Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% growth compared to the previous year[21]. - The company achieved operating revenue of CNY 742.01 million in 2019, a year-on-year increase of 25.78% compared to CNY 589.91 million in 2018[22]. - Net profit attributable to shareholders reached CNY 276.67 million, reflecting a 52.58% increase from CNY 181.32 million in the previous year[22]. - Basic earnings per share rose to CNY 1.07, up 48.61% from CNY 0.72 in 2018[23]. - The company's total assets increased by 76.35% to CNY 4.23 billion at the end of 2019, compared to CNY 2.40 billion at the end of 2018[22]. - The net assets attributable to shareholders surged by 122.44% to CNY 3.16 billion, up from CNY 1.42 billion in 2018[22]. - The cash flow from operating activities reached CNY 236.32 million, a significant increase of 134.99% compared to CNY 100.57 million in 2018[22]. - The company reported a diluted earnings per share of CNY 1.07, consistent with the basic earnings per share[23]. Dividend Policy - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares, totaling approximately 83,470,000 RMB, which represents 30.17% of the net profit attributable to shareholders for 2019[4]. - The profit distribution plan for 2019 has been approved by the board and requires shareholder meeting approval for finalization[129]. - The company has committed to distributing at least 30% of its distributable profits as cash dividends in profitable years[127]. - The independent directors have reviewed and supported the profit distribution plan, ensuring the protection of minority shareholders' rights[129]. - The cumulative distributable profit of the parent company as of December 31, 2019, was approximately ¥550.43 million[128]. Research and Development - The company invested a total of ¥39,416,824.11 in R&D during the reporting period, which represents 5.31% of its operating revenue[63]. - The company applied for 35 patents and was granted 10 patents during the reporting period, including 3 invention patents and 7 utility model patents[62]. - The company has developed a series of high-performance composite membrane materials and advanced inorganic non-metallic membrane materials, including a high-strength zirconia ceramic ultrafiltration membrane with a particle size of 10-30nm[61]. - The company has established a comprehensive technology development platform based on a "target-oriented, reverse thinking" R&D principle, enhancing its core competitiveness through expanded R&D efforts[59]. - The company has focused on clean production processes and wastewater resource recovery technologies, developing innovative solutions for industries such as vitamins, starch sugars, and antibiotics[60]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[21]. - A strategic acquisition of a local competitor is in progress, which is anticipated to add an additional 200 million RMB in annual revenue[21]. - The company aims to achieve a sales revenue of 880 million RMB in 2020, driven by market opportunities in drinking water purification and wastewater treatment[121]. - The company intends to enhance its marketing network and expand into key industries such as pharmaceuticals, food, and petrochemicals[123]. Operational Efficiency and Risks - The company faces risks related to core competitiveness, particularly in technology upgrades and iterations, which are critical in the technology-intensive membrane application industry[83]. - There is a risk of research and development failures and challenges in converting technological achievements into marketable products, which could adversely affect the company's operating performance[83]. - The company is exposed to accounts receivable risks due to slow sales collections influenced by downstream customer cash flow and industry conditions, particularly in economically underdeveloped regions[84]. - The company’s main clients may experience significant fluctuations, impacting the demand for customized membrane equipment, which could lead to operational performance volatility[84]. Environmental Compliance - The company is committed to maintaining compliance with the GB18918-2002 standards, which is crucial for environmental sustainability and operational integrity[201, 202, 203, 204, 205, 206, 207, 208, 209, 210]. - The company has implemented environmental monitoring measures, including both manual and online continuous monitoring of pollutants[177]. - The company’s wastewater treatment facilities are required to meet specific discharge standards, including CODcr limits of 274 tons/year and total nitrogen limits of 82.13 tons/year for certain plants[173]. - The company has established emergency response plans for environmental incidents to mitigate potential impacts on the surrounding environment[176]. Corporate Governance - The company maintains a robust governance structure, ensuring compliance with laws and regulations, and has established a comprehensive internal management system[163]. - The company has committed to reducing related party transactions and will strictly adhere to market rules during necessary transactions[144]. - The company has implemented new financial instrument standards effective January 1, 2019, reclassifying non-trading equity investments as other equity instrument investments[146]. - The company has changed its auditing firm to Rongcheng Accounting Firm, maintaining the audit fee at RMB 1,200,000[148].