RUIFENG CHEM(SZ:300243)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately RMB 1.30 billion, representing a 7.29% increase compared to RMB 1.21 billion in 2019[26]. - The net profit attributable to shareholders for 2020 was approximately RMB 85.35 million, an increase of 14.53% from RMB 74.53 million in 2019[26]. - The total assets at the end of 2020 were approximately RMB 1.32 billion, a 25.92% increase from RMB 1.05 billion at the end of 2019[26]. - The net assets attributable to shareholders at the end of 2020 were approximately RMB 745.84 million, reflecting a 10.49% increase from RMB 675.03 million at the end of 2019[26]. - The basic earnings per share for 2020 was RMB 0.37, up 15.63% from RMB 0.32 in 2019[26]. - The weighted average return on equity for 2020 was 12.05%, compared to 11.68% in 2019[26]. - The company reported a quarterly revenue of RMB 427.78 million in Q4 2020, which was the highest among the four quarters[28]. - The net profit attributable to shareholders in Q3 2020 was RMB 29.19 million, showing a significant increase compared to RMB 20.15 million in Q2 2020[28]. - The company achieved total operating revenue of CNY 1,301.87 million, a year-on-year increase of 7.29%[55]. - The net profit attributable to shareholders reached CNY 85.35 million, reflecting a year-on-year growth of 14.53%[55]. Dividend Distribution - The company plans to distribute a cash dividend of 1.2 CNY per 10 shares (including tax) based on a total of 232,322,851 shares, with no bonus shares issued[13]. - The company distributed a cash dividend of RMB 1.20 per 10 shares, totaling RMB 27,878,742.12 for the year 2020[145]. - The total distributable profit available for shareholders as of December 31, 2020, was RMB 352,727,618.30[145]. - The cash dividend payout ratio for 2020 was 32.66% of the net profit attributable to shareholders[146]. - The company has maintained a consistent cash dividend policy over the past three years, with no stock dividends issued[145]. Production Capacity and Projects - The company is currently constructing several projects, including a 40,000-ton MBS impact modifier project (Phase II) and a 60,000-ton biodegradable polymer material PBAT project, which are expected to enhance production capacity significantly[12]. - The company aims to achieve a production capacity of 70,000 tons by the end of 2021 with the completion of its Phase II project[11]. - The company has a total production capacity of 140,000 tons, with ACR capacity at 70,000 tons, MBS capacity at 50,000 tons, and MC capacity at 20,000 tons[44]. - The first phase of the 40,000 tons MBS impact modifier project was completed and put into production during the reporting period, further strengthening the company's leading position in the industry[44]. - The company is actively constructing a 60,000-ton PBAT biodegradable plastic project, expected to be completed in Q3 2021[60]. - The second phase of the 40,000 tons MC impact modifier project is currently in the debugging stage and has not yet reached operational status[44]. Raw Material Prices and Procurement - The company has experienced significant fluctuations in raw material prices, particularly for methyl methacrylate and butyl acrylate, which could adversely affect production costs and profitability[6]. - The company is actively monitoring and adjusting procurement strategies to manage the volatility of raw material prices[6]. - The average procurement prices for key raw materials have shown significant changes, with methyl methacrylate decreasing by 15.33% and butadiene decreasing by 33.57% compared to the previous year[69]. Competition and Market Position - The company is facing intensified competition in the ACR product market, necessitating ongoing product development and quality improvements to mitigate risks from price competition[11]. - The company is positioned as a leading player in the PVC additives industry, benefiting from the growth of the real estate sector and increasing demand for high-performance PVC products[44]. - The company emphasizes continuous innovation and process improvement to enhance product quality and brand reputation, aiming to avoid vicious competition in the market[122]. Research and Development - The company has a complete independent intellectual property system with over 10 national patents related to its products[70]. - R&D investment amounted to ¥63,049,380.73 in 2020, representing 4.84% of total revenue, an increase from 4.61% in 2019[97]. - The number of R&D personnel was 92 in 2020, accounting for 13.35% of the total workforce[97]. - The company is developing new products including high-strength foaming agents and low-temperature resistant thermoplastic elastomers to enhance product competitiveness[96]. - The company is focusing on the development of biodegradable plastics as a strategic response to environmental regulations and market demand[62]. Safety and Environmental Compliance - The company has a strong focus on safety management and environmental compliance, which is critical given the hazardous nature of the raw materials used in production[10]. - The company is committed to enhancing safety and environmental protection measures, which are critical for sustainable development[126]. - The company adheres to environmental protection standards, with specific measures in place for wastewater and waste gas treatment[192]. - The company has established a strict emergency response plan for environmental incidents, which was filed with the environmental protection bureau[194]. Financial Management and Investments - The company has invested in Suzhou Polymar, which focuses on the research and production of inorganic fireproof materials and smart temperature-changing glass[36]. - The company has received environmental impact assessment approvals for several projects, including the 60,000 tons/year PBAT biodegradable polymer project[71]. - The company is actively pursuing research and development to introduce higher quality and more stable products that meet customer needs[126]. - The company is enhancing its internal management and compliance with regulatory requirements to improve operational efficiency[127]. Social Responsibility - The company emphasizes its commitment to social responsibility, integrating economic development with social obligations[184]. - The company donated a total of 1,360,000 RMB during the reporting period, including 1,000,000 RMB to the Yiyuan County Red Cross for epidemic prevention[189]. - The company actively participates in poverty alleviation efforts, aligning with government initiatives to support local economic development[191].