Longyan Zhuoyue New Energy (SH:688196)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.60 billion, representing a year-over-year increase of 23.47% compared to ¥1.29 billion in 2019[21]. - Net profit attributable to shareholders for 2020 was approximately ¥242.22 million, an increase of 12.37% from ¥215.56 million in 2019[21]. - The cash flow from operating activities for 2020 was approximately ¥253.02 million, showing a significant increase of 41.38% compared to ¥178.97 million in 2019[21]. - The basic earnings per share for 2020 decreased to ¥2.02, down 13.30% from ¥2.33 in 2019[23]. - The weighted average return on equity for 2020 was 11.36%, a decrease of 13.73 percentage points from 25.09% in 2019[23]. - The total assets at the end of 2020 were approximately ¥2.29 billion, an increase of 7.56% from ¥2.13 billion at the end of 2019[21]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥2.22 billion, up 7.54% from ¥2.07 billion at the end of 2019[21]. - The company's gross margin slightly decreased to 15.37% due to rising raw material prices and the appreciation of the RMB[92]. - The overall gross margin decreased by 4.62 percentage points to 15.38%, primarily due to a 2.63 percentage point decline in export gross margin caused by significant appreciation of the RMB[99]. Research and Development - Research and development expenses accounted for 4.56% of operating revenue in 2020, slightly down from 4.70% in 2019[23]. - The company achieved a total R&D investment of ¥72,963,276.79, representing a 19.82% increase compared to the previous year[57]. - The total R&D investment accounted for 4.56% of the operating revenue, a slight decrease of 0.14 percentage points from the previous year[57]. - The company applied for 53 new patents during the reporting period, with 36 patents granted, bringing the cumulative total to 160 applications and 114 grants[55]. - The company has achieved industry-leading levels in various technologies, including energy-saving devices for biodiesel production and wastewater treatment processes[59]. - The company is actively researching technologies for the recovery of glycerol and the deep processing of biodiesel into bio-based materials[54]. - The company has made significant progress in the development of hydrocarbon-based biodiesel, achieving multiple core technologies[54]. - The company has increased its R&D personnel to 102, representing 19.25% of the total workforce, with an average salary of CNY 108,174.45[64]. Market and Industry Position - The company operates in the renewable energy sector, focusing on biomass materials and biofuels[12]. - The company is the largest biodiesel producer in China, with a product structure that includes biodiesel, bio-based plasticizers, industrial glycerin, and eco-friendly alkyd resins[67]. - The company has established a stable procurement system for waste oil, covering nationwide and Southeast Asia regions, ensuring stable supply and reasonable cost procurement[35]. - The company has achieved a biodiesel yield and export volume that ranks first in the national industry for several consecutive years[49]. - The European market continues to show increasing demand for biodiesel, particularly those produced from waste oils, due to stricter blending standards[43]. - The company has a leading position in the domestic biodiesel export market, consistently ranking first in export volume for several years[68]. - The domestic market for biodiesel is primarily for vehicle fuel, boiler fuel, and the preparation of bio-based new materials, with increasing export volumes to Europe[41]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[5]. - The company has not encountered any non-standard audit opinions during the reporting period[156]. - The company has committed to strict compliance with its articles of association and relevant regulations post-listing[148]. - The company has established measures to prevent any potential conflicts of interest among its senior management and related parties[148]. - The company will engage independent third-party evaluations for related party transactions to enhance transparency and fairness[150]. - The company has committed to minimizing and standardizing related party transactions, ensuring fairness and transparency in any unavoidable transactions[150]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[4]. - The company faced risks related to raw material procurement, particularly fluctuations in waste oil prices, and is working to diversify its sourcing channels[81]. - The company is enhancing its internal control and management systems to mitigate risks associated with rapid growth and decision-making complexities[84]. - The company faces potential risks from increased competition in the biodiesel market and changes in EU biodiesel policies affecting demand and pricing[87]. Future Outlook - The company aims to increase its biodiesel production capacity to 600,000 tons and biobased material production capacity to 200,000 tons within the next 3 to 5 years[136]. - The company projects a revenue growth of no less than 30% and a net profit growth of no less than 10% for 2021[137]. - The company plans to enhance internal controls and management efficiency in response to its expanding business scale[137]. - The global push for carbon neutrality presents new opportunities for the biodiesel industry, particularly in sectors where electrification is not feasible[134]. - The company is committed to developing environmentally friendly and renewable biodiesel as part of its long-term strategy[136]. Shareholder Information - The company plans to distribute a cash dividend of 8.20 RMB per 10 shares, totaling 98,400,000 RMB (including tax) based on a total share capital of 120,000,000 shares as of December 31, 2020[6]. - The cash dividend for 2020 was set at 8.20 RMB per share, with a total distribution of approximately 98.4 million RMB, representing 40.62% of the net profit[145]. - The total number of ordinary shareholders increased from 6,366 to 7,042 during the reporting period, representing an increase of approximately 10.6%[187]. - The top ten shareholders hold a total of 58,500,000 shares (48.75%) and 31,500,000 shares (26.25%) respectively, indicating a significant concentration of ownership[192]. Safety and Environmental Management - The company is committed to a safety-first approach in production, implementing strict quantitative assessments and comprehensive safety management mechanisms[138]. - The company has established four management systems for quality, environment, occupational health and safety, and energy management, achieving compliance with environmental standards throughout the year[179]. - The company has not experienced any environmental pollution incidents or administrative penalties from environmental authorities during the reporting period[179]. - The company is committed to enhancing safety production management and has implemented additional safety facilities and preventive measures following the explosion incident[172].