Ellington(SH:603328)2020-04-28 16:00Financial Performance - In 2019, the company's operating revenue was CNY 3,010,713,760.59, a decrease of 9.55% compared to CNY 3,328,616,224.30 in 2018[22] - The net profit attributable to shareholders was CNY 518,487,302.82, down 20.72% from CNY 654,010,305.61 in the previous year[22] - The net cash flow from operating activities increased by 18.71% to CNY 789,281,735.44, compared to CNY 664,859,636.90 in 2018[22] - Basic earnings per share decreased by 21.21% to CNY 0.52 compared to the previous year[23] - The net profit margin for the year was 17.22%, down by 2.43 percentage points from the previous year[36] - The total profit amounted to CNY 61,038,990, a decrease of 20.75% compared to the previous year[57] - Net profit for the period was CNY 51,848,730, reflecting a 20.72% decline year-on-year[57] - The gross profit margin for the main business was 28.02%, a decrease of 2.52 percentage points compared to the previous year[62] Assets and Liabilities - As of the end of 2019, total assets were CNY 4,394,148,318.50, a decrease of 18.76% from CNY 5,408,561,519.78 at the end of 2018[22] - The company's net assets attributable to shareholders decreased by 20.18% to CNY 3,566,414,428.75 from CNY 4,468,311,467.68 in 2018[22] - The total liabilities reduced by 11.97% to CNY 82,773,390[57] - The company's asset-liability ratio rose from 17.38% at the end of 2018 to 18.84% at the end of 2019[178] Dividends - The company proposed a cash dividend of CNY 3.50 per 10 shares for the 2019 fiscal year, subject to shareholder approval[5] - For the first half of 2019, the company distributed a cash dividend of CNY 7.50 per 10 shares, totaling CNY 748,672,530.75[5] - Cash dividends distributed in 2019 totaled CNY 1.447 billion, with cumulative cash dividends since listing reaching CNY 3.385 billion[54] - The cash dividend policy stipulates that the company will distribute no less than 20% of the distributable profit as cash dividends annually, barring special circumstances[104] Operational Risks - The company reported no significant operational risks that could materially affect its business during the reporting period[8] - The company has outlined various risks it may face, including global economic fluctuations and raw material price volatility[8] - The company did not experience any non-operational fund occupation by controlling shareholders or related parties[7] Research and Development - Research and development expenses were CNY 112,917,638.49, an increase of 3.98% from the previous year[59] - The total number of R&D personnel is 567, making up 10.31% of the company's total workforce[68] - The company plans to enhance automation and invest in R&D to improve product yield rates moving forward[37] Market Position and Strategy - The company aims to increase the share of high-value-added PCBs in automotive, medical, and industrial sectors to improve order quality[51] - The company successfully introduced 5G board orders, and the keyboard PCB, medical, and industrial control PCB businesses performed well, despite a year-on-year revenue decline of 9.55% due to reduced orders from clients transitioning to new products[51] - The company has established stable relationships with major clients, including well-known companies such as Huawei and Jabil, which enhances its market foundation[46] - The company focuses on continuous technological innovation and improvement of its R&D capabilities to enhance its competitive strength in the PCB market[51] Environmental and Social Responsibility - The company has implemented a comprehensive environmental management system, achieving ISO 14001:2015 certification, with a 100% compliance rate in pollution discharge monitoring[152] - The company has invested in pollution control facilities, increasing wastewater treatment capacity to 15,000 m³/d and enhancing the efficiency of existing systems[155] - The company has actively participated in social responsibility initiatives, providing 530,000 RMB in scholarships to 260 students in need[151] - The company has committed to improving the quality of education resources in impoverished areas, although no specific funding has been allocated for this purpose[143] Shareholder and Management Commitments - The controlling shareholder committed to not transferring or entrusting others with their shares for 36 months from the date of the company's IPO[111] - The company guarantees that it does not operate or plan to operate any competing business that could harm its main operations[113] - The company will ensure that any profits gained from unfulfilled commitments will be returned to the issuer[117] - The company has established a framework for accountability among its executives regarding the fulfillment of commitments[117] Future Outlook - The company aims for a revenue growth target of 0% to 20% for 2019, but actual revenue decreased by 9.55% to CNY 3,010.71 million due to reduced orders from downstream customers[91] - The company plans to enhance product development and technical innovation to maintain competitive advantages in the mid-to-high-end PCB market[92] - The company intends to seek acquisitions in the industry to expand its scale, product range, and market share when conditions are favorable[95]