Huate Gas(SH:688268)2021-04-28 16:00Financial Performance - The net profit attributable to shareholders for 2020 was CNY 106,471,322.73, with a cash dividend distribution of CNY 36,000,000, representing 33.81% of the net profit[8]. - The company's operating revenue for 2020 was RMB 999,588,425.31, representing an increase of 18.44% compared to RMB 843,990,066.84 in 2019[32]. - The net profit attributable to shareholders for 2020 was RMB 106,471,322.73, a 46.67% increase from RMB 72,594,659.69 in 2019[32]. - The net cash flow from operating activities for 2020 was RMB 107,649,491.51, an increase of 45.20% compared to RMB 74,139,331.83 in 2019[32]. - As of the end of 2020, the net assets attributable to shareholders were RMB 1,273,118,521.59, a 6.49% increase from RMB 1,195,574,996.33 at the end of 2019[32]. - Total assets increased by 4.39% year-on-year to CNY 1,483,036,234.21[35]. - The gross margin for specialty gases decreased by 9.03 percentage points to 30.97% due to rising costs[137]. - The company achieved a revenue of ¥999,588,425.31 in 2020, representing a year-on-year growth of 18.44%, while the net profit attributable to shareholders increased by 46.67% to ¥106,471,322.73[115]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 3.00 per 10 shares (including tax) to all shareholders[8]. - The profit distribution proposal has been approved by the board and will be submitted to the annual general meeting for further approval[8]. - The company’s profit distribution policy emphasizes stable returns to investors while considering long-term sustainable development[179]. - In 2020, the company distributed a cash dividend of 3.00 CNY per 10 shares, totaling 36,000,000 CNY, which accounted for 33.81% of the net profit attributable to ordinary shareholders[186]. - In 2019, the cash dividend was 2.50 CNY per 10 shares, amounting to 30,000,000 CNY, representing 41.33% of the net profit attributable to ordinary shareholders[186]. - In 2018, the cash dividend was 2.26 CNY per 10 shares, totaling 20,360,000 CNY, which was 30.31% of the net profit attributable to ordinary shareholders[186]. Research and Development - R&D investment totaled ¥30,368,644.27, an increase of 19.34% compared to the previous year, with R&D expenses accounting for 3.04% of operating revenue[85]. - The number of R&D personnel increased to 90, accounting for 9.76% of the total workforce, with an average salary of 131,749.29 RMB[106]. - The company has established 38 ongoing R&D projects, including 13 for import substitution and 1 to fill a global technology gap[123]. - The company has developed and certified over 20 products for import substitution, including high-purity trifluoromethane and high-purity carbon dioxide, with 131 patents granted[68]. - The company is currently in the certification phase for high-purity trifluoromethane with major clients such as Yangtze Memory Technologies and Zhongtian Technology[80]. Market Position and Strategy - The company focuses on the R&D, production, and sales of specialty gases, catering to global markets with comprehensive gas application solutions[45]. - The company has established a strong presence in the semiconductor market, with over 60% market share in domestic hexafluoropropylene and more than 80% coverage of 8-inch and above semiconductor clients[116]. - The company is actively expanding into healthcare and food industries, aligning with the upgrading of consumer goods markets in China[51]. - The company aims to enhance its market position in the domestic semiconductor materials industry through continuous R&D in specialty gases[49]. - The company has entered the supply chain of leading global semiconductor firms such as Intel, Micron, and TSMC, with some products already supplied to 5nm process lines[70]. Operational Efficiency - The company emphasizes supplier management to ensure stable procurement of gas raw materials and equipment, conducting regular evaluations based on multiple criteria[54]. - The production model is based on "sales-driven production," where production plans are formulated according to sales contracts and historical sales data[55]. - The company utilizes both cylinder and tank truck delivery methods, with the cylinder model being more common for specialty gases due to their high value and diverse types[57]. - The company has established a logistics center in Foshan and subsidiaries in Shenzhen, Zhongshan, and Jiangmen, completing the warehousing layout in the Pearl River Delta region[60]. - The company maintains a strong competitive edge in the specialty gas sector, with comprehensive service capabilities and rapid supply chain response[109]. Risks and Challenges - The company faces risks related to core competitiveness, including rapid technological changes and increased competition, which could impact market share and user scale[125]. - The ongoing public health events have introduced uncertainties that may affect the company's performance and market demand in 2021[134]. - Operating costs increased by 35.66% to ¥739,944,438.84 from ¥545,423,993.26, leading to a significant impact on profit margins[136]. - Financial expenses surged by 224.66% to ¥1,627,986.68, reflecting increased borrowing costs[136]. Future Outlook - The domestic special gas market is expected to grow at a rate of over 15% in the coming years, driven by technological advancements and policy support[174]. - The company plans to expand its market presence and enhance product offerings in response to growing demand in various sectors[143]. - The company aims to promote the localization of special gases to reduce reliance on imports, supported by national policies and technological breakthroughs[174]. - The company plans to increase R&D investment in high-end semiconductor chemicals, including precursors and ammonia water[177].