EBEM(SH:603002)2020-04-22 16:00Financial Performance - The company's operating revenue for 2019 was RMB 1,635,597,484.38, a decrease of 9.33% compared to RMB 1,803,943,407.76 in 2018[22] - The net profit attributable to shareholders for 2019 was RMB 67,426,117.26, representing a significant increase of 66.46% from RMB 40,505,488.24 in 2018[22] - The net cash flow from operating activities decreased by 72.74% to RMB 37,375,540.53 in 2019, down from RMB 137,084,785.49 in 2018[22] - The total assets as of the end of 2019 were RMB 1,856,213,212.82, a decrease of 5.28% from RMB 1,959,752,264.88 at the end of 2018[22] - The net assets attributable to shareholders increased by 4.51% to RMB 1,160,139,579.06 at the end of 2019, compared to RMB 1,110,110,071.37 at the end of 2018[22] - The basic earnings per share for 2019 was RMB 0.12, an increase of 50.00% from RMB 0.08 in 2018[22] - The company achieved operating revenue of RMB 1.636 billion, a decrease of 9.33% year-on-year[62] - Net profit for the period was RMB 76.19 million, an increase of 52.36% year-on-year, with earnings per share of RMB 0.12[62] - The company reported a total asset value of RMB 1.856 billion, a decrease of 5.28% year-on-year, while equity attributable to shareholders increased by 4.51% to RMB 1.160 billion[62] Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.63 per 10 shares, amounting to approximately RMB 38,707,937.10, which is 50.80% of the net profit attributable to shareholders[4] - The company distributed cash dividends amounting to 38,707,937.10 RMB in 2019, representing 50.80% of the net profit attributable to ordinary shareholders[131] - In 2018, the cash dividends distributed were 25,190,879.70 RMB, accounting for 50.37% of the net profit attributable to ordinary shareholders[131] - The company has a policy to distribute at least 30% of the annual distributable profit as cash dividends, provided cash flow is sufficient[130] - The company has a clear and complete decision-making process for cash dividend distribution, ensuring compliance with its articles of association[130] - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[132] Operational Efficiency - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[4] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4] - The company’s asset-liability ratio improved to 37.50%, a decrease of 5.86 percentage points year-on-year[62] - The company’s cash flow from operating activities decreased by 72.74% to RMB 37.38 million[63] - The company’s sales expenses increased by 26.64% to RMB 54.22 million, while R&D expenses decreased by 7.93% to RMB 22.25 million[63] Market and Product Development - The company primarily engages in the production and sales of electronic-grade epoxy resin, with no changes in its main business since establishment[34] - The company plans to continue expanding its market presence in the electronics and coatings sectors, leveraging its strong product characteristics[36] - The company achieved a production volume of 92,111.18 tons and a sales volume of 92,669.64 tons of epoxy resin, maintaining a balance between production and sales[51] - The company is planning to expand production capacity by 500 tons/year for high-frequency, high-speed 5G circuit board resin, with a total investment of RMB 30 million[60] - The company aims to enhance its product competitiveness by focusing on high-end, environmentally friendly products and customized solutions[91] - The company intends to maintain its leading position in the electronic and coating industries while expanding into environmentally friendly, specialty, and customized products[122] Research and Development - The company holds 24 authorized invention patents and has 80 non-patented technologies in use, showcasing its strong R&D capabilities[43] - The company has established a research and development center for electronic-grade epoxy resin in Guangdong Province, holding 24 invention patents by the end of 2019[96] - The total R&D investment amounted to CNY 98,024,799.26, accounting for 5.99% of total revenue[74] - The company had a total of 20 ongoing R&D projects, with 6 new products developed during the reporting period[75] - Research and development efforts include the application for four patents related to low dielectric, low loss properties for 5G copper-clad laminates[60] Environmental Responsibility - The company has committed to high environmental standards and aims to achieve harmonious environmental conditions around its operations[122] - The company has invested in pollution control facilities, ensuring compliance with environmental regulations[171] - The company has achieved zero discharge of process wastewater through advanced treatment systems[176] - The company has established emergency response plans for environmental incidents[178] - The company has been classified as a key pollutant discharge unit by environmental authorities, with specific emissions monitored[168] Strategic Initiatives - The company is planning a major asset restructuring to acquire 100% equity of Wuxi Hongren Electronic Materials Technology Co., Ltd.[61] - The company is in the process of negotiating land compensation with the government, with an estimated fair value of the land reserve between RMB 520 million and RMB 620 million[56] - The company will establish strategic alliances with upstream suppliers to control procurement costs and enhance market competitiveness[119] - The company has implemented a series of management systems to enhance its R&D capabilities, including procedures for design development and intellectual property management[96] Customer and Market Engagement - The company has nearly 3,000 customers, with transactions occurring with about 1,000 of them during the reporting period, enhancing its market responsiveness[42] - The company’s core competitive advantage lies in its early entry into the epoxy resin market in China and its established brand value among domestic and international clients[42] - The company’s operational model emphasizes direct sales and a flexible pricing mechanism based on raw material costs, allowing for quick market adaptation[40] - The company’s sales strategy considers market demand, competition, and customer relationships to determine pricing, allowing for adjustments based on market conditions[110] Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 33,410, down from 34,921 at the end of the previous month[195] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 41.29% of the total shares, with 16,500,000 shares pledged[198] - The total number of ordinary shares after the recent changes is 614,411,700, with 99.28% being freely tradable[187] Miscellaneous - The company has not reported any major litigation or arbitration matters during the reporting period[140] - The company has not disclosed any significant related party transactions or changes in related party transactions during the reporting period[147] - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[149] - The company has not reported any significant contracts or their performance during the reporting period[151]