JHSY(SZ:002597)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 3,666,246,520.47, a decrease of 7.69% compared to CNY 3,971,856,106.18 in 2019[23] - The net profit attributable to shareholders for 2020 was CNY 718,525,167.63, down 11.16% from CNY 808,761,301.80 in the previous year[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 570,031,064.08, a decline of 23.33% compared to CNY 743,468,567.69 in 2019[23] - The basic earnings per share for 2020 were CNY 1.29, down 11.03% from CNY 1.45 in 2019[23] - The diluted earnings per share were CNY 1.28, a decrease of 10.49% compared to CNY 1.43 in the previous year[23] - The weighted average return on equity was 15.50%, down from 19.42% in 2019, reflecting a decrease of 3.92%[23] - Total revenue for the year was approximately ¥3.68 billion, with quarterly revenues of ¥857.47 million, ¥971.53 million, ¥883.18 million, and ¥954.07 million respectively[28] - Net profit attributable to shareholders for the year was approximately ¥719.52 million, with quarterly net profits of ¥151.95 million, ¥204.80 million, ¥176.34 million, and ¥185.43 million respectively[28] - The net cash flow from operating activities for the year was approximately ¥994.01 million, with quarterly cash flows of ¥22.34 million, ¥386.13 million, ¥113.74 million, and ¥471.80 million respectively[28] Assets and Liabilities - The total assets at the end of 2020 were CNY 6,998,152,136.98, representing a growth of 13.80% from CNY 6,149,326,400.76 at the end of 2019[23] - The net assets attributable to shareholders increased by 10.35% to CNY 4,945,909,384.69 from CNY 4,482,064,629.63 in 2019[23] - The company's cash and cash equivalents decreased by 97.12% year-on-year, with a net decrease of ¥18,953,469.75 in 2020, compared to a decrease of ¥657,346,634.26 in 2019[115] - As of the end of 2020, cash and cash equivalents amounted to ¥1,138,980,405.07, which is 16.28% of total assets, down from 28.87% at the beginning of the year[119] Investment and Capital Expenditure - The company has invested in a new project to build a 5,000-ton annual production capacity for sucralose and a circular economy industrial park, indicating ongoing expansion efforts[56] - The company invested a total of ¥573,264,949.88 in the annual production project of 5,000 tons of sucrose, with a completion rate of 70%[128] - The total investment in the annual production project of 5,000 tons of ethyl maltol was ¥6,584,851.18, with a completion rate of 5%[128] - The company has completed the construction of a 10,000-ton production facility for ethyl maltol, which is currently under development[83] - The company has invested a total of 12,715.61 million CNY in the modified project of sucralose technical renovation and expansion, achieving an investment progress of 63.58%[142] Research and Development - The company established a research institute with over 30 dedicated R&D personnel, focusing on product and process innovation, with 70% holding graduate degrees or higher[68] - The company applied for 151 patents in 2020, including 145 invention patents, and received 17 authorized patents, maintaining its status as a top innovator in Anhui Province[72] - The company has a strong technological foundation with a provincial-level recognized technology center and partnerships with universities for R&D, ensuring continuous innovation[57] - The number of R&D personnel increased by 12.44% to 488, while the proportion of R&D personnel to total employees decreased to 11.07%[114] Market and Product Development - The company focuses on the development and production of food additives, bulk chemicals, pharmaceutical intermediates, and functional chemical products, serving various industries including food and beverage, healthcare, and agriculture[36] - The company’s major products include high-intensity sweeteners such as aspartame and sucralose, which are widely used in beverages and personal care products[36] - The company has established a strategic layout and product line targeting the food and beverage, pharmaceutical, and advanced manufacturing sectors, supported by ongoing R&D investments[36] - The company plans to expand its market share by actively exploring weak regional markets and launching new product lines[97] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 4.5 per 10 shares, based on a total of 559,126,329 shares[6] - The cash dividends for the last three years have been consistently paid, with the total cash dividends amounting to RMB 251,606,848.05 in 2020, RMB 300,778,936.74 in 2019, and RMB 201,157,216.92 in 2018[173] - The company’s cash dividend payout ratio for 2020 is 35.02% of the net profit attributable to shareholders[173] - The company has committed to actively returning profits to all shareholders while considering future development and project investment plans[174] Compliance and Governance - The company has committed to not engaging in any business that competes directly or indirectly with its subsidiaries, ensuring compliance with legal obligations and protecting shareholder interests[181] - There were no instances of non-compliance with commitments made by the controlling shareholders, ensuring the integrity of transactions and the protection of company assets[182] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period, indicating strong financial governance[186] - The company has adhered to the new accounting policies and estimates as mandated by the Ministry of Finance, ensuring compliance with updated financial reporting standards[187] Environmental and Safety Management - The company is committed to improving safety and environmental management, establishing a long-term regulatory mechanism, and increasing investment in safety and environmental protection[156] - The company faces environmental governance risks due to stricter regulations and potential penalties for non-compliance, which could impact performance[159] - The company emphasizes strict quality control to mitigate food safety risks in downstream markets, ensuring compliance with standards[164] Strategic Goals and Future Plans - The company aims to increase its core products or product clusters to five by the end of 2022 and successfully develop one to two new business segments[151] - The company has a strategic goal to achieve a production value of 10 billion CNY within the next five years[151] - The company plans to avoid adding new capacity in bulk chemicals and focus on developing fine chemicals to mitigate macroeconomic fluctuations[160] - The company is actively expanding sales channels in South America and Europe to diversify risks associated with trade tensions and geopolitical issues[163]