Keshun(SZ:300737)2020-04-20 16:00Financial Performance - The company's operating revenue for 2019 was CNY 4,651,957,012, representing a 50.22% increase compared to CNY 3,096,749,290 in 2018[32]. - The net profit attributable to shareholders for 2019 was CNY 363,361,528, a 96.13% increase from CNY 185,267,247 in 2018[32]. - The net cash flow from operating activities improved significantly to CNY 174,710,725, compared to a negative cash flow of CNY -198,461,959 in 2018, marking a 188.03% increase[32]. - The total assets at the end of 2019 reached CNY 5,993,281,857, which is a 21.73% increase from CNY 4,923,609,168 at the end of 2018[32]. - The company reported a basic earnings per share of CNY 0.60 for 2019, up 93.55% from CNY 0.31 in 2018[32]. - The company's total operating revenue reached ¥4,092,258,449.04, representing a year-on-year increase of 55.47%[81]. - The net profit attributable to shareholders reached CNY 36,336.15 million, up 96.13% year-on-year, driven by increased R&D investment and optimized product structure[65]. - The company's accounts receivable amounted to CNY 238,393.58 million, a 37.00% increase compared to the previous year, while net cash flow from operating activities grew by 188.03% to CNY 17,471.07 million[65]. Market and Business Strategy - The company plans to enhance market development efforts, focusing on infrastructure projects such as high-speed rail, subways, and nuclear power, aiming to increase sales revenue in these areas[7]. - The company aims to achieve over CNY 10 billion in operating revenue by 2022, leveraging opportunities in the new infrastructure market[73]. - The company is expanding its production capacity with ongoing projects in Fujian and the second phase in Dezhou, which will significantly enhance its supply capabilities[57]. - The company aims to optimize its customer and product structure while continuing to cultivate new profit growth points in home decoration and repair markets[7]. - The company plans to continue expanding its market presence and enhance its product offerings in the waterproofing materials sector[44]. - The company has established long-term partnerships with over 1,000 distributors across 30 provinces, enhancing its market presence[60]. Risks and Challenges - The company reported a significant reliance on the real estate sector, which is a major source of sales revenue, indicating that any downturn in this industry could adversely affect revenue growth and profitability[7]. - The company is facing risks related to raw material price fluctuations, particularly for petroleum-based products, which could impact profitability if prices rise significantly[12]. - The company acknowledges the uncertainties in the macroeconomic environment, particularly due to the ongoing impacts of the COVID-19 pandemic, which could affect business development[7]. - The company has experienced a substantial increase in accounts receivable due to business expansion, which poses a risk if major clients face financial difficulties[13]. - The company is closely monitoring the price trends of upstream raw materials and is implementing strategies such as hedging to mitigate risks associated with price volatility[12]. Research and Development - The company's R&D investment accounted for over 4% of its revenue during the reporting period, with more than 280 patents owned or applied for[46]. - The company’s R&D investment was CNY 20,950.73 million, accounting for 4.5% of operating revenue, reflecting a 60.31% increase year-on-year[72]. - The number of R&D personnel increased to 519 in 2019, accounting for 17.82% of the total workforce, up from 16.59% in 2018[94]. - The company has launched several innovative products, including low VOC polyurethane waterproof coatings and graphene-modified polyurethane waterproof coatings, which have received positive user feedback[56]. - The company developed new waterproof products, including a self-adhesive polymer series and solvent-free polyurethane waterproof coatings[92]. Inventory and Accounts Receivable - Accounts receivable grew by 30.40% compared to the beginning of the period, attributed to significant revenue growth[55]. - Inventory surged by 92.81% compared to the beginning of the period, driven by a substantial increase in sales orders and expanded production scale[55]. - The company's accounts receivable increased to approximately ¥1.88 billion, representing 31.37% of total assets, up from 29.28% in 2018[104]. - The inventory level increased significantly by 102.78%, reaching 13,272,699.63 square meters, attributed to expanded production capacity[82]. Shareholder and Financial Commitments - The company has a profit distribution plan based on a base of 607,723,600 shares, proposing no cash dividends or stock bonuses for shareholders[14]. - The company did not distribute cash dividends for the 2019 fiscal year, with a total cash dividend amount of 50,946,170.40 yuan, representing 14.02% of the net profit attributable to ordinary shareholders[149]. - The company’s cash dividend distribution plan for 2019 aligns with its articles of association, with no stock dividends or capital reserve transfers planned[143]. - The company has committed to not transferring any shares for 36 months post-IPO, with a subsequent annual limit of 25% of total shares held if still in a management position[152]. - The company will comply with various regulations regarding shareholder obligations and responsibilities, ensuring transparency in shareholding changes[155]. Compliance and Regulatory Matters - The company has committed to measures to prevent dilution of immediate returns, including not interfering with management activities and ensuring that compensation is linked to the execution of return measures[168]. - The company has established a framework for accountability among its directors and executives regarding the fulfillment of commitments made during the IPO process[170]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[178]. - The company has implemented new financial instrument standards effective January 1, 2019, which have impacted the classification and measurement of financial assets and liabilities[179]. - The company has reported a significant adjustment in financial reporting due to the adoption of new accounting standards, affecting retained earnings and other comprehensive income[179].