AIM(SZ:300446)2020-04-26 16:00Financial Performance - The company's operating revenue for 2019 was ¥278,580,163.96, an increase of 5.34% compared to ¥264,459,595.89 in 2018[28]. - The net profit attributable to shareholders for 2019 was ¥109,606,073.33, reflecting a growth of 6.35% from ¥103,062,780.20 in 2018[28]. - The net profit after deducting non-recurring gains and losses was ¥95,234,621.26, a decrease of 1.96% compared to ¥97,134,722.84 in 2018[28]. - The net cash flow from operating activities decreased by 18.20% to ¥89,582,109.16 from ¥109,518,814.61 in 2018[28]. - Total assets at the end of 2019 reached ¥740,101,479.50, an increase of 11.62% from ¥663,031,717.81 at the end of 2018[28]. - The company's net assets attributable to shareholders increased by 11.76% to ¥691,585,092.94 at the end of 2019 from ¥618,819,019.61 at the end of 2018[28]. - The company's total revenue for 2019 was approximately ¥278.58 million, representing a year-over-year increase of 5.34% compared to ¥264.46 million in 2018[57]. - Revenue from information anti-counterfeiting materials was approximately ¥255.39 million, accounting for 91.68% of total revenue, with a slight decrease of 0.86% from the previous year[57]. - Revenue from electronic functional materials reached approximately ¥23.19 million, showing significant growth of 238.71% compared to ¥6.85 million in 2018[57]. - The company's R&D expenses for the year amounted to approximately ¥33.66 million, reflecting a year-over-year increase of 17.66%[52]. Dividend Distribution - The profit distribution plan approved by the board includes a cash dividend of 0.25 RMB per 10 shares and a stock bonus of 1 share per 10 shares[14]. - The cash dividend accounted for 20.00% of the total distributable profit of RMB 421,556,429.71[126]. - In the past three years, the cash dividend amounts were RMB 49,120,000.00 in 2017, RMB 36,840,000.00 in 2018, and RMB 4,605,000.00 in 2019, representing 47.06%, 35.75%, and 4.20% of the net profit attributable to ordinary shareholders respectively[129]. - The company has a policy to distribute at least 20% of the distributable profit as cash dividends when in a growth phase with significant capital expenditure[126]. - The total share capital as of December 31, 2019, was 184,200,000 shares[126]. - The company issued 1 bonus share for every 10 shares held in 2019[126]. - The cash dividend distribution plan must be approved by the shareholders' meeting and requires a two-thirds majority vote[124]. - The company emphasizes a stable and continuous profit distribution policy, prioritizing cash dividends[125]. - The board of directors must consider various factors, including industry characteristics and major capital expenditure plans, when proposing dividend policies[125]. - The company has not made any cash dividend distribution decisions that deviate from its established policy during the reporting period[125]. Research and Development - The company has developed new products such as electromagnetic wave protection films and pressure testing films, but these have not yet significantly impacted overall performance[11]. - The company is actively expanding its product development in electromagnetic wave protection films and pressure testing films, which are in the growth stage of the market[43]. - The company's R&D investment for the reporting period was ¥33,663,525.80, a year-on-year increase of 17.66%, representing 12.08% of operating revenue[69]. - The number of R&D personnel increased to 73, accounting for 25.80% of the total workforce[70]. - The company reported a significant increase in R&D efforts to develop new products and enhance existing technologies[114]. - The company plans to increase R&D investment to improve core competitiveness and expedite the market development of pressure testing films and electromagnetic shielding films[114]. - The company intends to optimize production processes and improve product quality, particularly for electromagnetic shielding films and pressure testing films[114]. Market Trends and Risks - The implementation of EMV migration is expected to lead to a decline in demand for magnetic stripe cards, potentially impacting future revenue[9]. - The market for thermal magnetic ticket products is concentrated in the domestic railway passenger transport sector, with a significant risk of demand decline due to the promotion of electronic tickets[10]. - The company anticipates a decline in demand for thermal magnetic tickets due to the promotion of new electronic ticketing systems, which may lead to uncertainty in future sales[109]. - The railway passenger volume is projected to reach 4 billion trips annually, with a growth rate of 9.5%, indicating a stable demand for thermal magnetic tickets in the short term[109]. - The company is positioned within a competitive landscape for magnetic stripe products, with a focus on expanding its market share in high-end segments[110]. Asset Management - Fixed assets increased by 39.27% at the end of 2019 compared to the beginning of the year, primarily due to the capitalization of the R&D center[44]. - Intangible assets increased by 74.47% at the end of 2019 compared to the beginning of the year, mainly due to land purchases by the Sichuan subsidiary[44]. - Deferred tax assets increased by 530.22% at the end of 2019 compared to the beginning of the year, primarily due to adjustments in deferred income tax expenses[47]. - Accounts payable increased by 108.77% at the end of 2019 compared to the beginning of the year, driven by increased purchases of raw materials and equipment[47]. - The total amount of accounts receivable at the end of 2019 was ¥80,811,292.25, representing 10.92% of total assets[76]. - Inventory increased to ¥47,263,513.46, representing a 6.39% increase compared to the previous year[79]. - Trading financial assets surged to ¥364,086,108.44, marking a 49.19% increase due to the adoption of new financial instrument standards[79]. - Other current assets fell to ¥9,154,810.66, a significant decrease of 51.80% attributed to the new financial instrument standards[79]. Compliance and Commitments - The company has committed to avoid any competition with its subsidiary, ensuring that neither it nor its controlled enterprises will engage in similar business activities as the subsidiary[136]. - The company has pledged to compensate any losses incurred by the subsidiary due to violations of the commitments made regarding competition[139]. - The company has a long-term commitment to adhere strictly to the information disclosure requirements in the prospectus, ensuring no misleading statements or omissions[145]. - The company has committed to not utilize its controlling position to harm the interests of the subsidiary or its shareholders[148]. - The company will notify the subsidiary in writing about any share reduction plans and will disclose this information three trading days prior to the reduction[144]. - The company has established a commitment to compensate investors for any direct losses resulting from false records or misleading statements in the prospectus[133]. - The company has committed to extend the lock-up period by an additional 6 months if the stock price falls below the issue price for 20 consecutive trading days within the first 6 months post-listing[132]. - The company has stated that it will not engage in any business activities that may compete with the subsidiary's main business[147]. - The company has committed to a maximum reduction of 50% of its shares in the subsidiary within 24 months after the lock-up period ends, with the reduction price not lower than the issue price[142]. - The company committed to avoiding related transactions with its controlling entities and will ensure fair pricing based on market standards[151]. Financial Standards and Auditing - The company has made changes to its accounting policies in accordance with the new financial instrument standards issued by the Ministry of Finance, which will not affect the comparative financial statement data[192]. - As of January 1, 2019, the book value of trading financial assets is reported as ¥351,075,995.36 under both the old and new financial instrument standards[193]. - There were no significant changes in accounting estimates during the reporting period[197]. - The company has not made any major corrections to prior period accounting errors during the reporting period[197]. - The company has appointed Zhihong Accounting Firm as its auditor, with an audit fee of ¥300,000 for the reporting period[199].