Tianjin Jiuri New Materials (SH:688199)2021-04-22 16:00Financial Performance - In 2020, the company's operating revenue was approximately CNY 1.01 billion, a decrease of 24.23% compared to CNY 1.33 billion in 2019[22]. - The net profit attributable to shareholders decreased by 45.01% to CNY 136.74 million from CNY 248.69 million in 2019[24]. - The basic earnings per share fell by 56.84% to CNY 1.23, down from CNY 2.85 in the previous year[23]. - The company reported a net cash flow from operating activities of CNY 190.98 million, an increase of 24.09% compared to CNY 153.90 million in 2019[22]. - The total assets increased by 11.08% to CNY 3.30 billion from CNY 2.97 billion in 2019[22]. - The fourth quarter revenue was CNY 303.97 million, showing a recovery trend compared to earlier quarters[28]. - The company achieved an operating income of ¥1,011,418,016.27, a year-on-year decrease of 24.23%, and a net profit attributable to shareholders of ¥136,742,721.34, down 45.01% year-on-year[78]. - The gross profit margin for the main business was 25.27%, down by 12.17 percentage points compared to the previous year[145]. Research and Development - The company has a strong R&D capability, with numerous patents and a mature system for technology transfer, focusing on environmentally friendly and energy-efficient products[32]. - The company holds 53 invention patents and 8 utility model patents, indicating strong R&D capabilities and innovation in photoinitiator technology[43]. - The total R&D investment amounted to ¥52,141,736.74, a decrease of 21.42% compared to the previous year[57]. - The number of R&D personnel has increased to 192, accounting for 19.12% of the total workforce, up from 16.43% in the previous period[64]. - The company has established a "National Enterprise Technology Center" and a "Tianjin Photoinitiator Technology Engineering Center" to enhance its R&D capabilities[67]. - The company is committed to enhancing its research and development capabilities, particularly in photopolymerization products and electronic chemical materials, to meet diverse customer needs[161]. Market Position and Strategy - The company is the largest and most comprehensive supplier of photoinitiators in China, with a significant global influence in the UV curing field[31]. - The photoinitiator market in China is experiencing stable growth, with significant potential for application expansion compared to developed countries[40]. - The company is transitioning from a conventional photoinitiator manufacturer to a solution provider for UV curing technology, enhancing its market competitiveness[48]. - The company has established long-term, stable relationships with high-quality customers, which enhances its competitive edge in the photoinitiator market[72]. - The company aims to enhance its market position in the light curing industry by diversifying its product line and expanding into new materials, particularly special monomers and resins[159]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[5]. - The company does not face any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has a comprehensive decision-making mechanism for profit distribution, ensuring transparency and compliance with regulations to protect minority shareholders' rights[168]. - The company has commitments from major shareholders and management regarding shareholding restrictions and stock price stabilization measures[173]. Risks and Challenges - The company is facing risks related to core competitiveness, as market demand and technological advancements continue to evolve, potentially impacting its market position[85]. - The company is exposed to macroeconomic risks, including exchange rate fluctuations that could affect its export revenues and profits[88]. - The company is experiencing price pressure on its products due to intensified competition and external factors such as the COVID-19 pandemic, leading to a decline in product prices[91]. - The company faces potential risks related to safety production due to the use of hazardous chemicals and processes, which could lead to accidents and regulatory penalties[90]. - Rising labor costs are a concern as the company expands its workforce and increases employee salaries, which may not align with revenue growth[92]. Shareholder Returns - The company plans to distribute a cash dividend of RMB 3.50 per 10 shares to all shareholders, subject to approval at the shareholders' meeting[5]. - The cash dividend proposal for 2020 is to distribute RMB 3.50 per 10 shares (including tax), amounting to a total cash dividend of approximately RMB 37.94 million, which represents 27.75% of the net profit attributable to shareholders[169]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[172]. - The company repurchased shares amounting to 79,993,245.34 CNY in 2020, representing 58.50% of the cash dividend[172]. Production and Operations - The company operates three modern production bases in Shandong, Jiangsu, and Hunan, with plans for three additional bases to ensure stable product supply[37]. - The production model is based on "sales-driven production," aligning production plans with customer orders and market trends[37]. - The company has developed new production processes for its core products, such as 1173 and 184, which significantly reduce raw material consumption and waste generation, achieving nearly zero wastewater discharge[133]. - The company is expanding its production capacity with 6,200 tons under construction in Inner Mongolia, expected to be completed by December 2021[141].