Feymer(SH:688350)2021-09-16 16:00Financial Performance - The company reported a total distributable profit of RMB 285,178,578.55 as of December 31, 2020[5]. - The cash dividend represents 47.74% of the net profit attributable to the parent company's shareholders for the year[5]. - The company's operating revenue for 2020 was approximately CNY 1.135 billion, a slight increase of 0.39% compared to CNY 1.130 billion in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 104.91 million, representing a growth of 23.07% from CNY 85.25 million in 2019[21]. - The net profit after deducting non-recurring gains and losses was CNY 96.01 million, up 16.57% from CNY 82.36 million in the previous year[21]. - The cash flow from operating activities for 2020 was CNY 165.57 million, a decrease of 15.95% compared to CNY 196.99 million in 2019[21]. - The total assets at the end of 2020 were CNY 1.310 billion, an increase of 2.73% from CNY 1.276 billion at the end of 2019[22]. - The net assets attributable to shareholders at the end of 2020 were CNY 970.19 million, reflecting a growth of 7.17% from CNY 905.28 million at the end of 2019[22]. - The basic and diluted earnings per share were CNY 1.15, reflecting a growth of 23.66% year-on-year[25]. - The company's net cash flow from operating activities was CNY 165,574,725.46, which is 157.85% of the net profit for the period[24]. Dividend Policy - A cash dividend of RMB 4.10 per 10 shares (including tax) is proposed, totaling RMB 50,081,500 (including tax) based on a total share capital of 122,150,000 shares[5]. - The cash dividend distribution policy stipulates that at least 10% of the distributable profit should be distributed in cash if the company is profitable[142]. - The company aims to maintain a stable and continuous profit distribution policy to ensure reasonable returns to investors[142]. - The cash dividend for 2020 is proposed to be RMB 4.10 per 10 shares[146]. - The company has not proposed any stock dividends or capital reserve transfers for the year 2020[146]. - The company completed a cash dividend distribution of RMB 40 million for the year 2019[145]. Research and Development - Research and development expenses accounted for 4.28% of operating revenue, a slight decrease from 4.46% in the previous year[23]. - The company has set up multiple R&D centers focusing on polymer and membrane technology, ensuring alignment with market needs and national policies[42]. - The company adheres to a research and development strategy focused on "independent research and development as the mainstay, supported by external collaboration," establishing partnerships with several universities for technology development[43]. - The total R&D investment for the year was approximately ¥48.59 million, representing 4.28% of total revenue, a slight decrease from 4.46% in the previous year[67]. - The company holds a total of 100 authorized patents, including 32 invention patents, reflecting continuous innovation and enhancement of its technology portfolio[65]. Market Position and Strategy - The company focuses on hydrophilic functional polymer products and technologies, serving water-based industries such as water treatment and oil extraction, aiming for green development and ecological protection[35]. - The company is positioned in a growing industry, with the national goal of reducing carbon emissions and promoting ecological civilization, which is expected to drive the growth of the water-soluble polymer and water treatment membrane sectors[45]. - The company actively participates in the establishment of industry standards, having contributed to 12 national/industry standards, with several already in implementation[52]. - The company holds a significant market share in functional monomers, particularly in DMDAAC, and has improved its market position in the papermaking sector in 2020[51]. - The company aims to enhance R&D investment to upgrade its technology center and improve product development capabilities[134]. Operational Efficiency - The company implemented proactive measures during the COVID-19 pandemic to ensure production continuity and market expansion, enhancing operational efficiency[24]. - The company has established a complete industrial chain from key raw materials to core products, enhancing its competitive edge in new product and technology development[76]. - The company is focusing on lean management projects to improve organizational efficiency and long-term competitiveness[82]. - The company achieved significant advancements in water treatment membrane technology, including the development of high-performance PVDF hollow fiber membrane materials[64]. - The company has made significant progress in optimizing production processes based on customer feedback, enhancing product performance and quality[81]. Risks and Challenges - The company faces risks from intensified market competition, particularly in the functional monomer sector, where it competes with multinational chemical companies[98]. - The ongoing impact of the COVID-19 pandemic has created uncertainties that may affect business expansion and accounts receivable recovery[102]. - The company's main raw materials, including acrylonitrile and chloroprene, constitute over 80% of its main business costs, with prices closely linked to crude oil fluctuations, which may impact operating performance[96]. - The company's net accounts receivable at the end of the reporting period was approximately 246.44 million yuan, representing 34.08% of current assets, indicating potential risks related to cash flow and bad debts[100]. - The company is exposed to risks from changes in industry regulations, particularly concerning safety and environmental standards, which could affect normal operations[95]. Future Outlook - The company provided a positive outlook for 2021, projecting a revenue growth of 10% to 12%[152]. - New product launches are expected to contribute an additional $50 million in revenue in 2021[153]. - Market expansion plans include entering three new international markets by Q3 2021[155]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of 2021[150]. - The company plans to strengthen brand building and market development to increase customer satisfaction and market share[135].