BIO-CHEM(SH:603360)2020-03-19 16:00Financial Performance - The company's operating revenue for 2019 was CNY 871,896,072.63, representing a 65.08% increase compared to CNY 528,171,162.26 in 2018[21] - The net profit attributable to shareholders for 2019 was CNY 306,801,352.58, which is an increase of 111.31% from CNY 145,187,507.20 in the previous year[21] - The net profit excluding non-recurring gains and losses was CNY 297,626,223.40, up 116.08% from CNY 137,738,034.86 in 2018[21] - Basic earnings per share increased by 110.26% to CNY 1.64 in 2019 compared to CNY 0.78 in 2018[22] - The weighted average return on equity rose to 33.50%, an increase of 13.97 percentage points from 19.53% in 2018[22] - The company achieved a net profit of CNY 31,934,044.93 in Q1 2019, which increased to CNY 121,613,658.42 by Q3 2019[23] - The company reported a total revenue of CNY 137,087,304.22 in Q1 2019, increasing to CNY 270,306,816.79 by Q4 2019[23] - The company reported a total revenue of 1.2 billion in 2019, reflecting a year-over-year growth of 15%[104] - The company reported a total revenue of 2,001.812 million yuan for the year 2019, reflecting a growth of 11.35% compared to the previous year[115] - The company achieved a revenue of 851 million yuan in 2019, representing a year-on-year growth of 75.09%[94] Cash Flow and Assets - Cash flow from operating activities for 2019 was CNY 240,066,206.82, a 77.65% increase from CNY 135,131,582.68 in 2018[21] - Total assets at the end of 2019 reached CNY 1,189,296,891.60, a 32.53% increase from CNY 897,381,513.43 at the end of 2018[21] - Cash and cash equivalents increased significantly to CNY 241,164,711.77 from CNY 54,239,819.48 in 2018, representing a growth of 344%[183] - The company reported a net increase in cash and cash equivalents of CNY 168,635,901.59, contrasting with a decrease of CNY 49,799,842.42 in the previous year[196] - The total cash inflow from operating activities reached CNY 695,961,521.20, up from CNY 458,683,815.63 in the previous year, representing a growth of 51.8%[194] Research and Development - The company's R&D expenses increased by 46.94% to 28,137,898.34 CNY, reflecting a commitment to innovation[46] - Research and development expenses for 2019 amounted to CNY 28,137,898.34, compared to CNY 19,149,686.19 in 2018, indicating a 47% increase[187] - The number of R&D personnel was 69, making up 8.66% of the total workforce, highlighting the company's commitment to innovation[59] - The management team emphasized the importance of technological advancements, with a 10% increase in R&D investment planned for 2020, totaling 120 million RMB[151] Market Position and Products - The company’s main business involves the research, production, and sales of isothiazolinone industrial biocides and chlorobenzonitrile chemical intermediates[29] - The company has established stable long-term partnerships with major clients such as Dow Chemical and Lanxess, enhancing its market position in the industrial biocide sector[34] - The company is the largest producer of isothiazolinone industrial biocides in China, with a significant market share[90] - The company plans to expand its product line by initiating a project for the annual production of 2,000 tons of dye intermediates[44] - The company’s BIT series products have been successfully developed, filling a gap in its product range and allowing for customized services in collaboration with clients[35] Environmental Compliance and Sustainability - The company emphasizes environmental protection and has implemented clean production and recycling concepts in its manufacturing processes, ensuring compliance with environmental standards[36] - The company has reported compliance with environmental regulations, being classified as a key pollutant discharge unit[116] - The company has established a complete environmental management system, with regular monitoring of wastewater and air emissions, ensuring compliance with environmental regulations[127] - The company has committed to social responsibility initiatives, including environmental protection measures, as part of its operational strategy[116] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 6 per 10 shares, totaling CNY 112,005,600, and to increase capital by 4 shares for every 10 shares held[5] - In 2019, the company distributed a cash dividend of 6.00 RMB per 10 shares, totaling 112,005,600.00 RMB, with a net profit distribution ratio of 36.51%[102] - In 2018, the cash dividend was 3.90 RMB per 10 shares, totaling 72,803,640.00 RMB, with a net profit distribution ratio of 50.14%[102] Strategic Outlook and Future Plans - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year[104] - The company is actively seeking new fine chemical products to diversify its business structure and mitigate economic risks[93] - The company plans to achieve a revenue of 1 billion yuan in 2020, focusing on stable production and operation of industrial biocides[95] - The company is considering strategic acquisitions to enhance its market position, with a budget of 200 million allocated for potential deals[104] Audit and Compliance - The audit report issued by Da Hua Certified Public Accountants confirmed the accuracy and completeness of the financial statements[4] - The company appointed Dahua Accounting Firm (Special General Partnership) for the 2019 annual audit, with an audit fee of RMB 430,000[108] - There were no major litigation or arbitration matters during the reporting period[109] - The company has no significant changes in accounting policies or estimates during the reporting period[109] Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 797, with 543 in production, 29 in sales, 70 in technology, 16 in finance, and 139 in administration[157] - The total remuneration for directors and senior management was reported at 14,377,000 RMB[149] - The company has a structured approach to assess and determine the remuneration of its senior management[156]