WG Tech(SH:603773)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 524.32 million, a decrease of 25.07% compared to CNY 699.80 million in 2018[23]. - The net profit attributable to shareholders for 2019 was CNY 50.90 million, down 67.79% from CNY 158.05 million in 2018[23]. - The basic earnings per share for 2019 was CNY 0.5381, reflecting a decline of 70.48% from CNY 1.8227 in 2018[24]. - The net cash flow from operating activities was CNY 78.06 million, a decrease of 60.93% compared to CNY 199.77 million in 2018[23]. - The total assets at the end of 2019 were CNY 1.81 billion, an increase of 0.67% from CNY 1.80 billion at the end of 2018[23]. - The weighted average return on equity for 2019 was 3.15%, down 8.96 percentage points from 12.11% in 2018[25]. - The company reported a net profit of CNY 12.06 million from non-recurring gains in 2019, compared to CNY 15.96 million in 2018[31]. - The fourth quarter revenue was CNY 122.55 million, with a net profit of CNY 2.58 million attributable to shareholders[27]. - The company experienced a significant decline in net profit due to a reduction in operating revenue and increased costs[23]. Dividend Distribution - The profit distribution plan for 2019 proposes a cash dividend of 1.62 RMB per 10 shares, totaling 15,324,480.07 RMB (including tax) to be distributed to shareholders[5]. - The company does not plan to issue bonus shares or convert capital reserves into share capital for the year[5]. - The net profit attributable to ordinary shareholders for 2019 was 50,904,512.75 RMB, with a dividend payout ratio of 30.10%[127]. - In 2018, the company distributed a cash dividend of 6.80 RMB per 10 shares, totaling 64,324,978.08 RMB, with a higher payout ratio of 40.70%[127]. - The company’s retained earnings will be carried forward to the next fiscal year as no shares were issued in 2019[124]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[6]. - The report includes a section on potential risks that the company may face, which is detailed in the operational discussion and analysis section[7]. - The company faces risks from intense market competition in the FPD optoelectronic glass processing industry, which may impact profit margins[110]. - The company is exposed to risks related to product price fluctuations due to rapid updates in the mobile smart terminal industry[112]. - The company has a high customer concentration risk, primarily selling to display panel manufacturers, which could affect business continuity[119]. - The company acknowledges the risk of rising labor costs impacting profitability due to structural labor supply issues and increasing minimum wage standards[114]. Research and Development - The company is focusing its R&D efforts on the 5G communication sector and optical device segment, with key projects including high-precision array lines for 5G antennas and dielectric ceramic filter development, currently in the customer validation phase[40]. - The company has restructured its main business segments into two primary areas: optoelectronic and optical device sectors, focusing on thin film, coating, cutting, and precision integrated circuit processing[34]. - The company plans to accelerate the verification of ongoing and new R&D projects to promote faster commercialization of core technologies[41]. - The company plans to focus on R&D in the 5G communication field and optical devices in 2020[102]. - Ongoing R&D projects include high-precision array circuits and dielectric ceramic filters for 5G applications, with several projects entering the customer verification stage[67]. - R&D investment amounted to RMB 23,670,957.36, an increase of 15.35% year-on-year, representing 4.51% of total revenue[72]. Operational Strategy - The company plans to focus on improving operational efficiency and exploring new market opportunities in the upcoming year[23]. - The company aims to enhance internal management and reduce operational costs to cope with market challenges in 2020[104]. - The company plans to focus on expanding its market presence and enhancing product offerings in response to competitive pressures[81]. - The company aims to optimize its organizational structure and improve management efficiency through employee training and talent development[108]. - The company will strengthen internal control and fine management to reduce operational costs and enhance service quality[109]. Legal and Compliance - The company is currently involved in a significant lawsuit regarding a compensation dispute, with a claim amounting to approximately 5.91 million RMB[175]. - The company has initiated legal proceedings to recover debts from a previous case, with a total claim of 8,474,476.84 USD, plus interest at an annual rate of 5%[176]. - The company reported a litigation amount of RMB 59.12 million related to the lawsuit against China Display Technology, which is equivalent to approximately USD 8.47 million[178]. - The company has committed to full disclosure and compliance with relevant laws and regulations in all its operations[164]. - The company and its major shareholders have committed to ensuring that the prospectus does not contain any false statements or omissions, bearing legal responsibility for its accuracy and completeness[154]. Environmental Responsibility - The company has implemented effective pollution control measures, with all monitored pollutants meeting the required standards during the reporting period[194]. - The wastewater monitoring system operated normally, with no environmental pollution incidents reported and no penalties from regulatory authorities[194]. - The company obtained a new pollutant discharge permit in August 2019, complying with the latest environmental regulations[195]. - The company has established an emergency response plan for environmental incidents, which has been filed with the relevant environmental protection department[196]. - The company’s subsidiary, Shenzhen Water Technology Co., Ltd., is not classified as a key pollutant discharge unit and has adhered to environmental laws without any violations during the reporting period[198].