HANGZHOU TOKA(SH:688571)2021-03-11 16:00Financial Performance - The company's operating revenue for 2020 was ¥987,054,125.21, a decrease of 2.04% compared to ¥1,007,624,367.27 in 2019[21]. - Net profit attributable to shareholders for 2020 was ¥109,265,288.59, representing an increase of 21.24% from ¥90,121,712.50 in 2019[21]. - The net profit after deducting non-recurring gains and losses was ¥97,019,949.62, up 24.12% from ¥78,168,951.54 in 2019[21]. - The company's total assets at the end of 2020 reached ¥1,659,380,065.91, a 36.58% increase from ¥1,214,985,661.27 at the end of 2019[21]. - The net assets attributable to shareholders increased by 50.01% to ¥1,309,952,782.85 from ¥873,262,823.98 in 2019[21]. - Basic earnings per share for 2020 were ¥0.46, a 21.05% increase from ¥0.38 in 2019[22]. - The net cash flow from operating activities for 2020 was ¥131,052,686.27, a decrease of 1.30% from ¥132,783,612.44 in 2019[21]. - The company's overseas revenue decreased by 39.01% due to the ongoing pandemic and economic downturn in foreign markets[85]. - The company achieved operating revenue of 987.05 million yuan, a decrease of 2.04% year-on-year[80]. - The net profit attributable to the parent company was 109.27 million yuan, an increase of 21.24% year-on-year[80]. Dividend Policy - The proposed cash dividend for 2020 is CNY 1.10 per 10 shares, totaling CNY 35.2 million, which represents 32.22% of the net profit attributable to the parent company[5]. - The company must distribute at least 10% of its distributable profit as cash dividends annually, and the cumulative cash dividends over any three consecutive years must not be less than 30% of the average annual distributable profit for those three years[148]. - In a mature stage without significant capital expenditure, the minimum cash dividend ratio should be 80% of the profit distribution; if there are significant expenditures, it should be at least 40%[149]. - The company’s cash dividend policy allows for mid-term cash dividends based on the company's profitability and funding needs[149]. - The company’s cash dividends for 2019 were 1.68 RMB per 10 shares, totaling 40.32 million RMB, which was 44.74% of the net profit[153]. - The company’s cash dividends for 2018 were 1.32 RMB per 10 shares, totaling 31.68 million RMB, which was 47.34% of the net profit[153]. - The company must adjust its profit distribution policy if there are significant changes in the external operating environment or its own operational status, ensuring shareholder rights are protected[151]. - The company’s board of directors must propose the profit distribution plan, which requires independent directors' opinions and shareholder approval[150]. - The company has not conducted any capital reserve transfers or stock dividends in the 2020 profit distribution plan[152]. Research and Development - The total R&D expenditure for the year was ¥39,152,417.09, a decrease of 5.13% compared to the previous year’s ¥41,268,497.36[51]. - R&D expenditure accounted for 3.97% of operating revenue, down from 4.10% in the previous year, reflecting a 3.17% decrease[51]. - The company has developed 16 invention patents and possesses core technologies in UV ink, offset ink, and liquid ink, establishing a strong competitive advantage in the industry[41]. - The company has established a comprehensive R&D system for ink products, leveraging extensive experimental data and process experience to enhance product quality and performance[39]. - The R&D team consists of 91 members, with 60.44% holding a bachelor's degree and 16.48% holding a master's degree[58]. - The company is committed to continuous innovation in product design and process improvement to enhance market share and meet customer needs[32]. - The company has made significant progress in developing UV inks, with several projects reaching advanced stages of development and testing[53]. - The company is focusing on developing biodegradable and compostable inks, aiming to reduce reliance on petroleum-based products[43]. Market Position and Strategy - The company maintains a market share of over 6.3% in the ink product sector among key enterprises, with a leading market share of over 52.6% in UV ink products[40]. - The company focuses on developing eco-friendly ink products, with a significant emphasis on UV ink, which has become one of the fastest-growing segments in the market[32]. - The company is expanding its product line to include water-based and solvent-based inks, aiming to reduce environmental impact and meet increasing regulatory demands[32]. - The company’s revenue primarily comes from the sales of energy-saving and environmentally friendly ink products, with a focus on high cost-performance and stable mass production[34]. - The company is positioned to benefit from the growing demand for environmentally friendly inks, aligning with national strategies for green and low-carbon development[109]. - The company aims to enhance its production capacity for packaging printing inks, with a project to produce 10,000 tons of liquid ink and 8,000 tons of functional materials annually[138]. Corporate Governance and Compliance - The company has not disclosed any special arrangements for corporate governance[7]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The company has made commitments to ensure compliance with regulations regarding share sales and related transactions[157]. - The company will ensure that future newly appointed directors, supervisors, and senior management fulfill the obligations as per the commitments made by existing personnel[179]. - The company will publicly explain the reasons for not fulfilling compensation measures at the shareholders' meeting and apologize to shareholders if it fails to implement them[177]. Risks and Challenges - The company faces risks related to core competitiveness, including the need for continuous innovation and the potential loss of key technical personnel[73]. - The company operates in a highly competitive market, with increasing pressure from both domestic and international competitors in the UV ink sector[74]. - Raw material costs account for approximately 84% of production costs, making the company vulnerable to price fluctuations in key materials[75]. - The company is subject to environmental regulations and risks associated with the production of hazardous chemicals, which could impact operational performance[76]. - The company faces risks related to raw material supply from its largest supplier, TOKA, which accounted for 88.44 million yuan in procurement[77]. Shareholder Commitments - The actual controller and shareholders have made commitments regarding share sales, with a lock-up period of 36 months from the date of listing[156]. - The company has commitments related to share sales that include a 12-month lock-up period for certain senior management personnel[157]. - The company has ongoing commitments to resolve competition issues and related party transactions, with a long-term commitment period[156]. - The company has established a framework for monitoring and ensuring compliance with its commitments and obligations[157].