The third largest domestic inverter company had a 7% increase in net profit last year, offering a 10-for-7 high dividend and bonus offering.

Every year, high dividends and bonus shares are one of the indispensable focuses of the A-share market. This method of stimulating stock price increases without having to share money from itself is quite popular among listed companies. In recent years, it has evolved to "there are high dividends and bonus shares during the period when A-share financial reports are disclosed". Although listed companies have restrained their high dividends and bonus shares in the past two years under the crackdown and regulation of the China Securities Regulatory Commission, after Sinopharm recently disclosed a 10-for-11 dividend and bonus share plan that successfully triggered the stock price, it is inevitable that some listed companies will feel itchy again.

On the evening of March 30, another batch of stock transfers were released along with annual reports, among which Jinlong Technology had the largest scale of stock transfers. Its disclosed annual report shows that in 2019, during the reporting period, the company achieved operating income of 1.139 billion yuan, a year-on-year increase of 37.01%, and net profit attributable to parent company shareholders was 127 million yuan, a year-on-year increase of 7.22%. The net profit after deducting non-recurring gains and losses was 121 million yuan, a year-on-year increase of 11.99%. The performance growth was obvious, and the sales gross profit margin of 34.57% hit a new high in the past three years. The company took the opportunity to announce the launch of high stock transfers - it plans to increase 7 shares for every 10 shares (no cash dividends).

Jinlong Technology only went public on the A-share market on March 19, 2019, and it has just been one year since its listing. This is also the annual report it has disclosed since its listing. Since its net profit in the 2019 semi-annual report and the third quarter report previously disclosed showed a downward trend, and its net profit as of the end of the third quarter was down 10.21% year-on-year, the market is concerned about whether Jinlong Technology will stage a performance turnaround in its first year of listing (ending the continuous growth of net profit before IPO).

What's more, Jinlong Technology is mainly engaged in the research and development, production, sales and service of string inverters, the core equipment of distributed photovoltaic power generation systems. Although it is known as a new star in my country's inverter industry (after Huawei and Sungrow Power Supply, the company's inverter exports ranked third in China in recent years), it is still a company in the photovoltaic industry after all. The overall decline of my country's photovoltaic industry in recent years is obvious to all. There are not many photovoltaic companies that can achieve growth development under such background. Therefore, after going public in 2019, Jinlong Technology, which failed to prove its "ability" in performance, has continued to have a sluggish stock price in the secondary market.

However, after entering 2020, Jinlong Technology's secondary market has been turbulent, mainly due to the performance release brought by the company's outstanding overseas photovoltaic business. The company's successively disclosed 2019 expected performance forecast, the interactive platform's statement that "production capacity in the first quarter is very full and current orders are sufficient", and the first quarter net profit forecast of 759%-789% have become boosters for the stock price surge. Now that the 2019 annual report has been officially disclosed, the scale of net profit growth is at the median of the original performance forecast, demonstrating the company's strong development momentum in the photovoltaic industry. In addition to meeting expectations, it also came with a 10-for-7 high dividend and bonus plan, which is another shot in the arm for the company's stock price.

What needs to be noted is that a few days ago, the day after the first batch of original shares of the company were unblocked one year after its listing, Jinlong Technology announced that Dongyuan Venture Capital, a shareholder holding more than 5% of the company's shares, and its joint actor Huatong Hengde plan to reduce their holdings by no more than 2% within 6 months after 15 trading days from the date of the announcement. The excellent financial report and high dividend and bonus in 2019 are likely to help them realize relatively high cash.