FARATRONIC(SH:600563)2020-04-06 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 455,945,946.88 in 2019, representing a 0.91% increase compared to RMB 451,856,142.64 in 2018[3]. - Total operating revenue for 2019 was RMB 1,680,321,948.29, a decrease of 2.39% from RMB 1,721,422,019.98 in 2018[15]. - The net profit after deducting non-recurring gains and losses was RMB 417,582,421.69, a decrease of 5.15% from RMB 440,255,838.20 in 2018[15]. - The basic earnings per share for 2019 was RMB 2.03, up 1.00% from RMB 2.01 in 2018[16]. - The company reported a total comprehensive income of CNY 466,983,610.01 for 2019, compared to CNY 460,026,435.99 in 2018, reflecting a growth of 1.9%[100]. Cash Flow and Investments - The net cash flow from operating activities increased by 5.44% to RMB 610,701,830.06 in 2019, compared to RMB 579,177,124.37 in 2018[15]. - The net cash flow from investing activities saw a significant increase of 138.99%, reaching RMB 178,410,542.17, compared to a negative cash flow of -RMB 457,468,258.54 in the previous year[33]. - Cash and cash equivalents increased by 331.72% to RMB 626,905,338.83, accounting for 19.40% of total assets[34]. - The company reported a total of RMB 915,166,290.52 in trading financial assets as of January 1, 2019, reflecting a significant asset reclassification[163]. Market and Sales Performance - The domestic market contributed RMB 1.099 billion to revenue, a year-on-year increase of 0.22%, while the international market generated RMB 546 million, a decrease of 7.76%[24]. - The company reported a quarterly revenue of RMB 488,448,659.10 in Q4 2019, contributing to a total annual revenue of RMB 1,680,321,948.29[17]. - The company is focusing on expanding its market presence in the renewable energy sector, particularly in electric vehicles and photovoltaic industries[178]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 13 per 10 shares, totaling RMB 292,500,000.00, based on the year-end share capital of 22,500,000 shares[3]. - In 2019, the net profit attributable to ordinary shareholders was RMB 455,945,946.88, with a dividend payout ratio of 64.15%[44]. - The company distributed dividends totaling RMB 292,500,000.00 in 2019, compared to RMB 270,000,000.00 in 2018, reflecting an 8.3% increase[105]. Assets and Liabilities - The company's total assets at the end of 2019 were RMB 3,231,718,802.41, reflecting a 7.60% increase from RMB 3,003,441,346.60 at the end of 2018[15]. - Total liabilities rose to RMB 554,674,400.67 in 2019, compared to RMB 502,467,030.34 in 2018, indicating an increase of about 10.4%[95]. - The total equity attributable to shareholders of the parent company at the end of 2019 was RMB 2,513,360,791.73, compared to RMB 2,500,974,316.26 at the end of 2018[105]. Research and Development - Research and development expenses amounted to RMB 68,972,877.20, a decrease of 3.50% from RMB 71,472,665.05 in the previous year, representing 4.10% of operating revenue[32]. - The company has invested over 3% of its annual revenue into independent and original development, extending its capabilities from capacitor design to material applications and production equipment development[22]. Risks and Challenges - The company faces risks related to fluctuations in raw material prices, particularly polypropylene and polyester films, which significantly impact production costs[40]. - The company faced risks related to export business fluctuations due to the ongoing US-China trade disputes and global economic downturns[41]. - The company is exposed to exchange rate fluctuation risks, particularly with the widening range of RMB exchange rate changes[41]. Corporate Governance and Compliance - The company has appointed Ernst & Young Hua Ming as its auditor for the 2019 financial statements and internal controls, with a remuneration of RMB 45[46]. - The company has not encountered any major litigation or arbitration matters during the reporting period[48]. - The company emphasizes transparency in information disclosure, adhering to principles of fairness and accuracy in reporting to shareholders[79]. Employee and Management Information - The total number of employees in the parent company is 2,473, while the total number of employees in major subsidiaries is 93, resulting in a combined total of 2,566 employees[74]. - The remuneration for directors and supervisors is proposed by the remuneration committee and approved by the board and shareholders' meeting[72]. - The company has established a comprehensive training program aimed at enhancing employee skills and overall quality, covering various aspects including professional skills and management training[76].