Jalon(SH:688357)2021-07-09 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 451.55 million, representing an increase of 11.23% compared to 2019[24]. - Net profit attributable to shareholders increased by 48.10% to CNY 127.37 million, while the net profit after deducting non-recurring gains and losses rose by 59.71% to CNY 109.23 million[24][26]. - Basic earnings per share rose to CNY 2.20, a 13.99% increase year-on-year, reflecting the growth in net profit[27]. - The company's total assets at the end of 2020 were CNY 1.18 billion, a 2.19% increase from 2019[24]. - The company's net cash flow from operating activities surged by 206.08% to CNY 127.34 million, driven by increased sales and reduced cash payments for goods[27]. - The company reported a total revenue of 18,910,000.00 RMB for the year, with a net profit of 16,970,962.18 RMB, indicating a slight increase in profitability compared to the previous year[81]. - The company's operating profit for the same period was 147.13 million yuan, showing a significant increase of 73.39% year-on-year[96]. - The company achieved a gross margin of 44.39% in the chemical raw materials and chemical manufacturing sector, an increase of 5.5 percentage points compared to the previous year[126]. Dividend Policy - The company plans to distribute a cash dividend of RMB 7 per 10 shares, totaling RMB 40,474,000, which accounts for 31.78% of the net profit attributable to shareholders for 2020[7]. - The cash dividend distribution is based on the share capital as of the dividend record date, with a proposed distribution of RMB 0.7 per 10 shares[185]. - The company has established a profit distribution policy prioritizing cash dividends, with a minimum of 80% for mature stages without major capital expenditures[181]. - The company's cash flow is deemed sufficient to support the proposed cash dividend without affecting its ongoing operations[181]. - The board of directors has approved the profit distribution plan, pending shareholder meeting approval for implementation[182]. Research and Development - Research and development expenses accounted for 4.24% of operating revenue, an increase of 0.66 percentage points compared to the previous year[25]. - The total R&D investment for the year was approximately ¥19.14 million, an increase of 31.68% compared to the previous year, representing 4.24% of total revenue[75][76]. - The company obtained 26 new intellectual property rights during the reporting period, including 8 invention patents and 17 utility model patents[73][74]. - The company has established collaborations with research institutions to enhance innovation and product development[73]. - The company is focusing on the development of molecular sieve catalysts for environmental governance, including products for coal-to-ethanol and diesel vehicle exhaust denitration[44]. Market Expansion and Strategy - The company aims to further optimize its sales structure and expand its market presence in the healthcare sector, particularly in oxygen production materials[26]. - The company is expanding its production capacity through projects like the "Adsorption Material Industrial Park Expansion Project" and the "Thailand Subsidiary Construction Project" to strengthen its market position[53]. - The company aims to expand its business into hydrogen purification, coal-based ethanol, and environmental remediation sectors, enhancing its product structure and market reach[178]. - The company is actively expanding its market presence in the environmental governance and energy chemical sectors, focusing on high-value-added product upgrades[98]. - The company has established a comprehensive innovation system and increased R&D investment to achieve breakthroughs in core technologies through independent research and development[42]. Operational Risks and Governance - The company has detailed various operational risks and corresponding mitigation measures in the report[5]. - The report includes a standard unqualified audit opinion from Lixin Certified Public Accountants[6]. - The company has no non-operating fund occupation by controlling shareholders or related parties[9]. - There are no violations of decision-making procedures for external guarantees[10]. - The company has not disclosed any special arrangements for corporate governance[10]. Production and Capacity - The company's total production capacity is 93,000 tons per year, with a global market share of 4.43% in production and 4.24% in output for formed molecular sieves and activated molecular sieve powders in 2018, ranking sixth globally[53]. - The company has a production capacity of 31,000 tons of molecular sieve raw powder, 20,000 tons of formed molecular sieves, and 3,000 tons of activated molecular sieves, with an additional 10,000 tons of formed molecular sieve production line in trial production[53]. - The company completed the construction of a 4,500-ton oxygen-rich molecular sieve production line in the second quarter, and a 9,000-ton hydrogen and oxygen molecular sieve production line is in trial production[101]. - The company is focusing on expanding production capacity to meet increasing demand for molecular sieve products[129]. Customer Base and Sales - The company has established a stable customer base, including major domestic enterprises like Sinopec and international giants like Praxair[90]. - The company achieved sales revenue of 374.05 million yuan from molded molecular sieves, accounting for 82.84% of total revenue during the reporting period[101]. - The sales revenue from the oxygen production series reached 255.99 million yuan, representing 56.69% of total revenue, with a year-on-year growth of 39.26%[103]. - The sales of molded molecular sieves increased by 17.32%, contributing to a gross margin increase of 7.12 percentage points[128]. - The sales of molecular sieve raw powder decreased by 22.65%, resulting in a gross margin reduction of 6.94 percentage points[126]. Financial Management - The company faced risks related to raw material price increases, which could adversely affect performance if product prices do not adjust accordingly[118]. - The company is exposed to foreign exchange risks due to a significant portion of its business being export-oriented[118]. - The company's financial expenses decreased by 60.56%, reflecting improved cost management[123]. - The company benefited from an increase in the export tax rebate rate from 6% to 13% for its molecular sieve products, which positively impacted profitability[119]. - The company has maintained stable energy procurement costs, with natural gas prices down by 7.68% and electricity costs down by 3.86% year-on-year[168].