LianChuang Electron(SZ:002036)2022-07-17 16:00Financial Performance - The company's operating revenue for 2019 was ¥6,081,932,971.96, representing a year-over-year increase of 26.65% compared to ¥4,802,264,162.21 in 2018[21]. - The net profit attributable to shareholders for 2019 was ¥224,399,074.32, a slight decrease of 0.83% from ¥226,271,932.50 in 2018[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥106,552,236.32, down 13.46% from ¥123,120,988.27 in 2018[21]. - The net cash flow from operating activities increased significantly by 228.10% to ¥408,791,466.07 from ¥124,594,847.90 in 2018[21]. - Total assets at the end of 2019 reached ¥8,938,983,911.30, marking a 30.87% increase from ¥6,830,253,726.12 at the end of 2018[21]. - The total operating revenue for 2019 reached ¥6,081,932,971.96, representing a year-on-year increase of 26.65% compared to ¥4,802,264,162.21 in 2018[55]. - 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%[55]. - The optical components segment saw a significant increase in revenue to ¥1,275,279,173.33, up 92.44% from ¥662,692,283.57 in 2018, representing 20.97% of total revenue[55]. - Integrated circuit revenue was ¥1,470,117,167.97, which is 24.17% of total revenue, reflecting a year-on-year increase of 29.97%[55]. - Domestic sales accounted for 69.15% of total revenue at ¥4,205,676,788.07, a 56.14% increase from the previous year[55]. - International sales decreased by 11.02% to ¥1,876,256,183.89, which is 30.85% of total revenue[55]. Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.1 RMB per 10 shares and a capital reserve conversion of 3 shares for every 10 shares held[5]. - For the 2019 fiscal year, the company plans to distribute a cash dividend of RMB 0.10 per 10 shares, totaling RMB 7,124,338.41, which is 3.17% of the net profit attributable to shareholders of RMB 224,399,074.32[118]. - The company will also increase capital reserves by issuing 3 additional shares for every 10 shares held, without issuing bonus shares, for both 2018 and 2019 fiscal years[114]. - The cash dividend for 2018 accounted for 23.28% of the total profit distribution, while the cash dividend for 2019 accounted for 12.98%[117]. - The company’s total distributable profit for the 2019 fiscal year was RMB 23,879,789.85[118]. Shareholder Changes - The company has undergone changes in its controlling shareholders, with the current major shareholders being Jiangxi Xinseng Investment Co., Ltd. and Jinguang International Co., Ltd. since December 11, 2015[19]. - Major shareholders planned to reduce their holdings by up to 11,015,746 shares, representing no more than 2% of the total share capital[188]. - The share reduction plan by major shareholders was completed, reducing their holdings to 4.9128% of the total share capital[190]. - Yongor Group reduced its unrestricted circulating shares by 2,072,300 shares, accounting for 0.29% of the total share capital, completing the reduction plan on August 19, 2019[192]. - After the reduction, Yongor Group holds 35,764,559 shares, with a shareholding ratio below 5%[192]. Research and Development - The company is committed to continuous innovation in new products and technologies to maintain competitive advantage in the market[4]. - 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[39]. - Research and development expenses increased by 62.34% to ¥218,677,438.65, driven by increased investment in new product development[67]. - The number of R&D personnel rose by 12.15% to 1,089, with R&D investment amounting to ¥288,103,855.02, a 46.93% increase compared to the previous year[70]. - The R&D investment accounted for 4.74% of operating revenue, up from 4.08% in the previous year[70]. Market Expansion and Strategic Partnerships - The company has established strategic partnerships with international firms like Mobileye and Nvidia in the automotive lens sector, with multiple products certified and in mass production[29]. - The company is focusing on developing high-power wireless charging chips, with products expected to enter mass production in the second quarter of 2020[29]. - The company is expanding its market share in the high-definition wide-angle imaging module sector, with plans to enhance R&D and manufacturing capabilities in various applications including security monitoring and machine vision[49]. - The company aims to enhance its market share in the optical industry by increasing R&D investment in automotive optics, mobile phone lenses, and AR/VR optical components[95]. - The company is focusing on new market opportunities in sectors like automotive, industrial control, and education, leveraging the growth potential of 5G technology[103]. Risk Management - The company emphasizes the importance of risk factors, including interest rate risk, liquidity risk, and operational risk, which may affect future performance[4]. - The company’s future operational plans and performance forecasts are subject to market conditions, highlighting the inherent uncertainties in achieving these targets[4]. - The company is committed to avoiding and minimizing related party transactions with its subsidiaries, ensuring compliance with its commitments[121]. Financial Management and Compliance - The financial report is audited by Da Hua Certified Public Accountants, ensuring the accuracy and reliability of the financial statements[20]. - The company has established a comprehensive information disclosure system, utilizing various media for transparency[17]. - The company has committed to maintaining financial independence for its subsidiary, ensuring it has its own financial accounting department and independent banking operations[127]. - The company has implemented changes in accounting policies effective from January 1, 2019, in accordance with the new financial instrument standards issued by the Ministry of Finance[135]. - The company has reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[132]. Production and Manufacturing - The company has a comprehensive manufacturing capability covering optical components and photoelectric modules, ensuring high quality and cost advantages[38]. - The company has reported a significant increase in production volume for optical and optoelectronic components, with a year-on-year growth of 34.74%[58]. - The company’s touch display products are produced using advanced manufacturing processes, maintaining high yield rates and cost efficiency[40]. Investments and Acquisitions - The company launched a new integrated circuit industry fund, investing in the semiconductor sector and becoming the largest shareholder of a Korean company with a 15.43% stake[29]. - The company is actively managing investments, including a stake in Jiangxi Lianchuang Hongsheng Electronics, which is positioned for an IPO, and the establishment of a fund focused on wireless charging chips[51]. - The company plans for future acquisitions to strengthen its market presence and operational capabilities[176]. Guarantees and Liabilities - The total amount of guarantees to Jiangxi Lianchuang Electronics includes several amounts, with the largest being 12,000,000 yuan and 10,000,000 yuan, all still outstanding[173]. - The total amount of external guarantees approved during the reporting period is 9,000,000 yuan, with the actual amount of guarantees also totaling 9,000,000 yuan[169]. - The company has provided guarantees totaling CNY 9,000 million for shareholders, actual controllers, and their related parties[186]. Employee and Management Initiatives - The company completed the first phase of its employee stock ownership plan, purchasing 11,946,634 shares, accounting for 2.14% of the total share capital[148]. - The company is committed to retaining core technical personnel through employee stock ownership plans and strategic recruitment initiatives[106]. - The company’s management has increased their shareholding by purchasing 52,900 shares for a total amount of CNY 479,273[187].