JASIC(SZ:300193)2021-03-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,020,262,386.15, representing a 5.67% increase compared to CNY 965,557,154.57 in 2019[15] - The net profit attributable to shareholders for 2020 was CNY 162,547,422.34, a decrease of 21.73% from CNY 207,669,714.14 in the previous year[15] - The net profit after deducting non-recurring gains and losses was CNY 130,709,714.04, down 24.20% from CNY 172,438,518.19 in 2019[15] - The net cash flow from operating activities increased by 7.90% to CNY 234,269,899.82, compared to CNY 217,116,538.49 in 2019[15] - The total assets at the end of 2020 were CNY 2,696,683,208.82, a decrease of 2.51% from CNY 2,766,172,039.67 at the end of 2019[15] - The net assets attributable to shareholders decreased by 3.74% to CNY 2,253,599,555.96 from CNY 2,341,063,352.38 in 2019[15] - The basic earnings per share for 2020 was CNY 0.34, down 20.93% from CNY 0.43 in 2019[15] - The diluted earnings per share for 2020 was CNY 0.33, a decrease of 23.26% compared to CNY 0.43 in the previous year[15] - The weighted average return on equity for 2020 was 7.32%, down from 8.75% in 2019[15] - The operating profit for the period was CNY 192,372,599.64, a decline of 21.72% compared to the previous year[29] - The company’s total profit was CNY 188,598,663.38, down 23.34% year-on-year[29] Revenue Breakdown - Domestic sales revenue reached CNY 533,409,154.86, up 3.95%, while international sales revenue was CNY 465,978,549.93, an increase of 7.51%[30] - The industrial segment accounted for 97.95% of total revenue, with sales of inverter welding machines and accessories contributing ¥999,387,704.79, reflecting a growth of 5.58%[49] Cash Dividends - The company plans to distribute a cash dividend of CNY 5.00 per 10 shares to all shareholders, based on a total of 478,448,864 shares[3] - The profit distribution plan for 2020 proposes a cash dividend of 5.00 CNY per 10 shares, totaling 239,224,432.00 CNY, subject to shareholder approval[101] - In 2020, the cash dividend amounted to 239,224,432.00 CNY, representing 147.17% of the net profit attributable to ordinary shareholders[103] - The cash dividend for 2019 was 237,356,229.50 CNY, which accounted for 114.30% of the net profit attributable to ordinary shareholders[103] - The cash dividend for 2018 was 99,996,700.80 CNY, representing 52.41% of the net profit attributable to ordinary shareholders[103] Investments and Acquisitions - The company has made strategic investments, including the establishment of a wholly-owned subsidiary for e-commerce and the acquisition of minority stakes in companies to enhance its competitive edge in the market[46] - The acquisition of 49% equity in Shougu Technology for CNY 67,413,812.33 was completed, making it a wholly-owned subsidiary, with an investment income of CNY 11,724,763.73 for the period[74] Research and Development - The company has established product R&D centers both domestically and internationally, enhancing its technological capabilities and patent applications to protect R&D outcomes[34] - Research and development expenses amounted to 59,060,886.29 CNY, representing 5.79% of operating revenue, a slight decrease from 6.11% in 2019[60] - The company will continue to invest in R&D, ensuring key projects are completed on schedule and fostering a culture of innovation within its technical teams[86] Operational Efficiency - The company has implemented lean production practices and optimized manufacturing processes, leading to increased production efficiency and reduced labor costs[44] - The company plans to improve production efficiency through lean manufacturing and process optimization, while also addressing labor stability and safety in the production environment[86] Social Responsibility - The company actively participated in social responsibility initiatives, including donations and support for local agriculture during the pandemic[138] - The company donated 5 million RMB for COVID-19 pandemic prevention efforts[143] Governance and Compliance - The company has established independent financial accounting departments and management systems to ensure financial independence[105] - The company has committed to avoiding any business that competes with its main operations, ensuring compliance with relevant regulations[104] - The company has pledged to strictly adhere to the decision-making procedures for related party transactions[104] - The company has maintained a consistent dividend policy over the past three years, with cash dividends of 2.00 CNY and 5.00 CNY per 10 shares in 2018 and 2019, respectively[100] Employee Management - The company has a total of 951 employees, with 568 in production, 106 in sales, 130 in technical roles, and 81 in administrative positions[183] - The company has established a performance management system linked to a flexible compensation system to ensure employee interests are protected[185] - The company has set up the Jia Shi Academy for systematic training, covering management, technical engineering, and marketing[186] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,732, with 24,464 shareholders as of the end of January[154] - The largest shareholder, Pan Lei, holds 13.15% of the shares, totaling 66,678,339 shares, with an increase of 5,000,000 shares during the reporting period[154] - The company has no controlling shareholder, as no single shareholder holds more than 30% of the total shares[156] Risk Factors - The company faces risks from rising raw material prices due to the pandemic and commodity price fluctuations, which could impact profit margins[89] - The company has a significant exposure to foreign exchange risks, particularly with a high proportion of sales in USD, which could affect profitability if the RMB appreciates[90]