NSWRC(SH:600165)2021-06-07 16:00Financial Performance - The company's operating revenue for 2020 was CNY 119,114,953.74, a decrease of 55.18% compared to CNY 265,756,858.64 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 20,906,030.80, a significant recovery from a loss of CNY 44,952,125.08 in 2019[20]. - Basic earnings per share for 2020 was CNY 0.031, a significant improvement from a loss of CNY 0.066 in 2019[21]. - The weighted average return on equity increased to 2.316% in 2020 from -5.019% in 2019[21]. - Total revenue for Q4 2020 reached CNY 52,158,516.08, with a notable increase in sales channels due to the acquisition of Ningxia Tianfu[22]. - The net profit attributable to shareholders for Q4 2020 was CNY 31,081,382.72, recovering from losses in previous quarters[22]. - The company reported a total revenue of CNY 20,857,657.03 in Q1 2020, which increased to CNY 27,153,019.90 in Q2 2020[22]. - The company achieved operating revenue of CNY 13,693.89 million, with a gross profit margin steadily increasing, resulting in a gross profit increase of CNY 1,665.24 million compared to the previous year[36]. - The company reported a net profit attributable to shareholders of CNY 2,090.60 million during the reporting period[38]. - The company’s trading subsidiary, Hengli International Trade, generated operating revenue of CNY 41,680.20 million during the reporting period[36]. Assets and Liabilities - Total assets rose by 48.35% to CNY 3,334,571,091.58 in 2020, up from CNY 2,247,718,828.91 in 2019[20]. - The net assets attributable to shareholders increased by 6.29% to CNY 956,151,389.74 at the end of 2020, compared to CNY 899,553,326.37 at the end of 2019[20]. - Total liabilities reached CNY 2,061,673,621.86 in 2020, up from CNY 1,322,613,065.01 in 2019, marking a growth of approximately 55.9%[176]. - Current liabilities amounted to CNY 1,142,424,397.74 in 2020, an increase of 66.4% from CNY 686,402,499.18 in 2019[176]. - Long-term borrowings increased significantly to CNY 360,000,000.00 in 2020, compared to CNY 30,000,000.00 in 2019, reflecting a growth of 1,100%[176]. Cash Flow - The net cash flow from operating activities was negative at CNY -41,059,918.36, an improvement from CNY -47,799,953.98 in 2019[20]. - The total cash flow from investment activities was -CNY 676,524,373.86, reflecting a significant increase in capital expenditures compared to the previous period[11][12]. - Cash flow from financing activities generated a net inflow of CNY 769,214,461.03, compared to CNY 430,782,316.22 in 2019[193]. - The total cash and cash equivalents at the end of 2020 were CNY 182,225,771.03, up from CNY 130,719,741.92 at the end of 2019[193]. Research and Development - The company has developed 20 patents related to its activated carbon production, enhancing its competitive edge in the market[29]. - Research and development expenses totaled CNY 964,883.76, representing 0.81% of operating revenue, with 117 R&D personnel making up 12.05% of the total workforce[5][6]. - The company has obtained 4 invention patents and 16 utility model patents during the reporting period[64]. - Research and development expenses were ¥964,883.76 in 2020, down 41.06% from ¥1,635,132.56 in 2019[184]. Market and Sales - The sales model combines direct sales and distribution, with a focus on both domestic and international markets[29]. - The company’s domestic sales revenue was CNY 89,278.34 million, with a gross profit margin of 10.94%, down 21.18% year-on-year[42]. - The company’s foreign sales revenue was CNY 24,592.84 million, with a gross profit margin of 21.43%, down 9.46% year-on-year[42]. - The company plans to expand its product offerings in the activated carbon sector, targeting various applications including water treatment and air purification[29]. Legal and Compliance - The company has ongoing significant litigation matters, including a claim for 157 million RMB against Xu Xiaochun for unfulfilled performance commitments[106]. - The company is currently involved in legal proceedings that could affect its financial position, including a ruling from the Shanghai Arbitration Commission[108]. - The company has received a court ruling to restore the execution of a previous arbitration decision, which may lead to financial obligations[108]. - The company is actively managing its legal obligations and compliance with court rulings to mitigate financial and reputational risks[110]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights[151]. - The company has a total of 14 board members, including independent directors and management personnel[140]. - The company’s independent directors have diverse backgrounds in law, finance, and management, contributing to robust governance[140]. - The company has maintained compliance with remuneration disclosure, aligning reported figures with actual payments[142]. Future Outlook - The company plans to focus on future development strategies, although specific details were not disclosed in the report[5]. - The company aims to optimize its asset structure and explore diversified development to enhance its competitive strength and sustainability[85]. - For 2021, the company aims for a sales volume of 26,500 tons and revenue of 229 million RMB, focusing on improving production efficiency and expanding into the environmental protection sector[87]. - The company faces risks from macroeconomic changes, with 20% of sales coming from exports to North America, Europe, and Asia-Pacific, which may impact its export business[88].