JSZY(SH:600770)2020-04-21 16:00Financial Performance - The net profit attributable to shareholders for 2019 was CNY 55,772,318.45, representing a 3.73% increase compared to CNY 53,767,148.07 in 2018[5]. - The operating revenue for 2019 was CNY 458,426,524.99, a decrease of 2.88% from CNY 471,998,948.95 in 2018[21]. - The net cash flow from operating activities increased by 203.63% to CNY 198,401,679.85 from CNY 65,344,195.25 in 2018[21]. - The total assets as of the end of 2019 were CNY 6,143,269,763.09, an increase of 5.85% from CNY 5,803,599,747.80 at the end of 2018[21]. - The net assets attributable to shareholders increased by 2.95% to CNY 3,560,192,153.31 from CNY 3,458,164,346.94 in 2018[21]. - The basic earnings per share for 2019 was CNY 0.0429, up 3.62% from CNY 0.0414 in 2018[22]. - The diluted earnings per share for 2019 was also CNY 0.0429, reflecting the same growth as basic earnings per share[22]. - The weighted average return on equity for 2019 was 1.59%, an increase of 0.05 percentage points from 1.54% in 2018[22]. - The company proposed no profit distribution for 2019 due to negative distributable profits at the end of the year[5]. Quarterly Performance - In Q1 2019, the company reported revenue of ¥116,440,684.81, with a net profit attributable to shareholders of ¥22,902,591.35[23]. - The total revenue for Q2 2019 was ¥130,208,970.81, but the company experienced a net loss of ¥10,528,928.20 during this quarter[23]. - For Q3 2019, the company generated revenue of ¥113,820,874.09, with a net profit of ¥3,772,425.62, indicating a recovery from the previous quarter[23]. - In Q4 2019, the company achieved revenue of ¥97,955,995.28 and a significant net profit of ¥39,626,229.68, marking a strong finish to the year[23]. - The net cash flow from operating activities in Q4 2019 was ¥165,703,339.50, showing a positive cash generation trend[23]. Investment and Development - The company is focusing on the integrated circuit business, particularly in the design and application of security chips and wearable device chips[30]. - New product developments include NFC temperature label chips and low-power SOC platform chips, which are currently in the testing phase[30]. - The company is leveraging its core technology in chip design and algorithms to provide high-value chip modules for hearing aid manufacturers[32]. - Shenzhou Longxin's integrated circuit business has developed the GSC328X embedded processor, which has established a strong market presence in certain industries, with ongoing custom board development expected to generate sales[33]. - The GSC3290 chip, an upgraded version of GSC328X, has completed mass production and is undergoing testing and certification, with market promotion already initiated[33]. - The company has successfully developed a server encryption machine and tax UKey, which have been included in government procurement lists, with a complete range of encryption products expected to be market-ready by 2020[33]. Renewable Energy - The total installed capacity of the company's solar power plants reached 88.54 MW by the end of 2019, with stable long-term investment returns expected from European energy investors[39]. - The company operates a 19 MW solar power project in New Jersey, USA, which benefits from SREC trading for additional revenue beyond electricity sales[40]. - In Italy, new energy legislation has been enacted to limit the cancellation of subsidies for renewable energy plants, providing better protection for investors[40]. - Romania's green energy card trading policy has been revised to extend the trading validity from 1 year to 15 years, with positive sales trends expected[41]. - The company continues to strengthen its technology innovation and market expansion through collaborations with agents, universities, and research institutions[34]. - The company aims to achieve supply-demand balance for green energy certificates by the end of 2023, with expectations of price growth in the market post-2022, potentially increasing revenue from power plants in the region[42]. - In 2019, the company's European power plants generated revenue of €1,040.13 million, while the 19MW solar power plant in New Jersey, USA, achieved revenue of $839.94 million[45]. - The company’s overseas assets amounted to ¥199,478.55 million, representing 32.47% of total assets, primarily from photovoltaic power plants[45]. - The company is focusing on strengthening the operation and maintenance of existing power plants in Europe to enhance overall power generation efficiency and economic benefits[42]. Research and Development - Research and development expenses decreased by 36.71% to CNY 29.89 million[68]. - The total R&D investment accounted for 6.52% of the operating revenue, with 72 R&D personnel representing 10.70% of the total workforce[79]. - The company has accumulated 48 patents, including 30 invention patents, reflecting its commitment to continuous innovation and improvement in core competencies[51]. - The company has developed a low-power SOC platform for customized circuit design, enhancing its competitive edge in the market[48]. - The company focuses on high-performance, low-power microprocessor development and audio processing algorithms for high-end digital hearing aids, addressing the needs of hearing-impaired individuals[100]. - The domestic hearing aid industry is in its early growth stage, with significant potential for development as the aging population in China increases, leading to a higher demand for hearing aids[101]. - The company has developed proprietary SOC chips and smart hearing aid algorithms, aiming to replace imported chips and reduce production costs, thus making quality hearing aids more accessible[101]. Risk Management and Compliance - The company faced potential risks as outlined in the report, which investors should be aware of[7]. - The company will implement a robust risk management framework to address management, technical, and asset impairment risks across its diverse business operations[125]. - The company will continue to monitor macroeconomic conditions and industry policies, particularly in the renewable energy sector, to mitigate risks associated with economic fluctuations and policy changes[121]. - The company has established a strong governance structure with a clear delineation of roles among its board and management[167]. - The company ensured compliance with relevant regulations in its information disclosure practices, enhancing investor confidence[181]. Shareholder Information - The number of ordinary shareholders increased from 72,195 to 74,753 during the reporting period, indicating a growth in shareholder base[154]. - The largest shareholder, 南通综艺投资有限公司, holds 25.69% of the shares, with 233,000,000 shares pledged[156]. - The top shareholder, Nantong Variety Investment Co., Ltd., holds 333,955,709 shares, representing a significant portion of the company's equity[157]. - The actual controller, Zan Shengda, has been serving as the chairman and has no other listed company holdings in the past 10 years[161]. - The company has not distributed dividends in the past three years, with net profits of CNY 55,772,318.45 in 2019, CNY 53,767,148.07 in 2018, and CNY 44,716,721.48 in 2017, all with a dividend payout ratio of 0%[139]. Corporate Governance - The company has appointed Lixin Accounting Firm as its auditor, which has provided audit services for 20 years[135]. - The company has established a compensation policy that balances legality and incentive, ensuring internal fairness and external competitiveness[176]. - The company’s independent directors actively participate in major business decisions and provide independent opinions on significant matters[180]. - The board of directors has established four specialized committees: Audit Committee, Strategy Committee, Nomination Committee, and Compensation and Assessment Committee[180]. - The company’s financial statements were audited and deemed to fairly reflect its financial position as of December 31, 2019[191].