Letong Chem(002319)2021-03-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 314,563,718.67, a decrease of 17.88% compared to CNY 383,055,009.25 in 2019[16] - The net profit attributable to shareholders in 2020 was CNY 7,309,799.46, a significant improvement of 102.51% from a loss of CNY 291,491,352.09 in 2019[16] - The net cash flow from operating activities increased by 41.04% to CNY 27,597,848.76 in 2020, compared to CNY 19,567,057.66 in 2019[16] - Basic and diluted earnings per share for 2020 were CNY 0.04, recovering from a loss of CNY 1.46 per share in 2019[16] - The total assets at the end of 2020 were CNY 626,524,542.55, a decrease of 4.30% from CNY 654,651,989.30 at the end of 2019[16] - The net assets attributable to shareholders increased by 1.20% to CNY 142,051,055.37 at the end of 2020, compared to CNY 140,361,986.87 at the end of 2019[16] - The company reported a significant reduction in non-recurring losses, with the net profit excluding non-recurring items at CNY -30,548,203.88, an improvement of 89.42% from CNY -288,644,049.54 in 2019[16] - The weighted average return on net assets was 5.18% in 2020, a recovery from -101.72% in 2019[16] Revenue Breakdown - Total revenue for Q1 was ¥58.38 million, Q2 was ¥86.44 million, Q3 was ¥91.81 million, and Q4 was ¥77.93 million[20] - Net profit attributable to shareholders for Q1 was -¥6.45 million, Q2 was ¥7.42 million, Q3 was -¥0.70 million, and Q4 was ¥7.05 million[20] - Non-recurring gains and losses totaled ¥37.86 million in 2020, compared to -¥2.85 million in 2019[22] - The internet advertising marketing business generated revenue of ¥17,181,451.17, down 71.16% year-on-year, with a net loss of ¥674,168.17, a decrease of 114.13%[36] - The chemical raw materials and chemical products manufacturing sector accounted for 92.91% of total revenue, with a revenue of ¥292,259,355.38, down 8.11% year-on-year[39] Cost and Expenses - The company’s main business cost for internet marketing advertising decreased by 71.71% to CNY 11,287,295.27 from CNY 39,896,470.05 in 2019[46] - The company’s total sales expenses decreased by 59.65% to CNY 10,068,967.87 in 2020 from CNY 24,952,785.03 in 2019[51] - The company’s management expenses decreased by 3.44% to CNY 50,554,656.80 in 2020 from CNY 52,356,386.93 in 2019[51] Research and Development - The total R&D expenditure in 2020 was CNY 9,979,238.68, a decrease of 28.60% compared to CNY 13,976,536.69 in 2019, representing 3.17% of total revenue[52] - The company is committed to R&D in environmentally friendly inks, leveraging its strong technical capabilities[29] - The company focused on developing water-based and UV inks, launching products such as environmentally friendly inks and water-soluble plastic inks during the reporting period[35] Market and Industry Trends - The ink manufacturing sector is shifting towards more eco-friendly products like water-based and UV inks due to regulatory support[27] - The internet advertising marketing sector is experiencing rapid growth, driven by increasing internet user numbers and technological advancements[27] - The internet advertising segment experienced a significant decline in revenue due to the prolonged impact of the COVID-19 pandemic, leading to adjustments in the company's market development strategy[68] Strategic Initiatives - The company has established a stable procurement network and efficient production processes to optimize resource allocation[26] - The company aims to enhance production management and invest in new intelligent and automated production lines to improve efficiency and reduce emissions[70] - A major asset restructuring project is underway, with the company seeking to acquire shares in He Sanli Company to enhance market competitiveness and sustainable profitability[70] Risk Management - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[4] - The company faces risks from macroeconomic fluctuations, which may impact overall business operations due to the ongoing global pandemic and complex international situation[71] - Rising operational costs due to fluctuating raw material prices and high labor costs are expected to pressure profit margins[72] Corporate Governance - The company has maintained its accounting firm, Da Hua Accounting Firm, for 14 consecutive years, with an audit fee of RMB 750,000[90] - The board consists of 6 directors, including 3 independent directors, ensuring compliance with corporate governance standards[152] - The company has established a comprehensive human resources management system to ensure fair treatment and protect employee rights, providing a stable work environment[116] Environmental Responsibility - The company emphasizes environmental protection and has implemented energy-saving measures, achieving compliance with pollution discharge standards[117] - The company has a wastewater treatment facility with a capacity of 10 tons per day, ensuring that treated water meets discharge standards[121] - The company has six sets of VOCs treatment facilities, which are currently operating normally and are regularly maintained[122] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,032, with 9,812 being ordinary shareholders[137] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of shares, totaling 51,999,959 shares, with 51,990,000 shares pledged[137] Audit and Compliance - The audit opinion issued by Da Hua Accounting Firm was a standard unqualified opinion[192] - The company confirmed that there were no major defects in non-financial reporting[188] - The internal control self-assessment report indicated that all units included in the evaluation accounted for 100% of the company's total assets and revenue[186]