ABACHEM(SZ:300261)2021-04-26 16:00Financial Performance - The company reported a total revenue of RMB 954.69 million for the year 2020, marking a year-on-year increase of 15%[8]. - The net profit attributable to shareholders was RMB 120.45 million, representing a growth of 20% compared to the previous year[8]. - The company's operating revenue for 2020 was CNY 2,003,330,581.54, representing a year-over-year increase of 20.36% from CNY 1,664,423,796.64 in 2019[26]. - The net profit attributable to shareholders for 2020 was CNY 161,014,430.01, a significant increase of 97.22% compared to CNY 81,643,737.20 in 2019[26]. - The net profit after deducting non-recurring gains and losses was CNY 144,224,345.85, up 25.75% from CNY 114,690,626.90 in 2019[26]. - The net cash flow from operating activities reached CNY 338,139,531.54, a remarkable increase of 259.17% from CNY 94,145,833.26 in 2019[26]. - The total assets at the end of 2020 were CNY 3,963,340,487.18, reflecting a 10.74% increase from CNY 3,579,067,760.76 at the end of 2019[26]. - The weighted average return on equity for 2020 was 8.00%, up from 4.10% in 2019[26]. - The company reported a basic earnings per share of CNY 0.1682, which is a 98.35% increase from CNY 0.0848 in 2019[26]. - The company anticipates continued growth in the upcoming year, with a revenue guidance of approximately RMB 1.1 billion for 2021[8]. Market Expansion and Strategy - The company aims to expand its market presence both domestically and internationally, targeting new customer segments and regions[8]. - The company is focusing on expanding its product lines, particularly in the pharmaceutical intermediates sector, which is expected to drive future growth[8]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[8]. - The company has seen a significant increase in long-term equity investments by 923.96%, primarily due to investments in Xiangyang Yuchang Fine Chemical Co., Ltd. and Fuxin Fulongbao Pharmaceutical Technology Co., Ltd.[53]. - The company has established a "core factory + collaborative factory" supply chain management model, enhancing production capacity and operational efficiency[65]. - The company has maintained stable strategic partnerships with major multinational clients, ensuring a strong demand for business expansion[58]. Research and Development - The company is investing in R&D for new products, particularly in the field of fine chemicals and agrochemicals, to enhance its competitive edge[8]. - The company has three major R&D centers focusing on technological innovation, product innovation, process optimization, and achievement transformation[50]. - R&D expenditure amounted to CNY 119.93 million, representing a 12.27% increase year-on-year, accounting for 5.99% of operating revenue[67]. - The company has obtained a total of 139 patents, including 7 international patents, and has 73 pending patent applications[67]. - The company expanded its enzyme library by over 200 entries, bringing the total number of enzyme projects to over 1,000[70]. Product Development and Sales - The company launched its main product, β-Nicotinamide Mononucleotide (NMN), on major domestic e-commerce platforms, breaking the long-standing high price maintained by foreign manufacturers[66]. - The company successfully completed the production and delivery of NMN ton-level orders during the reporting period[70]. - The company is focusing on expanding its product offerings in the pesticide sector, with multiple new formulations in development[96]. - The company is focused on developing environmentally friendly and low-residue pesticide formulations, enhancing its competitive edge in the market[89]. Financial Management and Investments - The company has implemented a stock buyback plan to align the interests of shareholders, the company, and employees[72]. - The company has raised a total of ¥867,109,999.04 through a private placement, with a net amount of ¥847,613,986.89 after deducting issuance costs[150]. - The company has established six dedicated accounts for raised funds, which are still in use as of December 31, 2020[156]. - The company has complied with all regulations regarding the management and disclosure of raised funds, with no violations reported[163]. - The company has decided to repurpose funds from terminated projects for new strategic initiatives, reflecting a proactive approach to market changes[172]. Industry Trends and Market Insights - The pesticide market is projected to reach USD 66.703 billion by 2023, with a compound annual growth rate of 3% from 2018 to 2023[39]. - In 2020, China's pesticide exports reached 2.395 million tons, a year-over-year increase of 29.3%, with export value growing by 14.6% to USD 11.68 billion[40]. - The global pharmaceutical market reached a size of $1.32 trillion in 2019, growing from approximately $1.105 trillion in 2015, with a CAGR of 4.6%[41]. - The global biopharmaceutical market size was $286.4 billion in 2019, accounting for 21.62% of the pharmaceutical market, with a CAGR of 8.7% from 2015 to 2019[41]. - The innovative drug market size was $887.7 billion in 2019, projected to reach $978.7 billion by 2021, representing 66.26% of the global pharmaceutical market[41]. Operational Efficiency - The company's production model is primarily custom processing, with no inventory sales pressure, allowing for tailored production plans based on current orders[52]. - The production capacity utilization rate for pesticide intermediates and active ingredients was 65.00%[76]. - The company is currently expanding its production capacity with ongoing construction projects for enzyme products and pesticide intermediates[76]. - The average selling price of pesticide intermediates decreased by 16.72% in the second half of the year due to the appreciation of the RMB affecting export sales[106]. Risk Management - The company has identified key risks including fluctuations in raw material prices and macroeconomic changes, and has strategies in place to mitigate these risks[8].