PRET(SZ:002324)2020-03-20 16:00Financial Performance - The company's operating revenue for 2019 was CNY 3,599,966,583, a decrease of 1.79% compared to 2018[23]. - Net profit attributable to shareholders was CNY 164,886,342, representing a significant increase of 128.00% year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 137,686,262, an increase of 162.62% compared to the previous year[23]. - The net cash flow from operating activities was CNY 353,156,141, an increase of 82.52% year-on-year[23]. - Basic earnings per share were CNY 0.3122, up 128.05% from CNY 0.18 in 2018[23]. - The company's gross profit margin improved to 19.14%, an increase of 2.46 percentage points from the previous year[79]. - The comprehensive gross profit margin for the year was 19.14%, reflecting a positive impact from the decline in raw material prices[79]. - The net profit attributable to shareholders reached 164.89 million CNY, an increase of 128.00% year-on-year, with a 75.76% growth in the second half compared to the first half[79]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1 per 10 shares and issue 3 bonus shares for every 10 shares held[6]. - The cash dividend for 2019 was 52,815,745.70 RMB, with a total cash dividend amount (including other methods) of 211,262,982.80 RMB, representing 25% of the total profit distribution[177]. - The total distributable profit for the company was 1,085,913,269.26 RMB, with cash dividends accounting for 32.03% of the net profit attributable to ordinary shareholders[177]. Market and Business Strategy - The company continues to focus on expanding its market presence and developing new technologies[6]. - The company aims to enhance its market share in China by actively expanding its market and developing new materials and products, leveraging high cost-performance advantages[154]. - The company is focused on global collaboration, particularly in the automotive materials sector, to increase material certifications and product usage among major clients[162]. - The company is restructuring to integrate with the leading enterprise in the polymer materials additives industry, aiming to enhance its product offerings in the special chemicals sector[41]. - The company is actively involved in the automotive materials sector, focusing on lightweight materials and advanced polymer technologies[39]. Research and Development - The company has achieved significant advancements in low-emission automotive materials, enhancing its competitive edge in the industry[40]. - The company has developed a complete technology and production system for TLCP materials, including injection-grade, film-grade, and fiber-grade resins, with successful mass supply to downstream customers[45]. - The company has established partnerships with renowned universities to strengthen its research and development efforts, enhancing its competitive edge[52]. - The company aims to enhance its global R&D capabilities and become a leader in environmentally friendly automotive plastic materials[110]. - R&D investment decreased by 20.39% to ¥180,494,050.98 in 2019 from ¥226,723,528.56 in 2018, with R&D personnel count down by 5.41%[119]. Risks and Challenges - The company faced risks including macroeconomic conditions, raw material price fluctuations, and internationalization risks[6]. - The automotive market is a primary application area for the company's modified materials, facing competition from major players like BASF and Dupont[148]. - The modified plastics industry is expected to see increased demand due to the localization trend in the automotive supply chain amid US-China trade tensions[149]. Asset and Investment Management - Total assets amounted to ¥3,892,103,180.85, a decrease of 0.66% from ¥3,917,905,218.44 in the previous year[26]. - The company’s fixed assets decreased by 2.32% to ¥827,148,127.99, which is 21.25% of total assets[130]. - The company’s total investment in the reporting period was ¥26,000,000.00, a significant increase of 222.98% from ¥8,050,000.00 in the previous year[135]. - The company is in the process of acquiring 100% equity of several companies in the high-end fine chemical industry, which is expected to enhance its competitive strength and operational capabilities[82]. Product Development and Innovation - The company has developed new composite materials for electric vehicle batteries, including conductive and insulating polyphenylene sulfide composites, and has begun bulk supply to customers[60]. - The company has successfully developed low-dielectric bio-based nylon materials and various composite materials, which are now used in high-end notebooks and the automotive sector[46]. - The company has developed flame-retardant materials and has successfully supplied short fiber reinforced polypropylene materials for dashboard applications, breaking the monopoly of similar imported materials[56]. - The company aims to become a leading brand in the chemical new materials industry, focusing on innovation and enhancing its independent research capabilities[47]. Corporate Governance and Compliance - The company changed its accounting firm from Lixin Certified Public Accountants to Zhonghua Certified Public Accountants, with an audit fee of 1.2 million yuan for the current period[194]. - There were no significant accounting errors that required retrospective restatement during the reporting period[191]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[192]. - The company has no major litigation or arbitration matters during the reporting period[199]. - The company has fulfilled its commitments to minority shareholders on time[187].