Tianjin Jiuri New Materials (SH:688199)2021-06-10 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,011,418,016.27, a decrease of 24.23% compared to ¥1,334,866,139.24 in 2019[22]. - The net profit attributable to shareholders decreased by 45.01% to ¥136,742,721.34 from ¥248,687,778.77 in the previous year[22]. - The basic earnings per share fell by 56.84% to ¥1.23, down from ¥2.85 in 2019[23]. - The cash flow from operating activities increased by 24.09% to ¥190,983,693.21 compared to ¥153,901,917.19 in 2019[22]. - The company's total assets rose by 11.08% to ¥3,303,224,167.49 at the end of 2020, up from ¥2,973,634,427.79 in 2019[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 63.18% to ¥88,571,255.53[22]. - The weighted average return on equity decreased by 16.48 percentage points to 5.12% from 21.60% in 2019[23]. - The company reported a total of ¥48,171,465.81 in non-recurring gains for 2020, compared to ¥8,138,918.35 in 2019[27]. - The company reported a significant decrease in trading financial assets, with a decline of approximately 55.6% from CNY 1,355,211,447.30 to CNY 601,975,347.03, impacting profits by CNY 30,814,638.32[29]. Research and Development - Research and development expenses accounted for 5.16% of operating revenue, an increase from 4.97% in 2019[23]. - The company applied for 18 new patents during the reporting period, including 13 invention patents and 5 utility model patents[52]. - A total of 52,141,736.74 yuan was invested in research and development, representing a decrease of 21.42% compared to the previous year[55]. - The proportion of total R&D investment to operating income increased to 5.16%, up from 4.97% in the previous year[55]. - The company has developed new products such as macromolecular photoinitiators and low-odor photoinitiators, enhancing its competitive edge in meeting customer needs[46]. - The company’s core technologies are focused on improving process technology to enhance yield and product quality while reducing costs and emissions[49]. - The company has developed a new production process for the TPO light initiator, which simplifies production and reduces the use of hazardous materials[50]. - The company has made significant advancements in the development of low-chlorine light initiators and high-efficiency large molecule TX-type light initiators[51]. Market Position and Strategy - The company is the largest producer of photoinitiators in China, with a comprehensive product range and global influence in the UV curing field[31]. - The company aims to leverage policy support for energy-saving and emission-reduction technologies to increase market penetration of photoinitiators[31]. - The photoinitiator products are widely used in various industries, including wood coatings, plastic coatings, and 3D printing, driven by increasing environmental regulations and market demand[39]. - The company has established a strategic layout in the semiconductor materials field by acquiring Dajing New Materials and Dajing Information, focusing on the industrialization of photoinitiators[84]. - The company is expanding its production capacity with new projects, including an annual production of 9,250 tons of photoinitiators in Inner Mongolia and 87,000 tons of photoinitiators in Dongying[83][84]. - The company emphasizes long-term, stable relationships with high-quality customers, which enhances its competitive edge in the photoinitiator market[75]. - The company is committed to developing new photoinitiators and specialty photopolymer materials, but faces risks related to technological innovation and market demand changes[88]. - The company is actively expanding its market presence through strategic investments and partnerships in the new materials sector[178]. Dividend Policy - The company plans to distribute a cash dividend of RMB 3.50 per 10 shares (including tax) to all shareholders based on the total share capital minus the shares held in the repurchase account[5]. - The total cash dividend amount for 2020 was RMB 79,993,245.34, representing 58.50% of the profits available for distribution[193]. - The cash dividend for the year 2020 accounts for 27.75% of the net profit attributable to shareholders of the listed company in the consolidated financial statements[191]. - The company has maintained a consistent dividend policy over the past three years, with cash dividends of RMB 3.50 in 2020, RMB 10.00 in 2019, and RMB 15.00 in 2018[191]. - The independent directors provided clear consent regarding the dividend distribution proposal, ensuring the protection of minority shareholders' rights[190]. Operational Challenges - The company is experiencing increased operational management challenges due to rapid growth in business scale and employee numbers, necessitating improvements in management systems[89]. - The company is facing risks related to the implementation of fundraising investment projects, particularly concerning land acquisition for the construction of a new facility in Dongying, Shandong[99]. - The construction project for producing 87,000 tons of light-curing materials is currently delayed due to land issues, with only partial work being conducted[100]. - The company is actively monitoring the impact of the COVID-19 pandemic on downstream demand, particularly for its export business[98]. - The company has identified risks of continued decline in gross margin due to competitive pricing strategies adopted in response to market conditions[101]. Corporate Governance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[5]. - The company emphasizes that the forward-looking statements in the report do not constitute a substantive commitment to investors, highlighting potential investment risks[6]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders and their related parties[7]. - The company has not violated decision-making procedures for providing guarantees[7]. - The company has reported that all board members can guarantee the authenticity, accuracy, and completeness of the annual report[7]. Production and Supply Chain - The company has established three modern production bases in Shandong, Jiangsu, and Hunan, with plans for three additional bases in Inner Mongolia, Jiangsu, and Shandong[37]. - The company employs a "sales-driven production" model, aligning production plans with customer orders and market trends to ensure product availability[37]. - The company has a centralized procurement model, ensuring efficient management of raw materials based on sales forecasts and production plans[36]. - The company has established modern production bases to ensure stable supply and safety for downstream customers[44]. Environmental and Regulatory Compliance - The company focuses on the research and development of environmentally friendly, energy-efficient, and high-performance photoinitiators, contributing to air pollution prevention and industrial upgrades[150]. - The company has invested heavily in environmental protection measures, but faces potential regulatory changes that could increase operational costs[93]. - The company’s products are essential for achieving national VOCs reduction strategies and carbon neutrality goals[149].