Lead Power(SZ:300530)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was CNY 173,499,780.39, a decrease of 5.37% compared to CNY 183,346,370.90 in 2018[18]. - The net profit attributable to shareholders for 2019 was CNY 29,491,489.76, down 46.55% from CNY 55,173,143.94 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 10,595,243.97, a decline of 64.95% from CNY 30,232,062.91 in 2018[18]. - The net cash flow from operating activities was negative CNY 17,523,991.68, a decrease of 156.73% compared to CNY 30,888,096.76 in 2018[18]. - Basic earnings per share for 2019 were CNY 0.28, down 46.15% from CNY 0.52 in the previous year[18]. - The company reported a quarterly revenue of CNY 69,843,167.03 in Q4 2019, which was the highest among the four quarters[20]. - The net cash flow from operating activities for 2019 was negative CNY 13,179,059.88, a decline from positive CNY 5,917,887.79 in 2018[21]. - The company received government subsidies amounting to CNY 5,340,497.86 in 2019, down from CNY 12,501,336.03 in 2018, indicating a decrease of approximately 57.3%[24]. - The total non-recurring gains and losses for 2019 amounted to CNY 18,896,245.79, compared to CNY 24,941,081.03 in 2018, reflecting a decrease of about 24.2%[25]. Assets and Equity - Total assets at the end of 2019 were CNY 578,770,972.62, an increase of 3.16% from CNY 561,024,512.77 at the end of 2018[18]. - The net assets attributable to shareholders increased by 3.44% to CNY 524,193,329.07 from CNY 506,738,492.79 in 2018[18]. - The company's cash and cash equivalents increased by 58.79% compared to the beginning of the period, mainly due to the recovery of some financial investment funds[40]. - Accounts receivable increased by 141.56% compared to the beginning of the period, primarily due to an increase in the amount of commercial bills that had not yet matured[40]. - Prepayments increased by 407.81% compared to the beginning of the period, mainly due to an increase in unsettled advance procurement payments[40]. Research and Development - Research and development expenses for 2019 amounted to ¥896.45 million, representing 5.17% of total operating revenue, with significant progress in several key projects[53]. - The company focuses on independent research and development combined with collaboration with research institutions to develop new products and technologies in the environmental coating intermediate industry[31]. - Key R&D projects include the development of high-efficiency trivalent chromium plating solutions and environmentally friendly alkaline copper plating processes, with significant progress reported[73]. - The company aims to replace toxic cyanide processes with new environmentally friendly technologies, enhancing both safety and product quality[73]. - The company has established a core technology system with independent intellectual property rights, supported by a strong R&D team consisting of PhDs, masters, and industry experts[121]. Market and Industry Position - The company has a competitive advantage in core technology, talent, and brand, positioning it as a leader in the surface engineering industry[36]. - The market for surface engineering chemicals is rapidly growing, with new materials emerging alongside traditional coating chemicals[38]. - The company’s surface engineering chemicals are widely applied across various industries, including aerospace, automotive, and electronics, highlighting their importance in the national economy[34]. - The company emphasizes market demand and technological research to continuously develop new products and applications, enhancing its core competitiveness[34]. - The company is committed to developing new environmentally friendly coating intermediates to meet market demands[110]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 18.8 per 10 shares, with no bonus shares issued[5]. - In 2019, the cash dividend represented 673.23% of the net profit attributable to ordinary shareholders, indicating a strong return to shareholders[134]. - The company will distribute cash dividends of no less than 20% of the distributable profits each year, ensuring a stable return for shareholders[147]. - The company has not proposed any stock dividends for the year 2019, focusing solely on cash dividends[132]. Compliance and Governance - The company has no significant discrepancies between financial reports prepared under international accounting standards and those prepared under Chinese accounting standards for the reporting period[21]. - The company has committed to avoiding any business that may compete with its listed entity, ensuring no conflicts of interest arise post-equity change[136]. - The company guarantees that all related transactions with the listed company will be conducted fairly and transparently, adhering to relevant laws and regulations[137]. - The company has maintained compliance with all relevant laws and regulations regarding share transactions and disclosures[143]. - The company has not encountered any violations of commitments during the reporting period[141]. Future Outlook and Strategy - The company plans to develop a dual main business model focusing on "surface engineering chemicals + new energy power batteries" starting in 2020[107]. - The company aims to become a leading supplier of surface engineering chemicals with world-class innovation and technology[113]. - The company is focusing on R&D investment and attracting high-quality international talent to enhance its technological advantages in the new energy battery sector[113]. - The company plans to strengthen its domestic sales network and expand its market share in central, northern, and southwestern regions while also targeting overseas markets[115]. - The company acknowledges the risk of market competition and aims to continuously improve existing technologies and develop new products[153].