RUIFENG CHEM(SZ:300243)2020-04-20 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,213,369,670.91, a decrease of 16.06% compared to CNY 1,445,439,011.75 in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 74,525,409.20, down 17.37% from CNY 90,188,278.61 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was CNY 70,384,940.85, a decline of 23.06% compared to CNY 91,483,492.30 in 2018[24]. - The net cash flow from operating activities increased by 97.33% to CNY 122,339,677.45 from CNY 61,997,618.13 in 2018[24]. - The total assets at the end of 2019 were CNY 1,045,978,682.38, a slight decrease of 0.99% from CNY 1,056,450,473.11 in 2018[24]. - The net assets attributable to shareholders increased by 12.23% to CNY 675,027,319.98 from CNY 601,456,824.95 in 2018[24]. - Basic earnings per share for 2019 were CNY 0.32, down 20.00% from CNY 0.40 in 2018[24]. - The weighted average return on equity was 11.68%, a decrease of 4.62% from 16.30% in 2018[24]. - The company reported a total profit of 91.14 million yuan, a decrease of 13.87% year-on-year[37]. - The company achieved total operating revenue of CNY 1,213.37 million, a year-on-year decrease of 16.06%[51]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 yuan (including tax) for every 10 shares, based on a total share capital of 232,322,851 shares[14]. - The cash dividend distribution for 2019 represents 31.17% of the net profit attributable to ordinary shareholders[108]. - The company distributed cash dividends of RMB 1.00 per 10 shares, totaling RMB 21,120,559.20, and capital reserve conversion of 21,120,559 shares[148]. Projects and Capacity Expansion - The company is currently constructing several projects, including a 40,000-ton MBS impact modifier project and a 60,000-ton PBAT biodegradable plastic project, which are expected to enhance production capacity[14]. - The company is actively developing a new 40,000 tons/year MBS project to enhance its market position[41]. - The company plans to start construction on a 60,000-ton PBAT biodegradable plastic project in June 2020, with completion expected by June 2021[56]. - The company has set a target to complete the construction of a 40,000-ton MBS project and a 20,000-ton epoxy chloropropane project to generate benefits as soon as possible[98]. Research and Development - The company has obtained a total of 63 patents, including 39 invention patents, demonstrating its strong R&D capabilities[44]. - Research and development expenses for the year amounted to ¥55,879,162.18, representing 4.61% of operating revenue[72]. - The number of R&D personnel increased to 92, accounting for 15.86% of the total workforce[72]. - The company is actively developing new products and improving existing processes, with increased investment in R&D[52]. - The company is focusing on continuous innovation and quality improvement to enhance its brand advantage in the competitive PVC additives market[95]. Market and Competition - The company faces risks from intensified industry competition, particularly in the ACR product line, and is focusing on product R&D and customized services to mitigate these risks[11]. - The company acknowledges the potential impact of macroeconomic risks and the COVID-19 pandemic on market demand and is prepared to adjust its operational strategies accordingly[6]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[197]. Environmental and Safety Measures - The company has implemented new waste gas treatment and detection devices to reduce environmental risks and has eliminated coal-fired heating systems in its ACR and MBS plants[10]. - The company is committed to enhancing safety management and environmental compliance, having made significant investments in safety and green production technologies[10]. - The company emphasizes safety and environmental protection as essential for sustainable development, with increased investment in environmental governance[97]. - The company strictly adhered to environmental regulations and was not classified as a key pollutant unit[143]. Financial Management and Internal Controls - The company emphasizes the importance of internal controls to manage accounts receivable and reduce bad debt risks, especially given the macroeconomic uncertainties[9]. - The company has strengthened internal management and control systems to mitigate operational risks[54]. - The company has taken measures to monitor and adjust procurement strategies in response to fluctuations in raw material prices, which are closely tied to its profitability[7]. Shareholder Changes - Shareholder Jiangsu Ruiyuan increased its stake by 4,458,014 shares, raising its total ownership from 12.364% to 14.474%[144]. - Shareholder Mr. Sang Peizhou reduced his stake by 11,417,200 shares, accounting for 5.41% of the total share capital[144]. - The largest shareholder, Zhou Shibin, holds 22.28% of the shares, totaling 51,752,197 shares, with a decrease of 4,704,745 shares during the reporting period[173]. - Jiangsu Ruiyuan Investment Co., Ltd. is the second-largest shareholder with a 10.28% stake, holding 23,882,188 shares, which increased by 6,629,122 shares[173]. Miscellaneous - The company has not faced any major litigation or arbitration matters during the year[119]. - The company has no penalties or rectification situations reported during the reporting period[120]. - The company has not sold any significant assets during the reporting period[91]. - The company did not engage in any related party transactions during the reporting period[126].