WLM(SZ:300591)2020-04-20 16:00Financial Performance - The company's operating revenue for 2019 was CNY 675,535,587.07, a decrease of 2.58% compared to CNY 693,399,606.66 in 2018[16] - The net profit attributable to shareholders for 2019 was CNY 23,998,807.09, down 36.51% from CNY 37,797,261.11 in the previous year[16] - The net profit after deducting non-recurring gains and losses was CNY 22,486,794.42, a decline of 40.19% compared to CNY 37,597,046.05 in 2018[16] - The basic earnings per share for 2019 were CNY 0.0769, a decrease of 36.50% from CNY 0.1211 in 2018[16] - The diluted earnings per share were CNY 0.0805, down 33.53% from CNY 0.1211 in the previous year[16] - The weighted average return on net assets was 4.67%, down from 7.95% in 2018, indicating a decline in profitability[16] - The company's total revenue for 2019 was ¥67,493.94 million, a slight decrease from ¥68,906.94 million in 2018[54] - The company's main business revenue from group purchasing accounted for 70.60% of total revenue in 2019, amounting to ¥47,653.70 million, down from 73.61% in 2018[53] - E-commerce revenue reached ¥8,498.77 million in 2019, representing a growth rate of 18.24% compared to ¥7,187.62 million in 2018, which had an 80.18% growth rate[57] Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 30,402,148.82, a 134.66% increase from -CNY 87,726,059.01 in 2018[16] - The total assets at the end of 2019 reached CNY 1,270,991,770.48, reflecting a 14.46% increase from CNY 1,110,464,587.75 in 2018[16] - The net assets attributable to shareholders increased by 15.19% to CNY 568,892,778.66 from CNY 493,852,171.27 in the previous year[16] - The company's cash and cash equivalents increased by 37.16% compared to the beginning of the year, primarily due to the receipt of bond funds and accelerated collection of accounts receivable[62] - The company's prepayments increased by 314.1% compared to the beginning of the year, mainly due to advance payments for contract earnest money and supplier payments[62] R&D and Innovation - R&D expenses increased by 66.63% year-on-year, reflecting the company's commitment to innovation[74] - The company invested CNY 32,729,606.44 in R&D in 2019, representing a 66.63% increase compared to the previous year[80] - The number of R&D personnel rose to 196 in 2019, accounting for 12.49% of total employees, up from 5.70% in 2018[105] - The company has established a provincial-level enterprise technology center to enhance its R&D capabilities and innovation efforts[80] - Future R&D efforts will focus on specialized protective gear for military and police, leveraging the company's strengths in quality and supply chain management[164] Market Strategy and Product Development - The company operates under three main brands: "Wanlima," "Saint Jack," and "COOME," focusing on leather products including handbags, wallets, and luggage[25] - The company has expanded its product line to include fashion accessories such as glasses, scarves, and keychains, enhancing its market offerings[25] - The company has established a multi-brand strategy with three proprietary brands: "Wanlima," "Saint Jack," and "COOME," targeting different market segments and consumer preferences[30] - The company aims to enhance brand penetration by expanding its direct sales presence in major urban areas and integrating with group purchasing efforts[38] - The company is focusing on developing special protective products and has invested in production lines for individual soldier protective equipment[82] E-commerce and Sales Channels - The company has established a direct sales channel and an e-commerce department, which operates independently from offline business, enhancing its market responsiveness[41] - The e-commerce sales management includes platforms such as Taobao, Tmall, Vipshop, and JD, with a focus on product differentiation strategies[41] - The company has integrated its e-commerce operations with the acquisition of a mature e-commerce company, enhancing its online and offline marketing strategies[87] - The company is focusing on expanding its online channels through self-built, acquisition, and cooperation strategies[85] - The gross margin for the e-commerce sector was 51.23%, despite a 16.30% increase in operating costs[92] Dividend Policy and Shareholder Relations - The company proposed a cash dividend of CNY 0.32 per 10 shares, with no bonus shares to be issued[5] - The total distributable profit for the year was 92,093,844.99 CNY, with the cash dividend representing 100% of the profit distribution[187] - The cash dividend payout ratio for 2019 was 41.60% of the net profit attributable to ordinary shareholders[192] - The company has committed to not transferring or entrusting the management of shares held directly or indirectly for 36 months from the date of listing on the Shenzhen Stock Exchange[194] - The company emphasizes the importance of maintaining a continuous and stable profit distribution policy[197] Industry Trends and Economic Environment - The overall economic environment in 2019 posed challenges, with China's GDP growth at 6.1% and retail sales growth slowing to 8%[75] - The leather goods industry in China is expected to continue growing, driven by increasing disposable income and consumer spending, providing a favorable market environment for the company[58] - The Chinese leather goods industry is characterized by a low entry barrier and increasing competition, with a total of 8,386 enterprises in the leather and footwear sector, and 1,023 of them reported losses in 2019[152] - The integration of modern technology and automation in the leather goods industry is enhancing design and manufacturing capabilities, with a focus on eco-friendly production methods[157] - The industry is expected to benefit from consumption upgrades driven by the domestic middle class and the influence of new retail models, providing significant growth potential[156]