YONGYUE(SH:603879)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 406,386,873.21, a decrease of 5.21% compared to CNY 428,725,782.24 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 6,251,403.04, down 74.37% from CNY 24,390,446.63 in 2019[22]. - The net cash flow from operating activities decreased by 83.02% to CNY 2,877,348.06 from CNY 16,943,896.41 in 2019[22]. - The total assets at the end of 2020 were CNY 585,304,169.51, a slight increase of 0.68% from CNY 581,366,531.76 at the end of 2019[22]. - The basic earnings per share for 2020 were CNY 0.02, down 83.33% from CNY 0.12 in 2019[23]. - The weighted average return on net assets decreased by 3.49 percentage points to 1.19% in 2020 from 4.68% in 2019[23]. - The net assets attributable to shareholders at the end of 2020 were CNY 524,428,649.61, a decrease of 0.35% from CNY 526,276,895.77 at the end of 2019[22]. - The company reported a significant impact on net profit due to the COVID-19 pandemic, falling oil prices, and inventory losses[23]. Cash Flow and Dividends - The company plans to distribute a cash dividend of CNY 0.079 per 10 shares, totaling CNY 2,183,708.52, and to increase the share capital by 3 shares for every 10 shares held[5]. - The company maintains a profit distribution policy that ensures at least 20% of its distributable profits are allocated for cash dividends, with higher percentages during mature phases without major capital expenditures[107]. - The company proposed a cash dividend distribution plan for 2020, with a cash dividend of 0.079 RMB per 10 shares, totaling 2,183,708.52 RMB, which represents 34.93% of the net profit attributable to ordinary shareholders[112]. - In 2019, the cash dividend was 0.5 RMB per 10 shares, amounting to 9,872,100.00 RMB, accounting for 40.48% of the net profit attributable to ordinary shareholders[112]. Market Position and Strategy - The main business focus is on the research, production, and sales of synthetic resins, primarily unsaturated polyester resins, indicating a specialized market position[31]. - The company operates in a competitive market for unsaturated polyester resins, with major competitors including Ashland and Royal DSM, highlighting the need for strategic positioning[33]. - The company has rapidly grown its market share in the artificial stone resin sector since its establishment in 2011, becoming one of the larger suppliers in China[33]. - The company is recognized as a national high-tech enterprise, indicating its commitment to innovation and technology development in the chemical industry[68]. - The company aims to consolidate and increase its market share in the unsaturated polyester resin sector, targeting a higher capacity utilization rate over the next three years[93]. Research and Development - The total R&D expenditure was CNY 13.92 million, accounting for 3.43% of total revenue, with 29 R&D personnel representing 18.95% of the total workforce[57]. - The company has invested in R&D to enhance production processes and reduce costs, utilizing a higher proportion of recycled PET in unsaturated polyester resin production[35]. - The company intends to increase R&D efforts in synthetic resin products, particularly water-based polyurethane, to meet market demands over the next three years[95]. - The company is actively developing new products, including 3D printing liquid resin and halogen-free flame-retardant resin for high-speed trains[71]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures, ensuring compliance with national and local standards[37]. - The company reported a total wastewater discharge of 4,373 tons in 2020, with key pollutants being COD at 1.932 tons and ammonia nitrogen at 0.483 tons, all within the national discharge standards[142]. - The total organized industrial waste gas emissions amounted to 7,885 tons in 2020, with major pollutants including sulfur dioxide at 27.32 tons and nitrogen oxides at 27.2 tons, all below the emission concentration limits[142]. - The company actively participated in poverty alleviation efforts in 2020, aligning with government initiatives[137]. - The company is committed to ongoing participation in poverty alleviation and corporate social responsibility initiatives[139]. Governance and Compliance - The company has committed to maintaining independent financial operations and ensuring that its financial decisions are not influenced by controlling shareholders[113]. - The company has established a management system for insider information, ensuring compliance with regulations[198]. - The company has maintained its listing status and has not faced any risks of suspension or termination of listing[125]. - The company has not reported any significant discrepancies in governance compared to regulatory requirements[198]. - The company ensures that all shareholders can exercise their voting rights equally during shareholder meetings[196]. Shareholder Structure and Changes - The total number of ordinary shares increased from 200,412,000 to 279,388,800 due to a capital increase of 78,976,800 shares through capital reserves[155]. - Jiangsu Huaying holds 47,815,000 shares, accounting for 17.1141% of the total share capital after the transfer of shares from the original controlling shareholders[169]. - The share transfer was completed on January 20, 2021, marking Jiangsu Huaying as the new controlling shareholder[169]. - The company has undergone a change in controlling shareholder as of November 30, 2020, with the completion of the share transfer[169]. Operational Efficiency - The production plan is closely aligned with customer orders and inventory levels, ensuring efficient use of resources and meeting market demand[32]. - The company has established stable procurement channels for raw materials, ensuring a consistent supply and price stability for production[31]. - The company is expanding its production capacity in regions such as Hubei, Sichuan, and Xinjiang to meet growing domestic demand[91]. - The company is enhancing its financial management practices to ensure compliance and transparency in reporting[178].