Xingqiu Graphite(SH:688633)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 559,568,407.11, representing a year-on-year increase of 16.34% compared to CNY 480,965,203.56 in 2019[20]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 136,805,637.17, an increase of 11.66% from CNY 122,521,402.41 in 2019[20]. - The net cash flow from operating activities reached CNY 133,768,263.99, showing a significant increase of 74.92% compared to CNY 76,474,683.67 in 2019[20]. - The total assets at the end of 2020 were CNY 865,151,038.59, which is a 7.26% increase from CNY 806,590,670.51 at the end of 2019[20]. - The basic earnings per share for 2020 was CNY 2.78, reflecting a 24.11% increase from CNY 2.24 in 2019[21]. - The weighted average return on equity for 2020 was 28.34%, slightly down from 28.90% in 2019[21]. - The company achieved operating revenue of 559.57 million yuan, an increase of 16.34% year-on-year[75]. - Operating profit and total profit were 167.52 million yuan and 175.95 million yuan, respectively, representing year-on-year increases of 17.05% and 23.26%[75]. - Net profit attributable to shareholders was 151.59 million yuan, up 23.79% year-on-year[75]. - Operating costs increased to CNY 305.55 million, a year-on-year increase of 28.69%[92]. - The gross profit margin for the reporting period was 45.47%[95]. Dividend Policy - The company plans to distribute a cash dividend of 6.9 yuan per 10 shares, totaling approximately 50.19 million yuan (including tax), representing a cash dividend payout ratio of 33.11%[4]. - The cash dividend policy stipulates that the total cash dividend (including interim dividends) should not be less than 10% of the net profit attributable to shareholders in the annual report period[132]. - In 2020, the company distributed a cash dividend of 6.9 RMB per 10 shares, with a payout ratio of 33.11% of the net profit attributable to shareholders[134]. - In 2019, the cash dividend was 7.3 RMB per 10 shares, with a payout ratio of 32.66% of the net profit attributable to shareholders[134]. - In 2018, the cash dividend was 5.5 RMB per 10 shares, with a significantly higher payout ratio of 60.40% of the net profit attributable to shareholders[134]. Research and Development - The R&D expenditure as a percentage of operating revenue was 5.85% in 2020, up from 5.22% in 2019, indicating a focus on innovation[21]. - The company increased its R&D investment by 30.34% year-on-year, totaling approximately 32.75 million RMB, which represents 5.85% of its operating revenue[57]. - The company’s R&D efforts focus on improving the pressure resistance and temperature tolerance of graphite materials, enhancing their market competitiveness[53]. - The company has filed for 27 new patents during the reporting period, bringing the total number of patents to 264, including 89 invention patents[55]. - The company has established several provincial engineering technology research centers and has participated in the formulation of 16 national and industry standards, showcasing its strong technical capabilities[43]. - The company’s innovative technologies have been included in the National Industrial Energy Conservation Technology Application Guide, highlighting their role as a demonstration case for energy-saving technologies[48]. - The company is committed to enhancing its research and development capabilities to support the marketization of ongoing projects and maintain industry leadership[127]. Market Position and Strategy - The company has been recognized as a national champion in manufacturing and a pioneer in specialized and innovative small giant enterprises, indicating strong market positioning and capabilities[31]. - The company is a leading supplier of graphite equipment in China, holding the largest market share for composite by-product steam graphite hydrochloric acid synthesis furnaces for the past three years[42]. - The company plans to continue its market expansion and product development strategies to sustain growth in the coming years[19]. - The company is exploring integrated delivery models for its graphite equipment systems, transitioning from a single product manufacturer to a comprehensive system supplier[47]. - The company has established stable business relationships with major clients in the chlor-alkali and chemical industries, enhancing its brand reputation[66]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from the accounting firm[4]. - The company has not violated decision-making procedures for providing guarantees[7]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity, accuracy, and completeness of the annual report[7]. - The company guarantees that the prospectus and other information disclosure materials do not contain false records, misleading statements, or significant omissions, and will bear legal responsibility for their authenticity, accuracy, and completeness[152]. - The company has committed to publicly disclose any unfulfilled commitments and apologize to shareholders if such situations arise[163]. - The company has maintained a strict governance structure and internal control system, ensuring compliance with relevant laws and regulations[175]. Environmental and Social Responsibility - The company has contributed a total of RMB 30,000 to charity for pandemic relief and local economic support during 2020[180]. - The company has been recognized as a strategic emerging industry standardization pilot project for energy-saving and environmentally friendly graphite equipment[179]. - The company is committed to energy efficiency, utilizing by-product steam from the synthesis process to improve energy utilization rates[34]. - The company’s waste acid recovery technology effectively reduces environmental pollution by recycling waste hydrochloric acid into high-purity hydrochloric acid for production[53]. - The company is responding to increasing environmental and energy efficiency demands in downstream industries by developing high-efficiency, energy-saving equipment[125]. Risks and Challenges - The company faces risks related to raw material price fluctuations, which significantly impact operating margins[80]. - The company has faced risks related to new product development and potential core technology leakage, which could impact its long-term growth[78]. - The company is expanding its production capacity for graphite raw materials, which carries a degree of uncertainty[81]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7, with a previous total of 10,663[185]. - The top shareholder, Zhang Yi, holds 39,600,000 shares, representing 72.59% of the total shares[188]. - The second largest shareholder, Qian Shujuan, owns 9,200,000 shares, accounting for 16.87%[188]. - The shares held by major shareholders are subject to lock-up periods, with Zhang Yi and Qian Shujuan's shares being locked for 36 months from the listing date[190]. - The company has no strategic investors or general legal entities among the top ten shareholders due to the absence of new share placements[191].