YONGXING MATERIALS(SZ:002756)2020-03-19 16:00Financial Performance - The company reported a profit distribution plan of 4.56 CNY per 10 shares (including tax) based on a total of 360,000,000 shares[4]. - The company's operating revenue for 2019 was ¥4,909,422,346.31, representing a 2.40% increase compared to ¥4,794,349,604.01 in 2018[12]. - The net profit attributable to shareholders for 2019 was ¥343,567,828.19, a decrease of 11.29% from ¥387,296,112.91 in 2018[12]. - The net profit after deducting non-recurring gains and losses was ¥161,317,041.48, down 47.39% from ¥306,608,180.98 in 2018[12]. - The company's cash flow from operating activities for 2019 was ¥345,222,346.41, a decline of 31.87% compared to ¥506,730,134.35 in 2018[12]. - The total assets at the end of 2019 were ¥4,542,063,538.36, an increase of 4.56% from ¥4,344,057,084.58 at the end of 2018[12]. - The net assets attributable to shareholders at the end of 2019 were ¥3,390,557,783.31, a slight decrease of 0.42% from ¥3,404,941,813.08 at the end of 2018[12]. - The company reported a significant non-recurring gain of ¥99,042,997.93 from the disposal of non-current assets in 2019[16]. - Government subsidies recognized in 2019 amounted to ¥131,987,831.82, compared to ¥128,529,288.02 in 2018[16]. - The company achieved operating revenue of RMB 4,909.42 million in 2019, representing a year-on-year growth of 2.40%[37]. - The net profit attributable to shareholders of the parent company was RMB 343.57 million, a decrease of 11.29% year-on-year[37]. Business Operations - The company has undergone a change in its business scope to include research, production, and sales of lithium-ion batteries, along with various metal materials and products[10]. - The company operates in stainless steel and lithium battery materials, with a focus on high-end industrial applications[18]. - The company has established a lithium battery new energy industry chain, with a mining scale of 1 million tons per year from the Huashan ceramic stone mine, ensuring a controlled economic resource of 45.073 million tons[21]. - The company’s lithium battery-grade carbonate products are primarily sold directly to ensure responsiveness to market demand and customer satisfaction[21]. - The company’s production model for lithium battery-grade carbonate combines planning and orders based on market demand, ensuring efficient production[21]. - The company has established long-term cooperative agreements with suppliers to secure raw materials for its lithium battery business, ensuring resource availability[21]. - The company’s stainless steel business benefits from favorable national policies aimed at promoting high-end stainless steel and special alloy market growth[22]. - The company has developed a proprietary stainless steel batching control software to optimize raw material procurement and cost control, enhancing competitiveness[20]. - The company has a market share that consistently ranks among the top two in the domestic market for stainless steel long products, with the production of duplex stainless steel bars being the highest in the country[23]. Research and Development - The company has a total of 77 patents related to stainless steel, including 25 invention patents, showcasing its strong R&D capabilities[28]. - The company has invested significantly in R&D, with a focus on technological innovation and process improvement, leading to breakthroughs in key technologies[28]. - The company has established various R&D platforms and continues to invest significantly in technology innovation and process improvement[62]. - The company has established a research and production team for lithium extraction, focusing on innovative technologies to improve lithium yield and reduce equipment maintenance costs[45]. - The company has developed core technologies for lithium extraction from lithium mica, aiming to reduce production costs and improve product quality through continuous R&D[96]. Market Strategy - The company aims to achieve a production capacity of 10,000 tons of battery-grade lithium carbonate and 1.2 million tons/year of lithium ore efficient selection and comprehensive utilization projects in 2020[91]. - The company plans to optimize product structure and increase the proportion of high-value-added products in the stainless steel sector, focusing on new markets and products[92]. - The company will implement smart manufacturing upgrades to enhance production efficiency and quality, aiming for a production capacity increase of 60,000 tons from the steelmaking plant[93]. - The company targets a 100% capital recovery rate and significant profit growth through improved product quality and cost reduction strategies[94]. - The company aims to accelerate market promotion of battery-grade lithium carbonate, targeting leading enterprises in new energy materials for expected benefits in 2020[98]. Shareholder Relations - The company has established a cash dividend policy, ensuring at least 20% of distributable profits are allocated to cash dividends if no major capital expenditures occur[107]. - The company’s dividend distribution policy prioritizes cash dividends, with a minimum of 80% for mature stages without major capital expenditures[109]. - For 2019, the cash dividend was reduced to RMB 4.56 per 10 shares, amounting to a total of RMB 16.416 million, which is 47.78% of the net profit attributable to shareholders[112][114]. - The cash dividend for 2019 represented 100% of the total profit distribution amount, indicating a commitment to shareholder returns[113]. - The company maintained a total of 36 million shares as the basis for dividend distribution over the past three years[111][113]. Corporate Governance - The company has not experienced any changes in its controlling shareholders since its listing[10]. - The company has a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights[110]. - The board of directors considered various factors, including economic conditions and cash flow, before approving the 2019 dividend distribution plan[114]. - The company has not proposed any stock dividend or capital reserve transfer to increase share capital in the recent years[113]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditure phases[113]. Environmental and Social Responsibility - The company has invested in environmental protection measures, including a high-performance stainless steel continuous casting system project, adhering to national energy-saving and environmental protection standards[151]. - The company has received environmental impact approvals for its lithium battery projects from the Jiangxi Provincial Environmental Protection Department[151]. - The company has implemented strict pollution control measures, with total emissions of particulate matter at 47.584 tons, well below the permitted limit of 137.98 tons per year[155]. - The company has achieved a 97% recycling rate for cooling water in its hot rolling process, minimizing wastewater discharge[157]. - The company actively participates in social responsibility initiatives, including charitable projects and support for vulnerable groups[156]. Legal and Compliance - The company has ongoing litigation involving a contract dispute with Yongcheng Lithium Industry, with a claim amounting to 10,655.88 million CNY, which has not yet been adjudicated[131]. - The company has a financial loan dispute with Jiangxi Branch of Bank of Communications, with a judgment requiring repayment of 21,403.1 million CNY, and the bank holds priority rights over collateral[132]. - The company has no significant penalties or rectification issues reported during the period[133]. - The company has confirmed that all related party transactions were conducted at market prices without significant discrepancies[136]. Management and Personnel - The company has a total of 1,420 employees, including 927 production personnel, 30 sales personnel, 297 technical personnel, 27 financial personnel, and 139 administrative personnel[149]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 753.37 million[200]. - The highest remuneration was received by Qiu Jianrong, a director, totaling CNY 1.1029 million[198]. - The company emphasizes the importance of performance in determining the remuneration of its executives[197]. - The company has a total of 11 directors and supervisors, with varying ages and tenures, reflecting a diverse leadership team[198].