AIM(SZ:300446)2021-08-23 16:00Financial Performance - The company reported a net profit of negative value for the year 2020, with operating revenue below 100 million RMB, triggering delisting risk warnings according to Shenzhen Stock Exchange regulations[7]. - The company's operating revenue for the reporting period was CNY 84,950,367.78, representing a 6.35% increase compared to CNY 79,879,839.08 in the same period last year[32]. - The net profit attributable to shareholders was CNY 4,965,302.85, a significant turnaround from a loss of CNY 21,690,981.16 in the previous year, marking a 124.98% improvement[32]. - The net cash flow from operating activities decreased by 53.92% to CNY 16,917,792.98, down from CNY 36,418,167.68 in the previous year[32]. - The total profit for the reporting period was ¥8,303,622.08, a significant increase of 148.58% compared to a loss of ¥17,093,680.15 in the previous year[56]. - Net profit rose to ¥6,861,118.40, marking a 135.85% increase from a loss of ¥19,139,603.99 in the same period last year[56]. - The company's revenue for the reporting period was ¥84,950,367.78, representing a year-on-year increase of 6.35%, primarily driven by significant growth in electronic functional materials and fine chemical materials[55]. - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management[122]. Product Development and Market Position - New product development includes electromagnetic wave protection films and pressure testing films, but these have not yet significantly impacted overall business performance[10]. - The company is focusing on the development of new products, including improved electromagnetic wave shielding films and automotive interior films, with several products entering customer validation stages[40]. - The company holds a leading position in the domestic market for magnetic strips, with over 50% market share, and is one of the four major global manufacturers in this field[40]. - Sales revenue from electromagnetic shielding films and pressure testing films increased by 81.07% compared to the previous year[44]. - The company is actively expanding its electronic functional materials business to enhance its competitive edge in sustainable development[40]. - The company has developed new antioxidant products and is optimizing UV-100 processes, achieving expected performance targets[40]. Risks and Challenges - The company is facing risks related to the decline in demand for magnetic stripe cards due to EMV migration, which may affect future revenue[9]. - The company’s stock is subject to significant volatility risks due to its financial performance and regulatory warnings[15]. - The production capacity of the new industrial base for rubber and plastic additives is at risk due to the relocation of the Baoding plant, which has been shut down since June 2021[100]. - The company is committed to enhancing its core technology and product development capabilities to navigate market challenges and improve its competitive position[97]. - The company is focusing on cost control and quality improvement to mitigate risks associated with new product sales not meeting expectations[99]. Research and Development - The company has a comprehensive system for new product R&D, raw material procurement, production, quality inspection, and product marketing[47]. - The company has invested significantly in R&D, resulting in a total of 41 patents, including 31 invention patents and 10 utility model patents[52]. - The company has established a complete R&D and quality management system, ensuring the stability and safety of its production processes[51]. - The company continues to enhance its technological innovation capabilities by attracting experienced talent to strengthen its R&D and production teams[52]. Environmental and Regulatory Compliance - The company is classified as a key pollutant discharge unit, with wastewater treatment meeting the required standards[108]. - The company achieved wastewater treatment compliance with ammonia nitrogen at 0.07 mg/L and petroleum at 0.06 mg/L, meeting the Class III standard[109]. - The company has implemented a VOCs online monitoring system for real-time data upload to environmental authorities, enhancing regulatory compliance[111]. - The company has made significant investments in environmental protection facilities, including upgrades to existing waste gas treatment systems[111]. - The company obtained the Urban Sewage Discharge Permit on December 30, 2020, valid until December 29, 2025, and the National Pollutant Discharge Permit on January 11, 2021, valid until January 10, 2024[115]. Future Outlook and Strategic Plans - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 10% to 12%[124]. - The company plans to enter new international markets, with a focus on Southeast Asia, aiming for a 15% market penetration by 2023[126]. - A strategic acquisition is planned, aimed at enhancing the company's technological capabilities and expected to be completed by Q4 2021[123]. - The company has committed to investing 100 million RMB in R&D for new technologies over the next two years[124]. - The company aims to enhance its market presence through new product development and technological advancements[131]. Financial Management and Shareholder Relations - The company does not plan to distribute cash dividends or issue bonus shares for the current fiscal year[16]. - The company plans to maintain a cash dividend ratio of no less than 20% of the total distributable profit[130]. - The company has committed to repurchasing shares if the stock price falls below the net asset value per share within 20 trading days[129]. - The company has fulfilled its commitments regarding shareholding and compliance with regulations[118]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[138].