NCIC(SZ:002246)2021-04-22 16:00Financial Performance - In 2020, the company's operating revenue was CNY 2,358,580,626.84, a decrease of 4.16% compared to CNY 2,460,835,877.51 in 2019[28]. - The net profit attributable to shareholders was CNY 90,179,154.54, down 33.98% from CNY 136,595,707.22 in the previous year[28]. - The net profit after deducting non-recurring gains and losses was CNY 63,013,727.69, a decrease of 37.04% compared to CNY 100,089,861.94 in 2019[28]. - The total assets at the end of 2020 were CNY 4,206,657,137.55, an increase of 7.31% from CNY 3,920,053,122.39 at the end of 2019[29]. - The net assets attributable to shareholders increased by 4.51% to CNY 2,626,345,371.34 from CNY 2,513,047,531.27 in 2019[29]. - The basic earnings per share decreased by 36.00% to CNY 0.16 from CNY 0.25 in 2019[28]. - The diluted earnings per share also decreased by 36.00% to CNY 0.16 from CNY 0.25 in 2019[29]. - The weighted average return on equity was 3.55%, down from 5.55% in 2019, a decrease of 2.00%[29]. - Total revenue for the year was approximately CNY 2.36 billion, with a quarterly breakdown of CNY 357.47 million in Q1, CNY 632.64 million in Q2, CNY 687.14 million in Q3, and CNY 681.33 million in Q4[32]. - Net profit attributable to shareholders for the year was CNY 90.18 million, with quarterly figures of CNY 2.11 million in Q1, CNY 29.50 million in Q2, CNY 37.92 million in Q3, and CNY 20.66 million in Q4[32]. Market Position and Strategy - The company maintains a domestic market share of over 50% for nitrocellulose products and 20% for international markets[8]. - The company holds a domestic market share of 70% for pumps used in phosphate fertilizer and 40% for flue gas desulfurization pumps[8]. - The company aims to ensure special orders and implement strategies such as "differentiation" and "one customer, one policy" to mitigate market demand shrinkage[8]. - The company is focused on expanding its market presence and exploring new markets amid complex international trade conditions[8]. - The company has achieved year-on-year growth in new markets and foreign trade markets for its pump products[8]. - The cellulose and its derivatives industry remains a core business, with the company maintaining its position as the largest global manufacturer of nitrocellulose products, serving over 50 countries[38]. - The company anticipates a slight growth in the nitrocellulose industry in 2021, despite ongoing market uncertainties due to the global pandemic[40]. - The company is actively promoting energy conservation and emission reduction to manage environmental risks[8]. Environmental and Social Responsibility - The company is increasing its investment in environmental protection to comply with stricter pollution discharge standards, which may raise product costs[8]. - The company has committed to fulfilling its social responsibilities as a listed company by enhancing its environmental protection efforts[8]. - The company has implemented a three-year action plan to promote safety production and has made significant improvements in environmental governance[65]. - The company has actively engaged in social responsibility initiatives, including consumer poverty alleviation efforts by purchasing unsold agricultural products from various regions[191]. - The company plans to donate a total of 510,000 yuan for poverty alleviation initiatives in 2021, including 100,000 yuan to Honghe County and 200,000 yuan to Yajiang County[194]. - In 2020, the company invested 2,122,000 yuan in environmental protection and incurred a total of 2,987,000 yuan in pollution control facility operating costs[197]. - The company successfully completed multiple VOCs pollution control projects, achieving significant reductions in emissions and meeting annual reduction targets[197]. Cash Dividend Policy - The company plans to distribute a cash dividend of 0.40 RMB per 10 shares to all shareholders, based on a total of 549,034,794 shares[5]. - The cash dividend distribution will be at least 10% of the distributable profit for the year, with a cumulative distribution of at least 30% of the average distributable profit over any three consecutive years[139]. - The company prioritizes cash dividends over stock dividends, with specific conditions for implementing cash distributions[136]. - The company aims to distribute at least 80% of profits as cash dividends if in a mature stage without major capital expenditures[139]. - The company has established a cash dividend policy to ensure stable returns for shareholders, with a plan for shareholder returns from 2020 to 2022[135]. Research and Development - The company has obtained a total of 77 authorized invention patents and 68 utility model patents for Nitrocellulose, indicating strong R&D capabilities in this area[74]. - The company completed the development of 12 pump models for the alumina industry, enhancing its competitive edge in efficiency and lifespan[101]. - Investment in new product development increased by 20% year-over-year, focusing on innovative chemical solutions[158]. - Research and development expenses accounted for 8% of total revenue, emphasizing the company's commitment to innovation[158]. Challenges and Risks - The company has faced significant impacts from the COVID-19 pandemic and rising trade protectionism, affecting global supply chains[8]. - The company is facing increased safety and environmental production management challenges due to stricter regulations following recent safety incidents[71]. - The company is facing market risks due to complex international situations and the impact of the COVID-19 pandemic on global supply chains[130]. - The company has not reported on significant order growth or military product revenue proportions[134]. Corporate Governance - The company has established a sound corporate governance structure, including a board of directors and supervisory board[156]. - The company has confirmed that it has no unresolved litigation or arbitration cases as of the date of the report, ensuring a clean legal standing[152]. - The company has not faced any significant administrative penalties or criminal charges in the last five years, maintaining a strong compliance record[152]. - The company guarantees that any unavoidable related transactions will be conducted in accordance with national laws and regulations, ensuring proper disclosure and adherence to corporate governance[152].