DFD(SZ:002407)2020-04-23 16:00Financial Performance - The company's operating revenue for 2019 was ¥3,850,747,482.43, a decrease of 1.59% compared to ¥3,912,765,880.16 in 2018[12]. - The net profit attributable to shareholders was -¥416,283,284.69, representing a significant decline of 731.56% from ¥65,913,381.62 in the previous year[12]. - The net cash flow from operating activities was ¥45,616,884.02, down 89.35% from ¥428,276,136.40 in 2018[12]. - The total assets at the end of 2019 were ¥9,042,507,681.74, an increase of 10.83% from ¥8,158,581,885.04 at the end of 2018[12]. - The weighted average return on equity was -12.77% in 2019, a decrease of 14.93% from 2.16% in 2018[12]. - The company reported a total of ¥71,651,633.41 in non-recurring gains and losses for 2019, compared to ¥75,923,471.57 in 2018[16]. - The company reported a net loss of ¥420,730,562.56, contrasting with a net profit of ¥131,695,530.60 in the previous year[59]. - The cash dividend for 2019 was based on the distributable profit of RMB 61,912,539.66 after accounting for previous distributions[97]. Dividend Policy - The company reported a profit distribution plan to distribute a cash dividend of 0.1 RMB per 10 shares, based on a total of 683,920,481 shares[2]. - The company proposed a cash dividend of RMB 0.1 per 10 shares for the 2019 fiscal year, totaling RMB 6,839,204.81, which represents 100% of the distributable profit[97]. - In 2018, the company distributed a cash dividend of RMB 2.00 per 10 shares, amounting to RMB 136,784,096.20, which accounted for 367.42% of the net profit attributable to shareholders[96]. - For the 2017 fiscal year, the cash dividend was RMB 1.50 per 10 shares, totaling RMB 129,286,077.40, representing 50.40% of the net profit attributable to shareholders[96]. - The cash dividend policy was confirmed to be compliant with company regulations and shareholder resolutions[94]. - The independent directors fulfilled their responsibilities in the decision-making process regarding the cash dividend policy[94]. Business Operations and Strategy - The company has undergone changes in its main business operations, including the production of lithium-ion batteries and materials, as well as LED energy-saving products[9]. - The company is focused on the strategic development of new materials, lithium batteries, and new energy vehicles[17]. - The company plans to achieve an annual production capacity of 8,000 to 10,000 tons of lithium hexafluorophosphate by the end of 2020, supplying major electrolyte manufacturers[19]. - The company has developed new multifunctional lithium salts, with stable sales growth and high customer satisfaction[19]. - The company has maintained its leading position in the industry with continuous growth in production and export volumes of aluminum fluoride and other fluorinated salts[18]. - The company is exploring partnerships with industry leaders to enhance its new energy vehicle business solutions[24]. - The company is actively investing in the health protection industry, leveraging its material technology to accelerate the construction of melt-blown fabric production lines, contributing to public health initiatives[83]. Risks and Challenges - The company faces risks including fluctuations in raw material prices, product price volatility, and potential impacts from the COVID-19 pandemic on market demand[2]. - The company has a risk of not achieving expected returns from external investments[2]. - The company's future outlook includes potential challenges related to talent demand and financial risks[2]. - The company faces risks from upstream raw material price fluctuations, particularly for industrial lithium carbonate and other battery materials, which could impact cost stability[84]. - The company acknowledges the risk of technological updates in lithium battery production, which may affect its ability to meet evolving market demands[86]. - The company has improved its asset-liability ratio and financial expenses but still faces potential cash flow risks, necessitating enhanced financial management practices[89]. Research and Development - Research and development expenses increased by 49.20% to ¥196.61 million, primarily due to the capitalization of development expenditures[52]. - R&D investment increased by 2.98% to ¥203,612,602.62 in 2019, accounting for 5.29% of operating revenue[56]. - The number of R&D personnel decreased by 27.02% to 570, resulting in a reduction in R&D personnel ratio to 13.14%[56]. - The company has filed 634 patent applications, with 435 patents granted, including 138 invention patents[32]. - The company is conducting research on the interaction of fluorine, lithium, and silicon elements to implement six major innovation projects[80]. Legal Matters - The company is involved in a lawsuit with Henan Sihai Shengjing Automobile Sales Service Co., Ltd., with a claim amount of RMB 23,626,227.20 and interest calculated at an annual rate of 18%[111]. - The court ruled that Henan Sihai Shengjing must repay the principal debt of RMB 23,703,799.56 and accrued interest from January 1, 2019, at an annual rate of 18%[111]. - The total amount claimed in another lawsuit against Henan Sihai Shengjing and related parties is RMB 56,586,645.59, which includes a judgment amount and execution fees[110]. - The company has initiated legal proceedings to recover debts totaling RMB 910,000 from Henan Sihai Shengjing, with interest calculated at an annual rate of 18%[111]. - The court has ordered the defendants to bear joint liability for the debts claimed by the company[111]. - The company has incurred legal fees amounting to RMB 160,320, which will be partially borne by the defendants[111]. Environmental and Social Responsibility - The company invested CNY 30 million in four poverty alleviation projects, assisting 15 registered impoverished individuals[137]. - The company provided vocational skills training with an investment of CNY 3 million, benefiting 150 individuals[137]. - The company supported 120 impoverished students with CNY 20 million in educational assistance[138]. - The company contributed CNY 25 million to a poverty alleviation public welfare fund[138]. - The company plans to continue its poverty alleviation efforts in 2020, including support for frontline workers during the pandemic[139]. - The company’s emissions of particulate matter were 17.17 tons, with no exceedance of discharge standards[140]. - The company’s emissions of sulfur dioxide were 8.08 tons, with a discharge standard of 100 mg/m³[140]. - The company’s emissions of nitrogen oxides were 8.01 tons, with a discharge standard of 100 mg/m³[140]. - The company has implemented an environmental self-monitoring plan and conducts quarterly monitoring of major pollutants by a qualified third party[145]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective operation of shareholder meetings and board activities[193]. - The company has implemented a transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management to enhance operational efficiency[197]. - The company actively communicates with investors through various channels, including dedicated phone lines and investor visits, to maintain transparency[197]. - The company has a clear separation of business, personnel, assets, institutions, and finances from the controlling shareholder, ensuring independent operational capabilities[198]. - The company has established a robust information disclosure system to ensure timely and accurate communication of relevant information to all shareholders[197].