JZ GROUP(SZ:300040)2020-04-24 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.5 RMB per 10 shares to all shareholders, based on a total of 343,032,004 shares [4]. - The company reported a cash dividend of 0.5 yuan per 10 shares, totaling 17,151,600.20 yuan, which represents 100% of the distributable profit [191]. - The total distributable profit for the year was 50,328,181.37 yuan [191]. - The cash dividend amount for 2019 was CNY 17,151,600.20, representing 34.08% of the net profit attributable to ordinary shareholders [196]. - The company has a policy to distribute at least 30% of the average distributable profit over the last three years as cash dividends [186]. - The cash dividend amount for 2018 was CNY 17,151,600.20, which accounted for 38.01% of the net profit attributable to ordinary shareholders [196]. - The cash dividend amount for 2017 was CNY 17,151,600.20, making up 17.13% of the net profit attributable to ordinary shareholders [196]. Financial Performance - The company's operating revenue for 2019 was ¥791,481,332.82, a decrease of 22.69% compared to ¥1,023,786,713.18 in 2018 [16]. - The net profit attributable to shareholders for 2019 was ¥50,328,181.37, an increase of 11.54% from ¥45,122,291.52 in 2018 [16]. - The net cash flow from operating activities decreased by 90.91% to ¥56,166,686.46 in 2019 from ¥618,070,979.42 in 2018 [16]. - The total assets at the end of 2019 were ¥4,954,797,329.90, representing a 32.88% increase from ¥3,728,798,371.84 at the end of 2018 [16]. - The company reported a basic earnings per share of ¥0.15 for 2019, up 15.38% from ¥0.13 in 2018 [16]. - The company’s weighted average return on equity for 2019 was 2.58%, an increase of 0.20% from 2.38% in 2018 [16]. - The company’s total net assets attributable to shareholders increased by 6.00% to ¥2,023,259,908.30 at the end of 2019 from ¥1,908,729,976.88 at the end of 2018 [16]. - The company’s revenue in the fourth quarter of 2019 was ¥382,614,374.00, contributing significantly to the annual revenue [18]. Renewable Energy Focus - The company is focusing on the development of power electronic technology, which is crucial for the transformation and control of electrical energy [10]. - The company is actively pursuing market expansion in renewable energy sectors, particularly in wind and solar power projects [4]. - The company is involved in investment and construction projects for new energy power stations, indicating a strategic focus on infrastructure development [10]. - The company aims to innovate in renewable energy utilization and provide comprehensive energy solutions, focusing on smart distribution networks and environmental energy development [24][26]. - Renewable energy power station business has become a significant revenue source, with two main business models: BT (Build-Transfer) contracting and self-developed, invested, and operated projects [30]. - The company has several renewable energy projects under construction, including two wind power projects in Jiangsu, each with a capacity of 100 MW [32]. - The company holds operational renewable energy projects totaling 392.1 MW, with 4 projects connected to the grid and 5 projects under construction [32]. - The company is actively pursuing biomass energy projects, with several under construction and in the early development stages, which are expected to become significant profit sources in the future [36]. - The company aims to address air pollution and enhance rural living standards through its biomass energy initiatives, contributing to a resource-saving and environmentally friendly society [36]. Strategic Partnerships and Investments - The company has established stable partnerships with international smart electrical manufacturers, enhancing its technological and market capabilities [28]. - The company has formed long-term partnerships with several universities and research institutions to enhance its technological innovation capabilities [39]. - The company has established a strategic cooperation agreement for a CNY 2 billion renewable energy industry fund to invest in biomass power generation and heating projects [44]. - The company has established a partnership fund with a total scale of 1 billion RMB, focusing on biomass power generation projects, including three 80MW biomass cogeneration projects [123]. - The company is currently engaged in major non-equity investments, although specific details were not disclosed in the report [108]. Research and Development - Research and development expenses for 2019 amounted to ¥43,091,461.02, representing a 17.11% increase compared to 2018 [73]. - The total R&D expenditure for the year was ¥43,091,461.02, which is 5.44% of the operating income [74]. - The company completed 14 R&D projects in the smart grid sector during the reporting period [74]. - The company holds a total of 293 trademarks and patents as of December 31, 2019 [74]. - The company has filed for 5 new patents related to environmentally friendly gas-insulated switchgear, indicating a focus on innovation in sustainable technology [80]. - Jiuzhou Electric's R&D efforts have led to the successful development of 13 new utility model patents, enhancing its product offerings in the wind power sector [81]. - The company is focusing on R&D for new products, including a series of photovoltaic inverters with power unit structures ranging from 100KW to 500KW, to meet growing market demand [84]. - The company has developed and patented an integrated monitoring panel called Wisdombox, enhancing its product offerings in the electrical equipment sector [88]. Market Expansion and Future Outlook - The company aims to expand its market presence by targeting international markets, aiming for a 20% increase in overseas sales in the next fiscal year [82]. - Jiuzhou Electric's market expansion strategy includes the introduction of a compact 35KV wind power generation substation, aimed at increasing its footprint in renewable energy solutions [87]. - The company anticipates a revenue target of 1.5 billion yuan for the next fiscal year, reflecting a growth forecast of 25% [82]. - The company has outlined a strategic goal to achieve a 30% market share in the domestic wind power converter market by 2025 [82]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and expand its product portfolio [82]. Risks and Challenges - The company faces risks related to market competition, which may lead to overcapacity in its manufacturing sector, necessitating product upgrades and cost control measures [176]. - The company is experiencing liquidity risks due to rapid expansion in the renewable energy sector, which is capital-intensive and may lead to increased debt levels [178]. - The company acknowledges management and human resource risks associated with large-scale renewable energy projects, which may lead to delays in project completion [180]. - The company has recognized goodwill of 12.665 million yuan from the acquisition of Haoceng Electric, which may face impairment risks if performance does not meet expectations [179]. Regulatory Environment - The company is adapting to regulatory changes in the renewable energy sector, particularly regarding subsidy-free grid connection for photovoltaic projects [4]. - The Chinese government has accelerated the implementation of grid parity for renewable energy, establishing a stable market expectation for future development [158]. - In 2019, the wind power industry initiated a subsidy-free grid parity mechanism, with fixed electricity price contracts for 20 years being encouraged [159]. - The solar power sector also began its transition to subsidy-free grid parity in 2019, with guiding prices set for different resource zones [164]. Investment and Financing - The company raised RMB 298.28 million through a public offering of convertible bonds, with net proceeds after expenses amounting to RMB 301 million [113]. - The company utilized RMB 149.68 million of the raised funds for project expenditures and RMB 80 million for temporary working capital in 2019 [113]. - The company is enhancing its financing system by utilizing convertible bonds and private placements to secure long-term funding for projects [175]. - The company has committed investments totaling CNY 30,800 million, with an actual investment of CNY 29,828.23 million, achieving a progress rate of 97.5% [115]. Environmental Commitment - The company is committed to sustainability, with ongoing projects aimed at reducing carbon emissions in its manufacturing processes [83]. - The company aims to enhance the overload capacity of its new environmentally friendly transformer by 20% through innovative design and materials, promoting energy-efficient transformer development [91]. - The company is focusing on the development of a new type of gas-insulated switchgear that utilizes compressed air as an insulating medium, showcasing its commitment to environmentally friendly technologies [91].