DING LONG(SZ:300054)2020-05-27 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,148,795,536.32, a decrease of 14.11% compared to ¥1,337,596,554.63 in 2018[15]. - The net profit attributable to shareholders of the listed company was ¥34,090,602.14, down 88.37% from ¥293,130,959.41 in the previous year[15]. - The net profit after deducting non-recurring gains and losses was -¥34,609,827.14, a decline of 112.26% compared to ¥282,372,608.71 in 2018[15]. - The net cash flow from operating activities was ¥197,585,058.04, a decrease of 33.66% from ¥297,817,081.92 in the previous year[15]. - The total assets at the end of 2019 were ¥4,201,730,001.78, an increase of 6.09% from ¥3,960,556,469.77 at the end of 2018[15]. - The equity attributable to shareholders of the listed company was ¥3,785,426,866.52, up 2.63% from ¥3,688,543,006.43 in 2018[15]. - The basic earnings per share for 2019 was significantly reduced to 0.04, down 87.10% from 0.31 in 2018[15]. - The weighted average return on net assets was 0.91%, a decrease of 7.07% from 7.98% in the previous year[15]. - The company reported a total non-recurring gains and losses of ¥68,700,429.28 in 2019, a significant increase from ¥10,758,350.70 in 2018, representing a year-over-year growth of approximately 537.5%[21]. Dividend Policy - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares, totaling 18,837,040.22 RMB, based on a distribution base of 941,852,011 shares after deducting repurchased shares[3]. - The total cash dividend, including other methods, amounts to RMB 331,582,367.30, which accounts for 972.65% of the net profit attributable to ordinary shareholders in the consolidated financial statements[122]. - The cash dividend distribution plan for 2019 complies with the company's articles of association and relevant regulations, with no adjustments made to the dividend policy during the reporting period[118]. - The company has maintained a consistent cash dividend policy over the past three years, with the 2019 cash dividend representing 55.26% of the net profit attributable to ordinary shareholders[122]. - The company did not propose any stock bonus or capital reserve transfer to share capital for the 2019 fiscal year[121]. Acquisitions and Investments - The company plans to acquire 59% of Beihai Jixun Electronic Technology Co., Ltd. through a combination of issuing shares and cash payments, which was approved by the China Securities Regulatory Commission[16]. - The company has acquired 22% of Zhuhai Tianke Environmental Technology Co., Ltd. and 59% of Beihai Jixun Electronic Technology Co., Ltd., strengthening its position in the printing consumables industry[24]. - The company has completed the acquisition of a 59% stake in Beihai Jixun Electronic Technology Co., Ltd., which has become a subsidiary as of November 14, 2019[192]. - The company invested approximately RMB 20 million in the Hubei Dinglong Semiconductor and Optoelectronic Display Key Materials Innovation Industrial Base project, covering an area of 45 acres[74]. - The company has committed to invest 5,000.00 million CNY in the development of general consumables for color printing and copying, with the project expected to reach operational status by December 31, 2017[82]. Research and Development - R&D investment in CMP polishing pad project was CNY 28.89 million, and in PI slurry project was CNY 10.15 million, totaling a 14.79% increase year-on-year[37]. - The company’s R&D investment reached 168.08 million yuan in 2019, accounting for 14.63% of operating revenue, an increase of 2.94 percentage points from the previous year[45]. - The company applied for 34 patents and was granted 69 patents in 2019, including 43 invention patents[45]. - The company is committed to continuous innovation and capacity expansion to maintain its competitive edge in the printing consumables market[25]. - The company aims to become a research and production center for semiconductor and optoelectronic materials, addressing supply chain security issues in China[22]. Market Strategy and Operations - The company is focused on expanding its market presence and developing new products in the printing consumables sector, including toner and ink cartridges[7]. - The company’s sales model primarily relies on direct sales, with a focus on customer engagement and product validation before order placement[25]. - The company has established a comprehensive competitive advantage in the global laser printing consumables industry, being the first listed company in China's laser printing consumables sector[31]. - The company has expanded its market presence in international markets, including Europe, the United States, Japan, and Southeast Asia, with a strong customer base including many Fortune 500 companies[32]. - The company is integrating its toner and ink cartridge businesses through acquisitions to create a comprehensive consumables model, enhancing market reach and sales synergy[104]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, indicating that these do not constitute substantive commitments to investors[2]. - The company has outlined potential risks and countermeasures in its future development outlook section of the report[3]. - The company is committed to strengthening risk management, particularly in financial planning and monitoring potential risks related to accounts receivable and inventory[105]. - The company faces risks from price reductions in consumables due to intense competition, with strategies including increased R&D investment and cost optimization to mitigate these risks[107]. - The company has implemented measures to mitigate operational risks associated with the COVID-19 pandemic, ensuring employee safety and maintaining production capacity[106]. Environmental and Social Responsibility - The company has committed to environmental protection and sustainable development, aiming to be a benchmark in environmental governance[185]. - The company invested 38.4 million yuan in social welfare activities, including poverty alleviation and community support[188]. - The company provided 2.9 million yuan in financial aid to support 100 impoverished students, contributing to educational poverty alleviation efforts[189]. - The company has established a comprehensive environmental management system, ensuring wastewater treatment meets national first-class standards[185]. - The company has engaged in various public welfare activities, including donations for education and agricultural support[185]. Corporate Governance and Compliance - The company has made commitments regarding avoiding competition and related transactions, which have been strictly adhered to without any violations noted[125]. - The company has established a commitment to ensure that core technical and management personnel remain with the company for a specified duration, which is still being adhered to[126]. - The company has confirmed that it has fulfilled its capital contribution obligations to its investment entities without any violations[129]. - The company has committed to maintaining the normal and legal operations of its subsidiaries, ensuring no unauthorized asset disposals or significant debt increases occur[131]. - The company has reiterated its commitment to transparency and accountability in its financial disclosures and transactions[139].