YONGYUE(SH:603879)2020-04-16 16:00Financial Performance - The company's operating revenue for 2019 was ¥428,725,782.24, a decrease of 29.51% compared to ¥608,219,278.20 in 2018[21] - The net profit attributable to shareholders for 2019 was ¥24,390,446.63, down 34.81% from ¥37,415,248.89 in 2018[21] - The basic earnings per share for 2019 was ¥0.12, a decline of 36.84% from ¥0.19 in 2018[23] - The total assets at the end of 2019 were ¥581,366,531.76, a decrease of 3.15% from ¥600,267,863.64 at the end of 2018[22] - The net cash flow from operating activities for 2019 was ¥16,943,896.41, down 38.51% from ¥27,555,645.50 in 2018[22] - The weighted average return on equity for 2019 was 4.68%, a decrease of 2.44 percentage points from 7.12% in 2018[23] - The company reported a decrease in net profit after deducting non-recurring gains and losses to ¥16,385,890.06, down 43.90% from ¥29,206,490.30 in 2018[22] - The company achieved operating revenue of 428.73 million yuan, a decrease of 29.51% compared to the same period last year[47] - The net profit attributable to shareholders was 24.39 million yuan, down 34.81% year-on-year[47] - Total assets amounted to 581.37 million yuan, reflecting a decline of 3.15% year-on-year[47] - The net assets attributable to shareholders were 526.28 million yuan, a decrease of 1.93% compared to the previous year[47] Cash Flow and Investments - The net cash flow from operating activities was 16.94 million yuan, reflecting a decline of 38.51% compared to the previous year[50] - The net cash flow from investment activities was -35.39 million yuan, significantly impacted by increased investments in subsidiaries and project preparations in Bangladesh[64] - The net cash flow from financing activities decreased by 41.55% to -¥21,628,830.63, mainly due to continued stock repurchases by the company[64] - Cash and cash equivalents decreased by 41.48% to ¥67,323,804.90, down from ¥115,048,086.58 in the previous period[65] - The company’s total liabilities decreased by 57.26% in accounts payable to ¥18,118,620.30 from ¥42,397,162.90, attributed to changes in payment settlement methods[66] Business Operations - The main business focus is on the research, production, and sales of unsaturated polyester resins, with a stable supply chain established for raw materials[31] - The company operates a direct sales model, primarily targeting manufacturers, with a low proportion of trade merchants involved[32] - The unsaturated polyester resin industry is highly competitive, with significant market share concentrated among large brand enterprises[34] - The company has become one of the larger suppliers of artificial stone resin in China since its establishment in 2011, with rapid growth in sales and revenue[34] - The production plan is developed based on order and inventory status, ensuring customer orders are met while maintaining safety stock levels[32] Research and Development - The company focuses on continuous R&D investment to enhance product value and reduce production costs, utilizing high proportions of recycled PET in its production processes[36] - The company has formed partnerships with Xiamen University and the Chinese Academy of Sciences to enhance its R&D capabilities[38] - The company is developing new products including 3D printing liquid resin and flame-retardant resin for high-speed trains[78] Environmental and Safety Compliance - The company emphasizes safety and environmental protection, ensuring compliance with national and local environmental standards[39] - The company has implemented a comprehensive management system to ensure effective internal controls and risk management[42] - The company reported a total wastewater COD discharge of 0.1237 tons and ammonia nitrogen discharge of 0.0026 tons in 2019, both below the national discharge standards[163] - The company achieved a total organized industrial waste gas discharge of 76.67 million cubic meters in 2019, with sulfur dioxide emissions at 5.6902 tons and nitrogen oxides at 3.6385 tons, all within the emission limits[164] - The company has implemented a comprehensive emergency response plan for environmental incidents, which was approved by the local environmental bureau[165] Shareholder and Equity Management - The company plans to distribute a cash dividend of ¥0.5 per 10 shares, totaling ¥9,872,100.00, and to increase the share capital by 4 shares for every 10 shares held, resulting in a total share capital increase to 279,388,800 shares[5] - The company’s cash dividend policy stipulates that at least 20% of the distributable profits must be distributed as cash dividends annually[115] - In 2019, the company distributed a total cash dividend of 38,137,486.87 RMB, which accounted for 156.36% of the net profit attributable to shareholders[122] - The company’s profit distribution policy allows for a minimum cash dividend ratio of 40% if there are significant capital expenditure plans[116] - The company’s controlling shareholders committed to not transferring or entrusting the management of their shares for 36 months post-IPO[124] Risks and Challenges - The company faces risks from raw material price fluctuations, which could impact profit margins if costs cannot be passed to downstream customers[105] - The performance of the company is sensitive to the economic environment affecting downstream industries, which could lead to reduced demand for unsaturated polyester resins[106] - The company is currently facing risks related to environmental regulations that may increase future expenditures[109] - The company’s project for the comprehensive utilization of waste mineral oil is currently pending approval from the local environmental authority, posing a risk of project suspension[109] Employee and Management Structure - The company has a total of 153 employees, with 144 in the parent company and 9 in major subsidiaries[197] - The employee composition includes 70 production personnel, 24 sales personnel, 21 technical personnel, 9 financial personnel, and 29 administrative personnel[197] - The company implements a performance-based salary system, linking sales personnel compensation to individual sales performance[198] - Employees enjoy benefits such as "five insurances and one fund," paid annual leave, and paid training[198] Audit and Compliance - The company has appointed Zhihong Accounting Firm (Special General Partnership) as its auditor for the 2019 fiscal year, with an audit fee of CNY 600,000[147] - The company has not faced any risks of suspension or termination of its listing[147] - The company has not made any significant acquisitions or disposals during the reporting period[150] - There are no significant related party transactions reported during the fiscal year[149]