Drinda(SZ:002865)2020-03-25 16:00Financial Performance - The company's operating revenue for 2019 was ¥826,734,130.90, a decrease of 8.39% compared to ¥902,434,015.54 in 2018[12]. - The net profit attributable to shareholders for 2019 was ¥17,227,122.44, down 58.82% from ¥41,831,683.06 in 2018[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,786,131.81, a decline of 72.26% compared to ¥38,882,207.62 in 2018[12]. - The net cash flow from operating activities was -¥28,023,026.99, an improvement of 69.18% from -¥90,912,738.37 in 2018[12]. - The total assets at the end of 2019 were ¥1,840,996,158.25, a decrease of 5.16% from ¥1,941,245,633.41 at the end of 2018[12]. - The company's EBITDA for 2019 was CNY 224.75 million, a decrease of 11.34% compared to CNY 253.51 million in 2018[145]. - The asset-liability ratio decreased to 50.04% in 2019 from 52.58% in 2018, reflecting a reduction of 2.54%[145]. - The current ratio declined by 10.76% to 1.41 in 2019, down from 1.58 in 2018[145]. - The quick ratio also decreased by 11.97% to 1.03 in 2019, compared to 1.17 in 2018[145]. - The company reported a net profit margin of approximately 18.7% based on the latest financial data[199]. Dividend and Shareholder Information - The company reported a cash dividend of 1 RMB per 10 shares for all shareholders, with no bonus shares issued[3]. - The total cash dividend for 2019 amounted to 12,090,051.80 RMB, representing 70.18% of the net profit attributable to ordinary shareholders[67]. - The cash dividend for 2018 was 18,252,000.00 RMB, which accounted for 43.63% of the net profit attributable to ordinary shareholders[67]. - The cash dividend for 2017 was 21,600,000.00 RMB, representing 32.03% of the net profit attributable to ordinary shareholders[67]. - The company has a total share capital of 120,900,518 shares as the basis for the dividend distribution plan[68]. - The company has committed to not reducing its shareholdings within two years after the lock-up period expires, unless for financial needs[70]. - The company’s major shareholders have agreed to act in concert during the governance and operation of the company[71]. Research and Development - The company has established a research and development center in Suzhou to enhance its product innovation capabilities[5]. - The company plans to enhance its research and development capabilities by optimizing its R&D center and increasing investment in new technologies[29]. - Research and development expenses for 2019 amount to ¥47,898,140.24, a 29.82% increase from 2018[42]. - The total R&D investment in 2019 is ¥56,040,000, accounting for 5.79% of the annual revenue[41]. - The company has developed a total of 96 patents, including three invention patents, enhancing its competitive edge in product development[24]. - The company has increased its R&D personnel to 131, representing 7.82% of the total workforce[42]. Legal and Compliance Issues - The company is involved in a legal case regarding an asset acquisition agreement with Guangxi Xianhe Electric Co., with a disputed amount of 22.5 million RMB[89]. - The company is pursuing a claim for 6,507,818.50 CNY in a contract dispute with Chongqing Senmai[93]. - The company has initiated legal proceedings against Jiangsu New Zhongda for a total claim of 3,369,443.37 CNY[93]. - The company is involved in multiple lawsuits related to contract disputes with various parties, indicating ongoing legal challenges[93]. - The company has reported a significant amount of frozen assets, indicating potential liquidity issues[91]. - The company has committed to ensuring compliance with financial regulations and maintaining transparency in its financial reporting[80]. Market and Operational Strategy - The company aims to become a globally competitive modular and platform-based automotive parts supplier, transitioning from a single supplier to a system solution provider for interior and exterior parts[63]. - Key focus areas for 2020 include optimizing customer structure, enhancing internal collaboration, and increasing R&D investment to develop new products[63]. - The company plans to strengthen financial management and control financial risks, linking cost management to performance compensation[63]. - The company is focusing on lean management practices to reduce production costs and improve operational efficiency[30]. - The company has expanded its customer base by securing new partnerships with major automotive manufacturers, including Shanghai Automotive and Magna[29]. Corporate Governance - The company has a governance structure that complies with relevant regulations and standards set by the China Securities Regulatory Commission[167]. - The company held three shareholder meetings during the reporting period, ensuring equal rights for all shareholders[167]. - The independent directors attended 12 board meetings, with a total of 3 attending shareholder meetings, demonstrating active participation[173]. - The audit committee convened 5 times to review periodic reports and internal control assessments, contributing to decision-making[176]. - The supervisory board conducted 10 meetings, effectively overseeing the board and management's compliance with legal and regulatory requirements[178]. Financial Management and Risks - The company emphasizes the importance of risk awareness regarding future plans and projections[3]. - Future risks include intensified market competition, rising costs due to material price fluctuations, and operational management challenges as the company expands globally[64]. - The company will focus on technological innovation and process improvement to adapt to changing market conditions and enhance its operational efficiency[64]. - The company is focusing on maintaining its credit rating and managing financial expenses effectively to improve its interest coverage ratio in the future[146]. Employee and Management Information - The company employed a total of 1,675 staff, with 1,011 in production, 64 in sales, and 131 in R&D[162]. - The total pre-tax remuneration for directors and senior management during the reporting period amounted to CNY 600.35 million[161]. - The company has a strict remuneration policy linking salaries to performance and industry standards[164]. - The management team has a diverse background with extensive experience in the automotive industry, which is expected to drive future growth and innovation[153]. Investment and Fund Utilization - The total amount of raised funds from the initial public offering in 2017 was RMB 273.5 million, with a net amount of RMB 223.36 million after deducting issuance costs[50]. - As of December 31, 2019, the total amount of raised funds utilized was RMB 151.40 million, accounting for 25.66% of the total raised funds[50]. - The company plans to utilize the remaining raised funds for projects that have not yet been fully funded, including the R&D center project[54]. - The total amount of unused raised funds as of December 31, 2019, was RMB 267.88 million[50]. Audit and Internal Control - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[185]. - The internal control audit opinion was a standard unqualified opinion, indicating effective internal controls over financial reporting[183]. - The company reported zero significant internal control deficiencies in both financial and non-financial reporting[181]. - The key audit matter identified was revenue recognition, particularly concerning the timing of revenue recognition for product and mold sales[187].