Niutech(SH:688309)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 174,589,275.59, a decrease of 25.65% compared to CNY 234,823,333.57 in 2019 [23]. - The net profit attributable to shareholders for 2020 was CNY 45,971,969.20, down 28.64% from CNY 64,426,488.10 in 2019 [23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 41,622,416.43, a decline of 34.03% year-on-year [25]. - The company's total assets at the end of 2020 reached CNY 782,980,933.69, an increase of 123.91% from CNY 349,678,632.68 at the end of 2019 [23]. - The net assets attributable to shareholders increased by 213.89% to CNY 711,643,692.31 at the end of 2020, compared to CNY 226,719,089.65 at the end of 2019 [23]. - Basic earnings per share for 2020 were CNY 0.6727, a decrease of 37.34% from CNY 1.0736 in 2019 [24]. - The company reported a net cash flow from operating activities of CNY -30,499,962.57 for 2020, an improvement from CNY -51,624,951.48 in 2019 [23]. - The weighted average return on net assets decreased to 10.59% in 2020 from 32.63% in 2019, a reduction of 22.04 percentage points [24]. - The company achieved operating revenue of RMB 174.59 million, a decrease of 25.65% compared to RMB 234.82 million in the previous year [84]. - The net profit attributable to the parent company was RMB 45.97 million, down 28.64% from RMB 64.43 million in the previous year [84]. Dividend Distribution - The company plans to distribute a cash dividend of 0.62 RMB per 10 shares, totaling approximately 4,960,665.45 RMB, which accounts for 10.79% of the net profit attributable to shareholders for the reporting period [4]. - In 2020, the company distributed a cash dividend of 0.62 RMB per 10 shares, with a total cash dividend amounting to 4,960,665.45 RMB, representing 10.79% of the net profit attributable to shareholders [144]. - The company did not propose a cash profit distribution plan despite having positive distributable profits for common shareholders in 2020 [145]. - The company is committed to maintaining a stable profit distribution policy, ensuring that cash dividends do not exceed the cumulative distributable profits [142]. Research and Development - The company is focused on developing new technologies and products in the environmental protection sector [4]. - The R&D expenditure as a percentage of operating revenue increased to 5.97% in 2020 from 4.43% in 2019, reflecting a growth of 1.54 percentage points [24]. - The company is currently working on 11 R&D projects, with a total investment of ¥3,000,000 planned, and has already invested ¥1,000,000 in these projects [68]. - The company has achieved significant progress in developing a continuous waste tire pyrolysis technology, with a total investment of ¥85,000 and a cumulative investment of ¥42,360 [68]. - The company has applied for 13 new domestic and international patents during the reporting period, with 7 new patents granted, enhancing its core competitiveness and market share [62]. - The company holds 72 domestic patents in thermal pyrolysis technology, including 24 invention patents, and has obtained 12 international patents in countries such as the USA, Canada, and Japan [58]. - The company emphasizes continuous innovation in its operations, aiming to provide complete and systematic material processing solutions for clients [34]. Market and Industry Trends - The environmental protection equipment manufacturing industry is projected to reach a value of 1 trillion yuan by 2020, driven by increased domestic investment and technological innovation [44]. - The energy-saving industry is expected to achieve a production value of 1.7 trillion yuan by 2020, with the overall environmental industry projected to reach 2 trillion yuan [45]. - The continuous thermal cracking technology is becoming the mainstream method for treating oily sludge, with significant market competitiveness due to its low cost and high recovery rate of oil [47][48]. - The waste tire recycling industry is transitioning towards continuous automated production equipment, as mandated by the Ministry of Industry and Information Technology, indicating a shift towards more efficient and environmentally friendly processing methods [49]. - The chemical recycling of waste plastics is gaining traction, with a commitment of $1.5 billion from industry players to develop solutions for plastic pollution, aiming to enhance recycling rates and reduce reliance on petroleum [51][52]. Operational Challenges - The company experienced a significant impact on its performance due to the pandemic, leading to decreased revenue and increased costs related to share payments and listing expenses [25]. - The company is exposed to risks related to project contract adjustments, delays, or cancellations, which could significantly impact its operational performance [100]. - The company faces a high customer concentration risk, with the top five customers accounting for 91.47% of total revenue during the reporting period, highlighting the need for customer diversification [99]. - The company’s operations have been impacted by the COVID-19 pandemic, leading to delays in project execution and a reduction in revenue and profits during the reporting period [94]. Corporate Governance and Compliance - The board of directors has confirmed the authenticity and completeness of the annual report [4]. - The company has committed to fulfilling its promises and will compensate for any losses incurred by shareholders due to non-compliance with these commitments [148]. - The company will ensure that any gains from unauthorized share reductions will be returned to the company [150]. - The company emphasizes its commitment to transparency and legal compliance in its shareholding structure [150]. - The company will take responsibility for any losses incurred by investors due to breaches of commitment, including potential compensation [161]. Social Responsibility - The company donated RMB 100,000 for targeted poverty alleviation efforts in Hunan Province, focusing on rural development and support for vulnerable populations [189]. - The company actively engages in social responsibility initiatives, including participation in national poverty alleviation efforts and community support programs [188]. - The company emphasizes sustainable practices, focusing on energy consumption and resource utilization in its operations [194].