Azure(SZ:002245)2020-02-28 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥3.48 billion, a decrease of 18.20% compared to ¥4.26 billion in 2018[23]. - The net profit attributable to shareholders for 2019 was approximately ¥117.61 million, down 47.86% from ¥225.58 million in 2018[23]. - The net profit after deducting non-recurring gains and losses was approximately ¥23.60 million, a decline of 87.19% compared to ¥184.30 million in 2018[23]. - Basic earnings per share for 2019 were ¥0.1199, down 47.85% from ¥0.2299 in 2018[23]. - Total assets at the end of 2019 were approximately ¥6.91 billion, a decrease of 6.35% from ¥7.38 billion at the end of 2018[23]. - The net assets attributable to shareholders decreased by 22.46% to approximately ¥2.09 billion from ¥2.70 billion in 2018[26]. - The weighted average return on net assets for 2019 was 5.31%, down from 8.79% in 2018[23]. - The company achieved total operating revenue of CNY 3,518.96 million in 2019, a decrease of 18.10% year-on-year[46]. - Net profit attributable to shareholders of the listed company was CNY 117.61 million, down 47.86% compared to the previous year[46]. - The company reported a net profit of CNY 146.89 million, a decline of 60.51% year-on-year[46]. - The company’s operating profit was CNY 157.16 million, a decrease of 63.04% year-on-year[46]. Cash Flow and Investments - The net cash flow from operating activities increased by 120.79% to approximately ¥670.85 million from ¥303.85 million in 2018[23]. - The cash flow from operating activities was CNY 396.91 million in Q1, but turned negative in Q4 with a net cash flow of -CNY 32.83 million[28]. - The total cash inflow from investment activities surged by 508.63% to ¥700,566,747.78, while cash outflow from investment activities rose by 16.43% to ¥742,222,750.61, resulting in a net cash outflow of ¥41,656,002.83[69]. - The net cash flow from financing activities showed a significant decline, with a net outflow of ¥629,006,113.58 compared to a net inflow of ¥187,570,594.75 in the previous year, mainly due to payments for the acquisition of remaining equity in Jiangsu Luwei Lithium Energy Co., Ltd.[72]. - The company's total investment in 2019 was ¥84,322,750.61, a decrease of 85.65% compared to ¥587,584,862.40 in the previous year[78]. Business Segments and Performance - The LED business faced industry-wide challenges, while the lithium battery business focused on cordless small power systems showed positive results[46]. - The company's LED business revenue for 2019 was CNY 799.42 million, a decrease of 37.52% year-on-year, with a gross margin of -4.53%[51]. - The lithium battery segment achieved revenue of CNY 964.11 million, down 2.67% from the previous year, with a gross margin of 21.42%[54]. - The metal logistics business generated revenue of CNY 1.72 billion, a decline of 13.50% year-on-year, maintaining a gross margin of 15.75%[51]. - The company reported a net loss of CNY 66.74 million in the LED business for the reporting period[47]. - The lithium battery business saw a significant growth in small power battery sales, with an approximate increase of 40% excluding the impact of the new energy vehicle sector[47]. - The company has shifted its focus in the lithium battery sector towards small power systems, reducing supply to the new energy vehicle market[47]. Research and Development - Research and development expenses decreased by 35.61% to ¥145,629,992 in 2019, representing 4.18% of operating revenue[68]. - The company maintained a research and development personnel count of 501, which is a decrease of 7.56% from the previous year[68]. - The company plans to continue to invest in R&D to maintain its competitive edge in high-end markets, particularly in the Mini LED and lithium battery sectors[93]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥0.15 per 10 shares to all shareholders[6]. - The cash dividend payout ratio for 2019 is 13.22% of the consolidated net profit attributable to shareholders[116]. - The company’s total distributable profit for 2019 was RMB 587,735,116.41[117]. - The cash dividend for 2018 was RMB 0.25 per 10 shares, amounting to RMB 24,532,794.45, which accounted for 10.88% of the net profit attributable to shareholders[116]. - The cash dividend for 2017 was RMB 0.40 per 10 shares, totaling RMB 39,492,362.56, representing 11.14% of the net profit attributable to shareholders[116]. Strategic Focus and Future Plans - The company continues to focus on expanding its business in the semiconductor and lithium battery industries, following its acquisition of Jiangsu Greenway Lithium Energy Co., Ltd. in 2016[22]. - The company plans to increase the proportion of high-end products to over 50% and aims to turn around its net profit by focusing on high-end product development and customer structure adjustments[94]. - The company is set to enhance its production capacity for lithium batteries, targeting a sales growth of over 60% in 2020[98]. - The company will continue to invest in R&D to maintain its competitive edge in high-end markets, particularly in the Mini LED and lithium battery sectors[93]. Risks and Challenges - The company faces risks from macroeconomic uncertainties, which could adversely affect operations if extreme conditions arise[105]. - The company is exposed to credit risks if the overall economic situation remains weak, potentially impacting customer creditworthiness[105]. - The company acknowledges the risk of intensified market competition if supply increases more than demand in its product markets[105]. - The company is at risk of a decline in return on equity if all convertible bonds are converted, significantly increasing net assets[106]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[125]. - The company has implemented new financial instrument standards that changed the classification and measurement of financial assets, affecting the balance sheet significantly[130]. - The company has committed to not engaging in any business activities that compete with Aoyang Shunchang, ensuring no conflict of interest[121]. - The company has successfully completed the implementation of its restricted stock incentive plan, as approved by the shareholders' meeting[123].