Chahua(SH:603615)2022-04-13 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of CNY 40,679,550.90, a decrease of 40.90% compared to CNY 68,836,354.95 in 2019[5]. - The company's operating revenue for 2020 was CNY 689,892,417.47, reflecting a decline of 12.30% from CNY 786,665,000.92 in the previous year[22]. - The basic earnings per share decreased by 39.29% to CNY 0.17 in 2020, down from CNY 0.28 in 2019[24]. - The total assets of the company at the end of 2020 were CNY 1,470,600,963.82, a decrease of 5.74% from CNY 1,560,150,282.55 at the end of 2019[22]. - The cash flow from operating activities for 2020 was CNY 1,712,356.67, a significant decline of 98.77% compared to CNY 139,744,659.70 in 2019[22]. - The company's net assets attributable to shareholders decreased by 6.85% to CNY 1,282,924,769.48 at the end of 2020[22]. - The company reported a decrease in the weighted average return on equity to 3.10%, down from 5.09% in the previous year[24]. - The company achieved operating revenue of ¥689,892,417.47, a decrease of 12.30% compared to ¥786,665,000.92 in the previous year[45]. - Gross profit for the period was ¥195,773,003.03, down 14.59% from ¥229,211,354.52 year-on-year, resulting in a gross margin of 28.38%, a decline of 0.76 percentage points[45]. - Operating costs decreased by 11.36% to ¥494,119,414.44 from ¥557,453,646.40 in the previous year[47]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares to all shareholders, totaling CNY 137,044,218.97 available for distribution[5]. - The proposed cash dividend for 2020 is 1.50 CNY per 10 shares (including tax), with a total distributable profit of 137,044,218.97 CNY at year-end[107]. - The cash dividend distribution plan for 2020 has been approved by the board and will be submitted for shareholder approval[107]. - The company has maintained a clear cash dividend policy in accordance with regulations, ensuring the protection of minority investors' rights[106]. - The company commits to distributing at least 20% of the annual distributable profits in cash to shareholders, as per the three-year dividend plan approved in 2017[120]. Market and Sales Strategy - The company maintained a consistent focus on the research, development, and sales of daily plastic products, with over 1,000 product variants in its portfolio[31]. - The sales model includes a mix of provincial and local distributors, with a focus on exclusive sales agreements to enhance market penetration[32]. - The company has established direct sales channels with major supermarkets like Walmart and Yonghui, facilitating unified distribution management[33]. - The e-commerce strategy involves selling products through major platforms such as Tmall, Taobao, and JD.com, enhancing online market presence[33]. - Revenue from direct supermarkets increased by 46.38%, while revenue from distributors decreased by 31.43%[87]. - The company actively explored new sales models, including live streaming and community group buying, to adapt to changing consumer behaviors[41]. Research and Development - The company invested 10.21 million yuan in R&D, accounting for 1.48% of operating revenue[42]. - The company has focused its R&D spending on developing new products, with significant expenditures on personnel, equipment depreciation, and materials[60]. - The company has established a comprehensive R&D system and emphasizes user experience in product design, ensuring alignment with consumer needs[75]. - The company launched antibacterial products certified by both the China Antibacterial Association and the International Antibacterial Council[42]. - The company is committed to developing biodegradable products using materials like PLA and PBAT, aiming for significant production capacity in 2021[99]. Operational Challenges - The company faced challenges due to the pandemic, which impacted sales and led to a decrease in net profit[24]. - The production volume of plastic products was 30,596.75 tons, a decrease of 5.68%, while sales volume dropped by 11.57% to 28,401.59 tons[52]. - The company recognizes the risk of raw material price fluctuations and plans to optimize its supply chain to mitigate these challenges[102]. Corporate Governance and Management - The company has established a strong governance structure with independent directors to ensure compliance and strategic oversight[180]. - The management team includes individuals with extensive experience in various sectors, enhancing strategic decision-making capabilities[187]. - The company has a structured compensation system based on job complexity and internal assessment criteria[186]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements[198]. - The company has implemented a long-term mechanism to prevent actual controllers from infringing on the company's interests[197]. Social Responsibility - The company donated RMB 50,000 to support impoverished college students in Gansu Province[144]. - A total of 158 registered impoverished individuals were helped to escape poverty in 2020[145]. - The company invested RMB 50,000 in educational support for impoverished students[146]. - The company plans to continue implementing the "13th Five-Year Plan" for poverty alleviation and will carefully select projects to ensure efficient use of resources[147]. - The company strictly adheres to environmental protection laws and has not faced any administrative penalties for violations[150].