Lead Power(SZ:300530)2019-04-24 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.49 RMB per 10 shares (including tax) and to increase capital by 5 shares for every 10 shares held[18]. - The cash dividend accounted for 100% of the total profit distribution for the year[128]. - The company's retained earnings for distribution amounted to 194,174,905.91 yuan[128]. - In 2018, the cash dividend represented 19.01% of the net profit attributable to the company's ordinary shareholders[133]. - The company did not distribute any bonus shares in 2018[130]. - The cash dividend policy was compliant with the company's articles of association and shareholder resolutions[128]. - The company has maintained a consistent dividend distribution policy over the past three years, with significant cash dividends in 2016 and 2017[131]. - The total cash dividends paid in 2017 were 43,330,000.00 yuan, which was 80.06% of the net profit[133]. - The company is in a growth phase and has significant capital expenditure plans, with a minimum cash dividend ratio of 20% required[130]. - The company aims to distribute at least 20% of the annual distributable profits as cash dividends to shareholders[142]. Financial Performance - The company's operating revenue for 2018 was CNY 183,346,370.90, representing a 30.83% increase compared to CNY 140,144,083.75 in 2017[30]. - The net profit attributable to shareholders for 2018 was CNY 55,173,143.94, a slight increase of 1.95% from CNY 54,118,999.44 in the previous year[30]. - The net profit after deducting non-recurring gains and losses decreased by 20.77% to CNY 30,232,062.91 from CNY 38,157,491.63 in 2017[30]. - The net cash flow from operating activities was CNY 30,888,096.76, down 22.65% from CNY 39,933,868.75 in the previous year[30]. - The total assets at the end of 2018 amounted to CNY 561,024,512.77, reflecting a 3.35% increase from CNY 542,836,073.80 at the end of 2017[30]. - The net assets attributable to shareholders increased by 3.28% to CNY 506,738,492.79 from CNY 490,630,226.86 in 2017[30]. - The basic earnings per share for 2018 was CNY 0.79, up 2.60% from CNY 0.77 in 2017[30]. - The weighted average return on equity for 2018 was 11.08%, a slight decrease from 11.24% in the previous year[30]. - The company reported a total of CNY 24,941,081.03 in non-recurring gains for 2018, compared to CNY 15,961,507.81 in 2017[36]. Research and Development - The company has established a research and development team with strong capabilities, including PhDs and industry experts, to enhance its core technology system with independent intellectual property rights[9]. - The company has committed to increasing research and development investment and collaborating with well-known domestic institutions to continuously develop new products[9]. - The company employs a dual approach to research and development, combining independent research with collaborations with major research institutions to achieve industry-leading results in new product and technology development[45]. - The company has achieved domestic leadership in technology for its polycarbonate polyol, which has been validated by the Guangzhou Science and Technology and Information Bureau[39]. - The company has developed a new high-stability palladium additive for plastic electroplating, with a palladium content of 15-45 mg/L[88]. - The company is conducting pilot tests for a green chemistry method to synthesize high-performance carbon dioxide-based polycarbonate polyols, aiming to enhance product performance[88]. - The company has developed high-performance catalysts using carbon dioxide as a raw material, contributing to lower VOC emissions and aligning with national low-carbon policies[118]. Market and Competitive Position - The company emphasizes the importance of maintaining competitive advantages in the surface engineering chemical industry through high-quality products and rapid market response[8]. - The company acknowledges the risks associated with market demand fluctuations and competition, which could adversely affect its operations[6]. - The surface engineering chemicals market is rapidly growing, driven by increasing demand across various industries, including automotive and aerospace[54]. - The company aims to enhance its competitive edge by addressing the challenges of product homogeneity and low-value competition in the domestic market[114]. - The company is focusing on improving product technology and application levels to compete with advanced foreign enterprises in the surface engineering chemical market[114]. - The overall market for surface engineering chemicals in China presents significant growth opportunities, attracting multinational companies to invest[114]. Operational Efficiency and Management - The company aims to enhance its technological innovation and product development by collaborating with leading universities and increasing investment in research and development[119]. - The company plans to enhance shareholder returns by accelerating project investments, strengthening fundraising management, and improving operational efficiency and profitability[147]. - The company is committed to improving operational efficiency and reducing costs to enhance overall performance and mitigate risks associated with share dilution[150]. - The company will strengthen the management and use of raised funds, ensuring they are allocated to designated accounts for specific projects, thus enhancing efficiency and reducing dilution risks[149]. - The company has established a stable procurement system to ensure the stability of raw material purchases, which include a wide range of chemical raw materials[49]. - The company has maintained a direct sales model, primarily selling to downstream coating production and processing enterprises[47]. Legal and Compliance Issues - The company reported a significant legal dispute regarding technology secrets, with a claim for 10 million RMB in damages, but the first-instance judgment was in favor of the company[16]. - The company has not reported any violations of the commitments made by its shareholders during the reporting period[138]. - The company has committed to ensuring that necessary related transactions do not harm the legitimate rights and interests of the issuer and its subsidiaries[145]. - The company has not identified any violations of commitments regarding related transactions and fund occupation during the reporting period[146]. - The company will avoid unnecessary related transactions with the issuer and its subsidiaries, ensuring compliance with relevant decision-making procedures[145]. Subsidiaries and Investments - The company has added three subsidiaries to its consolidated financial statements, including two new controlling subsidiaries and one wholly-owned subsidiary[155]. - The company transferred 49% equity of Jiangmen Deshang Kezuo Technology Industrial Co., Ltd in June 2018, which did not have a substantial impact on the current period[113]. - The company established a wholly-owned subsidiary with an investment of CNY 100 million to focus on new materials in the environmental sector[68]. - The company plans to transfer 49% of its wholly-owned subsidiary's equity for 7.35 million RMB and increase its registered capital from 10 million RMB to 15 million RMB[186]. Environmental Commitment - The company has a strong focus on environmental protection, producing eco-friendly surface treatment agents that reduce wastewater treatment pressure for downstream enterprises[58]. - The company's production processes are designed to comply with RoHS regulations, ensuring that products are free from lead, cadmium, mercury, and chromium[44][45]. - The company has developed new environmentally friendly coating additives and intermediates to meet market demands, focusing on corrosion resistance and decorative needs[115]. - The company’s eco-friendly additives and intermediates are positioned to replace traditional materials and processes, contributing to a more sustainable manufacturing landscape[39]. Shareholder Commitments - The shareholders have pledged not to sell their shares during the lock-up period and to comply with the agreed terms regarding share transfer[137]. - The shareholders' commitment includes a restriction on selling shares at a price lower than the issuance price for two years after the lock-up period[137]. - The company will hold investor meetings to discuss operational status and financial indicators if stock price stabilization measures are triggered[139]. - The company has committed to strict adherence to regulatory requirements and has announced plans for future disclosures regarding share sales[138].