RIKE CHEM(SZ:300214)2021-04-18 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,274,586,718.45, a decrease of 6.01% compared to ¥2,420,120,333.77 in 2019[25]. - The net profit attributable to shareholders for 2020 was ¥207,036,161.13, an increase of 16.37% from ¥177,911,380.66 in 2019[25]. - The net cash flow from operating activities increased by 240.11% to ¥463,349,034.97 in 2020, compared to ¥136,236,696.09 in 2019[25]. - The total assets at the end of 2020 were ¥2,269,233,836.41, reflecting a growth of 10.17% from ¥2,059,758,821.15 at the end of 2019[25]. - The company's basic earnings per share for 2020 was ¥0.49, up 16.67% from ¥0.42 in 2019[25]. - The company's total revenue for 2020 was approximately ¥2.27 billion, a decrease of 5.71% compared to the previous year[65]. - The gross profit margin improved to 16.84%, an increase of 2.26% year-on-year[65]. - The net profit attributable to shareholders in the fourth quarter of 2020 was ¥26,263,697.18, a decrease compared to previous quarters[27]. Dividends and Share Capital - The company reported a cash dividend of 0.85 RMB per 10 shares (including tax) based on a total of 419,902,614 shares after accounting for repurchased shares[13]. - The total distributable profit available for shareholders at the end of the year was 450,260,637.63 RMB, after accounting for the legal surplus reserve and previous year dividends[133]. - The cash dividend distribution for 2020 accounted for 17.24% of the net profit attributable to the parent company[135]. - The company’s cash dividend for 2019 was 0.6 RMB per 10 shares, totaling 25,194,156.84 RMB, which was 14.16% of the net profit[135]. - The company’s cash dividend for 2018 was 0.5 RMB per 10 shares, totaling 21,225,075.70 RMB, which was 20.65% of the net profit[135]. - The company's total share capital is 425,812,614 shares, with 5,910,000 shares held in the repurchase account[13]. Acquisitions and Investments - The acquisition of 100% equity in Shandong Huibin Cotton Spinning and Dyeing Co., Ltd. and Binzhou Ocean Chemical Co., Ltd. was completed for a total transaction price of 77.08 million RMB[9]. - The company acknowledges the risk of not achieving expected outcomes from acquisitions and investments due to market demand changes and policy adjustments[9]. - The company has plans for market expansion and strategic investments closely aligned with its core business, although there are risks associated with the feasibility and expected returns of these investments[7]. - The company completed the acquisition of 100% equity in Shandong Huibin Cotton Spinning and Dyeing Co., Ltd. for a transaction price of 77.08 million RMB, with the aim of revitalizing its chlor-alkali production capacity[123]. - The company acquired 100% of Binzhou Ocean Chemical Co., Ltd., marking a significant expansion in its operational scope[72]. Research and Development - The company has established ACR and ACM divisions to enhance customer service and product development, focusing on the needs of small and medium-sized enterprises[35]. - The company aims to enhance product strength, toughness, and dispersion through continuous innovation and improved customer service[51]. - The company has ongoing R&D projects aimed at improving product performance and expanding market applications, including high-impact acrylic modifiers and high-dispersibility modified sodium polyacrylate[78]. - In 2020, the company's R&D investment amounted to ¥33,757,572.98, representing 1.48% of total revenue, an increase from 1.36% in 2019[78]. - The number of R&D personnel increased to 135 in 2020, accounting for 13.90% of the total workforce[78]. Market and Industry Trends - The PVC modification agent industry is experiencing growth due to improved domestic market demand driven by national security, environmental policies, and rising living standards[109]. - The demand for plastic profiles is expected to continue growing as energy-saving policies are promoted, with plastic materials recognized for their energy-saving advantages in production and recycling[109]. - The overall pipe industry, including plastic pipes, is positioned for substantial growth due to new urbanization plans and large-scale infrastructure projects[109]. - The company plans to enhance its product offerings, including CPVC fire pipe projects and low-density PVC foam materials, to meet market demands[77]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly for methyl methacrylate and polyethylene, which could impact gross margins and future profitability[6]. - The company acknowledges the risk of not achieving expected outcomes from acquisitions and investments due to market demand changes and policy adjustments[9]. - Increasing accounts receivable may lead to liquidity risks; the company will implement measures to improve collection efficiency and manage customer relationships[119]. - Safety management is a priority due to the use of hazardous chemicals; the company has established comprehensive safety protocols to prevent accidents[122]. Governance and Compliance - The company has committed to not engaging in competitive business activities with companies under its control or significant influence[137]. - The company has ensured that no insider trading occurs by its directors, supervisors, or senior management based on undisclosed information[137]. - The company has pledged to maintain the integrity of its financial disclosures to the Shenzhen Stock Exchange, avoiding any false statements or omissions[137]. - The company has fulfilled all commitments made during the non-public stock issuance process, ensuring compliance with regulatory requirements[136]. Financial Management and Guarantees - The company has engaged in multiple guarantees throughout 2020, indicating active financial management and support for its subsidiaries[158]. - The total amount of guarantees issued by the company demonstrates a significant level of financial backing for its operations and subsidiaries[157][158]. - The company has consistently fulfilled its guarantee obligations, with all guarantees marked as completed and not related to any connected parties[157][158]. - The company reported a procurement amount of RMB 120.29 million for raw materials from related party Shandong Hongxu Chemical Co., Ltd. during the reporting period[146].