Financial Performance - In 2019, the company's operating revenue reached CNY 405,971,995.48, an increase of 7.34% compared to CNY 378,213,254.46 in 2018[22]. - The net profit attributable to shareholders increased by 82.70% to CNY 86,003,382.24 from CNY 47,072,478.07 in the previous year[24]. - The net profit after deducting non-recurring gains and losses rose by 43.23% to CNY 68,392,419.07 compared to CNY 47,749,596.63 in 2018[22]. - The company's cash flow from operating activities decreased by 44.30% to CNY 41,604,752.25, primarily due to increased cash payments for goods and services[24]. - By the end of 2019, the net assets attributable to shareholders grew by 304.41% to CNY 871,392,923.04 from CNY 215,471,503.10 at the beginning of the year[24]. - Total assets increased by 91.03% to CNY 1,157,027,319.88 compared to CNY 605,680,832.73 at the end of 2018[22]. - Basic and diluted earnings per share increased by 47.33% to CNY 1.93 from CNY 1.31 in 2018[23]. - The weighted average return on equity decreased by 19.10 percentage points to 28.11% from 47.21% in the previous year[23]. - The total net profit attributable to shareholders for 2019 was RMB 86,003,382.24, indicating a strong financial performance[144]. Dividend Policy - The company plans to distribute a cash dividend of RMB 5 per 10 shares, totaling RMB 28,910,000, which accounts for 33.61% of the net profit attributable to shareholders for 2019[5]. - The company does not plan to increase capital reserves or issue bonus shares, focusing solely on cash dividends for shareholders[5]. - The company’s cash distribution policy prioritizes cash dividends, with a minimum of 80% for mature stages without major capital expenditures, 40% for mature stages with major expenditures, and 20% for growth stages with major expenditures[141]. - The company reported a positive distributable profit for the year, ensuring compliance with the conditions for cash dividends, including sufficient cash flow and no significant investment plans[141]. - The company has maintained a commitment to protect the rights of minority investors through its dividend policy[142]. Risk Management - The company has detailed various operational risks and corresponding countermeasures in the report, emphasizing the importance of risk management[4]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors[6]. - The company is exposed to risks from raw material price increases, which could adversely affect profitability if sales prices do not adjust accordingly[76]. - The company faced risks related to market competition, particularly from international players like Honeywell UOP and Arkema, which could impact market share[76]. Research and Development - Research and development expenses accounted for 3.58% of operating revenue, an increase of 0.3 percentage points from 2018[23]. - The company has invested a total of ¥14,533,146.27 in R&D during the reporting period, which accounts for 3.58% of its operating revenue[55]. - The company has developed specialized molecular sieves for various applications, including gas purification and environmental remediation, expanding its product offerings[52]. - The company has ongoing major research projects focused on the creation and industrialization of high-efficiency hydrogen production molecular sieves[54]. - The company has achieved advancements in core technologies, maintaining a leading position in the domestic market for molecular sieve products[51]. Market Position and Strategy - The global molecular sieve adsorbent market is projected to grow to $2.01 billion by 2023, with a compound annual growth rate (CAGR) of 6.08% from 2018[44]. - The company holds a 4.43% share of the global production capacity of molded molecular sieves and a 4.24% share of activated molecular sieves, ranking sixth globally[46]. - The company is focusing on expanding its product applications in energy chemical fields and environmental remediation, aligning with national strategic goals[66]. - The company is exploring applications of molecular sieves in environmental remediation, including soil improvement and radioactive wastewater treatment[44]. - The company is actively pursuing mergers and acquisitions to consolidate its position in the molecular sieve market[130]. Governance and Compliance - The company has a comprehensive governance structure in place, with all board members present at the board meeting[5]. - The company emphasizes its commitment to transparency and accuracy in financial reporting, as stated by its management team[5]. - The company commits to not engaging in any related party transactions that would affect its independence or financial integrity[185]. - The company will ensure compliance with social security and housing fund regulations for all employees[186]. Legal Matters - The company reported a lawsuit involving a claim amount of CNY 11,755,136.25, which is currently under execution following a final judgment[194]. - Another lawsuit with a claim amount of CNY 5,405,683.13 is also under execution, with the final judgment maintaining the original ruling[195]. - The company filed a civil lawsuit on April 23, 2019, seeking the return of a loan principal of 15.47 million yuan and interest of 309,400 yuan, totaling 15.7794 million yuan[196].