ANHUI ZHONGDING(SZ:000887)2020-06-14 16:00Dividend Policy - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total of 1,211,255,247 shares[5]. - The cash dividend policy complies with the company's articles of association and shareholder resolutions[106]. - In 2019, the cash dividend amount was 242,251,049.40 yuan, accounting for 40.24% of the net profit attributable to ordinary shareholders[107]. - The 2018 cash dividend was 242,645,419.00 yuan, representing 21.76% of the net profit attributable to ordinary shareholders[109]. - The 2017 cash dividend was 370,332,028.50 yuan, which was 32.85% of the net profit attributable to ordinary shareholders[109]. - The company did not propose a cash dividend distribution plan for the reporting period despite having positive distributable profits[109]. - The total cash dividend amount for 2019, including other methods, was 242,251,049.40 yuan, which is 5.21% of the total distributable profits[109]. - The company has a complete decision-making process and mechanism for cash dividends[106]. - Independent directors have fulfilled their responsibilities and played their due role in the decision-making process[106]. - Minority shareholders have had sufficient opportunities to express their opinions and their legal rights have been fully protected[106]. - The company has not made any adjustments or changes to the cash dividend policy during the reporting period[106]. Financial Reporting and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[4]. - The company has adjusted its financial reporting format in accordance with the new financial instrument standards effective from January 1, 2019, impacting the classification and measurement of financial instruments[120]. - The company reported no significant accounting errors that required retrospective restatement during the reporting period[121]. - The company has implemented retrospective adjustments for financial instruments, affecting retained earnings and other comprehensive income as of January 1, 2019[120]. - The company is compliant with the new accounting standards for non-monetary asset exchanges and debt restructuring, effective from June 10 and June 17, 2019, respectively[120]. - The company has not made adjustments to comparative financial statement data for transactions prior to January 1, 2019[120]. - The financial instruments' original carrying amounts have been adjusted to reflect their new carrying amounts as of the effective date of the new standards[120]. Company Structure and Ownership - The company is listed on the Shenzhen Stock Exchange under the stock code 000887[16]. - The registered address of the company is located in the Zhongding Industrial Park, Ningguo Economic and Technological Development Zone, Anhui Province[16]. - The company's legal representative is Xia Dinghu, who oversees the overall operations and strategic direction[16]. - The largest shareholder, Anhui Zhongding Holding Group Co., Ltd., held 46.68% of the shares, amounting to 569,926,577 shares, with 226 million shares pledged[175]. - The actual controllers of the company are natural persons, Xia Dinghu and Xia Yingsong, who hold key positions as Chairman and General Manager respectively[199]. - There are no reported changes in the actual controllers or their shareholding in the past ten years, suggesting stability in management[199]. - The company does not have any other domestic or foreign listed companies under the control of its major shareholder, indicating a focused investment strategy[197]. - The company has not disclosed any related party transactions among its top ten unrestricted shareholders, ensuring transparency[196]. - The total number of unrestricted shares held by the top ten shareholders reflects a concentrated ownership structure, which may impact governance[194]. Financial Performance - The company's operating revenue for 2019 was ¥11,706,104,396.94, a decrease of 5.35% compared to ¥12,367,838,166.50 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥601,992,956.87, representing a significant decline of 46.03% from ¥1,116,442,713.41 in 2018[23]. - The net profit after deducting non-recurring gains and losses was ¥474,307,690.32, down 49.59% from ¥941,924,198.66 in the previous year[23]. - The net cash flow from operating activities increased by 68.57% to ¥1,643,004,472.74, compared to ¥973,015,991.86 in 2018[23]. - The total assets at the end of 2019 were ¥18,125,297,428.81, reflecting a growth of 12.57% from ¥16,074,053,477.46 at the end of 2018[23]. - The net assets attributable to shareholders increased by 7.09% to ¥8,897,358,628.55 from ¥8,281,500,393.61 in 2018[23]. - The basic earnings per share for 2019 was ¥0.49, a decrease of 46.74% compared to ¥0.92 in 2018[23]. - The weighted average return on equity was 6.91%, down from 13.98% in the previous year, indicating a decline of 7.07%[23]. - The company reported a total of ¥87,654,611.82 in government subsidies for 2019, an increase from ¥55,858,935.34 in 2018[28]. - The company experienced a significant drop in quarterly net profit in Q4 2019, with only ¥1,684,325.55 compared to higher profits in previous quarters[27]. Market Position and Strategy - The company ranks 92nd in the global automotive parts industry and 13th in the global non-tire rubber products industry, maintaining the top position domestically[35]. - The company is focused on expanding its market presence and enhancing product development capabilities[5]. - The company has established various subsidiaries and joint ventures to strengthen its operational capabilities in different regions[11]. - The company is advancing its strategy of low-cost manufacturing and industry output, responding to international trade challenges[35]. - The company aims to become one of the top 100 global automotive parts suppliers by leveraging capital strategies and integrating domestic and international resources[97]. - The company is actively pursuing a strategy of upgrading products from parts to components and diversifying its industry focus beyond automotive[97]. - The company is committed to optimizing its product structure and expanding into high-value non-automotive sealing products to enhance competitive strength[98]. Research and Development - The company has established R&D centers in Europe and the USA, enhancing its global R&D capabilities and achieving close collaboration with major global manufacturers[43]. - The company holds 868 authorized patents, including 96 domestic invention patents and 299 foreign patents, and has participated in setting 25 national standards and 9 industry standards[43]. - The company is focusing on the development of new energy vehicle components, including electric drive and air suspension systems[84]. - The company intends to accelerate the development of energy-saving and new energy products, enhancing its core technology and R&D capabilities[98]. Operational Efficiency - The company has implemented a global SAP information system to enhance operational efficiency, with plans for full implementation within three to five years[43]. - The company has made significant advancements in automation, reducing labor costs through the adoption of smart manufacturing technologies[43]. - The company has established a quality management system according to IATF16949:2016 standards, emphasizing product quality as a lifeline for development[155]. - The company has implemented a comprehensive safety production management system to ensure employee health and safety, as well as asset protection[155]. - The company has actively engaged in social responsibility, focusing on sustainable development and environmental protection, aligning with ISO14001:2015 standards[155]. Investment and Financing - The company issued a total of 1.2 million convertible bonds with a face value of 100 yuan each, raising a total of 1.2 billion yuan for projects including the expansion of the rubber damping products R&D and production base[170]. - The initial conversion price for the convertible bonds was set at 11.99 yuan per share, which was later adjusted to 11.79 yuan per share effective from May 31, 2019[170]. - As of December 31, 2019, the remaining balance of the convertible bonds was 1,199,989,900 yuan, equivalent to 11,999,899 bonds[170]. - The company reported a total guarantee amount of 171,272.4 million for its subsidiaries, with actual guarantees amounting to 600 million during the reporting period[147]. - The total amount of raised funds for all projects is CNY 58,900 million, with an actual investment of CNY 28,165.9 million[84]. - The company has not engaged in any significant asset or equity acquisitions or sales during the reporting period, indicating a conservative approach to expansion[139]. Corporate Governance - The company has maintained transparent communication with investors, issuing 103 announcements during the reporting period[155]. - The company has not experienced any major litigation or arbitration matters during the reporting period, indicating a stable legal environment[133]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period, reflecting a focus on operational stability[137]. - The company has maintained a continuous relationship with its accounting firm, Rongcheng Accounting Firm, for 20 years, ensuring consistent financial oversight[131]. - The company has not faced any penalties or corrective actions during the reporting period, further emphasizing its compliance and operational integrity[134].