Bingshan(SZ:200530)2020-04-17 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,831,851,280.70, a decrease of 6.83% compared to CNY 1,966,064,612.44 in 2018[18]. - The net profit attributable to shareholders for 2019 was CNY 89,112,113.43, down 19.36% from CNY 110,503,175.90 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 21,406,535.65, a decline of 53.32% compared to CNY 45,862,588.97 in 2018[18]. - The basic earnings per share for 2019 was CNY 0.106, down 18.46% from CNY 0.13 in 2018[18]. - The total assets at the end of 2019 were CNY 5,525,503,256.26, a slight decrease of 0.77% from CNY 5,568,279,452.26 at the end of 2018[18]. - The net assets attributable to shareholders increased marginally to CNY 3,379,565,029.89, up 0.06% from CNY 3,377,633,617.02 in 2018[18]. - The company achieved operating revenue of CNY 1,831.85 million in 2019, a decrease of 6.83% year-on-year[34]. - The net profit attributable to shareholders was CNY 89.11 million, down 19.36% compared to the previous year[34]. - In Q1 2019, the net profit attributable to shareholders was CNY 106.79 million, while in Q2 it dropped to CNY 1.59 million, and in Q3 and Q4, it recorded losses of CNY 4.03 million and CNY 15.23 million respectively[23]. Cash Flow and Investments - The net cash flow from operating activities improved to CNY 12,695,071.81, a significant increase of 110.61% from a negative cash flow of CNY -119,657,885.64 in 2018[18]. - The company’s cash flow from operating activities showed a net outflow of CNY 94.19 million in Q1, but turned positive in Q4 with CNY 93.45 million[23]. - The company's investment activities generated a net cash flow of ¥115,559.96, a significant decrease of 99.82% from ¥62,732,656.41 in 2018[56]. - The total investment amount for the reporting period was ¥1,662,181,009.14, reflecting a 2.62% increase compared to the previous year[65]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.3 per 10 shares, totaling CNY 25,296,375.21 based on 843,212,507 shares[5]. - The company announced a cash dividend of 0.3 yuan per 10 shares for the fiscal year 2019, totaling 25,296,375.21 yuan, which represents 28.39% of the net profit attributable to ordinary shareholders[85][84]. - The net profit for the parent company in 2019 was 15,204.6 million yuan, with a distributable profit of 13,684.2 million yuan after statutory reserve deductions[86][85]. - The cash dividend payout ratio for 2018 was 38.15%, with a total cash dividend of 42,160,625.35 yuan[84]. - The company has maintained a consistent cash dividend policy over the past three years, with 0.5 yuan per 10 shares in both 2017 and 2018[84]. Market and Competitive Landscape - The company faces risks including intensified market competition and slow promotion of new products and technologies[5]. - The company is actively promoting R22 reduction phase one product in the market and has successfully passed the phase one technology research and design[34]. - The company is expanding its service network and implementing 5G technology applications for remote diagnostics and AI management[35]. - The company aims to address high accounts receivable risks through strategic measures outlined in the report[5]. - The company is facing challenges such as intensified market competition and the slow market promotion of new products and technologies, which it plans to address through differentiated competitive advantages[74]. - The company expects the refrigeration and air conditioning industry to face complex challenges in 2020, with ongoing market competition and cost pressures[73]. Research and Development - The company introduced 12 new patents during the reporting period, including 3 invention patents, reflecting its commitment to innovation[38]. - Research and development expenses for 2019 were ¥64,272,675.78, a decrease of 15.17% compared to ¥75,763,034.87 in 2018[54]. - The proportion of research and development expenses to operating income decreased by 0.34 percentage points to 3.51% in 2019[55]. Environmental Compliance - The company reported a total chemical oxygen demand (COD) discharge of 3.24 tons, which is below the approved limit of 6 tons, indicating compliance with environmental standards[123]. - Ammonia nitrogen discharge was recorded at 0.2 tons, well under the approved limit of 0.9 tons, demonstrating effective pollution control measures[123]. - Dust emissions were 2.88 tons, significantly lower than the approved limit of 6.8 tons, reflecting the company's commitment to environmental protection[123]. - The company has implemented a rainwater and sewage diversion system, with wastewater treated in an in-house facility before being discharged to the local sewage treatment plant[124]. - The company utilizes high-efficiency bag dust collectors for various processes, ensuring that emissions meet regulatory standards before being released through 15m exhaust stacks[124]. - Regular monitoring of wastewater, noise, and air emissions is conducted, with all indicators reported to be within compliance limits[128]. - The company has established a waste management system, with hazardous waste being collected and treated by qualified vendors to ensure safe disposal[125]. - An emergency response plan for environmental incidents has been developed and filed with the local environmental protection bureau[127]. - The company has undergone environmental acceptance testing for its relocation project, which was approved by local authorities in March 2018[126]. - No significant environmental incidents or non-compliance issues were reported during the reporting period[129]. Corporate Governance - The company has engaged Xinyong Zhonghe Accounting Firm for the audit of its 2019 financial statements, continuing a relationship of four years[94]. - The audit committee confirmed that the internal control system of the company is effective and complies with relevant requirements, with no major defects identified in the internal control evaluation report for 2019[183]. - The company’s financial report for 2019 was deemed comprehensive and truthful, reflecting the actual financial situation, with no significant deficiencies reported[179]. - The audit report issued by Xinyong Zhonghe Accounting Firm confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[200]. - The company’s internal control self-evaluation report was disclosed on April 18, 2020, indicating that all major aspects were effectively controlled[186]. - The company’s management performance evaluation and incentive measures were conducted based on established operational performance assessment methods[182]. Employee and Management Structure - The company employed a total of 1,582 staff, with 861 in production, 242 in sales, and 253 in technical roles[165]. - The company has 63 employees with a master's degree or above, and 472 with a university degree[166]. - The company has established a performance-based salary system for employees, distributing compensation based on job roles and performance evaluations[167]. - The total number of employees receiving compensation during the reporting period was 1,582, reflecting a stable workforce[165]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.6097 million[162]. - The company maintains a diverse board with members holding various professional backgrounds, including finance and management[160]. - The company has undergone changes in its board members, with several resignations due to term completion or work changes[157][158]. Related Party Transactions - The company maintains normal related-party transactions necessary for its operations, ensuring compliance with decision-making procedures[171]. - In 2019, the total amount of daily related party transactions was 603.8 million yuan, accounting for 78.42% of the estimated amount for the year[102]. - The company purchased complete project supporting products from related parties for 226.36 million yuan, which accounted for 80.84% of the estimated amount for 2019[102]. - The company sold supporting components to related parties for 377.44 million yuan, representing 77.03% of the estimated amount for 2019[102]. Shareholder Structure - The largest shareholder, Dalian Iceberg Group Co., Ltd., holds 20.27% of the shares, totaling 170,916,934 shares[144]. - SANYO Electric Co., Ltd. is the second-largest shareholder with an 8.72% stake, amounting to 73,503,150 shares[144]. - The total number of shares for dividend calculation in 2019 was 843,212,507[86]. - The total number of ordinary shareholders increased from 50,350 to 52,255 during the reporting period[144]. - The company has no actual controller, as confirmed by a legal announcement made on April 24, 2015[147]. - There are no shareholders holding more than 10% of the shares during the reporting period[149]. - The company does not have any preferred shares or convertible bonds in the reporting period[151][154].