JINHONG GAS(SH:688106)2021-03-21 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 1.24 billion, an increase of 7.13% compared to 2019[28]. - The net profit attributable to shareholders for 2020 was approximately CNY 197.33 million, representing an increase of 11.43% year-on-year[28]. - The net assets attributable to shareholders at the end of 2020 reached approximately CNY 2.77 billion, a significant increase of 225.84% compared to the end of 2019[28]. - The total assets at the end of 2020 were approximately CNY 3.46 billion, up 106.54% from the previous year[28]. - The basic earnings per share for 2020 was CNY 0.47, a decrease of 4.08% compared to 2019[31]. - The net cash flow from operating activities for 2020 was approximately CNY 401.62 million, a slight increase of 0.40% from 2019[28]. - The company reported a quarterly revenue of CNY 351.16 million in Q4 2020, showing strong performance in the last quarter[33]. - The net profit attributable to shareholders in Q4 2020 was approximately CNY 54.65 million, indicating a solid finish to the year[33]. - The total revenue for the company reached 13.43 billion RMB, with a significant increase in production capabilities across various product lines[109]. - In 2020, the company achieved operating revenue of 1,243.34 million yuan, a year-on-year increase of 7.13%[128]. - The net profit attributable to shareholders was 197.33 million yuan, reflecting a year-on-year growth of 11.43%[128]. - As of December 31, 2020, the company's total assets amounted to 3,455.31 million yuan, with net assets reaching 2,770.71 million yuan[128]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares, totaling RMB 121,083,350, which represents 61.36% of the net profit attributable to shareholders for the year 2020[7]. - The company reported a total share capital of 484,333,400 shares as of December 31, 2020[7]. - The company has no plans for capital reserve conversion into share capital for the year 2020[7]. Audit and Compliance - The company received a standard unqualified audit opinion from the accounting firm Rongcheng[6]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[4]. - The company has not violated any decision-making procedures regarding external guarantees[10]. - There are no non-operational fund occupations by controlling shareholders or related parties[8]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity of the annual report[10]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 3.73% in 2020, up 0.29 percentage points from 2019[31]. - Total R&D expenses increased by 16.36% year-over-year, amounting to ¥46,413,973.53 compared to ¥39,888,291.75[94]. - The company has developed various ultra-high purity gases, achieving a total of 200 patents, including 39 invention patents, as of the end of the reporting period[78]. - The company has applied for 15 invention patents and 32 utility model patents during the reporting period, with a total of 305 applications and 205 granted patents[92]. - The company has established several key research centers, enhancing its technological and R&D advantages[117]. - The company is currently developing 12 key projects, with total expected investment of ¥6,760 million[98]. Market and Industry Trends - The global industrial gas market size was approximately $122 billion in 2018, with a projected growth rate of 8% leading to an estimated size of $131.8 billion by 2019[60]. - China's industrial gas market size reached 147.7 billion yuan in 2019, with a compound annual growth rate (CAGR) of 15.29% from 2010 to 2019[65]. - The outsourcing rate of industrial gas in China was about 45% in 2018, expected to rise to 57% by 2020, indicating a shift towards socialized supply[71]. - The domestic electronic gas market accounted for nearly one-third of the global market, with the self-sufficiency rate being very low, as nearly 80% of products are imported[70]. - The industrial gas industry in China is projected to maintain double-digit growth, driven by a GDP growth rate of around 6% and the "13th Five-Year Plan" focusing on eight key industries[65]. - The demand for high-purity gases in the semiconductor industry requires purity levels above 5N, with stringent production and analysis processes[76]. Operational Strategies - The company focuses on the research and production of specialty gases, aiming to fill domestic gaps in high-end specialty gas production[45]. - The company has established a comprehensive gas supply and service network, providing over 100 types of gases for various industries[45]. - The production model is driven by orders, with a focus on maintaining reasonable inventory levels to meet customer demands[51]. - The company has a stable procurement channel for raw materials, primarily sourced from large state-owned enterprises and chemical companies[50]. - The sales model includes direct sales to end-users and gas companies, with customer acquisition through various channels such as trade shows and online advertising[52][54]. - The company aims to increase the localization of specialty gases in response to the growing semiconductor industry in China[45]. Risks and Challenges - The company has outlined various operational risks and corresponding mitigation strategies in the report[5]. - The report includes a forward-looking statement risk declaration, advising investors to be cautious of investment risks[8]. - The company faces risks related to raw material price fluctuations, which could impact operating costs and profit margins[138]. Recognition and Awards - The company has been recognized as a key high-tech enterprise and has received various awards for its innovative products and technologies[118]. - The company has been recognized as a "National Specialized and Innovative 'Little Giant' Enterprise" and a top 20 integrated circuit enterprise in Suzhou[133]. - The company’s brand "Jinhong Gas" has been recognized as a famous trademark, enhancing its market reputation and competitive edge[123].