ZHENHUA(SZ:000733)2020-04-17 16:00Financial Performance - The company's operating revenue for 2019 was CNY 3,668,281,841.80, a decrease of 31.27% compared to CNY 5,337,571,527.22 in 2018[21]. - Net profit attributable to shareholders was CNY 297,613,144.40, reflecting a decrease of 2.67% from CNY 305,783,850.99 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 140,883,812.40, down 30.48% from CNY 202,643,704.82 in 2018[21]. - The company's cash flow from operating activities was CNY 259,506,185.23, a decline of 18.43% compared to CNY 318,131,325.11 in 2018[21]. - The total assets at the end of 2019 were CNY 8,766,601,289.64, a decrease of 15.21% from CNY 10,339,082,112.84 at the end of 2018[21]. - The weighted average return on equity was 5.72%, down from 6.91% in the previous year[21]. - The company achieved a 6.79% increase in R&D expenses compared to the previous year, totaling ¥232,444,386.76[43]. - The company reported a net profit increase of 27.49 million yuan due to a change in accounting policy for investment properties, resulting in a total asset increase of 51.36 million yuan[57]. Dividend Distribution - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares to all shareholders, based on a total of 514,805,618 shares[2]. - In 2019, the company distributed cash dividends of 0.50 yuan per 10 shares, totaling 25,740,280.90 yuan, which represents 8.65% of the net profit attributable to ordinary shareholders[83][84]. Business Operations - The company reported no changes in its main business since its listing[17]. - The core business of new electronic components saw a revenue increase of 11.22%, with its proportion of total revenue rising by 34.48 percentage points[27]. - The gross margin for new electronic components improved by 5.83 percentage points compared to the previous year[27]. - Revenue from new electronic components reached CNY 3.310 billion, a year-on-year increase of 11.22%, contributing to a total profit of CNY 643 million, up 114.55%[30]. - The company exited low-yield, high-risk businesses, such as mobile communication terminal OEM, which positively impacted operational risk management[30]. - The company’s domestic revenue accounted for 99.69% of total revenue, with a year-on-year decrease of 21.61%[32]. - The company’s total operating costs were CNY 2.040 billion, a decrease of 48.83% year-on-year, with raw materials accounting for 56.34% of total costs[36]. Research and Development - The company applied for 237 patents during the reporting period, including 92 invention patents, and obtained 181 patent authorizations, including 46 invention patents[29]. - The company has made significant progress in developing new products, including IGBT chips and high-temperature capacitors, enhancing its core competitiveness[44]. - The company has accelerated the development of new products, including IGBT chips and SiC Schottky diodes, enhancing its technological capabilities[29]. - Total research and development expenses amounted to ¥282,271,384.72, representing 7.69% of the company's audited revenue, an increase from 4.69% in the previous year[45]. Financial Position - Total assets included cash and cash equivalents of ¥1,341,113,413.78, accounting for 15.30% of total assets[52]. - Accounts receivable totaled ¥1,361,338,817.28, representing 15.53% of total assets, with a decrease due to the exclusion of Shenzhen Communication from consolidation[52]. - Short-term loans decreased by 324 million yuan, totaling 475.67 million yuan, a reduction of 3.24% compared to the beginning of the year[53]. - Long-term loans increased by 118.74 million yuan, totaling 1.02 billion yuan, reflecting a growth of 11.66% year-on-year[53]. - The company reported a significant reduction in material costs for the complete machine and system segment, which fell by 87.24% year-on-year to ¥266,877,275.62[37]. Corporate Governance - The company has established a governance structure that complies with the requirements of the China Securities Regulatory Commission and Shenzhen Stock Exchange[168]. - The company’s independent directors actively participate in training to ensure compliance with laws and regulations[168]. - The company maintained a high level of independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance, ensuring a complete business system and independent operational capability[170]. - The company has a transparent and lawful appointment process for senior management, ensuring compliance with relevant laws and regulations[176]. Environmental Responsibility - The company has established an emergency response plan for environmental incidents, with registration numbers for key polluting units[132]. - The company is undergoing a renewal process for its pollution discharge permits, with Zhihua Yuguang and Zhihua Yunkai permits valid until December 31, 2020[132]. - The company has implemented an online monitoring system for heavy metal indicators to ensure real-time tracking of pollutant concentrations[132]. - The company is committed to adhering to environmental protection laws and regulations in its operations[132]. Social Responsibility - The company actively participated in poverty alleviation efforts, contributing to national poverty alleviation goals[120]. - The company provided a total of 801,000 RMB for poverty alleviation efforts in 2019[123]. - A total of 11 impoverished students received educational assistance amounting to 31,000 RMB[123]. - The company plans to continue providing living subsidies to students from impoverished backgrounds who are admitted to key universities[126]. Market Outlook - The semiconductor and electronic components industry is expected to undergo rapid technological upgrades and development due to the impact of the "Made in China 2025" initiative[79]. - The company anticipates new opportunities for competition and development in the domestic electronic components market following the US-China trade friction[79]. - The company is focusing on technological innovation as a core competitive advantage in the evolving global industrial landscape[79]. Shareholder Information - The total number of shares for China Zhenhua (Group) Technology Co., Ltd. is 514,805,618, with 91.17% being unrestricted shares[135]. - The largest shareholder, China Zhenhua Electronics Group Co., Ltd., holds 32.94% of the shares, amounting to 169,573,344 shares[138]. - The number of ordinary shareholders at the end of the reporting period is 41,951, an increase from 38,514 at the end of the previous month[137]. - The company has not reported any changes in the number of shares held by major shareholders during the reporting period[138].