Securities code: Infovision Optoelectronics (Kunshan) Co.Ltd(688055) securities abbreviation: Infovision Optoelectronics (Kunshan) Co.Ltd(688055) Announcement No.: 2022018 Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd
Announcement on 2021 profit distribution plan
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Distribution ratio per share: cash dividend of 0.278 yuan (including tax) will be distributed for every 10 shares. No capital reserve will be converted into share capital and no bonus shares will be distributed.
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, the company plans to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and will announce the specific adjustment separately.
The proportion of cash dividends in 2021 is less than 30%, mainly due to the characteristics of the company's industry and the company's current stage of accelerated promotion and development, with a large capital demand. The retained undistributed profits of the company are planned to be used for capital needs such as process upgrading and transformation, raised investment project construction and R & D investment, so as to provide guarantee for the smooth implementation of the company's development strategy and sustainable and healthy development.
1、 Contents of profit distribution plan
Audited by Daxin Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd. (hereinafter referred to as " Infovision Optoelectronics (Kunshan) Co.Ltd(688055) " or "the company") at the end of the period was 122857313913 yuan. In combination with the company's current operating conditions, future development, capital needs and other factors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021 through the resolution of the board of directors. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 0.278 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 3333333400 shares. Based on this calculation, the total cash dividend to be distributed is 9266666852 yuan (including tax). The amount of cash dividends of the company in 2021 accounted for 10.18% of the net profit attributable to the shareholders of the listed company in the consolidated statements.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, due to the conversion of convertible bonds into shares, share repurchase and cancellation, share repurchase and cancellation of equity incentive grant, and share repurchase and cancellation of major asset restructuring, the company plans to maintain the total amount of distribution unchanged and adjust the distribution proportion per share accordingly. If the subsequent total share capital changes, the company will separately announce the specific adjustment.
The profit distribution plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the net profit attributable to the shareholders of the listed company was 91059380468 yuan, the accumulated undistributed profit of the parent company was 122857313913 yuan, and the total cash dividend to be distributed by the listed company was 9266666852 yuan, accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are described below.
(I) industry situation and characteristics of the company
The company is mainly engaged in the R & D, production and sales of thin film transistor liquid crystal display panel (TFT-LCD). It is a high-tech enterprise with original technology, core patents and industry advanced technology panel R & D and manufacturing capacity. Its industry is a new display industry, which is characterized by capital intensive, technology intensive, high entry barriers, large industrial added value, strong radiation driving effect, fast product renewal and iteration speed, etc.
New display is the core basic industry in the field of new generation information technology. China has always focused on the electronic information industry, including the new display industry, and has successively issued relevant industrial development plans and policies to encourage and support the development of the industry. With the development and popularization of 5g, artificial intelligence and Internet of things technologies, display application scenarios and products are constantly enriched. A variety of display technologies will meet the display needs in different scenarios. The new display industry is ushering in a new round of rapid growth. In order to meet the differentiated needs of different customers, provide more comprehensive and reliable solutions and be in an advantageous position in the competition, it is necessary to continuously develop and innovate high value-added products with industrial competitiveness.
(II) development stage of the company and its own business model
The company has always focused on the development of LCD panels, customer-centered, and is committed to becoming an all-round solution expert for small and medium-sized display panels. Through continuous technology research and development and product experience accumulation, the company has a certain market share in the small and medium-sized panel segment market. Combined with the industry situation of the above-mentioned company and comprehensively considering the company's overall business development strategic planning, the company is currently in the stage of accelerated promotion and development. In the future, the company still needs to continuously increase capital investment, promote technological innovation and product upgrading, expand market share and continuously enhance the company's competitive advantage and economies of scale.
(III) profitability and capital demand of the company
In 2021, the company achieved an operating income of 573295411470 yuan, a year-on-year increase of 30.81%, and the net profit attributable to shareholders of listed companies was 91059380468 yuan, a year-on-year increase of 247.47%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 87199342792 yuan, a year-on-year increase of 284.23%, and the profitability continued to improve. According to the company's strategic plan, the company will continue to carry out the technical transformation project of metal oxide panel production line and the improvement and upgrading of product process, further develop automation and intelligent chemical plants, so as to ensure the stability of total production capacity and the advanced application of production line, improve the process capacity and product reliability, and win the long-term cooperation of customers; In addition, the company's fund-raising projects are insufficient and need to be supplemented by self raised funds. Therefore, the company needs more funds to ensure the smooth realization of strategic objectives, R & D projects and fund-raising investment projects, continuously improve the company's technical strength and core competitiveness, and promote the sustainable, healthy and stable development of the company.
(IV) reasons for the low level of cash dividends of the company and the exact purpose of retained undistributed profits
The company attaches importance to the reasonable return on investment to investors and formulates profit distribution policies in strict accordance with relevant laws and regulations. According to the articles of association and the shareholder dividend return plan for the first three years after listing, considering that the company is in the stage of accelerated promotion and development, the company puts forward this profit distribution plan for 2021, which not only protects the legitimate rights and interests of investors, but also takes into account the needs of the sustainable and stable development of the company.
Considering the company's development stage, future strategic development and other factors, the company's retained undistributed profits will be used for product R & D, capacity expansion and optimization and project construction, so as to enhance the company's core competitiveness, product market competitiveness and further enhance the company's industrial position.
The retained undistributed profits of the company are mainly used in the following aspects:
1. The company belongs to a technology intensive industry, which needs to continuously invest large funds in technology R & D, production equipment and product process upgrading, so as to continuously improve the company's technical strength and core competitiveness, improve the company's overall efficiency and promote the company's sustainable and steady development.
2. According to the strategic development plan, the company will take advantage of the rapid development opportunities such as 5g, Internet of things and big data to continue to cultivate the field of small and medium-sized display, invest funds, plan to expand new production capacity and maintain market competitive advantage. 3. When the company is listed, the net amount of raised funds is lower than the investment amount of the raised investment project, and there is a capital gap. The company needs to raise funds by itself to ensure the smooth implementation of the raised investment project.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 18th meeting of the first board of directors on April 15, 2022, considered and passed the proposal on the company's profit distribution plan in 2021 by unanimous vote, agreed to this profit distribution proposal and agreed to submit it to the company's 2021 annual general meeting for deliberation.
(II) opinions of independent directors
The independent directors believe that the profit distribution plan of the company is based on the long-term and sustainable development of the company, based on the comprehensive analysis of the business environment, regulatory policies and other factors, taking full account of the company's current operating conditions, financial conditions, capital needs and future development of the company. The amount and proportion of dividends are reasonable, which is conducive to the sustainable, stable and healthy development of the company, In line with the long-term interests of the company and all shareholders, it balances the relationship between the sustainable development of business and the comprehensive return of shareholders. The company's profit distribution plan for 2021 complies with the relevant provisions of the company law, the securities law, the guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies and other relevant provisions, with complete decision-making procedures and mechanisms, clear and clear dividend standards and proportions, in line with the provisions of the articles of association and relevant review agenda, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders. We unanimously agreed to submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The company held the 13th meeting of the first board of supervisors on April 15, 2022, deliberated and adopted the proposal on the company's profit distribution plan in 2021. The board of supervisors believes that the company's profit distribution plan for 2021 takes full account of the company's current and future business development and capital demand, and is formulated based on the company's current development stage and actual operation, which is conducive to the sustainable, stable and healthy development of the company and in line with the long-term interests of the company and all shareholders; The review procedures are legal and compliant, without any damage to the interests of the company and all shareholders, and comply with the company's current profit distribution policies and relevant laws and regulations.
4、 Relevant risk tips
(I) this profit distribution plan combines the company's development stage, future capital demand and other factors, and will not have a significant impact on the company's operating cash flow, nor will it affect the company's normal operation and long-term development.
(II) the company's annual investment profit distribution plan can only be implemented after it is submitted to the general meeting of shareholders for deliberation and approval in 2021.
It is hereby announced.
Board of directors of Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd
April 18, 2022
