SILVER(SZ:300221)2020-04-27 16:00Financial Performance - The company reported a total revenue of 1.5 billion RMB for the year 2019, representing a year-on-year increase of 15%[13]. - The net profit attributable to shareholders was 200 million RMB, which is a 10% increase compared to the previous year[13]. - In 2019, the company's operating revenue was ¥1,511,471,027, a decrease of 33.20% compared to ¥2,262,760,303.64 in 2018[18]. - The net profit attributable to shareholders was ¥10,083,553.21, marking a significant turnaround from a loss of ¥805,175,824.86 in 2018, representing a 101.25% increase[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥107,400,589.66, an improvement of 91.96% from -¥1,336,470,265.10 in 2018[18]. - The net cash flow from operating activities was ¥63,494,000.36, down 65.08% from ¥181,836,991.52 in 2018[18]. - Total assets at the end of 2019 were ¥1,455,237,221.21, a decrease of 37.06% from ¥2,312,163,603.38 at the end of 2018[18]. - The net assets attributable to shareholders decreased by 25.31% to ¥997,885,562.58 from ¥1,336,052,770.73 in 2018[18]. - The company reported a significant decline of 91.83% in revenue from the CNC metal precision structural parts segment, totaling ¥29,395,796.49[48]. - The company’s net profit for the year was ¥10.35 million, a significant recovery from a loss of ¥813.37 million in the previous year[69]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next three years[5]. - The company aims to achieve a revenue growth target of 20% for the fiscal year 2020[5]. - The company is focused on expanding its market presence in the modified plastics sector, which is expected to continue growing due to increasing demand in various industries[26]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[5]. - The company plans to enhance R&D and promotion of new high-margin products to optimize product structure and expand market share[42]. - The company plans to continuously invest in capital, talent, and technology to enhance its research capabilities and develop differentiated modified plastic products to avoid intense market competition[101]. Research and Development - The company has allocated 100 million RMB for research and development in new technologies for the upcoming fiscal year[5]. - The company holds 108 authorized patents as of December 31, 2019, with 15 new patents granted during the reporting period, including 5 invention patents and 10 utility model patents[35]. - Research and development expenses for 2019 were approximately ¥86.09 million, a decrease of 21.70% compared to 2018[62]. - R&D investment accounted for 5.70% of operating revenue in 2019, an increase from 4.86% in 2018[64]. - The company aims to enhance its competitive edge through continuous investment in technological innovation and R&D[35]. Operational Challenges and Risks - Risk factors include fluctuations in raw material prices and increased market competition, which have been addressed in the company's strategic planning[5]. - The company faces risks related to raw material supply and price fluctuations, with raw material costs typically accounting for around 90% of operating costs[99]. - The company is exposed to intensified market competition in the modified plastics industry, with many small enterprises causing disorderly competition[100]. - The company has paused investments in the cobalt project due to declining market prices and will assess future investments based on market conditions[106]. Shareholder and Dividend Information - There are no plans for cash dividends or stock bonuses for the year 2019, focusing instead on reinvestment into the business[6]. - The company reported a total cash dividend of 4,606,728.96 RMB for the year 2019, which represents 45.69% of the net profit attributable to shareholders[113]. - The company did not distribute any cash dividends or increase share capital from capital reserves in 2019 due to a net loss in 2018 and ongoing recovery from operational challenges[115]. - The company has not proposed any cash dividend distribution plan for 2019 despite having a positive profit available for distribution[118]. Legal and Compliance Issues - The company has faced penalties for violations related to stock trading, including a public reprimand from the Shenzhen Stock Exchange for passive liquidation that led to non-compliance with disclosure requirements[154]. - The company is involved in ongoing litigation regarding performance compensation claims against former shareholders of Xingke Electronics, with amounts of RMB 139.61 million and RMB 200.32 million involved in separate cases[153]. - The company has not violated any commitments regarding shareholding reductions, with a maximum of 25% of indirect holdings allowed to be sold annually during the tenure of key personnel[125]. Asset Management and Financial Position - The company has completed the deregistration of its subsidiary, Xingke Precision Technology, which had not commenced actual operations since its establishment in December 2017[147]. - The company transferred 60% of its equity in Dongguan Hengdao Electronic Technology to optimize its business structure, resulting in Hengdao no longer being a subsidiary[148]. - The company has maintained its accounting firm, Lixin CPA, for four consecutive years, with an audit fee of RMB 800,000[151]. - The company has actively fulfilled its social responsibilities, including supporting impoverished students and establishing scholarships[180]. Employee and Management Practices - The company has established a competitive employee benefits system to attract and retain talented researchers, including profit-sharing and patent rewards for core technical personnel[102]. - The company has implemented changes to its accounting policies effective from January 1, 2019, in accordance with the new financial instrument standards issued by the Ministry of Finance[141].