Sanxiang Advanced Materials(603663)2021-03-23 16:00Financial Performance - The company's operating revenue for 2020 was CNY 733,112,875.56, a decrease of 3.68% compared to CNY 761,083,724.61 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 64,839,468.87, down 21.61% from CNY 82,710,422.36 in the previous year[21]. - The net profit excluding non-recurring gains and losses was CNY 59,792,858.73, a decrease of 24.97% compared to CNY 79,696,748.49 in 2019[21]. - Basic earnings per share decreased by 22.73% to CNY 0.34 in 2020 from CNY 0.44 in 2019[22]. - Diluted earnings per share also decreased by 22.73% to CNY 0.34 in 2020 from CNY 0.44 in 2019[22]. - Operating profit was CNY 87.69 million, down 32.92% year-on-year[59]. - The gross profit margin for the main business was 26.67%, down by 5.39 percentage points year-on-year[65]. - The revenue from the zircon series products was 563,378,859.12, with a gross profit margin of 28.65%, reflecting a year-on-year increase of 5.02%[65]. - The company’s electric melting zirconia products generated revenue of CNY 419.51 million, a decrease of 4.78% compared to the previous year[51]. - The company’s foundry new materials segment reported revenue of CNY 107.27 million, down 10.48% year-on-year due to the impact of the pandemic on the automotive industry[52]. Cash Flow and Assets - Cash flow from operating activities increased significantly to CNY 148,245,802.92, up 148.09% from CNY 59,754,009.06 in 2019[21]. - Total assets at the end of 2020 reached CNY 1,333,083,135.91, an increase of 28.7% from CNY 1,035,845,099.85 in 2019[21]. - The net assets attributable to shareholders increased by 24.2% to CNY 655,468,446.01 from CNY 527,769,193.30 in 2019[21]. - The company's cash and cash equivalents increased by 52.45% compared to the previous period, attributed to stable operations and improved cash flow from sales[33]. - Accounts receivable increased by 32.44% due to a recovery in downstream industry demand in the second half of 2020[33]. - Prepayments increased by 149.24%, primarily due to higher advance payments for raw materials[33]. - Long-term equity investments doubled, reflecting a 100% increase due to investments in magnesium-aluminum alloy projects[34]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of CNY 1 per 10 shares to all shareholders, pending approval at the shareholders' meeting[5]. - The company declared a cash dividend of 1 RMB per 10 shares, resulting in a cash dividend payout ratio of 29.68% for the year 2020[104]. - The total cash dividend amount for 2020 was 19,246,202 RMB, compared to 18,998,162.40 RMB in 2019, reflecting an increase in the cash distribution[105]. - The net profit attributable to ordinary shareholders for 2020 was 64,839,468.87 RMB, which indicates a profit margin of 29.68% for the cash dividends distributed[105]. Investments and Projects - The company invested in a zircon oxychloride project with an annual production capacity of 20,000 tons, which is expected to expand the demand for zircon sand[48]. - The company has invested a total of 35,850 million RMB in the oxygen chloride zirconium project, with an expected production start in 2021[123]. - The company also invested 10,000 million RMB in the nano zirconia project, which has already commenced production[124]. - The company is focusing on the development of zirconium-based products, including liquid metal and special ceramics, to enhance its market competitiveness[99]. Research and Development - The company invested a total of 23,658,226.71 in R&D, accounting for 3.23% of total revenue[74]. - The company has obtained a total of 136 patents, including 50 invention patents and 86 utility model patents[57]. - The company has developed multiple advanced technologies, including energy-saving melting techniques and high-performance zirconia production, enhancing its competitive edge[37]. - The company aims to provide lower-cost and more environmentally friendly product solutions through ongoing research and development efforts[31]. Environmental and Social Responsibility - The company generated and processed 5 tons of hazardous waste oil in 2020, which was transferred to a qualified environmental treatment company[152]. - The project produced wastewater primarily from floor washing and cooling water, with treated wastewater being reused in the gas purification system[151]. - The company has established pollution control facilities, including a desulfurization tower and wastewater treatment facilities, which have been operating normally and meeting discharge standards[153]. - The company invested a total of 230.81 million RMB in poverty alleviation efforts[144]. - The company provided 11.32 million RMB in financial aid to support impoverished students[145]. - A total of 81 million RMB was contributed to the poverty alleviation public welfare fund[145]. Corporate Governance - The company has maintained a stable management team for over 30 years, contributing to its sustainable development[45]. - The company has a diverse board with members holding various significant positions in other organizations, enhancing its governance structure[196]. - The company’s chairman, Xia Peng, has been in his role since March 29, 2012, and has a consistent shareholding of 3,872,891 shares[194]. - The company has recognized several awards for innovation, including 2 provincial technology advancement awards and 1 national invention exhibition gold medal[199]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly zircon sand, which is primarily imported and subject to international market volatility[100]. - The company has implemented a new revenue recognition standard starting January 1, 2020, adjusting "prepayments" to "contract liabilities" without significant impact on total assets, liabilities, net assets, or net profit[115].