JHM(SH:603078)2021-03-29 16:00Financial Performance - The net profit for the parent company in 2020 was CNY 65,231,232.20, with a distributable profit of CNY 58,708,108.98 after statutory surplus reserve allocation[5]. - The total distributable profit available to shareholders as of December 31, 2020, was CNY 374,301,098.18, after accounting for the cash dividend of CNY 10,920,000.00 paid in 2019[5]. - A cash dividend of CNY 1.20 per 10 shares (including tax) will be distributed, totaling CNY 18,089,745.36[5]. - The company's operating revenue for 2020 was ¥563.79 million, representing a 14.96% increase compared to ¥490.43 million in 2019[23]. - Net profit attributable to shareholders increased by 68.58% to ¥58.19 million in 2020 from ¥34.52 million in 2019[23]. - The basic earnings per share rose by 67.68% to ¥0.4078 in 2020, compared to ¥0.2432 in 2019[24]. - The weighted average return on equity increased to 6.97% in 2020, up from 4.43% in 2019, marking an increase of 2.54 percentage points[24]. - The total assets of the company reached ¥1,988.41 million at the end of 2020, a 47.31% increase from ¥1,349.83 million at the end of 2019[23]. - The net cash flow from operating activities was negative at -¥11.11 million in 2020, a decline of 125.11% compared to ¥44.24 million in 2019[23]. - The company reported a significant decrease in selling expenses by 77.95% to ¥10,753,728.55[57]. - The gross profit margin improved to 34.56%, up by 4.08 percentage points from the previous year[54]. Shareholder Returns and Capital Structure - The company plans to increase its share capital by 3 shares for every 10 shares held, resulting in an increase of 45,224,363 shares, bringing the total share capital to 195,972,241 shares[5]. - The company has a proactive profit distribution policy, prioritizing cash dividends, with a minimum of 20% of distributable profits allocated for cash dividends if no major investments are planned[125]. - The company plans to distribute cash dividends of 1.20 RMB per 10 shares, totaling 18,089,745.36 RMB, which accounts for 31.09% of the net profit attributable to shareholders for the year 2020[131]. - The company must conduct at least one profit distribution annually if it has positive distributable profits, with the board able to propose interim distributions based on profit and funding needs[127]. - The company’s profit distribution policy can be adjusted in response to significant changes in operational conditions or external factors like natural disasters[129]. - The company’s retained earnings must be used for operational needs, and any adjustments to the profit distribution policy must comply with regulatory requirements[130]. Corporate Governance and Compliance - The company has provided a standard unqualified audit report from Da Hua Certified Public Accountants[4]. - The company is committed to ensuring the accuracy and completeness of the annual report, with all board members present at the meeting[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company has established a mechanism to ensure compliance with regulatory requirements regarding share repurchase commitments[138]. - The company has not faced any penalties from securities regulatory authorities in the past three years[192]. - The company actively manages investor relations, ensuring effective communication with shareholders[199]. Market Position and Industry Outlook - The company specializes in the research, production, and sales of ultra-pure reagents and photolithography supporting reagents, primarily used in microelectronics and optoelectronics manufacturing processes[33]. - The wet electronic chemicals industry is closely tied to the rapid development of downstream sectors such as new energy, information communication, and consumer electronics, creating significant market opportunities[38]. - The company aims to become a comprehensive supplier that provides integrated solutions based on customer production processes and technical requirements, focusing on high-value-added products[37]. - The company is expected to achieve G5 product production capability after the completion of its investment projects in Zhenjiang and Sichuan, enhancing its international competitiveness in wet electronic chemicals[42]. - The company has developed a comprehensive range of wet electronic chemicals, serving major clients in the flat panel display, semiconductor, and solar energy sectors, including well-known enterprises like BOE and SMIC[47]. Research and Development - The company holds 83 patents, including 32 invention patents, demonstrating its strong R&D capabilities in the wet electronic chemicals field[45]. - The company has established a stable cooperative relationship with Nanjing University for joint R&D, ensuring access to cutting-edge theoretical research[45]. - The company emphasizes technological innovation through a combination of foreign technology absorption, independent research and development, and industry-academia collaboration[91][92]. - Research and development expenses amounted to 30.37 million yuan, an increase of 21.38% compared to the previous year, primarily due to increased investment in R&D projects[67]. Operational Efficiency - The production model is based on "sales-driven production," where manufacturing is organized according to customer orders, ensuring efficient procurement and production planning[34]. - The company implements strict supplier selection standards to ensure the quality and price of raw materials, maintaining a dual-supplier strategy for each material to ensure supply stability[35]. - The production process includes purification and mixing techniques, with a focus on high-purity standards and quality control at every stage of production[36]. - The company has optimized its production capacity structure, increasing the proportion of high-margin flat panel and semiconductor capacities while reducing low-margin solar energy capacity[97]. Risks and Challenges - The company faces risks from price fluctuations of key raw materials, which could impact production and operations[119]. - Increased competition in the wet electronic chemicals market may affect pricing, customer retention, and overall profitability[121]. - The company is exposed to the risk of technological updates in the industry, which could hinder its product development and market competitiveness if not anticipated[120]. Social Responsibility and Environmental Compliance - The company emphasizes its commitment to social responsibility, including tax compliance and investor relations management[157]. - The company has implemented clean production processes to minimize environmental impact and comply with relevant environmental laws[158]. - The company has not faced any penalties for environmental violations during the reporting period[159].