GRIAM(SH:600206)2020-04-16 16:00Financial Performance - The company reported a net profit attributable to shareholders of RMB 15,049,092.98 for 2019, with an unallocated profit at the beginning of the year of RMB 5,061,660.95[6]. - The company's operating revenue for 2019 reached CNY 10,452,454,056.87, representing a 119.23% increase compared to CNY 4,767,907,571.39 in 2018[32]. - The net profit attributable to shareholders for 2019 was CNY 105,944,341.96, a 34.16% increase from CNY 78,967,781.59 in the previous year[32]. - The net profit after deducting non-recurring gains and losses was CNY 55,107,462.53, showing a significant increase of 97.18% compared to CNY 27,947,329.79 in 2018[32]. - The total profit for 2019 was 121 million yuan, an increase of 21.40% compared to the previous year, with an economic value added (EVA) of 54.48 million yuan, up by 32.29 million yuan year-on-year[84]. - The company achieved an operating revenue of approximately 10.5 billion yuan in 2019, representing a growth of over 119% year-on-year and exceeding the annual budget target by 216.05%[84]. Dividend Policy - The proposed cash dividend for 2019 is RMB 0.16 per share (including tax), totaling RMB 13,545,934.91, which accounts for 99.53% of the distributable profit[6]. - The company will not issue bonus shares or convert capital reserves into equity for the current year, focusing solely on cash dividends[193]. - The company maintains a stable cash dividend policy, distributing at least 10% of the annual distributable profit unless significant investments exceed 50% of the previous year's profit[189]. - In 2019, the company distributed a cash dividend of 0.16 RMB per 10 shares, totaling 13,545,934.91 RMB, which represents 12.79% of the net profit attributable to ordinary shareholders[194]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company faces risks from macroeconomic uncertainties, including the impact of the COVID-19 pandemic on global trade and demand for its products[181]. - The company is monitoring raw material price fluctuations and has established strategic alliances with suppliers to mitigate risks associated with price volatility[182]. - The company has faced various risks as detailed in the annual report, which investors are encouraged to review[10]. Market Expansion and Growth Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[24]. - The company aims to expand its product offerings in the semiconductor parts service sector, which is anticipated to become a new economic growth point[49]. - The company is focusing on technological upgrades and market expansion, particularly in the fields of microelectronics and rare earth materials[49]. - The company is actively expanding its market share in high-purity sputtering target materials, with a growing presence among domestic and international high-end clients[157]. Research and Development - The company completed 110 research projects during the reporting period, securing funding of 76.59 million yuan and filing 122 new patents, including 96 invention patents[69]. - The company’s R&D expenses increased by 10.83% to ¥98,680,535.53, indicating a continued focus on innovation[110]. - The company plans to enhance its core competitiveness by increasing R&D investment in high-end target materials and special target materials, as well as new infrared materials and high-purity chemicals[173]. Production and Capacity - The company has undergone a stock incentive plan, issuing 8,300,000 shares at a price of RMB 5.75 per share[11]. - The production capacity of infrared optical components increased by 50% in 2019, driven by the demand for high-precision optical processing[65]. - The company invested 383 million yuan in a new facility in Shandong to enhance production capabilities in high-purity rare metals and functional materials[65]. - The company achieved significant breakthroughs in new product development, with 14 new high-purity aluminum target materials, 12-inch high-purity titanium targets, and high-purity tungsten targets entering mass production, covering major clients like SMIC and TSMC[67]. Compliance and Governance - The company has implemented a comprehensive internal control system with 123 regulations and 100 business processes established[100]. - The company conducted 119 educational sessions on party regulations, with 1,476 employees participating, reinforcing governance and compliance[105]. - The company has achieved a 100% legal review rate for three major legal audits, ensuring compliance and risk management[99]. Social Responsibility - The company has made significant contributions to social responsibility, including a donation of 113,000 RMB for poverty alleviation projects[108].