments made by shareholders and management have been fulfilled as of the reporting date[108] Research and Development - Research and development expenses amounted to CNY 19.26 million, a decrease of 13.47% from the previous year, representing 4.28% of total revenue[68] - The company has allocated 200 million RMB for research and development of new technologies in the upcoming year[178] Management and Personnel - The company has a total of 5 board members, including 2 independent directors, with a term of 3 years for board members[169] - The company’s chairman and general manager, Zeng Hao, has been in the position since March 28, 2010, and is responsible for overall management[169] - The company experienced a management change with the resignation of Li Zheng as vice general manager on May 17, 2019, due to the expiration of the management term[167] - The total number of employees in the company is 165, with 60 in sales, 35 in technical roles, and 10 in finance[183] - The company has established a competitive compensation and benefits system to attract and retain talent, aligning with market standards[185] Future Projections - In 2020, the company aims to achieve profitability with a net profit forecasted to turn from loss to gain, contingent on various market factors[88] - The company aims to achieve a net profit of 300 million RMB in the next fiscal year, reflecting a growth target of 10%[178] - New product launches are expected to contribute an additional 300 million RMB in revenue in the next fiscal year[178]