GZRS(SH:600367)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,377,647,243.65, a decrease of 9.57% compared to ¥1,523,390,234.14 in 2019[25]. - The net profit attributable to shareholders for 2020 was ¥55,103,500.62, down 26.31% from ¥74,780,720.69 in 2019[25]. - The total profit for 2020 was CNY 64.95 million, down 34.77% from CNY 99.56 million in the previous year[57]. - The basic earnings per share decreased by 26.92% to 0.19 RMB from 0.26 RMB in 2019[27]. - The weighted average return on equity dropped to 4.06%, a decrease of 1.66 percentage points from 5.72% in 2019[27]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was -24,449,477.06 RMB, a decrease of 133.63% compared to the previous year[26]. - The net cash flow from operating activities was 29,639,641.62 RMB, down 45.64% from 54,521,396.39 RMB in 2019[26]. - The company reported a significant increase in credit impairment losses, amounting to ¥23,125,045.36, compared to a recovery of losses in the previous year[72]. - The company reported a total revenue of CNY 911,985,986.05 in the inorganic salt industry, with a gross margin of 15.14%, reflecting a year-over-year decrease of 5.38% in revenue[136]. - The manganese salt industry generated revenue of CNY 264,942,930.69, with a gross margin of -7.18%, showing a significant year-over-year decline of 26.85% in revenue[136]. Dividend and Profit Distribution - The total distributable profit as of December 31, 2020, was ¥572,843,318.02, with a proposed cash dividend of ¥0.20 per 10 shares, totaling approximately ¥590.96 million[5]. - The cash dividend payout ratio for 2020 was 10.72% of the net profit attributable to shareholders[5]. - The net profit attributable to ordinary shareholders for 2020 was reported at 55,103,500.62 RMB, with a profit distribution ratio of 10.72%[182]. - The cash dividend policy remained unchanged during the reporting period, aligning with regulations and ensuring the protection of minority shareholders' rights[178]. - The independent directors noted that despite challenges from the pandemic and declining product prices, the company maintained a stable overall operation and proposed a cash dividend of 0.20 RMB per share for 2020[179]. Risks and Challenges - The company has identified several risks, including environmental protection risks and raw material price fluctuations, which may impact future performance[8]. - The company faced significant challenges due to the COVID-19 pandemic but managed to maintain stable production and operations while exploring new market opportunities[55]. - The company faces risks related to environmental regulations and raw material price fluctuations, which could impact production costs[172][174]. - The company faced risks related to low product export volumes due to ongoing COVID-19 pandemic impacts, leading to insufficient demand from foreign customers and increased shipping costs[175]. - There is a risk in attracting and retaining key technical personnel, as the company has invested significantly in automation upgrades but has not kept pace with training[175]. Production and Sales - The company’s main business includes the R&D, production, and sales of barium salts, strontium salts, and manganese products, which are essential materials in various industries[36]. - The company reported a quarterly revenue of 480,437,026.87 RMB in Q4 2020, with a significant increase compared to previous quarters[31]. - The company reported a significant decrease in accounts receivable by 96.30%, from CNY 29,358,146.36 to CNY 1,085,280.00[46]. - The sales volume of barium carbonate decreased by 8.66%, while the sales volume of manganese dioxide decreased by 18.98% year-on-year[79]. - The production of barium carbonate decreased year-on-year due to the impact of COVID-19 and reduced demand from downstream industries, while sales volume increased due to proactive market adjustments and increased sales efforts[80]. - The company’s barium carbonate production in 2020 was 231,400 tons, a decrease of 2,200 tons from 2019, while sales increased by 1,990 tons to 253,000 tons[152]. - The company’s sulfate barium production in 2020 was 50,800 tons, an increase of 750 tons from 2019, with sales rising by 740 tons to 56,000 tons[156]. - The company’s strontium carbonate production in 2020 was 23,400 tons, an increase of 1,900 tons from 2019, with sales rising by 400 tons to 23,800 tons[157]. Research and Development - The company holds 66 patents, including 6 utility model patents, reflecting its commitment to innovation and technology development[50]. - The company invested approximately 47 million RMB in R&D in 2020, accounting for 3.41% of its annual revenue[116]. - The company plans to enhance R&D investment in high-value-added products to find new profit growth points, focusing on market and technology communication[163]. - The company has integrated "Five Small" innovation activities into its operations, enhancing overall innovation awareness[94]. - The number of R&D personnel was 373, accounting for 13.51% of the total workforce[93]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not reported any instances of funds being occupied or overdue receivables during the reporting period[186]. - The company has not received any non-standard audit opinions from its accounting firm[187]. - The company has outstanding loans totaling RMB 32 million, which includes RMB 20 million and RMB 12 million borrowed in 2013 and 2014 respectively, with a court ruling mandating repayment[196]. - The company has filed a claim for debts against the bankrupt Guizhou Rongguang Mining Co., which has not yet repaid the loans as of September 2020[196]. Market Conditions - The overall supply-demand situation for strontium salt products remains weak, with challenges such as insufficient ore supply and increased competition from imported products[43]. - The company’s EMD industry faces intense competition, with no significant changes in price competition expected in the short term[43]. - The company is facing intensified competition in the barium carbonate market due to price competition among major players, including Guizhou Hongtai Chemical Co., Ltd.[152]. - The company has successfully developed new customers for barium carbonate products, achieving sales growth despite adverse market conditions[152]. Legal Matters - The company is involved in a significant lawsuit regarding loan recoveries totaling CNY 12 million, with a court ruling in favor of the company[194]. - The company has initiated enforcement actions against the defendant for the recovery of the loan amount, which includes a court-ordered seizure of land[195]. - The company has reported a total of RMB 10,901,743.26 in uncollectible debts from Henan Anfei Electronic Glass Co., which has completed bankruptcy proceedings[198]. - The company has also reported RMB 3,579,031.62 in debts from Henan Anfei Electronic Glass Co., which is similarly in bankruptcy, with no expected impact on the company's financials due to prior provisions for bad debts[199].