TINCI(SZ:002709)2021-03-24 16:00Financial Performance - The company's operating revenue for 2020 was ¥4,119,046,395.55, representing a 49.53% increase compared to ¥2,754,589,624.70 in 2019[13]. - The net profit attributable to shareholders in 2020 was ¥532,871,488.05, a significant increase of 3,165.21% from ¥16,319,676.03 in 2019[13]. - The net cash flow from operating activities reached ¥632,457,691.55, compared to a negative cash flow of -¥18,408,019.80 in 2019, marking a 3,535.77% improvement[13]. - Basic earnings per share for 2020 were ¥0.98, up 3,166.67% from ¥0.03 in 2019[13]. - The total assets at the end of 2020 were ¥6,010,469,031.69, reflecting a 12.77% increase from ¥5,329,642,855.46 at the end of 2019[13]. - The net assets attributable to shareholders increased by 21.43% to ¥3,385,861,771.64 at the end of 2020, compared to ¥2,788,297,066.31 at the end of 2019[13]. - The weighted average return on equity for 2020 was 17.49%, a significant increase from 0.57% in 2019[13]. - The total operating revenue for 2020 reached CNY 4,119,046,395.55, representing a 49.53% increase compared to CNY 2,754,589,624.70 in 2019[51]. - Revenue from lithium-ion battery materials accounted for 64.57% of total revenue, amounting to CNY 2,659,796,390.88, which is a 56.63% increase from CNY 1,698,119,566.18 in the previous year[51]. Dividend Policy - The company plans to distribute a cash dividend of 2 RMB (including tax) for every 10 shares, along with a bonus share distribution of 7 shares (including tax) based on a total of 546,129,449 shares[3]. - The cash dividend for 2020 represents 20.50% of the net profit attributable to shareholders, while the 2019 cash dividend was 168.05% of the net profit[129]. - The company has established a dividend policy that ensures cash dividends are prioritized, with a minimum cash dividend ratio of 20% during significant capital expenditure phases[126]. - The total cash dividends distributed over the past three years were 34,270,268.10 CNY in 2018, 27,425,864.45 CNY in 2019, and 109,225,889.80 CNY in 2020[129]. - The total distributable profit available for dividends is 1,667,000,628.08 CNY, ensuring that the dividend distribution does not exceed this amount[130]. Business Operations and Market Position - The company's main business focuses on the research, production, and sales of fine chemical new materials, primarily lithium-ion battery materials, daily chemical materials, and specialty chemicals[21]. - The company maintained a leading market share in the lithium-ion battery materials sector, benefiting from the recovery of the electric vehicle market and strategic partnerships with international clients like Tesla[25]. - The daily chemical materials and specialty chemicals segment continues to grow, driven by rising disposable income and consumer demand for high-quality personal care products[24]. - The company is expanding its product offerings in skincare, makeup, and cleansing markets, supported by ongoing R&D investments[26]. - The company has established multiple supply bases across China and is in the process of building a base in Europe to enhance its supply chain capabilities[33]. Research and Development - The company has increased its investment in R&D for new products, particularly in the fields of personal care and specialty chemicals, to capture emerging market opportunities[26]. - The company has a strong R&D team supported by various national and provincial technology centers, enhancing its innovation capabilities[32]. - The company has introduced over 100 customized electrolyte formulations into trial production and mass production, with significant breakthroughs in lithium-ion battery materials[63]. - The company is focusing on developing high-nickel, high-voltage, and silicon-carbon systems for battery electrolytes, aiming to improve battery life and safety[106]. - The company is committed to developing green and sustainable synthesis technologies, focusing on biodegradable functional polymers[106]. Risk Management - The report covers potential risks in the company's operations and corresponding countermeasures in detail[3]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute profit forecasts or commitments to investors, highlighting the importance of risk awareness[3]. - The company faces policy risks in the lithium-ion battery materials sector due to adjustments in government subsidies for new energy vehicles, which may impact sales and revenue[111]. - The company is implementing dynamic management of credit terms and enhancing collection efforts to mitigate cash flow risks due to potential tightening in the supply chain of lithium battery materials as a result of reduced subsidies in the new energy vehicle industry[113]. Environmental and Social Responsibility - The company has invested in environmental protection measures, including a wastewater treatment system with a daily capacity of 1,000 tons[171]. - The company has established an environmental self-monitoring plan to ensure compliance with pollution control standards[182]. - The company actively participates in social welfare activities, including educational support and poverty alleviation, reflecting its commitment to social responsibility[172]. - The company is committed to clean and safe production, focusing on environmental benefits and employee health[179]. Corporate Governance - The company has a profit distribution policy that prioritizes cash dividends, aiming for a minimum of 80% cash distribution during mature phases without significant capital expenditure[122]. - The independent directors have fulfilled their responsibilities in the decision-making process regarding the dividend policy[127]. - The company has committed to not engaging in any new business that directly competes with its existing operations, reinforcing its market position[134]. - The company has established a long-term commitment to protect the interests of small and medium investors, ensuring their rights are prioritized in any compensation measures[133].