SHHDKJ(SH:603192)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,497,717,810.42, representing a 4.01% increase compared to CNY 1,439,978,422.27 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 124,220,223.59, a decrease of 6.00% from CNY 132,155,389.38 in 2019[21]. - The net profit for 2020, after deducting non-recurring gains and losses, was CNY 119,591,342.26, a slight decrease of 1.49% compared to CNY 121,402,540.24 in 2019[22]. - Basic earnings per share decreased by 6.45% to CNY 1.16 compared to CNY 1.24 in 2019[23]. - The weighted average return on equity fell to 9.96%, down 1.42 percentage points from 11.38% in 2019[23]. - The gross profit margin for the main business was 19.74%, a decrease of 3.11 percentage points compared to the previous year, primarily due to increased fixed costs from the new plant[51]. - The company achieved a revenue of 1,497,717,810.42 CNY in 2020, representing a year-on-year growth of 4.01%[51]. - The net profit attributable to shareholders decreased by 6.00% to 12,422.02 CNY million, while the net profit after deducting non-recurring gains and losses fell by 1.49% to 11,959.13 CNY million[52]. - The total assets increased by 17.83% to 201,358.75 CNY million, and net assets grew by 6.90% to 129,123.89 CNY million[52]. Cash Flow and Investments - Cash flow from operating activities for 2020 increased by 81.01% to CNY 161,823,355.79 from CNY 89,401,787.37 in 2019[22]. - The operating cash flow net amount increased by 81.01% to 161,823,355.79 CNY, indicating improved cash generation capabilities[54]. - The company has engaged in cash asset management, with various structured deposits totaling RMB 50,000,000 with a 3.36% annualized return[140]. - The company has also invested RMB 30,000,000 in structured deposits with a 3.30% annualized return[140]. - The company reported a total of 500 million RMB in cash reserves, providing a strong foundation for future investments[197]. Production and Capacity - The company’s main business remains focused on the research, production, and sales of polyurethane resin products, with no significant changes reported during the period[34]. - The completion of the "annual production of 180,000 tons of polyurethane resin and its modified body project" has enhanced the company's production capacity and improved its industrial layout[44]. - The company’s production capacity increased by 100,000 tons/year for leather polyurethane and 15,000 tons/year for TPU due to the completion of the first phase of the new project in Fujian[89]. - Production of polyurethane reached 115,569.13 tons, an increase of 6.20% year-on-year, while sales were 113,084.75 tons, up 3.38% year-on-year[59]. - The company has a wastewater treatment capacity of 400 tons per day and operates various air pollution control facilities, including 4 spray towers and 10 activated carbon adsorption units[163]. Research and Development - The company maintained a research and development investment ratio of over 4% of operating revenue for the past three years, applying for 18 invention patents during the reporting period[40]. - Research and development expenses increased by 8.75% to 68,777,622.36 CNY, reflecting the company's commitment to innovation[54]. - The company has a strong technical research and development team, capable of quickly responding to market demands and developing new products[40]. - The company has introduced new technologies aimed at improving production efficiency, projected to reduce costs by 15%[195]. - New product development initiatives are underway, with an investment of 100 million RMB allocated for R&D in the upcoming year[197]. Market and Sales - The company achieved a market share of approximately 6.5% in polyurethane product sales, slightly up from the previous year, despite industry challenges[82]. - The company has established specialized marketing teams for polyester polyols and other polyurethane products, effectively capturing market recovery opportunities[45]. - The company has built a comprehensive marketing service network, enhancing its brand and market advantages in the downstream industry[39]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[198]. Environmental Compliance - The company has invested significantly in environmental management, achieving ISO 14001:2015 certification, but faces risks from increasing environmental compliance costs[105]. - The company has a total of 8 waste gas monitoring devices and 3 wastewater monitoring devices, all operating normally[155]. - The company has established a comprehensive solid waste management system, entrusting qualified third-party companies for the disposal of hazardous and non-hazardous waste[162]. - The company has completed a clean production audit and implemented energy-saving modifications, resulting in reduced production waste and improved environmental benefits[155]. - The company’s environmental impact assessment execution rate is 100% for all existing construction projects[156]. Shareholder and Governance - The company plans to distribute a cash dividend of CNY 3.60 per 10 shares to all shareholders, pending approval at the annual general meeting[5]. - The company has a history of cash dividend distributions, with the previous year's cash dividend being 39,680,000.12 RMB, which was 30.03% of the net profit[116]. - The company emphasizes a stable and reasonable return on investment for shareholders, prioritizing cash dividends over stock dividends[110]. - The actual controller and shareholders committed to not transferring or entrusting others to manage their shares for 36 months from the date of the company's IPO[118]. - The company has not proposed any cash dividend distribution plan despite having positive retained earnings[117]. Risks and Challenges - The report includes a detailed description of potential adverse factors and risks that may affect the company's operations and future development[7]. - The company has faced risks related to the potential decline in demand for polyurethane due to downstream industry conditions, which could adversely affect future business development and performance[103]. - Rapid expansion of the company's asset and business scale poses management risks, requiring higher operational management standards[108]. - The overall demand for the polyurethane resin industry declined by approximately 10% compared to 2019, with specific segments like leather polyurethane affected by foreign trade downturns[81]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures for external guarantees[7]. - The company committed to timely and comprehensive disclosure of any share reduction plans, with specific conditions outlined for the reduction process[122]. - The company has made commitments to avoid competition with Huide Technology and will notify them of any business opportunities that may lead to conflicts[121].