Longhua Technology(SZ:300263)2023-04-14 16:00Financial Performance and Distribution - Longhua Technology Group reported a profit distribution plan, proposing a cash dividend of 0.3 RMB per 10 shares (tax included) based on a total share capital of 893,286,978 shares after deducting repurchased shares[25]. - The company distributed a cash dividend of 0.349979 RMB per 10 shares, totaling 31,647,744.21 RMB for the year[127]. - The total cash dividend, including other methods, amounted to 97,280,313.55 RMB, representing 100% of the total profit distribution[128]. - The company’s profit distribution plan aligns with its articles of association and dividend management measures[127]. - The company’s cash dividend policy is designed to attract and retain talent while ensuring sustainable development[123]. Governance and Management - The company has established a complete and independent governance structure, complying with relevant laws and regulations[32]. - The company has a clear separation from its controlling shareholders in terms of business, personnel, assets, and finance, ensuring independent operations[34]. - The company has a board of directors with diverse backgrounds, including expertise in technology and management, which supports its strategic initiatives[43]. - The company has maintained a consistent attendance record for its board members, ensuring effective governance[88]. - The company’s board of directors has been actively involved in decision-making, with resolutions announced for each meeting held[87]. Risk Management and Compliance - The company emphasizes that any future plans or performance forecasts do not constitute commitments to investors, highlighting the importance of risk awareness[24]. - The company has no significant adverse risk factors affecting its operational, financial status, or ongoing profitability[24]. - The company is focused on maintaining a strong credit risk management framework to mitigate potential losses from contract assets[65]. - The company has implemented a robust internal control system to enhance corporate governance and compliance with relevant laws and regulations[173]. - The company has maintained compliance with all regulatory commitments and has not faced any legal disputes related to labor dispatching[186]. Operational Strategy and Market Position - The company faces increasing pressure from competition in the new materials sector, with key raw material prices and product market prices experiencing volatility[26]. - The company aims to strengthen existing businesses while innovating and upgrading products, focusing on strategic new materials to enhance core competitiveness[26]. - The company has implemented a strategy to consolidate its leading position in niche markets through technological innovation and operational model changes[26]. - The company will continue proactive investor relations management and effective communication with the capital market to enhance its market image and steadily increase its market value[61]. - The company plans to optimize internal management and performance evaluation mechanisms to enhance operational efficiency and employee motivation[116]. Employee and Talent Management - The company has established a comprehensive training system, including onboarding, on-the-job, and growth training, to enhance employee skills and overall quality[124]. - The company has a plan to enhance its talent pool, recognizing that talent is crucial for competitive strength and high-quality development[55]. - The total number of employees at the end of the reporting period was 1,846, with 885 in the parent company and 961 in major subsidiaries[95]. - The company emphasizes the protection of employee rights, adhering to labor laws and ensuring all employees are covered by social insurance[175]. - The company is committed to enhancing the overall management level by aligning executive compensation with operational performance indicators[94]. Financial Reporting and Audit - The financial report is guaranteed to be true, accurate, and complete by the company's management, including the legal representative and accounting personnel[24]. - The company has appointed Lixin Certified Public Accountants as its auditing firm for the financial report[1]. - The internal control self-assessment report was disclosed on April 15, 2023, ensuring transparency in the company's internal governance[136]. - The company has established a quantitative standard for identifying significant defects, with a threshold of 5% of pre-tax profit for major defects and 2% to 5% for important defects[136]. - The company’s internal control evaluation results indicate effective oversight, with no major deficiencies reported[136]. Innovation and Development - The company has been actively involved in patent applications, with 12 patents filed, including 2 invention patents, showcasing its commitment to innovation[44]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development efforts[47]. - The company is actively cultivating new materials businesses by integrating high-end talent and advanced technology[26]. - The company recognizes contract assets based on the relationship between fulfilling performance obligations and customer payments, with contract assets listed when the company has the right to receive consideration for transferred goods or services[65]. - The company performs impairment tests on long-term assets when there are signs of impairment, recognizing impairment losses when recoverable amounts are lower than book values[150]. Social Responsibility and Community Engagement - The company actively engages in social responsibility, focusing on investor protection and supporting social welfare initiatives[169]. - The company actively supports poverty alleviation and rural revitalization by purchasing agricultural products from impoverished areas and providing financial assistance to local communities[176]. - The company aims to maximize social responsibility while pursuing economic benefits, fostering a balance between corporate and societal values[176]. - The company has established an emergency response plan for environmental incidents and conducts annual emergency drills[168]. - The company has conducted environmental impact assessments for construction projects in compliance with environmental protection laws and regulations[168].