PRET(SZ:002324)2021-04-09 16:00Financial Performance - The company's operating revenue for 2020 was ¥4,447,542,055.08, representing a 23.54% increase compared to ¥3,599,966,583.00 in 2019[21]. - The net profit attributable to shareholders for 2020 was ¥395,705,691.36, a significant increase of 139.99% from ¥164,886,342.12 in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥341,717,989.53, up 148.19% from ¥137,686,262.18 in the previous year[21]. - The net cash flow from operating activities was ¥413,595,841.18, reflecting a 17.11% increase from ¥353,156,141.15 in 2019[21]. - Basic earnings per share for 2020 were ¥0.4683, a 140.03% increase compared to ¥0.3122 in 2019[21]. - The weighted average return on equity increased to 15.60% at the end of 2020, up from 7.05% in 2019, reflecting a significant improvement in profitability[23]. - Total assets reached approximately ¥4.41 billion, representing a 13.29% increase compared to ¥3.89 billion in the previous year[23]. - The company reported a significant increase in investment amounting to ¥195,100,000, representing a 650.38% increase compared to ¥26,000,000 in the previous year[132]. - The total cash inflow from operating activities was approximately ¥4.86 billion, reflecting a 23.08% increase compared to the previous year[121]. Dividend Distribution - The company plans to distribute a cash dividend of ¥0.5 per 10 shares and issue 2 bonus shares for every 10 shares held[6]. - In 2020, the company distributed a cash dividend of CNY 42,252,596.55, which accounted for 10.68% of the net profit attributable to ordinary shareholders[190]. - The total cash dividend, including other methods, amounted to CNY 211,262,982.75, representing 53.39% of the net profit attributable to ordinary shareholders[190]. - The profit distribution plan for 2020 included a cash dividend of CNY 0.5 per 10 shares and 2 bonus shares per 10 shares, with no capital reserve fund conversion[191]. - The cash dividend amount in 2019 was CNY 52,815,745.70, which was 32.03% of the net profit attributable to ordinary shareholders[190]. - In 2018, the cash dividend was CNY 81,254,993.40, accounting for 112.36% of the net profit attributable to ordinary shareholders[190]. - The company plans to continue its profit distribution strategy while managing significant capital expenditures[194]. Business Strategy and Market Position - The company is focused on three main industry segments: modified materials, ICT materials, and specialty chemicals, aiming for growth in high-performance applications[36]. - The modified materials industry is experiencing rapid demand growth, particularly in the automotive sector, driven by trends towards lightweight and environmentally friendly materials[40]. - The company has become a leading enterprise in the domestic modified plastics industry, serving major automotive manufacturers such as BMW, Mercedes-Benz, and Ford[41]. - The company aims to enhance product R&D and operational efficiency to compete against major players like BASF and Dupont in the automotive materials market[156]. - The company plans to increase its market share in the new energy vehicle sector, which is a key growth area for the automotive industry[156]. - The company is positioned to capitalize on the opportunities presented by the rapid growth of the new energy vehicle market, focusing on lightweight materials[161]. - The company is actively expanding its non-automotive materials business through innovation and collaboration, focusing on specialty engineering materials[174]. Research and Development - Research and development expenses increased by 17.92% to ¥212,839,015.59, compared to ¥180,494,050.98 in 2019[112]. - The company has applied for 25 Chinese invention patents related to LCP technology, demonstrating its commitment to innovation[45]. - The company filed 65 new invention patent applications in the automotive and specialty materials sectors, totaling 156 authorized patents by the end of the reporting period[81]. - The company is committed to achieving technological innovation and import substitution in the electronic materials sector, particularly in smart automotive and 5G communication applications[167]. Risk Management - The company faces risks including macroeconomic and industry conditions, raw material price fluctuations, and internationalization risks[6]. - The company is facing risks related to raw material price fluctuations, particularly synthetic resin prices, which are closely tied to international oil prices, potentially impacting gross margins[175]. - The company is exposed to foreign exchange risks due to importing raw materials priced in USD, and plans to increase RMB settlements and utilize financial tools to mitigate this risk[180]. - The company has established a comprehensive risk control system for its derivative investments, focusing on market, liquidity, and credit risks[141]. Production and Operations - The company has implemented a centralized procurement model to optimize supply chain efficiency and ensure quality control[36]. - The production capacity for modified plastics is 460,000 tons, with a utilization rate of 58.10%[90]. - The company has established a strategic procurement model for its main raw materials, with PP accounting for 50% of total procurement[86]. - The company has established a strategic partnership with Shenzhen Hengxin Huaye Investment Fund, planning to transfer 5% of shares to support the development of its electronic new materials business[78]. Market Expansion and International Presence - The company successfully localized the production of melt-blown polypropylene materials in the U.S., enhancing brand influence and market presence[57]. - In 2020, the company imported materials worth $54.86 million and had export sales of $3.0154 million, indicating a significant international presence[92]. - The company is pursuing a globalization strategy, having established subsidiaries in the US and Europe, and aims to manage risks associated with international acquisitions and local regulations[181]. Corporate Governance and Compliance - The company has committed to strict compliance with regulations regarding related party transactions and fund usage[195]. - The company has not proposed any capital reserve fund conversion for the 2020 profit distribution[191]. - The company has not changed its main business since its listing[20].