三美股份(603379) - 2020 Q4 - 年度财报

Definitions This chapter defines and explains professional terms and company entity abbreviations used in the report, providing a foundation for understanding its content Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial data and indicators over recent periods Company Basic Information This chapter provides the company's basic business registration information, contact details, information disclosure channels, and stock overview | Item | Information | | :--- | :--- | | Company Chinese Name | Zhejiang Sanmei Chemical Co., Ltd. | | Company Abbreviation | Sanmei Chemical | | Stock Exchange | Shanghai Stock Exchange | | Stock Ticker | Sanmei Chemical | | Stock Code | 603379 | Key Accounting Data and Financial Indicators for the Past Three Years In 2020, the company's performance significantly declined, with operating revenue decreasing by 30.85% year-on-year and net profit attributable to parent company shareholders sharply decreasing by 65.65%, primarily due to a substantial drop in HFCs refrigerant prices Key Accounting Data (RMB) | Key Accounting Data | 2020 | 2019 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,720,728,128.47 | 3,934,602,748.32 | -30.85 | | Net Profit Attributable to Shareholders of Listed Company | 221,845,912.48 | 645,907,364.48 | -65.65 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 152,036,673.13 | 587,358,276.87 | -74.12 | | Net Cash Flow from Operating Activities | 519,775,864.19 | 659,777,619.54 | -21.22 | | Net Assets Attributable to Shareholders of Listed Company | 4,982,218,202.57 | 4,952,554,435.04 | 0.60 | | Total Assets | 5,365,526,243.35 | 5,357,936,471.27 | 0.14 | Key Financial Indicators | Key Financial Indicators | 2020 | 2019 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.36 | 1.10 | -67.27 | | Weighted Average Return on Net Assets (%) | 4.48 | 15.47 | Decrease of 10.99 percentage points | - During the reporting period, the company's operating revenue, net profit, non-recurring net profit, and operating cash flow all declined year-on-year, primarily due to a significant decrease in HFCs refrigerant product prices[18] Key Quarterly Financial Data for 2020 In 2020, the company's operating revenue and net profit attributable to parent company shareholders showed a quarterly decline, with net profit significantly lower in the fourth quarter and non-recurring net profit turning negative, indicating increased operational pressure by year-end 2020 Quarterly Financial Data (RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 703,534,935.70 | 717,026,869.75 | 712,329,592.14 | 587,836,730.88 | | Net Profit Attributable to Shareholders of Listed Company | 99,889,637.66 | 72,793,871.77 | 40,466,781.82 | 8,695,621.23 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 90,474,133.03 | 56,128,082.08 | 23,258,284.34 | -17,823,826.32 | | Net Cash Flow from Operating Activities | 248,400,483.42 | 178,458,077.66 | 42,931,173.59 | 49,986,129.52 | Non-recurring Gains and Losses Items and Amounts In 2020, the company's total non-recurring gains and losses amounted to 69.81 million RMB, primarily from government subsidies and fair value changes and investment income from held-for-trading financial assets 2020 Non-recurring Gains and Losses Items (RMB) | Non-recurring Gains and Losses Item | 2020 Amount | | :--- | :--- | | Government subsidies recognized in current profit or loss | 45,720,798.99 | | Fair value changes and investment income from held-for-trading financial assets and liabilities | 57,917,514.05 | | Other non-operating income and expenses | -11,104,372.54 | | Income tax impact | -23,269,746.45 | | Total | 69,809,239.35 | Business Overview This section outlines the company's main business activities, operational model, and the industry landscape, along with an analysis of its core competencies Description of Main Business, Operating Model, and Industry Situation During the Reporting Period The company primarily deals in fluorocarbon chemicals (fluorine refrigerants, fluorine blowing agents) and inorganic fluorine products, operating under an integrated production, supply, and sales model with direct sales as the main channel. In 2020, the HFCs refrigerant industry experienced a downturn due to overcapacity, while HCFCs products maintained relatively stable prices due to quota reductions, with HCFC-141b blowing agent's profitability significantly increasing year-on-year - The company primarily engages in the R&D, production, and sales of fluorocarbon chemicals and inorganic fluorine products, with fluorine refrigerants (HFCs and HCFCs) as core products mainly used in air conditioning, refrigeration, and automotive systems[24] - The company adopts an "integrated production, supply, and sales with timely adjustment of output and sales" production model, primarily using direct sales combined with distribution, and implements competitive bidding for procurement based on a "Qualified Supplier List"[29][30][31] - In 2020, the HFCs refrigerant industry faced intensified oversupply, leading to low prices and a significant decline in profitability, while HCFCs products, supported by quota reductions and stable demand, saw stable price fluctuations, with HCFC-141b blowing agent maintaining high prices throughout the year and significantly increasing profitability year-on-year[33][35] Analysis of Core Competencies During the Reporting Period The company's core competencies include superior product quality and brand advantage, participation in national standard setting, a rich product portfolio and marketing strength with high export proportion, green and efficient production processes with cost advantages from self-produced AHF, and an experienced, cohesive management team - The company boasts excellent product quality and a strong brand image, with "Sanmei" being a "Zhejiang Famous Trademark," and has participated as a primary drafter in the formulation and revision of 7 national standards[38] - The company possesses a rich product portfolio to meet diverse customer needs, leveraging its quota advantage in HCFC-141b blowing agent (over 50% of national quota) for market leadership, with products sold across six continents and a high proportion of export sales[39] - The company emphasizes technological innovation, self-producing catalysts for its main products HFC-134a and HFC-125, and possesses 131,000 tons of AHF production capacity, meeting its own production needs and effectively mitigating raw material price increase risks[40] Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's operational performance, key financial changes, and future development plans, along with identified risks Discussion and Analysis of Operations In 2020, the company's performance significantly declined year-on-year due to the dual impact of the COVID-19 pandemic and a downturn in the HFCs refrigerant industry, with operating revenue falling by 30.85% to 2.72 billion RMB and net profit attributable to parent company shareholders decreasing by 65.65% to 222 million RMB. HFCs refrigerant profitability sharply decreased, while HCFC-141b, a quota-controlled product, saw a substantial increase in profitability, partially mitigating the overall decline. The company ensured stable development through marketing strategy adjustments, enhanced safety and environmental management, and major project advancements 2020 Operating Performance | Indicator | 2020 | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 2.72 billion RMB | -30.85% | | Total Profit | 295 million RMB | -64.42% | | Net Profit Attributable to Parent Company Shareholders | 222 million RMB | -65.65% | - The company's primary product, HFCs refrigerants, experienced year-on-year declines in price, production, and sales volume due to industry capacity release and pandemic impacts, leading to a significant drop in profitability and being the main reason for the company's overall performance decline, while HCFCs products (especially HCFC-141b) saw high prices and significantly improved profitability due to quota reductions and supply tightening[43][44] Production, Sales, and Price Changes of Main Products | Main Product | Year-on-Year Change in Production Volume | Year-on-Year Change in Export Sales Volume | Year-on-Year Change in Average Selling Price | | :--- | :--- | :--- | :--- | | Fluorine Refrigerants | -7.11% | -11.48% | -29.68% | | Fluorine Blowing Agents | -44.00% | -32.29% | +19.67% | | Hydrogen Fluoride | +0.21% | +17.77% | -12.96% | Key Operating Conditions During the Reporting Period During the reporting period, the gross margin of fluorine refrigerants in the company's main business decreased by 20.6 percentage points due to a sharp price drop, while fluorine blowing agents' gross margin increased by 8.8 percentage points due to tighter supply and rising prices. Selling expenses significantly decreased by 79.5% as freight costs were reclassified to operating costs under new revenue standards. Net cash flow from investing activities shifted from -1.08 billion RMB to 446 million RMB, mainly due to reduced purchases of wealth management products. Net cash flow from financing activities changed from 1.36 billion RMB to -201 million RMB, primarily due to last period's receipt of raised funds and current period's cash dividends Changes in Key Income Statement and Cash Flow Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,720,728,128.47 | 3,934,602,748.32 | -30.85 | | Operating Cost | 2,309,664,722.32 | 2,762,887,435.30 | -16.40 | | Selling Expenses | 49,158,583.84 | 239,841,993.26 | -79.50 | | Net Cash Flow from Operating Activities | 519,775,864.19 | 659,777,619.54 | -21.22 | | Net Cash Flow from Investing Activities | 446,341,458.27 | -1,082,773,947.07 | Not Applicable | | Net Cash Flow from Financing Activities | -200,511,592.05 | 1,357,394,678.19 | -114.77 | Main Business by Product | Product Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Fluorine Refrigerants | 1,900,867,698.04 | 1,731,751,409.95 | 8.90 | Decrease of 20.6 percentage points | | Fluorine Blowing Agents | 373,927,513.79 | 171,975,091.90 | 54.01 | Increase of 8.8 percentage points | | Hydrogen Fluoride | 358,323,449.31 | 323,382,567.36 | 9.75 | Decrease of 6.31 percentage points | - In 2020, total R&D investment amounted to 25.25 million RMB, representing 0.93% of operating revenue, and was entirely expensed[62] Changes in Key Balance Sheet Items | Item Name | Current Period End Amount (RMB) | Prior Period End Amount (RMB) | Change (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Monetary Capital | 2,485,422,534.92 | 1,751,124,789.71 | 41.93 | Increase in wealth management products classified as bank deposits | | Held-for-trading Financial Assets | 972,385,520.96 | 1,442,554,839.74 | -32.59 | Decrease in wealth management products classified as held-for-trading financial assets | | Accounts Receivable | 224,565,193.91 | 348,919,471.21 | -35.64 | Due to decrease in operating revenue | | Construction in Progress | 99,174,512.55 | 33,922,780.61 | 192.35 | Due to increased investment in construction in progress | | Share Capital | 610,479,037.00 | 436,056,455.00 | 40.00 | Due to capital reserve conversion to share capital | Discussion and Analysis of the Company's Future Development The company anticipates an end to HFCs capacity expansion, leading to improved market supply-demand dynamics. Its long-term goal is to become a global leader in fluorine products, with short-term plans to innovate marketing and increase direct sales to end markets. The 2021 operating plan includes strengthening team building, prioritizing safety and environmental work, advancing major projects (e.g., LiFSI), focusing on technological innovation, and increasing market share. Key risks identified include safety and environmental concerns, industry cyclical fluctuations, new product substitution, production quota tightening, and pandemic-related foreign trade impacts - Company Development Strategy: To become a global leader in fluorine products, focusing on developing HFCs refrigerants, blowing agents, fluoropolymers, and fine fluorine chemicals, and establishing production capabilities and market foundation for fourth-generation refrigerants and blowing agents[113] - 2021 Operating Plan: - Strengthen management team building and improve incentive mechanisms[114] - Prioritize safety and environmental work to ensure normal production and operations[115] - Advance major projects, focusing on the construction of the Lithium bis(fluorosulfonyl)imide (LiFSI) project[116] - Emphasize technological innovation to enhance new product R&D capabilities - Proactively seize market opportunities and increase market share - Key risks faced by the company include: - Safety and Environmental Risks: Production processes involve high hazards and pollution[117] - Industry Cyclical Fluctuation Risks: The fluorochemical industry is highly correlated with macroeconomic conditions and downstream industry prosperity[119] - New Product Substitution Risks: HFCs products face the risk of being replaced by new environmentally friendly refrigerants like fourth-generation HFOs[120] - Production Quota Tightening Risks: Both HCFCs and HFCs products face reduction and phase-out schedules mandated by the Montreal Protocol[121] - Pandemic and Foreign Trade Risks: A high proportion of product exports makes the company susceptible to global pandemics, trade protectionism, and geopolitical influences[123] Significant Matters This section details the company's profit distribution plan, fulfillment of commitments, significant related-party transactions, and major contracts, including wealth management activities Ordinary Share Profit Distribution or Capital Reserve Conversion Plan The company has established a profit distribution policy that prioritizes investor returns and maintains continuous stability, with annual cash dividends not less than 20% of the net profit attributable to parent company shareholders. The 2020 profit distribution plan proposes a cash dividend of 1.10 RMB (tax inclusive) per 10 shares, totaling 67.15 million RMB, representing 30.27% of the net profit attributable to parent company shareholders for the year - The company's 2020 profit distribution plan proposes a cash dividend of 1.10 RMB (tax inclusive) per 10 shares, with no bonus shares or capital reserve conversion to share capital[3] Dividend Distribution Plans for the Past Three Years | Dividend Year | Dividend Per 10 Shares (RMB, tax inclusive) | Shares Converted Per 10 Shares | Cash Dividend Amount (RMB, tax inclusive) | Ratio to Net Profit Attributable to Parent Company Shareholders (%) | | :--- | :--- | :--- | :--- | :--- | | 2020 | 1.10 | 0 | 67,152,694.07 | 30.27 | | 2019 | 4.50 | 4 | 196,225,404.75 | 30.38 | | 2018 | 0 | 0 | 0 | 0 | Fulfillment of Commitments During the reporting period, the company, its actual controllers, shareholders, and other related parties strictly fulfilled all commitments made during the initial public offering, including share lock-up, share price stability, non-competition, and related-party transactions, with no breaches observed - The company, actual controllers Hu Rongda and Hu Qixiang, and other committing parties have timely and strictly fulfilled all commitments made during or continuing into the reporting period[129] Significant Related-Party Transactions During the reporting period, the company engaged in related-party transactions related to its ordinary operations, primarily involving the procurement of raw materials and acceptance of services from related parties, and providing loans to an associate company. In 2020, actual purchases of goods/acceptance of services from related parties amounted to 402 million RMB, and sales of goods/provision of services to related parties amounted to 24.54 million RMB - In 2020, the company's estimated ordinary related-party transaction limits were: purchases of 487.5 million RMB and sales of 121 million RMB, with an additional purchase limit of 47 million RMB later approved. Actual full-year purchases totaled 402 million RMB, and sales were 24.54 million RMB[156] - In 2019, the company provided a loan of 65 million RMB to its associate company, Morita New Materials. During the reporting period, repayments of 4.64 million RMB and interest of 1.23 million RMB were received, with the outstanding loan balance at period-end being 60.36 million RMB[159] Significant Contracts and Their Fulfillment During the reporting period, the company had no significant entrustment, contracting, leasing, or guarantee matters. The company managed cash assets by purchasing bank wealth management products using idle self-owned funds and raised funds. The amount of idle self-owned funds used was 1.86 billion RMB, and idle raised funds used was 896 million RMB Overall Wealth Management Status (10,000 RMB) | Type | Fund Source | Amount Incurred | Unmatured Balance | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Idle Self-owned Funds | 185,650 | 78,050 | | Bank Wealth Management Products | Idle Raised Funds | 89,600 | 37,860 | Ordinary Share Changes and Shareholder Information This section details changes in ordinary share capital, including the impact of capital reserve conversions, and provides an overview of the company's shareholders and actual controllers Ordinary Share Capital Change During the reporting period, due to the listing and circulation of some initial public offering restricted shares and the implementation of the 2019 capital reserve conversion plan (4 shares for every 10 shares), the company's total share capital increased from 436 million shares to 610 million shares. The proportion of restricted shares decreased from 86.30% to 68.38% Share Change Table (Shares) | Share Type | Quantity Before This Change | Quantity After This Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 376,322,694 | 417,418,254 | 68.38 | | II. Unrestricted Tradable Shares | 59,733,761 | 193,060,783 | 31.62 | | III. Total Ordinary Shares | 436,056,455 | 610,479,037 | 100.00 | - The primary reason for the increase in total share capital was the implementation of the 2019 capital reserve conversion plan, which converted 4 shares for every 10 shares held by all shareholders[203] Shareholders and Actual Controllers As of the end of the reporting period, the company had a total of 23,942 ordinary shareholders. The top two shareholders, Hu Rongda and Hu Qixiang (father and son), collectively held 53.88% of shares directly, serving as the company's actual controllers. Shareholding concentration among the top ten shareholders was relatively high Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End | Proportion (%) | Number of Restricted Shares Held | | :--- | :--- | :--- | :--- | | Hu Rongda | 225,229,140 | 36.89 | 225,229,140 | | Hu Qixiang | 103,738,226 | 16.99 | 103,738,226 | | Wuyi Sanmei Investment Co., Ltd. | 48,937,288 | 8.02 | 48,937,288 | | Zhan Linxi | 26,342,589 | 4.32 | 0 | | Wuyi Meisizhuoyuan Investment Management Partnership (Limited Partnership) | 25,010,624 | 4.10 | 0 | - The company's actual controllers are Hu Rongda and Hu Qixiang (father and son), who collectively hold 61.91% of the company's shares through direct holdings and control of Wuyi Sanmei Investment Co., Ltd[215][217][541] Directors, Supervisors, Senior Management, and Employees This section covers the shareholdings and remuneration of directors, supervisors, and senior management, changes in their positions, and the overall employee structure D&O Shareholding and Remuneration During the reporting period, the shareholdings of the company's directors, supervisors, and senior management increased due to capital reserve conversion to share capital. In 2020, the total pre-tax remuneration paid to all directors, supervisors, and senior management was 6.20 million RMB, with Chairman and General Manager Hu Qixiang's remuneration being 761,400 RMB - The primary reason for changes in shareholdings of directors, supervisors, and senior management during the reporting period was the implementation of the 2019 capital reserve conversion to share capital[227] Remuneration of Selected Directors, Supervisors, and Senior Management (10,000 RMB) | Name | Position | Total Pre-tax Remuneration Received from the Company During the Reporting Period | | :--- | :--- | :--- | | Hu Qixiang | Chairman, General Manager | 76.14 | | Zhan Linxi | Director, Executive Deputy General Manager | 69.34 | | Shi Fuqiang | Chief Financial Officer | 66.63 | | Total | / | 620.01 | Changes in the Company's Directors, Supervisors, and Senior Management During the reporting period, Mr. Hu Faxiang resigned as the company's director and deputy general manager due to work reasons - Hu Faxiang resigned from his positions as director and deputy general manager due to work reasons[234] Employee Information As of the end of the reporting period, the company had a total of 1,704 employees. Production personnel constituted the largest professional group with 927 individuals, while employees with college degrees or above totaled 489, accounting for 28.7% of the total Employee Professional Structure | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 927 | | Sales Personnel | 123 | | Technical Personnel | 235 | | Financial and Audit Personnel | 67 | | Administrative Personnel | 174 | | Logistics Personnel | 178 | | Total | 1,704 | Corporate Governance This section describes the company's corporate governance structure, its compliance with regulations, and the effectiveness of its internal control systems Explanation of Corporate Governance Related Matters During the reporting period, the company's governance structure complied with relevant laws and regulations, with clear responsibilities and standardized operations for the general meeting of shareholders, board of directors, supervisory board, and senior management. The company maintained "five separations" from its controlling shareholder in terms of personnel, assets, finance, organization, and business, and strictly adhered to information disclosure requirements - The company's corporate governance structure is sound, complying with the "Guidelines for Corporate Governance of Listed Companies," and operates in a standardized manner across shareholders, directors, supervisors, senior management, controlling shareholders, and information disclosure[239] Explanation of Matters Related to Internal Control Audit Report The company disclosed its 2020 Internal Control Self-Assessment Report, and Lixin Certified Public Accountants issued a standard unqualified internal control audit report, indicating that the company's internal controls were effective in all material aspects - Lixin Certified Public Accountants (Special General Partnership) audited the company's 2020 internal control situation and issued a standard unqualified internal control audit report[250] Financial Report This section presents the company's audited financial statements, including the auditor's opinion, key financial summaries, and significant accounting policies and estimates Audit Report Lixin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements. The auditors identified revenue recognition as a key audit matter due to its material amount and inherent risk of being recognized in incorrect periods - The auditing firm is Lixin Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[253][254] - The key audit matter is revenue recognition. Procedures performed by the auditors included evaluating internal controls, performing analytical procedures, verifying revenue recognition timing, conducting detailed and cut-off tests, and confirming accounts receivable[256][257] Financial Statements The financial statements show that as of the end of 2020, the company's total assets were 5.37 billion RMB, equity attributable to parent company shareholders was 4.98 billion RMB, and the asset-liability ratio was 7.14%. In 2020, operating revenue reached 2.72 billion RMB, a year-on-year decrease of 30.85%; net profit attributable to parent company shareholders was 222 million RMB, a year-on-year decrease of 65.65%. Net cash flow from operating activities was 520 million RMB, a year-on-year decrease of 21.22% Consolidated Balance Sheet Summary (RMB) | Item | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | 4,192,226,326.81 | 4,186,781,218.91 | | Total Non-current Assets | 1,173,299,916.54 | 1,171,155,252.36 | | Total Assets | 5,365,526,243.35 | 5,357,936,471.27 | | Total Current Liabilities | 355,088,151.73 | 372,445,237.67 | | Total Non-current Liabilities | 28,219,889.05 | 29,519,583.05 | | Total Liabilities | 383,308,040.78 | 401,964,820.72 | | Total Equity Attributable to Parent Company Owners | 4,982,218,202.57 | 4,952,554,435.04 | Consolidated Income Statement Summary (RMB) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Total Operating Revenue | 2,720,728,128.47 | 3,934,602,748.32 | | Total Operating Cost | 2,511,061,731.42 | 3,143,468,195.22 | | Operating Profit | 284,780,279.78 | 822,406,201.14 | | Total Profit | 294,641,846.10 | 828,209,594.50 | | Net Profit | 221,573,216.81 | 645,297,435.62 | | Net Profit Attributable to Parent Company Shareholders | 221,845,912.48 | 645,907,364.48 | Consolidated Cash Flow Statement Summary (RMB) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 519,775,864.19 | 659,777,619.54 | | Net Cash Flow from Investing Activities | 446,341,458.27 | -1,082,773,947.07 | | Net Cash Flow from Financing Activities | -200,511,592.05 | 1,357,394,678.19 | | Net Increase in Cash and Cash Equivalents | 734,605,099.64 | 907,143,153.76 | Significant Accounting Policies and Estimates The company adopted the new revenue recognition standard from January 1, 2020, adjusting opening retained earnings and related financial statement items for the cumulative effect of contracts not yet completed at the date of initial application. This accounting policy change did not have a significant impact on the company's financial position or operating results - The company adopted the new revenue recognition standard (Cai Kuai [2017] No. 22) issued by the Ministry of Finance starting from January 1, 2020, and adjusted its accounting policies accordingly[145][357][358] Impact of New Revenue Standard Adoption on Consolidated Balance Sheet Balances as of January 1, 2020 (RMB) | Affected Balance Sheet Item | Adjustment Amount | | :--- | :--- | | Advances from Customers | -45,062,939.16 | | Contract Liabilities | 41,351,688.20 | | Other Current Liabilities | 3,711,250.96 |