LBC(SH:600727)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was RMB 2,931,018,227.78, representing a 5.91% increase compared to RMB 2,767,433,488.05 in 2019[21] - The net profit attributable to shareholders of the listed company was RMB 230,831,280.59, a 2.59% increase from RMB 224,999,660.24 in the previous year[21] - The total assets at the end of 2020 reached RMB 4,566,915,919.92, marking a 10.44% increase from RMB 4,135,373,559.31 in 2019[22] - The net assets attributable to shareholders of the listed company increased by 17.32% to RMB 2,683,721,599.86 from RMB 2,287,614,571.23 in 2019[22] - The basic earnings per share for 2020 was RMB 0.56, a decrease of 12.50% compared to RMB 0.64 in 2019[23] - The cash flow from operating activities was RMB 565,934,282.54, reflecting a decrease of 15.48% from RMB 669,600,482.02 in 2019[22] - The weighted average return on equity decreased to 8.69% from 10.92% in the previous year, a reduction of 2.23 percentage points[23] - The total profit amounted to CNY 38,150,200, a decrease of 6.05% year-on-year[85] - The company reported a net cash flow from operating activities of 565,934,300 CNY, a decrease of 15.48% compared to the previous year[111] Dividend and Shareholder Returns - The company proposed a cash dividend of RMB 3 per 10 shares, totaling RMB 158,574,940.50, which accounts for 68.70% of the net profit attributable to shareholders[5] - The proposed cash dividend for 2020 is RMB 3 per 10 shares, totaling RMB 158.575 million, which represents 68.70% of the net profit attributable to shareholders[168] - The company maintains a cash dividend policy that ensures at least 10% of distributable profits are distributed as cash dividends when conditions allow[166] Acquisitions and Expansion - The company acquired Jin Hai Titanium Industry and Xiang Hai Titanium Industry in 2020, marking its entry into the titanium dioxide industry[34] - The company completed the acquisition of 100% equity in Jinhai Titanium Industry and Xianghai Titanium Industry, enhancing its core competitiveness and risk resistance[68] - The company completed an investment of CNY 140,048.62 million for acquiring 100% stakes in Jinhai Titanium Industry and Xianghai Titanium Industry, making them wholly-owned subsidiaries[137] Production Capacity and Operations - The company has established a production capacity of 100,000 tons for titanium dioxide and is expanding its production with an additional 100,000 tons capacity under construction[34] - The company has an annual production capacity of 300,000 tons of methane chlorides, holding approximately 8% market share in China, with a 70% market share in the South China market for dichloromethane[36] - The company has a production scale of 1 million tons per year for raw salt and 2,500 tons per year for bromine, with plans to expand bromine production by an additional 2,500 tons per year[38] - The company's fertilizer business has a production capacity of 300,000 tons for ammonium phosphate and 1 million tons for compound fertilizers, focusing on high-value-added products[39] - The company has a cement production capacity of 600,000 tons, utilizing a circular economy model to ensure stable and low-cost supply of raw materials[40] Market and Sales Strategy - The company has developed a strong customer base, including partnerships with well-known enterprises in Japan and South Korea, enhancing its market presence[35] - The company employs a direct sales model for its titanium dioxide products domestically, while also utilizing distributors to capture market share[50] - The company’s sales strategy for fertilizers and cement primarily relies on distributors, supplemented by direct sales to end customers[50] - The company adjusted its customer base to increase direct sales to end-users and reduce reliance on distributors, improving market share[78] Research and Development - Research and development expenses increased by 37.33% to CNY 28,211,061.03, indicating a focus on innovation[88] - The company has received 6 utility model patent authorizations and filed 3 invention patent applications during the reporting period[64] - The company has developed several new technologies, including a continuous acid leaching process for titanium white powder, enhancing production efficiency[80] - The company is focusing on technological research and development to improve product performance and expand application fields[160] Environmental and Social Responsibility - The company operates in a circular economy model, focusing on resource conservation and environmental protection technologies[32] - The company has established a national ecological industrial demonstration park, recognized by multiple government departments, focusing on resource recycling and environmental protection[63] - The company has committed CNY 300,000 to support rural revitalization efforts, demonstrating its corporate social responsibility[84] - The company has been recognized as a key pollutant discharge unit by local environmental authorities, with specific monitoring of emissions[189] - The company has implemented advanced pollution control technologies to enhance its pollution management capabilities[192] Risks and Challenges - The company has outlined potential risks in its future development strategy, which investors should be aware of[8] - The company faces risks related to safety production and environmental protection due to the nature of the chemical industry[162] - The company monitors product price fluctuations and raw material costs to mitigate impacts on performance[163] Future Outlook - The company aims to enhance downstream customer development to expand market share in the titanium dioxide sector[48] - The company is focusing on expanding its overseas market presence, leveraging favorable trade policies and rapid development opportunities abroad[118] - The company aims to achieve an operating revenue of RMB 368.665 million and a net profit of RMB 27.239 million for the year 2021[156] - The company plans to accelerate the construction of projects including a 100,000-ton titanium dioxide production facility and a 60,000-ton chlorination titanium dioxide project[156]