联创电子(002036) - 2019 Q4 - 年度财报

Financial Performance - The company’s operating revenue for 2019 was ¥6,081,932,971.96, representing a 26.65% increase compared to ¥4,802,264,162.21 in 2018[19]. - The net profit attributable to shareholders was ¥267,330,115.33, an increase of 8.81% from ¥245,685,945.67 in the previous year[19]. - The net cash flow from operating activities surged by 228.10% to ¥408,791,466.07, up from ¥124,594,847.90 in 2018[19]. - The total assets at the end of 2019 reached ¥9,001,328,965.48, marking a 31.41% increase from ¥6,849,667,739.29 at the end of 2018[19]. - The company achieved a basic earnings per share of ¥0.37, reflecting an 8.82% increase from ¥0.34 in 2018[19]. - Total revenue for 2019 reached ¥6,081,932,971.96, representing a 26.65% increase from ¥4,802,264,162.21 in 2018[61]. - The touch display segment generated ¥3,304,389,139.03, accounting for 54.33% of total revenue, with a year-on-year growth of 38.44%[61]. - Optical components revenue surged by 92.44% to ¥1,275,279,173.33, increasing its share of total revenue to 20.97%[61]. - Integrated circuit revenue was ¥1,470,117,167.97, reflecting a 29.97% increase compared to the previous year[61]. - Domestic sales accounted for 69.15% of total revenue, amounting to ¥4,205,676,788.07, with a significant growth of 56.14%[61]. Shareholder Returns - The company plans to distribute a cash dividend of 0.1 RMB per 10 shares and to increase capital by 3 shares for every 10 shares held, based on a total share capital of 2,440,000 shares after repurchase[4]. - The cash dividend distribution for 2018 was set at RMB 0.45 per share, totaling RMB 24.68 million, which is 10.04% of the net profit for the year[116]. - The cash dividend for 2018 was RMB 0.45 per 10 shares (including tax), amounting to RMB 24,675,626.83, which represents 10.04% of the net profit attributable to ordinary shareholders[120]. - In 2019, the total cash dividend (including other methods) was RMB 29,135,947.21, accounting for 10.90% of the net profit attributable to ordinary shareholders[121]. - The company’s cash dividend payout ratio for 2019 was 100% of the distributable profit[121]. - The company has a clear and transparent cash dividend policy that complies with its articles of association and shareholder resolutions[117]. Business Transformation and Strategy - The company has undergone a business transformation since February 18, 2016, shifting from the production and sales of hemp and lining fabrics to the R&D, production, and sales of touch display products and optical components[17]. - The company has established strategic partnerships with international firms like Mobileye and Nvidia in the automotive lens sector, with multiple products certified by Mobileye[33]. - The company has successfully launched a hybrid glass-plastic mobile lens, which is now in mass production for major domestic smartphone brands[33]. - The company initiated the establishment of the Jiangxi Lianchuang Silicon Valley Paradise Integrated Circuit Industry Fund, investing in the semiconductor industry and becoming the largest shareholder of a Korean company[35]. - The company plans to increase investment in high-end wireless charging chips, targeting a market launch for 30W and above models in the near future[35]. - The company is expanding its touch display product capacity, with a new production line in Chongqing expected to produce 30 million units annually, and a project in India also ramping up production[56]. - The company is focused on improving operational quality by reducing trade proportions and accelerating the market promotion of new products such as vehicle-mounted lenses and high-end mobile lenses[102]. Research and Development - The company has established a strong R&D capability in mobile camera modules, including high-pixel modules and TOF modules, with significant recognition from leading mobile brands[41]. - In 2019, the company applied for 112 patents in the touch display industry, including 20 invention patents, and has a total of 204 authorized patents[44]. - The company’s R&D investment reached approximately 288.1 million yuan, accounting for 4.74% of total revenue, an increase of 46.93% compared to 2018[75]. - The number of R&D personnel increased by 12.15% to 1,089, indicating a focus on innovation and product development[75]. - The company emphasizes the importance of technological innovation and plans to increase R&D investment to maintain its competitive edge in the optical and touch display industries[102]. Risk Management - The company emphasizes the importance of risk factors including interest rate risk, liquidity risk, and operational risk, urging investors to be cautious[3]. - The company has a strong collaboration with Melfas in the touch IC field, enhancing its technological capabilities and market access[46]. - The company has formed strategic partnerships with major clients such as Samsung and vivo, focusing on enhancing market share and expanding customer base[45]. - The sales revenue from the top five customers accounted for 64.75% of the total revenue during the reporting period, indicating a high customer concentration risk[104]. - The company plans to expand its customer base and develop new applications to reduce reliance on major clients, addressing the risk of market demand fluctuations[105]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[3]. - The company has provided opportunities for minority shareholders to express their opinions and protect their legal rights[117]. - The company’s independent directors have fulfilled their responsibilities effectively during the decision-making process regarding profit distribution[117]. - The company has established an independent financial accounting department and management system to ensure financial independence[129]. - The company guarantees that its subsidiary, Hanma Industry, has complete operational assets and does not violate the use of funds or resources[129]. Environmental Responsibility - The company ensures compliance with environmental standards, with wastewater and air emissions meeting the required discharge standards[180]. - The company operates a wastewater treatment facility that is functioning normally, ensuring compliance with local environmental regulations[182]. - The company has made significant investments in pollution control facilities, including two sets of air pollution control devices[182]. - The company has not been classified as a key pollutant discharge unit by environmental protection authorities[178]. Shareholder Changes - The major shareholder, Silicon Valley Paradise PE Fund, plans to reduce its holdings by up to 11,015,746 shares, representing no more than 2% of the total share capital[186]. - As of March 20, 2019, the PE Fund has reduced its holdings by 5,507,285 shares, accounting for 0.9999% of the total share capital, leaving it with 32,527,516 shares, or 5.9056%[186]. - By May 31, 2019, the total shares held by the PE Fund and the private placement fund decreased to 27,059,311 shares, representing 4.9128% of the total share capital[186]. - On July 9, 2019, King Crown International signed a framework agreement to transfer 10% of the total share capital to Nanchang Guojin Industrial Investment Co., Ltd.[187]. - After the share transfer, King Crown International holds 1.35% of the shares, while Guojin Investment becomes the second-largest shareholder with 10%[188].