Crown Advanced Material (SH:688560)2025-04-28 16:25Financial Performance - The net profit attributable to the parent company's shareholders for 2024 is -67,077,291.60 CNY, indicating a loss for the year[7]. - The company's operating revenue for 2024 was CNY 863,876,804.15, a decrease of 38.13% compared to CNY 1,396,281,787.16 in 2023[25]. - The net profit attributable to shareholders for 2024 was CNY -67,077,291.60, compared to CNY -23,875,433.21 in 2023, indicating a significant decline[25]. - The net cash flow from operating activities decreased by 30.97% to CNY 146,616,567.55 in 2024 from CNY 212,401,993.61 in 2023[27]. - Basic earnings per share for 2024 were CNY -0.35, down from CNY -0.12 in 2023[26]. - The company's total assets at the end of 2024 were CNY 2,930,939,896.14, a decrease of 13.96% from CNY 3,406,609,846.37 at the end of 2023[26]. - The company's total liabilities decreased by 31.89% due to a reduction in income tax payable[126]. - The company reported a significant reduction in inventory by 39.99% to ¥94,378,849.94, reflecting decreased stock levels[125]. - The company reported a significant decrease in rental liabilities due to reduced lease terms for the Vietnam factory, resulting in a 100% decrease[126]. Dividend Policy - The company plans not to distribute cash dividends or increase capital reserves due to the negative net profit, opting to carry forward undistributed profits to future years[7]. - The company plans to distribute no cash dividends for the fiscal year 2023, with a total of 214,097,519.04 RMB spent on share repurchases, representing 896.73% of the net profit attributable to shareholders[186]. - For the fiscal year 2024, the company also intends to refrain from cash dividends, with a projected net loss of 67,077,291.60 RMB and available distributable profits of 533,749,304.56 RMB[187]. - The cumulative cash dividends over the last three fiscal years amount to 35,101,137.96 RMB, with no share repurchases during this period[191]. - The average annual net profit over the last three fiscal years is reported at 4,648,517.90 RMB, resulting in a cash dividend ratio of 755.10%[192]. - The company’s cash dividend policy emphasizes a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[185]. - The company’s profit distribution policy allows for cash or stock dividends, prioritizing cash dividends when conditions permit[184]. - The board of directors will consider industry characteristics, development stage, and profitability when proposing differentiated cash dividend policies[185]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits in the reporting period, as it is not applicable[189]. - The company’s cash flow must remain sufficient to ensure ongoing operations before implementing cash dividends[186]. Research and Development - Research and development expenses accounted for 4.74% of operating revenue in 2024, an increase from 3.94% in 2023[26]. - The company has accumulated 91 authorized patents, including 40 invention patents, and applied for 16 new patents during the reporting period[45]. - Total R&D expenditure for the year was approximately RMB 40.94 million, a decrease of 25.64% from the previous year, with R&D expenditure as a percentage of revenue increasing by 0.8 percentage points to 4.74%[76]. - The company is committed to advancing research in photovoltaic technology, particularly in the area of perovskite solar cells[80]. - The company is focused on enhancing its core technology capabilities to drive future growth[155]. - The company plans to invest $10 million in new technology development over the next year[158]. - The company aims to enhance product competitiveness by providing differentiated encapsulation solutions for various battery and component technologies, focusing on innovation and collaboration with higher education institutions[144]. - The company is developing new packaging solutions for N-type high-efficiency components, including "solar cell packaging film + intelligent grid film + solar cell backsheet" to address technical challenges[67]. - The company has developed a high-performance polymer film product that can replace TPT/KPK structures, enhancing the reliability of solar cell backsheets[88]. - The company has successfully developed high-performance special adhesives for composite film materials, enhancing bonding strength and durability[89]. Market Environment - The company is facing a challenging market environment with declining demand and prices in the solar energy sector, impacting overall financial performance[27]. - The company experienced a significant decline in sales volume and prices for solar battery backsheets due to technological iterations and intensified market competition[27]. - The price of photovoltaic components has decreased significantly, with a 29% drop in component prices, leading to a competitive market environment[58]. - The company’s solar cell backsheet sales volume and revenue are projected to decline by over 60% in 2024 due to overcapacity and intensified price competition[59]. - The newly installed photovoltaic capacity in China reached 277.57 GW in 2024, a year-on-year increase of 28.3%, with a record monthly installation of 71.27 GW in December[56]. - The production of crystalline silicon modules in China is estimated at 588 GW in 2024, reflecting a year-on-year growth of 13.5%, while the export volume reached 238.8 GW, up 12.8% year-on-year[56]. - The global lithium battery packaging material market is expected to see a slight increase of 5.6% in aluminum-plastic film shipments, reaching 450 million square meters in 2024[62]. - The market share of N-type photovoltaic modules has rapidly increased from 24.7% in 2023 to 72.5% in 2024, driving demand for high-performance packaging films[65]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The board of directors has fully attended the board meeting to approve the annual report[5]. - The company has not disclosed any special arrangements for corporate governance[8]. - The company has held 7 board meetings during the reporting period, ensuring compliance with legal and regulatory requirements[148]. - The company will enhance investor relations by responding promptly to inquiries and maintaining effective communication with investors[149]. - The company has established an effective internal control system that ensures the authenticity and fairness of financial reporting, with no significant defects found during the reporting period[195]. - The internal control audit conducted by Tianjian Accounting Firm resulted in a standard unqualified opinion, confirming the effectiveness of the company's internal control design and execution[197]. Risk Management - The company has detailed various risks and countermeasures in its report, emphasizing the importance of understanding these risks for investors[4]. - The company is exposed to macroeconomic risks, including potential adverse impacts from international trade tensions, particularly between the U.S. and China[97]. - The company highlighted the need for continuous R&D investment to maintain product competitiveness amid rapid technological changes in the industry[96]. - The company is committed to risk control, identifying potential risks in strategic investments, inventory, fixed assets, and accounts receivable to ensure sustainable development[144]. Social Responsibility - The company has committed a total of 84,500 CNY to social responsibility initiatives, including educational support for underprivileged areas[47]. - The company emphasizes ESG management, focusing on environmental protection and social responsibility as core components of its corporate strategy[198]. - The company invested 1.2643 million yuan in environmental protection during the reporting period[200]. - The company's ESG rating from Wind Information Technology Co., Ltd. is BBB, reflecting its commitment to sustainable practices[199].