Tianlong Corporation(SH:603266)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 919,004,676.41, a decrease of 0.82% compared to CNY 926,610,535.95 in 2018[19]. - The net profit attributable to shareholders for 2019 was CNY 65,111,109.59, down 3.07% from CNY 67,173,806.30 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 54,408,241.75, a decrease of 4.01% compared to CNY 56,678,687.89 in 2018[19]. - Basic earnings per share decreased by 2.94% to CNY 0.33 compared to the previous year[20]. - Net profit attributable to shareholders decreased by 3.07% year-on-year[20]. - The gross margin for plastic parts was 25.24%, with a slight increase of 0.02 percentage points compared to the previous year[54]. - The company reported a total revenue of 10,786.58 million for the year, with a net profit of 1,248.86 million, indicating a strong performance in the automotive plastic parts sector[88]. Cash Flow and Assets - The net cash flow from operating activities increased by 35.79% to CNY 85,182,659.19 from CNY 62,732,736.15 in 2018[19]. - The total assets at the end of 2019 were CNY 1,174,101,145.41, reflecting a growth of 6.66% from CNY 1,100,741,465.24 in 2018[19]. - The net assets attributable to shareholders increased by 7.27% to CNY 910,724,179.75 from CNY 848,990,476.92 at the end of 2018[19]. - The company reported a net cash outflow from investment activities of 49,396,074.32 CNY, an increase of 11.24% compared to the previous year[50]. - The company's total assets included ¥126,000,000.00 in trading financial assets, accounting for 10.73% of total assets[66]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.7 per 10 shares to shareholders, excluding those holding restricted shares[5]. - The company distributed cash dividends of CNY 1 per 10 shares, totaling CNY 14,188,760[22]. - For the fiscal year 2019, the company distributed a cash dividend of 0.7 RMB per 10 shares, amounting to a total of 13,927,545.80 RMB, which is 21.39% of the net profit attributable to ordinary shareholders[109]. - The company implements a profit distribution policy that prioritizes cash dividends, with a minimum of 20% of distributable profits allocated for cash dividends if there are no major investment plans or cash expenditures[105]. Research and Development - The company has obtained 26 invention patents and 114 utility model patents as of December 31, 2019, demonstrating strong R&D capabilities in mold design and precision injection molding[39][46]. - Research and development expenses increased by 4.08% to 45,849,089.70 CNY, reflecting increased investment in new product development[50]. - The company employs 435 dedicated R&D personnel, accounting for 30.36% of the total workforce, highlighting its commitment to innovation[73]. Market and Industry Trends - The automotive industry saw a decline in production and sales in 2019, with a 7.5% drop in production and an 8.2% drop in sales, but the company anticipates a rebound post-COVID-19[36]. - The electrical equipment market in China is expected to grow steadily, with a projected 4%-5% increase in electricity consumption in 2020, providing a stable demand for low-voltage electrical products[36]. - The precision plastic parts manufacturing industry in China is characterized by low concentration, with the top ten companies holding only 5% of the market share[34]. - The company is positioned to benefit from the global shift of supply chains towards China, particularly in the automotive and electrical sectors[34]. Risk Management - The company emphasizes the importance of risk awareness regarding future development strategies and operational goals[6]. - The company acknowledges potential risks from raw material price fluctuations, which could significantly impact its cost structure and operational stability[100]. - The company faces risks from market competition, particularly from domestic manufacturers and international firms, which may impact its market position[99]. Shareholder Structure and Management - The company reported a total of 199,074,840 shares outstanding after the recent stock issuance and adjustments, with 75.39% being restricted shares[178]. - The company’s structure of shareholding includes 55.07% held by domestic non-state-owned legal entities and 19.93% by domestic natural persons[178]. - The actual controller Hu Jiliang committed not to transfer or entrust others to manage shares held before the company's IPO for 36 months[112]. - The company’s stock incentive plan has been structured to unlock shares conditionally over specified periods, ensuring alignment with performance goals[185]. Financial Instruments and Wealth Management - The company has engaged in wealth management by investing a total of 162,000,000 RMB in principal-protected financial products, with an unexpired balance of 126,000,000 RMB[163]. - The company has consistently recovered all invested amounts across various financial products, demonstrating effective cash management[165]. - The company is exploring new financial strategies through diversified investments in wealth management products, enhancing its financial portfolio[165]. Compliance and Governance - The report includes a standard unqualified audit opinion from Tianjian Accounting Firm[4]. - The company has maintained good integrity status, with no significant debts unpaid during the reporting period[143]. - The company has no significant litigation or arbitration matters during the reporting period[143].