APLUS(SZ:300163)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was ¥450,181,969.11, a decrease of 23.30% compared to ¥586,967,179.08 in 2018[20]. - The net profit attributable to shareholders was ¥48,506,025.14, a significant turnaround from a loss of ¥201,532,789.93 in the previous year, representing a 124.07% improvement[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥17,288,089.71, an improvement of 91.77% from -¥209,942,359.81 in 2018[20]. - The net cash flow from operating activities was ¥7,212,237.11, a 112.62% increase from -¥57,155,522.57 in 2018[20]. - The total profit for the year was CNY 53.06 million, an increase of 125.08% year-on-year, marking a turnaround to profitability[41]. - The revenue from the shading fabric manufacturing sector was CNY 166.98 million, accounting for 37.09% of total revenue, down 40.97% year-on-year[46]. - The revenue from shading products was CNY 283.21 million, representing 62.91% of total revenue, with a decrease of 6.88% year-on-year[46]. - The company maintained a gross margin of 39.63% for shading fabrics, which decreased by 12.03% compared to the previous year[48]. Production and Capacity - The company reported a decline in production capacity and order volume in Q1 2020 due to the pandemic, impacting total revenue for the year[5]. - The company is preparing for potential production resource imbalances in response to diverse customer demands in the fabric production sector[5]. - The company’s production capacity for sunshade fabrics reached 12.5 million square meters annually, with ongoing improvements in production efficiency[36]. - The company is focusing on the development of sunshade fabric R&D, production, and sales after the asset sale[33]. Investments and Assets - The company completed the sale of 84.35% equity in KRS, significantly reducing its operational burden and improving financial conditions[32]. - Fixed assets decreased by 29.79% year-over-year, primarily due to the disposal of properties by subsidiary Zhejiang Saint Tego and the exclusion of KRS from consolidation[34]. - Cash and cash equivalents increased by 44.56% year-over-year, attributed to cash received from sales and asset disposals[35]. - The company reported a total investment of 9,000,000.00 in various subsidiaries, with a focus on long-term growth strategies[68]. Research and Development - The company developed four innovative new polymer composite shading materials during the reporting period, enhancing its competitive edge in the market[29]. - R&D expenses amounted to ¥14,638,303.14, representing 3.25% of operating revenue, an increase from 2.95% in the previous year[57]. - The company plans to continue increasing its patent applications in the field of external shading products, enhancing its intellectual property reserves[56]. - The company has accumulated 94 domestic patents and 48 foreign patents as of December 31, 2019, including 38 invention patents domestically and 26 invention patents internationally[84]. Market and Sales Strategy - The company plans to enhance its international market presence by focusing on local market adaptability and brand influence[42]. - The company focuses on three key factors for international market expansion: product adaptability, growth with local distributors, and brand influence[82]. - The company aims to enhance order response capabilities and support unconventional orders to align with sales demands[83]. - The company is actively adjusting product prices to maintain market share in the sunshade fabric sector[82]. Human Resources and Management - The company faces risks related to human resources, including a tight supply of skilled labor and rising labor costs, which may affect production capacity[5]. - The total number of employees in the company is 739, with 163 in the parent company and 576 in major subsidiaries[167]. - The company emphasizes employee training and has tailored training plans for different positions[170]. - The remuneration policy for directors and senior management is based on company size and economic performance, considering market salary trends[169]. Governance and Compliance - The company has established a governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and management[173]. - The company maintained a high level of communication with investors, including a dedicated investor relations section on its official website[178]. - The company achieved a standard unqualified audit opinion for its financial statements for the year ended December 31, 2019[199]. - The company has not experienced any major litigation or arbitration matters during the reporting period[101]. Dividend and Profit Distribution - The company plans to not distribute cash dividends or issue bonus shares for the year[8]. - The company has not distributed cash dividends for the past three years, maintaining a policy of no cash dividends or stock bonuses[88]. - The total distributable profit as of December 31, 2019, was -54.01 million yuan, indicating a negative retained earnings situation[88]. Risks and Challenges - The company relies heavily on exports, particularly to the US, which is expected to see a short-term decrease in order volume due to the foreign pandemic[5]. - The company experienced foreign exchange gains during the reporting period, but remains exposed to significant risks from currency fluctuations[6]. - The company recognizes the competitive landscape in the high-end market for polymer composite sunshade materials, dominated by foreign manufacturers and a few domestic players[79].