CREAT(SZ:002350)2020-03-27 16:00Dividend Policy - The company plans to distribute a cash dividend of 0.6 RMB per 10 shares (including tax) and will increase capital reserves by converting 1 share for every 10 shares held[5]. - The cash dividend policy stipulates that the company will distribute at least 10% of the distributable profit in cash annually, provided that the company is profitable and has sufficient cash flow[136]. - For the 2018 annual profit distribution plan, the company proposed a cash dividend of 0.6 yuan per 10 shares, totaling 29.38 million yuan, which was approved by the shareholders' meeting[142]. - The company plans to distribute a cash dividend of 0.6 yuan per 10 shares for the 2019 fiscal year, pending approval at the upcoming shareholders' meeting[143]. - The cash dividend amount for 2019 was CNY 28,459,710.06, representing 34.55% of the net profit attributable to ordinary shareholders[144]. - The total cash dividend, including other methods, amounted to CNY 78,294,276.03, which is 100% of the total distributable profit of CNY 318,511,473.86[145]. - The company has committed to maintaining a stable dividend policy to optimize its capital structure and ensure long-term development[147]. - The company’s cash dividend distribution plan for 2019 is subject to the approval of the shareholders' meeting, reflecting a commitment to shareholder returns[143]. Financial Performance - The company’s operating revenue for 2019 was approximately ¥2.42 billion, a decrease of 6.16% compared to the previous year[16]. - The net profit attributable to shareholders for 2019 was approximately ¥82.38 million, representing a decline of 20.66% year-over-year[16]. - The net profit after deducting non-recurring gains and losses was approximately ¥67.33 million, down 33.40% from the previous year[16]. - The total assets at the end of 2019 were approximately ¥3.38 billion, a decrease of 11.39% from the end of 2018[17]. - The net assets attributable to shareholders at the end of 2019 were approximately ¥1.78 billion, down 4.69% compared to the previous year[17]. - Basic earnings per share for 2019 were ¥0.1713, a decrease of 21.02% year-over-year[16]. - The weighted average return on equity for 2019 was 4.63%, down from 6.37% in 2018[16]. - The company reported a total revenue of 149,223,880.20 yuan for the year 2019[88]. - The net profit for the year was 557.08 million, reflecting a growth of 16.7% from the previous year[104]. Operational Efficiency - The company has implemented advanced monitoring and control technologies for its distribution network, enhancing operational efficiency and reliability[10]. - The report includes a detailed analysis of operational risks and countermeasures, indicating a proactive approach to future challenges[5]. - The company is focusing on the development of smart sensing terminal devices and edge computing gateways, aligning with the demands of the pervasive power IoT and strong smart grid[47]. - The company has a competitive advantage due to its differentiated product design capabilities, allowing for rapid adjustments to meet market demands[30]. - The gross margin improved to 29.74%, indicating better cost management and operational efficiency[105]. Research and Development - The company has a strong emphasis on R&D, with significant investments leading to a robust portfolio of patented technologies and products[30]. - The company increased its R&D personnel to 306, representing a 22.40% increase from 250 in the previous year[70]. - R&D investment amounted to ¥119,070,622.49, a decrease of 8.41% compared to ¥130,004,712.84 in 2018, with R&D expenditure accounting for 4.92% of operating revenue[70]. - The company has accumulated 176 patent authorizations, including 38 invention patents[37]. - The company has completed the R&D and small batch production of several new products, including the 35kV signal source and various high-voltage circuit breakers[69]. Market Expansion - The company is exploring market expansion opportunities, particularly in the smart grid and automation sectors, to enhance its competitive position[10]. - The company has established a nationwide sales network covering over 30 provinces, enhancing its market reach and sales capabilities[29]. - The company plans to expand its product application range to cover more industries, aiming for a steady increase in market share[39]. - The company is actively expanding its market presence in the clean energy sector, particularly in solar and biomass energy[86]. - The company is focusing on new product development in the field of solar energy and related technologies[86]. Risk Management - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting the importance of risk awareness[5]. - The company recognizes risks related to market competition and plans to maintain its competitive edge through increased R&D investment and improved product quality[128]. - The company is aware of the risks associated with high customer concentration and aims to diversify its market presence beyond state-owned enterprises[129]. Corporate Governance - The board of directors has confirmed that all members attended the meeting to review the annual report, ensuring accountability for the report's accuracy and completeness[4]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible personnel, including the chairman and accounting manager[4]. - The company has not reported any changes in controlling shareholders during the reporting period[15]. - There were no significant differences between financial reports prepared under international accounting standards and those under Chinese accounting standards during the reporting period[18]. Legal and Compliance - The company is involved in a lawsuit with Shanghai Oujia Electromechanical Equipment Co., Ltd., claiming RMB 15.4 million in a contract dispute, with the first-instance judgment made on November 29, 2019[166]. - The company has a total of 13 lawsuits related to sales contracts, with 7 judgments already effective and 4 lawsuits pending[167]. - There are no penalties or rectification situations reported during the reporting period[168]. Shareholder Engagement - The company has implemented an employee stock ownership plan, with the first grant date set for December 23, 2016, at a price of RMB 11.84 per share[171]. - The company granted 9.37 million restricted stocks to 246 participants, with a lock-up period of 12, 24, and 36 months, unlocking 40%, 30%, and 30% respectively[173]. - The company has been actively managing its share capital through repurchase and cancellation of restricted shares to optimize shareholder value[184]. - The company’s strategic adjustments in share repurchase reflect its commitment to enhancing shareholder returns and managing equity effectively[185].