EBEM(SH:603002)2021-04-21 16:00Financial Performance - The company's adjusted earnings per share (EPS) for 2020 was CNY 0.25, a 38.89% increase compared to CNY 0.18 in 2019[21]. - Total revenue for 2020 reached CNY 2,504,199,868.15, representing a 6.55% increase from CNY 2,350,258,838.21 in 2019[21]. - Net profit attributable to shareholders was CNY 224,061,830.36, up 38.59% from CNY 161,671,558.37 in 2019[21]. - The weighted average return on equity (ROE) increased to 12.96%, up 2.71 percentage points from 10.25% in 2019[21]. - The net cash flow from operating activities surged by 212.14% to CNY 321,651,598.10, compared to CNY 103,048,434.13 in 2019[21]. - The company's total assets at the end of 2020 were CNY 3,446,147,032.29, a 32.21% increase from CNY 2,606,599,179.71 at the end of 2019[21]. - The company reported a net profit of CNY 88,670,324.83 in Q4 2020, contributing to a total annual net profit growth[24]. - The company achieved a total operating revenue of RMB 2.50 billion in 2020, representing a year-on-year increase of 6.55%[72]. - The net profit attributable to shareholders reached RMB 224.06 million, a year-on-year increase of 38.59%[72]. - The company's total assets amounted to RMB 3.446 billion at the end of 2020, an increase of 32.21% compared to the previous year[73]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.475 per 10 shares, totaling approximately RMB 223.71 million (including tax) for the year 2020[134]. - The profit distribution policy stipulates that at least 30% of the distributable profit for the year must be distributed as cash dividends, provided that the company meets the cash dividend conditions[131]. - The company has established a profit distribution decision-making mechanism that involves discussions with independent directors and minority shareholders[130]. - The company is required to communicate with shareholders, especially minority shareholders, regarding the cash dividend plan during the shareholders' meeting[130]. - The company's independent directors can gather opinions from minority shareholders to propose profit distribution plans[130]. Market Position and Strategy - The company is engaged in the production of electronic-grade epoxy resins, which are critical for the electronics industry, indicating a focus on high-demand materials[12]. - The company has established a strong presence in the market for copper-clad laminates (CCL) and printed circuit boards (PCB), essential components in electronic manufacturing[12]. - The company is actively involved in research and development of new products and technologies to enhance its market competitiveness[12]. - The company plans to expand its market presence and enhance product development in the electronic materials sector[30]. - The company is focusing on high-end materials and large clients, responding to the increasing demand for advanced materials in the electronics and automotive sectors[38]. - The company has established stable market cooperation relationships with several large PCB clients, including listed companies such as HanYu, Jinxing Group, and JianDing Technology, enhancing brand image and customer loyalty[49]. Research and Development - The company has 24 authorized domestic invention patents and 7 pending patents, along with 84 non-patented technologies, showcasing its commitment to innovation and technology development[43]. - The company reported a total R&D expenditure of CNY 98,489,344.43, which represents 3.93% of total operating revenue[88]. - The number of R&D personnel was 145, making up 23.89% of the total workforce[88]. - The company has 21 ongoing research projects in the epoxy resin business, with 8 new projects initiated during the reporting period, resulting in 8 new products developed[89]. - In the copper-clad laminate business, there are 6 ongoing research projects, leading to the formation of 2 new products[90]. Environmental Compliance - The company has invested in pollution control facilities, including three sets of exhaust gas treatment devices and a wastewater treatment station, to ensure compliance with environmental standards[167]. - The total investment for the environmental project was approximately CNY 378.55 million, with environmental investment accounting for 3.74% of the total[174]. - The company has established an emergency response plan for environmental incidents, aiming to effectively monitor and prevent environmental risks[177]. - The company conducts online monitoring and quarterly inspections of its emissions, ensuring compliance with environmental standards[180]. - The company has received various environmental approvals and permits, including a national pollutant discharge permit obtained in August 2020[173]. Acquisitions and Restructuring - The company completed a significant asset restructuring by acquiring 100% equity of Wuxi Hongren, leading to retrospective adjustments in financial data for 2018 and 2019[22]. - The company has entered into a share purchase agreement to acquire 100% equity of Wuxi Hongren for a transaction price of RMB 1,029 million, indicating strategic expansion efforts[40]. - The company completed the acquisition of 100% equity in Wuxi Hongren Electronic Materials Technology Co., Ltd., with the share capital increasing from 614,411,700 shares to 914,471,311 shares[148]. - The company transitioned its industry classification from "Chemical Raw Materials and Chemical Products Manufacturing" to "Computer, Communication and Other Electronic Equipment Manufacturing" following a major asset restructuring[98]. Risk Management - The company’s future plans and strategic developments are subject to risks, and investors are advised to be cautious regarding investment risks[6]. - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, particularly for epoxy resin and copper-clad laminate products[124]. - The company emphasizes the importance of maintaining stable relationships with major clients in the copper-clad laminate business, as high customer concentration poses risks to operational performance[126]. - The company recognizes the potential impact of international trade barriers and economic changes on its operations, particularly in the context of the ongoing COVID-19 pandemic[127]. Corporate Governance - The company received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties, indicating a stable financial governance structure[7]. - The company's financial report is guaranteed to be true, accurate, and complete by the board of directors, with no misleading statements or significant omissions[8]. - The company has no major litigation or arbitration matters for the current year[146]. - The company has no significant changes in accounting policies or estimates during the reporting period[142].