COOLTECH POWER(SZ:300153)2020-04-27 16:00Market Demand and Business Diversification - The company reported a slowdown in market demand for generator sets due to macroeconomic growth deceleration, which may impact profitability [4]. - The company plans to diversify its business by expanding into new sectors such as renewable energy, specialized vehicles, and power distribution to mitigate market risks [5]. - The company aims to develop new technologies in fuel cells and energy storage to counteract potential disruptions to small diesel generator sets [4]. - The market demand for diesel generator sets experienced a slight decline, with a 1% drop in export market according to customs statistics [48]. - The company anticipates a slight growth in the generator set market due to increased infrastructure investment driven by the COVID-19 pandemic [106]. - The company aims to expand its market presence in overseas markets, particularly in regions like the Middle East, Africa, and Southeast Asia, where there is a significant power supply gap due to infrastructure development needs [110]. Financial Performance - The company's operating revenue for 2019 was ¥1,047,590,309.86, a decrease of 20.10% compared to ¥1,311,179,140.41 in 2018 [18]. - The net profit attributable to shareholders was ¥3,302,027.33, down 81.70% from ¥18,046,550.11 in the previous year [18]. - The net profit after deducting non-recurring gains and losses was -¥28,502,857.27, a decline of 352.00% compared to ¥11,310,664.13 in 2018 [18]. - The net cash flow from operating activities was ¥25,184,161.67, a decrease of 62.47% from ¥67,112,755.40 in 2018 [18]. - Total revenue for 2019 was ¥1,047,590,309.86, a decrease of 20.10% compared to ¥1,311,179,140.41 in 2018 [62]. - The communication industry generated ¥450,953,900.59, accounting for 43.05% of total revenue, with a year-on-year decrease of 5.29% [62]. Investment and R&D - The company emphasizes the importance of research on project feasibility and risk control in its investment strategy [5]. - The company is focusing on becoming a core component manufacturer for new energy vehicles and a provider of integrated energy storage solutions [5]. - The company continues to advance technology research and development, significantly increasing the number of patents and improving brand influence [53]. - The company's R&D investment amounted to ¥26,984,019.91 in 2019, representing 2.58% of total revenue, a slight decrease from 2.62% in 2018 [77]. - The number of R&D personnel decreased to 93 in 2019, accounting for 18.38% of the total workforce, down from 18.68% in 2018 [77]. Subsidiaries and Market Position - The company has established multiple subsidiaries to enhance its competitive edge and risk resilience, although this may introduce management challenges [5]. - The company has established a marketing service network covering 30 provinces and cities in China, with branches in Hong Kong and Singapore, and marketing service institutions in Southeast Asia, Africa, the Middle East, South America, and Eastern Europe [43]. - The company has added two subsidiaries, Shanghai Jinghong New Energy Technology Co., Ltd. and Shanghai Yefeng Automobile Sales Co., Ltd., to its consolidated financial statements as of December 31, 2019 [143]. Profit Distribution and Shareholder Commitments - The profit distribution plan includes a cash dividend of 0.3 yuan per 10 shares, based on a total of 320 million shares [6]. - The company's distributable profit as of December 31, 2019, was RMB 53,018,124.56, with a capital reserve balance of RMB 494,637,891.87 [132]. - The independent directors fulfilled their responsibilities and ensured the protection of minority shareholders' rights during the dividend distribution process [130]. - The actual controller and shareholders of the company have fulfilled their commitments regarding avoiding competition and reducing related transactions during the reporting period [136]. Challenges and Risk Management - The company is committed to enhancing its management capabilities to address the challenges posed by an increasing number of subsidiaries [5]. - The company strengthened risk control measures, enhancing accounts receivable collection efforts and implementing credit insurance for export projects [51]. - The performance of Jinghong Technology was impacted by industry policy changes, leading to a slow completion of its 2019 performance [54]. Future Outlook and Strategic Goals - The company plans to leverage its leading position in the industry to transform from a professional equipment supplier to a comprehensive power equipment solution provider, capitalizing on new infrastructure investments driven by 5G and industrial internet [35]. - The company aims to integrate energy storage with power equipment and new energy sectors to enhance revenue streams and profit sources [124]. - The company is focusing on developing energy-saving and environmentally friendly products, including distributed energy systems, to meet the growing demand for mixed energy products and gas units [111].