Dividend Distribution - The company plans to distribute a cash dividend of RMB 4.40 per 10 shares, totaling approximately RMB 37.4 million, which represents 30.03% of the net profit attributable to shareholders for 2019[6]. - The report is subject to approval by the company's annual general meeting before the implementation of the profit distribution plan[6]. - The company has established a shareholder dividend return plan, committing to distribute at least 30% of the average distributable profit over the last three years as cash dividends[129]. - For the fiscal year 2019, the company plans to distribute a cash dividend of 4.40 RMB per 10 shares, totaling approximately 37.4 million RMB, which represents 30.03% of the net profit attributable to shareholders[130]. - No dividends were distributed for the fiscal year 2018, with a net profit of approximately 77.8 million RMB[130]. - The company has not proposed any cash profit distribution plan for the fiscal year despite having positive distributable profits[131]. - The company commits to a stable cash dividend plan, distributing no less than 30% of the average distributable profit over the last three years in cash over the next three years[149]. Financial Performance - In 2019, the company's operating revenue reached ¥773,768,428.39, representing a year-on-year increase of 57.09%[23]. - The net profit attributable to shareholders was ¥124,527,677.15, reflecting a year-on-year growth of 59.99%[23]. - The net cash flow from operating activities significantly increased to ¥31,863,789.08, up 476.34% compared to the previous year[23]. - By the end of 2019, the net assets attributable to shareholders rose to ¥557,853,518.91, a 28.74% increase from the end of 2018[23]. - Total assets at the end of 2019 amounted to ¥992,508,835.28, marking a 12.04% increase from the previous year[23]. - Basic earnings per share for 2019 were ¥1.95, up 43.38% from ¥1.36 in 2018[24]. - The company's R&D expenditure accounted for 3.97% of operating revenue, slightly down from 4.03% in 2018[24]. - The weighted average return on equity was 25.13%, a decrease of 3.23 percentage points compared to the previous year[24]. Operational Highlights - The report includes a detailed discussion and analysis of the company's operational performance[4]. - The increase in revenue was primarily driven by the growth in environmental solutions and entrusted operation business[25]. - The company benefited from structural deposit income and increased government subsidies related to daily operations[25]. - The company operates two main production models: unit technology equipment and mobile disposal equipment, ensuring quality control at key production nodes[42]. - The company provides comprehensive environmental solutions, including personalized system design, equipment manufacturing, and ongoing operational services[45]. Research and Development - The company achieved a total of 15 new authorized patents in 2019, including 3 invention patents and 12 utility model patents, bringing the total number of patents to 61 by the end of the reporting period[53]. - The total R&D expenditure for the period was CNY 30,681,431.78, representing 3.97% of the company's operating revenue[56]. - The company has 66 R&D personnel, accounting for 10.41% of the total workforce[56]. - The company has developed several core technologies, including high-efficiency anti-fouling membranes and intelligent DTRO systems, enhancing operational efficiency and treatment capabilities[51]. - The company is committed to continuous innovation and improving management structures to enhance operational efficiency and prepare for future market opportunities[75]. Market Position and Strategy - The company is a major player in the waste and water pollution treatment sectors, with a fragmented market and increasing regulatory pressure driving growth[49]. - The environmental industry is characterized by high technical barriers, requiring targeted pollution treatment technologies and equipment[48]. - The company has a strong market position and brand reputation in providing advanced environmental technology solutions, contributing to its growth in the industry[71]. - The management team possesses extensive experience in the environmental sector, enabling the company to adapt to industry trends and enhance overall operational capabilities[72]. Compliance and Governance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[5]. - The company has maintained a good integrity status during the reporting period, with no significant debts or court judgments unfulfilled[162]. - The company confirms compliance with the listing conditions of the Sci-Tech Innovation Board, ensuring that all disclosed information is true, accurate, and complete[147]. - The company will ensure that any profits from unauthorized share sales will be returned to the company[136]. Shareholder Structure and Management - The largest shareholder, Nanjing Wonders Investment Co., Ltd., holds 38.56% of the shares, followed by Liu Jun with 13.10%[188]. - The company has a total of 15 ordinary shareholders at the end of the reporting period, an increase from 7,357 at the end of the previous month[185]. - The actual controller of the company is Liu Jun, who has no foreign residency rights and has not controlled any other listed companies in the past ten years[196]. - The company has established a clear ownership and control relationship with its actual controller, as illustrated in the provided diagrams[197].