TKD(SH:603738)2020-04-27 16:00Financial Performance - In 2019, the net profit attributable to the parent company was CNY 11,382,315.71, with retained earnings of CNY 136,026,806.56[5] - The company's operating revenue for 2019 was CNY 579,689,504.59, a decrease of 5.17% compared to CNY 611,299,588.85 in 2018[23] - The net profit attributable to shareholders for 2019 was CNY 11,382,315.71, down 68.69% from CNY 36,358,746.47 in 2018[23] - The basic earnings per share for 2019 was CNY 0.07, a decline of 69.57% compared to CNY 0.23 in 2018[24] - The net profit after deducting non-recurring gains and losses for 2019 was CNY 7,654,766.89, a decrease of 77.32% from CNY 33,748,138.25 in 2018[23] - The comprehensive gross margin for the main business was 19.41%, a decrease of 6.03% from 25.44% in the previous year, due to intensified price competition and low demand in the downstream market[74] - The company's total assets at the end of 2019 were CNY 1,182,136,280.30, a decrease of 1.18% from CNY 1,196,196,610.13 at the end of 2018[23] - The weighted average return on equity for 2019 was 1.71%, down 4.09 percentage points from 5.80% in 2018[24] - The company's net assets attributable to shareholders increased by 16.90% to CNY 744,438,316.81 at the end of 2019, compared to CNY 636,831,084.47 at the end of 2018[23] Dividend Policy - The proposed cash dividend distribution is CNY 0.8 per 10 shares (including tax), with no bonus shares or capital reserve conversion[5] - The company has established a cash dividend policy, ensuring that cash dividends will not be less than 20% of the distributable profit for the year[144] - In mature stages without major capital expenditures, the cash dividend proportion should reach at least 80% of the profit distribution[144] - The company’s cash dividend payout ratio for 2018 was 39.29% of the net profit attributable to ordinary shareholders[152] - The company’s cash dividend payout ratio for 2019 is projected to be 117.45% of the net profit attributable to ordinary shareholders[152] - The company’s profit distribution policy requires a two-thirds majority approval from shareholders present at the general meeting for any modifications[148] Risks and Challenges - The company emphasizes that future plans and strategies mentioned in the report do not constitute actual commitments to investors, highlighting potential risks[6] - The company has detailed various risks faced during production and operations in the report, urging investors to be cautious[7] - The company faces risks related to technology development, product quality, and new customer acquisition, which could impact its competitive position and profitability[125][126][127] - The average selling price of the company's products has shown a downward trend, consistent with the overall industry trend, which may impact gross margins if costs are not effectively managed[135] - The company faces risks from changes in tax incentives and subsidies, particularly if it loses its high-tech enterprise status, which could lead to tax rate changes[130] - The impact of the COVID-19 pandemic has posed significant challenges to the company's operations and overall efficiency, leading to delays in production and increased costs[137] Market Position and Strategy - The company operates several wholly-owned and controlling subsidiaries, enhancing its market presence in the piezoelectric crystal industry[11] - The company achieved a sales revenue of 580 million RMB, approximately 83 million USD, in 2019, with a global market share of about 2.66%[39] - The company focuses on MHz and KHz products, which account for nearly 90% of its market, and has made significant progress in KHz and temperature-compensated small crystal resonators[41] - The company is the only domestic enterprise to achieve the industrialization of semiconductor photolithography technology in crystal technology applications[41] - The company aims to become a leading domestic and internationally recognized crystal oscillator product R&D enterprise, focusing on high-end products, large-scale industry, professional teams, and diversified capital[113] - The company plans to strengthen existing customer relationships and expand into emerging markets, enhancing sales support and channel management[114] Research and Development - The company invested 21.58 million yuan in R&D, accounting for 3.72% of operating revenue, and held 104 patents by the end of 2019[76] - The company has accumulated 104 patents, including 9 invention patents, enhancing its competitive edge in the industry[63] - The company has developed a series of proprietary equipment through technological innovation, significantly improving production efficiency and achieving large-scale production of small-sized products[58] - The company has made progress in the development of small-sized thermosensitive crystals with frequencies above 52MHz, achieving small batch production capabilities[97] - The company will leverage advanced technologies such as laser technology and MEMS to develop high-precision, high-reliability miniature products, targeting emerging industries like IoT and 5G[117] Corporate Governance and Compliance - The company maintains a commitment to the accuracy and completeness of its financial reports, as stated by its board of directors and management[4] - The company has established a sound corporate governance structure to protect shareholder rights and ensure fair information disclosure[199] - The company has implemented a comprehensive quality assurance system, achieving certifications such as ISO9001, ISO14001, and IATF16949[68] - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[183] - The company has committed to not unfairly transferring benefits to other entities or individuals, protecting the interests of public investors[175] Social Responsibility - The company provided financial support of 682.25 million RMB for poverty alleviation initiatives, helping 216 registered impoverished individuals to escape poverty[196] - The company has committed to funding educational activities, contributing 20.25 million RMB to support outstanding impoverished students[196] - The company has established employment opportunities for over 200 individuals from impoverished areas and minority groups[193] - The company actively participates in local ecological poverty alleviation efforts, contributing to environmental protection[193] Production and Operations - The company adopts an order-driven production model, aligning production with customer demand and product specifications[34] - The company has established a stable supply chain and procurement control process, ensuring sufficient raw material supply for daily production[33] - The production volume in 2019 was 2.681 billion units, a decrease of 3.54% compared to the previous year, influenced by the downstream market[43] - The company has reached trial production requirements for new materials in TF3215 crystal development, aiming to lower material costs[97] - The company completed a technical upgrade of the TF welding line, reducing labor costs[98]