Orinko(SH:688219)2021-04-18 16:00Financial Performance - The company achieved operating revenue of 4,123.75 million yuan, a year-on-year increase of 2.29%[88]. - The net profit attributable to the parent company was 182.21 million yuan, representing a year-on-year growth of 67.38%[88]. - Total assets at the end of the reporting period were 4,311.72 million yuan, up 2.02% from the beginning of the year[88]. - The equity attributable to the parent company increased by 43.24% to 1,689.49 million yuan[88]. - The company's operating revenue for 2020 was approximately CNY 4.12 billion, representing a year-on-year increase of 2.29% compared to CNY 4.03 billion in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately CNY 182.21 million, a significant increase of 67.38% from CNY 108.86 million in 2019[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 160.46 million, up 60.72% from CNY 99.83 million in 2019[22]. - The basic earnings per share for 2020 was CNY 0.44, reflecting a 46.67% increase from CNY 0.30 in 2019[23]. - The weighted average return on equity for 2020 was 14.04%, an increase of 3.60 percentage points from 10.44% in 2019[24]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 45,928,363.20, which accounts for 25.21% of the net profit attributable to shareholders for the year[5]. - The proposed cash dividend for 2020 is RMB 1.00 per 10 shares, totaling approximately RMB 45,928,363.20, which represents 25.21% of the net profit attributable to shareholders[176][177]. - The cash dividend payout ratio for 2020 is below 30% due to the company's focus on rapid development and market expansion[177]. - The company has implemented a clear and compliant dividend distribution policy, ensuring the protection of minority shareholders' rights[178]. - The company will not conduct capital reserve transfers or issue bonus shares for the 2020 profit distribution[176]. Audit and Compliance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The company has no non-standard audit opinions from the accounting firm[188]. - The company has no major litigation or arbitration matters in the current year[190]. - There are no significant accounting errors or corrections reported for the current year[188]. - The company has no outstanding issues regarding the occupation of funds or collection progress[187]. Risk Management - The company has identified and described various risks in the report, urging investors to pay attention to these factors[4]. - The company’s future plans and development strategies involve uncertainties, and investors are advised to be cautious regarding investment risks[6]. - The company plans to enhance its internal control systems and risk management mechanisms to improve overall governance and operational efficiency[173]. Research and Development - The company achieved a total R&D investment of ¥168,849,756.40 in 2020, a slight increase of 0.06% compared to ¥168,744,497.95 in the previous year[68]. - R&D investment accounted for 4.09% of total revenue, a decrease of 0.10 percentage points from 4.19% in the previous year[68]. - The company holds a total of 84 patents, including 46 authorized invention patents and 38 utility model patents[89]. - The company has applied for a total of 87 patents during the reporting period, indicating a strong focus on innovation[66]. - The company is developing a new generation of antibacterial materials, currently in the small-scale testing phase, with a total investment of RMB 3,520.00 million and a cumulative investment of RMB 1,048.06 million[73]. Market Position and Strategy - The company is one of the largest modified plastics enterprises in China, focusing on R&D, production, and sales of high-performance materials[34]. - The modified plastics industry in China has significant growth potential, with expanding applications in various sectors, including aerospace and military[44]. - The company aims to leverage national strategies such as domestic circulation and carbon neutrality to drive sustainable growth over the next three to five years, focusing on technological innovation and market expansion[166]. - The company will actively pursue customer development, aiming to increase market share in existing sectors while expanding into emerging markets like smart home appliances and new energy vehicles[170]. Production and Operations - The company has three production bases in Anhui, Guangdong, and Chongqing, forming a nationwide delivery network[83]. - The company has a design capacity of 218,000 tons at the Hefei base, with a capacity utilization rate of 82.82%[155]. - The Chongqing base has a design capacity of 42,000 tons and a capacity utilization rate of 92.77%, with an additional 10,000 tons under construction expected to be completed by June 2021[155]. - The company has added 2 production lines at the Hefei and Chongqing bases, which is expected to increase annual capacity by 12,000 tons[156]. Financial Health - The company's asset-liability ratios for 2018-2020 were 72.63%, 72.09%, and 60.81%, indicating a high level of financial leverage[101]. - The company raised net funds of RMB 327,821,400 through its listing on the Sci-Tech Innovation Board on November 18, 2020[93]. - The company reported a net cash outflow from operating activities of RMB 88,300,710.36, a decline of 119.16% compared to the previous year[110]. - The financing activities generated a net cash inflow of RMB 241,957,230.92, an increase of 379.64% year-on-year due to the successful issuance of new shares[110]. Customer and Supplier Relationships - The company has established long-term stable partnerships with major clients in the home appliance sector, including Midea, TCL, and Philips, and has expanded its client base to emerging brands like Xiaomi and Bear Electric[49]. - The company is a supplier to well-known automotive manufacturers such as BYD and Great Wall Motors, with its products integrated into the supply chains of SAIC Volkswagen and FAW Volkswagen[49]. - The top five customers accounted for 38.67% of total sales, with the largest customer contributing ¥121,757.86 million, or 29.52%[119]. - The top five suppliers represented 29.35% of total purchases, with the largest supplier accounting for ¥48,565.84 million, or 15.17%[122]. Corporate Governance - The company has no major issues related to the integrity of its controlling shareholders or actual controllers during the reporting period[190]. - The company has adhered to commitments regarding share repurchase and price stabilization measures[186]. - The company has received approval for the 2020 profit distribution plan from the board and supervisory committee, pending shareholder meeting approval[177].