TC(SH:603421)2020-04-22 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,810,257,678.79, representing a year-on-year increase of 3.79% compared to CNY 1,744,169,042.32 in 2018[21]. - The net profit attributable to shareholders of the listed company decreased by 20.58% to CNY 161,951,728.43 in 2019 from CNY 203,926,810.07 in 2018[21]. - The net cash flow from operating activities was CNY 91,913,494.20, a decrease of 39.46% compared to CNY 151,827,480.36 in 2018[21]. - The total assets at the end of 2019 were CNY 3,749,392,329.63, an increase of 6.85% from CNY 3,509,067,486.79 at the end of 2018[21]. - The net assets attributable to shareholders of the listed company increased by 16.17% to CNY 3,016,799,632.50 at the end of 2019 from CNY 2,596,939,282.08 at the end of 2018[21]. - The company achieved a total revenue of 1.81 billion yuan in 2019, representing a year-on-year growth of 3.79%[67]. - The net profit attributable to shareholders decreased by 20.58% year-on-year, amounting to 162 million yuan[67]. - The total equity attributable to shareholders increased by 16.17% year-on-year, reaching approximately 3.02 billion yuan[67]. Dividend Policy - The board proposed a cash dividend of 1.04 CNY per 10 shares, totaling approximately 48.79 million CNY, and a capital reserve conversion of 4 shares for every 10 shares held, increasing total shares to 656,750,171[6]. - The company has established a cash dividend policy, proposing a cash dividend of 1.04 yuan per 10 shares for 2019, which accounts for approximately 30.12% of the net profit attributable to shareholders[134]. - In 2019, the company distributed cash dividends totaling approximately RMB 48.79 million, representing 30.12% of the net profit attributable to ordinary shareholders[135]. - The cash dividend per 10 shares was RMB 1.04 in 2019, compared to RMB 1.31 in 2018 and RMB 2.16 in 2017[135]. - The company's dividend payout ratio has remained consistent, averaging around 30% over the past three years[135]. Research and Development - In 2019, the company invested 235 million RMB in R&D, accounting for 13.01% of total revenue, and has obtained 263 patents and 123 software copyrights[56]. - The company has established a unified R&D and operational platform to support various industry directions, focusing on power line carrier communication and bus communication technologies[31]. - The R&D structure has been optimized to include teams focused on current product development (H1), future product development (H2), and technology research (H3), ensuring sustainable growth[36]. - The company has developed proprietary communication chips for energy interconnection applications, enhancing its position in the smart grid sector[72]. - The R&D system emphasizes addressing customer pain points and fully implements the IPD integrated product development process to enhance product competitiveness and commercial success[120]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing product development capabilities[12]. - The company has established a comprehensive strategy for integrated product development and supply chain management[12]. - The company is committed to maintaining high customer satisfaction while reducing overall supply chain costs[12]. - The company is actively participating in the formulation and testing of new generation dual-core modular electric meters standards for State Grid and Southern Grid[49]. - The company is committed to expanding its market presence both domestically and internationally, leveraging its successful experience in AMI construction[117]. Operational Efficiency - The company has implemented a new decision-making mechanism, replacing individual decision-making with a collective decision-making model involving the EMT and AT/ST teams[35]. - The sales and service system has been restructured to enhance organizational marketing capabilities, transitioning from individual efforts to standardized sales processes[40]. - The supply chain center has initiated a systematic transformation of the ISC integrated supply chain process, improving procurement, supplier management, and logistics capabilities[41]. - The company has achieved full-chain independent production in mold, injection, hardware, PCBA, and assembly, significantly enhancing efficiency through lean, automated, and information-driven processes[42]. - The company is transitioning to a fully automated and information-based production model, significantly improving manufacturing efficiency and quality stability[70]. Risk Management - The company has detailed potential risks in the report, particularly in the section discussing future development[7]. - The company faces risks from industry policy changes, with potential impacts on revenue and profit levels due to reduced investment in the power sector in 2020[123]. - Increased market competition poses a risk, with numerous competitors in the narrowband carrier chip and electric meter markets leading to declining product prices and profit margins[124]. - The company is experiencing a rise in accounts receivable, which is growing faster than revenue, but the risk of bad debts remains low due to the nature of its main business[125]. Corporate Governance - The company guarantees that the content of the prospectus does not contain any false records, misleading statements, or major omissions, and assumes corresponding legal responsibilities for the authenticity, accuracy, and completeness of the prospectus[143]. - The controlling shareholders and actual controllers promise that they will not engage in any business that competes directly or indirectly with the company's main business[148]. - The company will ensure that any related transactions are conducted fairly and transparently, adhering to legal and regulatory requirements[149]. - The company’s directors and senior management have made commitments to faithfully perform their duties and protect the legitimate rights and interests of the company and all shareholders[152]. Investor Relations - The company emphasizes the importance of investor relations management, ensuring timely and fair access to public information for investors[198]. - The company has established a dedicated investor relations management system to facilitate communication with investors[198].