Jiangsu Hengxing New Material Technology (SH:603276)2025-04-28 09:40Financial Performance - The company's overall product sales reached 65,000 tons, an increase of 30.15% compared to the previous year[4]. - Operating revenue exceeded 700 million yuan for the first time, with a year-on-year growth of 13.37%[4]. - The net cash flow from operating activities was 36.3 million yuan, reflecting a year-on-year increase of 10.56%[4]. - The company's operating revenue for 2024 was CNY 730.28 million, an increase of 13.37% compared to CNY 644.13 million in 2023[32]. - The net profit attributable to shareholders for 2024 decreased by 55.36% to CNY 34.85 million from CNY 78.08 million in 2023[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 69.71% to CNY 22.59 million in 2024 from CNY 74.59 million in 2023[32]. - The basic earnings per share for 2024 was CNY 0.17, down 63.04% from CNY 0.46 in 2023[33]. - The total assets at the end of 2024 were CNY 1.83 billion, a decrease of 2.87% from CNY 1.88 billion at the end of 2023[32]. - The company's weighted average return on equity for 2024 was 2.00%, a decrease of 5.51 percentage points from 7.51% in 2023[33]. - The decline in net profit was primarily due to cyclical adjustments in the pesticide industry and increased procurement costs for key raw materials[34]. Product Development and Sales - The company successfully launched several high-quality new products, including a series of butyric acid glycerol esters and high-end organic solvents, enhancing its product matrix and market competitiveness[5]. - The sales revenue from direct and indirect exports increased by over 18% year-on-year, with products sold to regions including the EU, ASEAN, Japan, South Korea, and the Middle East[6]. - In 2024, the company's total production reached 86,600 tons, a year-on-year increase of 32.79%[42]. - Revenue from organic ester products in 2024 was 311.51 million yuan, an increase of 54.59% compared to the previous year[43]. - Revenue from green food and feed additives increased by over 76% year-on-year, while revenue from environmentally friendly high-end organic solvents increased by over 52%[43]. - The company achieved over 30% growth in main business product sales compared to the previous year[50]. - The company has expanded its product layout and introduced competitive new products to adapt to market changes[42]. Research and Development - The company launched more than 10 independent R&D projects in 2024, focusing on electronic chemicals, high-end environmentally friendly solvents, and pharmaceutical intermediates[44]. - The company is enhancing its R&D capabilities by building a more robust research platform and strengthening its innovation team[44]. - The total R&D expenditure for the period was 28,666,368.69 yuan, accounting for 3.93% of total revenue[78]. - The company has developed multiple proprietary technologies, enhancing its competitive edge in the chemical industry[57]. Market Position and Strategy - The company aims to strengthen its leading position in carbon-based fine chemicals and accelerate its layout in new materials, particularly focusing on domestic alternatives to products heavily reliant on imports from the U.S.[9]. - The company is actively expanding its international market presence while primarily focusing on domestic sales[54]. - The company has established long-term partnerships with several well-known enterprises, significantly enhancing market influence and brand recognition[6]. - The company is a leading domestic producer of carbon-based specialty chemicals, with significant international competitiveness and strong R&D capabilities[110]. Environmental Responsibility - The company maintained zero major safety accidents during the reporting period, reflecting its commitment to safety and environmental protection[42]. - The company has zero environmental pollution incidents during the reporting period and is committed to enhancing its environmental performance[44]. - The company generated 42.75 tons of hazardous waste in 2024, all disposed of by qualified units[164]. - The company has implemented carbon reduction measures, focusing on green development strategies and the production of environmentally friendly solvents and bio-based chemicals[180]. - The company ensured compliance with environmental regulations across all subsidiaries, maintaining effective waste management practices[164]. Governance and Shareholder Engagement - The governance structure includes a board of directors, a supervisory board, and various committees to ensure effective decision-making and risk control[123]. - The company adheres to strict information disclosure requirements, ensuring transparency and compliance with regulatory standards[124]. - The company maintains effective communication with minority shareholders to safeguard their rights and interests[124]. - The company has established a cash dividend policy, stating that at least 20% of the distributable profit should be distributed in cash if no major investment plans exist[148]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of 1.25 yuan per 10 shares, with a total cash dividend amounting to approximately 25.68 million yuan, representing 73.69% of the net profit attributable to shareholders[14]. - The company plans to distribute a cash dividend of 2 RMB per 10 shares (including tax) for the 2023 fiscal year, with a total cash dividend amounting to 31,766,331.80 RMB[150]. - The cumulative cash dividend amount for the last three fiscal years is 25,684,679.50 RMB[155]. - The company has a cash dividend policy that mandates a minimum distribution of 80% of profits for mature companies without significant capital expenditures[149]. Risk Management - The company faces risks related to safety production and environmental protection, necessitating ongoing improvements in management and compliance[117]. - The company faces risks from fluctuations in raw material prices, particularly in the petrochemical sector, which can significantly impact direct material costs and potentially lead to a decrease in gross margin if not managed effectively[118]. - The company is committed to ongoing analysis of market information related to raw materials to inform procurement decisions[118]. Employee Management - The company reported a total of 422 employees, with 115 in the parent company and 307 in major subsidiaries[144]. - The employee composition includes 263 production personnel, 14 sales personnel, 55 technical personnel, 10 financial personnel, and 80 administrative personnel[144]. - The company has a training plan in place to enhance employee skills and management capabilities, aligning with overall business needs[146]. Future Outlook - The company plans to continue expanding its market presence and is focused on new product and technology development[130]. - The company aims to enhance its core competitiveness by increasing R&D investment and technical reserves to improve sustainable profitability[199]. - The company plans to improve its governance structure to provide institutional guarantees for its development[199].