CNGR(SZ:300919)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 7,439,624,072.44, representing a 40.07% increase compared to CNY 5,311,212,819.90 in 2019[14]. - The net profit attributable to shareholders for 2020 was CNY 420,159,388.57, a significant increase of 133.65% from CNY 179,826,999.88 in 2019[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 346,928,720.87, up 186.09% from CNY 121,266,643.64 in 2019[14]. - The net cash flow from operating activities for 2020 was CNY 463,587,801.66, a turnaround from a negative cash flow of CNY -250,642,402.73 in 2019[14]. - The total assets at the end of 2020 amounted to CNY 9,864,111,074.13, reflecting a 60.03% increase from CNY 6,163,789,632.30 at the end of 2019[14]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,836,687,231.67, an increase of 81.48% from CNY 2,114,149,960.60 in 2019[14]. - The basic earnings per share for 2020 were CNY 0.820, up 105.00% from CNY 0.400 in 2019[14]. - The diluted earnings per share for 2020 were also CNY 0.820, reflecting the same growth of 105.00% from CNY 0.400 in 2019[14]. - The weighted average return on net assets for 2020 was 17.97%, an increase from 16.00% in 2019[14]. - The total operating revenue for 2020 was approximately ¥7.44 billion, with quarterly revenues of ¥1.57 billion, ¥1.39 billion, ¥2.12 billion, and ¥2.36 billion respectively[15]. Market Position and Strategy - The company's revenue from ternary precursor products for lithium batteries accounted for over 70% of its main business income[3]. - The rapid development of the new energy vehicle industry has significantly increased the market size and shipment volume of key materials for lithium batteries[2]. - The company is enhancing its competitive advantages by leveraging its leading position in the industry, focusing on R&D, quality, customer relations, and scale[3]. - The company is actively developing supplier channels to mitigate risks associated with raw material price fluctuations[3]. - The company emphasizes the importance of adapting to changes in the mainstream technology routes for power batteries to maintain its core competitive advantages[3]. - The company acknowledges the risk of intensified industry competition as new entrants and existing players expand their capacities[2]. - The company is focused on collaborative, open, and rapid R&D to enhance its competitive edge in new material technologies[3]. - The company has established stable partnerships with leading global battery manufacturers, including LG Chem and Tesla, enhancing its position in the supply chain[22]. - The company operates under a "sales-driven production" model, aligning production plans with sales contracts and customer demand[23]. - The company has a dual sales model consisting of self-operated sales and entrusted processing, allowing flexibility in meeting customer needs[25]. Research and Development - The company focuses on high-nickel low-cobalt ternary precursors and high-voltage cobalt oxide, which are essential for lithium battery production, targeting applications in electric vehicles and energy storage[22]. - The company has developed over 2,000 new products annually, ensuring comprehensive coverage of its product line[35]. - R&D investment for the year was CNY 270.11 million, a 53.93% increase, with over 2,000 new products developed or improved[40]. - The company has established a modern R&D system with a production capacity of 4,000 tons per year and over 25% of non-standard equipment in its production line[35]. - The company is committed to enhancing its research and development capabilities to adapt to potential shifts in the mainstream technology routes for electric vehicle batteries[87]. Production and Capacity - The company achieved over 80% of its sales from high-nickel ternary precursors, with high-voltage and doped cobalt oxide accounting for over 80% of its product mix[35]. - The company plans to expand its production capacity to over 20,000 tons by the end of 2021 and aims to exceed 50,000 tons by 2025[36]. - The company is accelerating the construction of a 60,000-ton precursor production capacity, with the first phase of 15,000 tons expected to be operational in Q2 2021[40]. - The production capacity utilization rate for ternary precursors was 100.95%, with an actual output of 73,025.70 tons[48]. - The company is expanding its production capacity, with an additional 75,000 tons under construction for lithium battery cathode precursor materials[48]. Financial Management and Shareholder Returns - The company plans to distribute a cash dividend of 0.8 yuan per 10 shares based on a base of 569,650,000 shares[3]. - The cash dividend for the reporting period is set at 0.8 yuan per 10 shares, totaling 45,572,000 yuan, which represents 100% of the distributable profit[91]. - The total share capital as of December 31, 2020, is 569,650,000 shares, and the cash dividend policy remains unchanged[92]. - The company is committed to a stable profit distribution policy to ensure reasonable returns for investors[89]. - The company did not distribute cash dividends in 2018 and 2019, with a capital increase from 71.42857 million to 400 million yuan in 2019 through capital reserves[93]. Industry Trends and Outlook - The global output of power lithium-ion batteries reached 294.5 GWh in 2020, with a significant increase in demand for ternary precursors driven by the rapid growth of the new energy vehicle market[26]. - The penetration rate of new energy vehicles in China reached 5.4% in 2020, marking a significant transition from the introduction phase to the growth phase of the market[28]. - The global market for energy storage lithium batteries is expected to grow significantly, driven by the increasing demand for renewable energy solutions and supportive policies[29]. - The trend towards high nickel content in ternary lithium batteries is expected to enhance energy density and reduce costs, aligning with the sustainable development goals of the new energy vehicle industry[30]. - The global trend towards electric vehicles is expected to accelerate, with projections indicating that by 2035, new energy vehicles will account for over 50% of total vehicle sales[78]. Corporate Governance and Compliance - The company has established a long-term commitment to ensure the accuracy and completeness of its public offering documents, taking legal responsibility for any misstatements or omissions[101]. - The company has committed to long-term stock holding and will comply with regulations regarding stock reduction after the lock-up period[113]. - The governance structure complies with relevant laws and regulations, ensuring transparency and protection of shareholder interests[187]. - The company maintains independence from its controlling shareholders, ensuring fair and reasonable related party transactions[187]. - The company has established performance evaluation standards and incentive mechanisms for directors, supervisors, and senior management[189]. Social Responsibility and Community Engagement - The company invested over 1 million yuan in various social responsibility initiatives, including education and health poverty alleviation during the pandemic[139]. - A total of 79 registered impoverished individuals were lifted out of poverty through the company's targeted poverty alleviation efforts[142]. - The company provided vocational training to over 1,100 individuals, helping to create job opportunities for more than 700 local farmers[141]. - The company has actively participated in public welfare projects, contributing to the support of vulnerable groups and education initiatives[139]. - The company plans to continue its commitment to social responsibility and poverty alleviation in alignment with national policies[144].