First(SH:603806)2020-03-20 16:00Financial Performance - The company's operating revenue for 2019 was CNY 6,378,151,355.92, representing a year-on-year increase of 32.61% compared to CNY 4,809,736,097.86 in 2018[18]. - The net profit attributable to shareholders of the listed company for 2019 was CNY 957,062,795.31, an increase of 27.39% from CNY 751,257,491.27 in 2018[18]. - The net profit after deducting non-recurring gains and losses was CNY 810,502,040.05, which is an 88.20% increase compared to CNY 430,656,193.07 in the previous year[18]. - The net cash flow from operating activities for 2019 was CNY 434,941,650.99, showing a significant increase of 156.49% from CNY 169,574,040.38 in 2018[18]. - The total assets at the end of 2019 were CNY 8,305,106,941.62, reflecting a year-on-year growth of 28.64% from CNY 6,455,917,796.66 at the end of 2018[18]. - The net assets attributable to shareholders of the listed company at the end of 2019 were CNY 6,524,984,672.72, an increase of 17.48% from CNY 5,553,888,887.48 at the end of 2018[18]. - The basic earnings per share rose to 1.83 RMB, a 27.08% increase from the previous year[19]. - The weighted average return on equity increased by 1.93 percentage points to 16.24%[19]. Revenue and Sales Growth - The company's operating revenue increased by 32.61% compared to the same period last year, primarily due to higher sales of photovoltaic encapsulation films[19]. - Sales of photovoltaic encapsulation films reached 749 million square meters, with revenue of 569,504.78 RMB, up 28.88% and 37.14% year-on-year respectively[42]. - The company successfully increased sales of photosensitive dry film by 83.79%, generating revenue of 57,219.5497 RMB, a 94.88% increase compared to the previous year[42]. - The production volume of photovoltaic film was 75,016.07 thousand square meters, with a sales volume of 74,869.18 thousand square meters, reflecting a production increase of 25.99% and a sales increase of 28.88% compared to the previous year[51]. - Domestic revenue reached approximately 4.89 billion CNY, while international revenue was about 1.44 billion CNY, showing a year-over-year increase of 71.26% for international sales[50]. Investment and R&D - The company plans to accelerate product structure and production equipment upgrades to enhance competitiveness and market share[35]. - The company’s long-term investment in R&D has positioned it as a leader in solar encapsulation materials, with a diverse product range including transparent EVA and POE films[37]. - Research and development expenses increased by 13.04% to 202,875,711.51 RMB, reflecting the company's commitment to product innovation[48]. - Total R&D investment accounted for 3.18% of operating revenue, with 308 R&D personnel, representing 15.79% of the total workforce[59]. - The company launched new products in the photovoltaic materials sector, including co-extruded POE films and transparent back sheets for bifacial solar modules[60]. Market Position and Strategy - The company is recognized as a leading enterprise in the global photovoltaic encapsulation materials industry, benefiting from scale, brand, and customer resource advantages[76]. - The company has established a strong customer resource barrier, covering major domestic and international solar module manufacturers[39]. - The company aims to leverage the new industry environment to consolidate market share as high-cost, low-technology firms exit the market[35]. - The company plans to expand its international market presence, as indicated by the rapid growth in overseas sales[50]. - The company has a plan to establish a standardized decision-making process for share reduction and will consult legal advisors before any transactions[117]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of CNY 5.50 per 10 shares and to increase capital by 4 shares for every 10 shares held, totaling CNY 287,430,000 in cash dividends and 209,040,000 shares to be distributed[5]. - The cash dividend policy stipulates that at least 10% of the distributable profits must be allocated as dividends each year, with a minimum cash dividend ratio of 20% for the years 2018-2020[111]. - For 2019, the company proposed a cash dividend of 5.50 RMB per 10 shares, amounting to 287,430,000 RMB, representing 30.03% of the net profit attributable to ordinary shareholders[112]. - The company emphasizes the importance of maintaining a stable and continuous profit distribution policy to ensure sustainable development and reasonable returns for investors[111]. Risk Management and Compliance - The company has outlined potential risks in its report, which investors should be aware of[7]. - The company is implementing measures to mitigate risks related to accounts receivable, including strengthening credit policies and establishing collection responsibilities[107]. - The company acknowledges the risks associated with fixed asset depreciation and capacity digestion in the context of project expansions[108]. - The company has committed to ongoing solar poverty alleviation projects and fulfilling its social responsibilities through various donations[157]. Environmental and Social Responsibility - The company has invested ¥1,961.76 million in environmental protection, accounting for 0.31% of total revenue[91]. - The company has committed ¥25,000,000 to rural road construction as part of its social responsibility initiatives[154]. - The company has provided ¥350,000 in scholarships to 7 impoverished college students through its charity fund[154]. - The company has distributed ¥200,000 in care funds to elderly individuals over 60 years old in the local area[154]. - The company has established a long-term poverty alleviation mechanism through the construction of distributed power generation systems[158]. Financial Management and Governance - The company has engaged in various financial management activities, including bank wealth management products totaling RMB 571,205,000, with an outstanding balance of RMB 466,860,638[146]. - The company has a consolidated asset-liability ratio of 21.38% as of December 31, 2019[172]. - The company has a strong debt repayment capability, with cash flow from operating activities expected to cover the principal and interest of the convertible bonds[172]. - The company has established measures to prevent conflicts of interest and ensure that controlling shareholders do not interfere with management activities[121]. - The company has maintained a good integrity status, with no significant debts overdue or unfulfilled court judgments[140].