Lead Power(SZ:300530)2021-04-28 16:00Financial Performance - The company reported a net loss for 2020, with audited net profit being negative and operating income falling below 100 million RMB, triggering a delisting risk warning according to the Shenzhen Stock Exchange rules[6][8]. - The revenue decline was attributed to the impact of the COVID-19 pandemic and a decrease in downstream demand for surface engineering chemicals, leading to a significant increase in management and R&D expenses due to the expansion into the new energy power battery business[6][8]. - The company plans to not distribute cash dividends, issue bonus shares, or increase capital using reserves for the year[9]. - Despite the losses, the company's core competitiveness and main business have not experienced significant adverse changes, and the industry remains stable without overcapacity or continuous decline[6][8]. - The company’s operating revenue for 2020 was ¥112,357,539, a decrease of 35.24% compared to ¥173,499,780 in 2019[22]. - The net profit attributable to shareholders was -¥50,375,850.75 in 2020, representing a decline of 270.81% from ¥29,491,489.76 in 2019[22]. - The total net profit after deducting non-recurring gains and losses was -¥106,672,665.39 in 2020, a decline of 1,106.80% from ¥10,595,243.97 in 2019[22]. - The weighted average return on net assets was -11.72% in 2020, down 17.40% from 5.68% in 2019[22]. - The company reported a basic earnings per share of -¥0.32 in 2020, a decrease of 268.42% from ¥0.19 in 2019[22]. Business Strategy and Development - The company has initiated a dual main business model focusing on "surface engineering chemicals + new energy power batteries" through acquiring 80% and 20% stakes in Hunan Lingpai and Sichuan Lingpai respectively[31]. - The new energy power battery business, branded as "Lingpai New Energy," focuses on the R&D, production, and sales of batteries for electric vehicles and energy storage[32]. - The company aims to capture the growing demand for lithium-ion batteries driven by government policies and improvements in electric vehicle performance[36]. - The company plans to continue developing its dual main business model of "surface engineering chemicals + new energy power batteries" in 2021[100]. - The company has set a three-step business development strategy for its power battery segment, focusing on core product development, becoming a leader in automotive-grade battery solutions, and expanding into smart energy sectors[103]. - The company is actively pursuing mergers and acquisitions to strengthen its market position[196]. Research and Development - The company has obtained a total of 66 utility model patents related to power batteries, with 106 invention patents currently under application[41]. - The company has established a comprehensive R&D roadmap for battery products, focusing on high-nickel ternary lithium-ion battery materials and next-generation products such as solid-state batteries[46]. - The company is focused on developing high corrosion-resistant trivalent chromium passivation solutions, with significant progress reported in 2020[66]. - The company is advancing research on solid-state batteries and fast-charging products as part of its next-generation product development strategy[68]. - The company has developed a strong independent innovation capability through long-term technological accumulation and a high-level R&D team[112]. Operational Challenges - The company emphasizes that its ongoing operational capability does not face significant risks despite the current financial challenges[6]. - The company’s surface engineering chemicals business faced challenges due to the COVID-19 pandemic, impacting customer operations and overall performance[44]. - The company faces operational management risks due to rapid asset scale growth, necessitating improvements in management systems and talent acquisition[108]. - The company is addressing the risk of intensified competition in the power battery industry by leveraging its specialized management and technical teams[110]. Financial Management and Investments - The company plans to raise funds through a private placement of A-shares to support the construction of a 2.4GWh lithium-ion battery project and a high-performance battery R&D center[46]. - The company reported a significant increase in investment, with a total of CNY 488,367,117.48, representing a 1,504.32% increase compared to CNY 30,440,762.46 in the previous year[84]. - The company has committed to strict compliance with its promises and has not encountered any violations during the reporting period[144]. - The company will strengthen technical innovation and product upgrades to maintain competitive advantages in the surface engineering chemical industry[141]. Shareholder Relations and Governance - The company commits to distributing at least 20% of its distributable profits as cash dividends each year[150]. - The company has emphasized the importance of transparency and fairness in any transactions with the listed company[123]. - The company has pledged to ensure that all information disclosed regarding equity changes is true, accurate, and complete, with no undisclosed significant information[137]. - The company has committed to avoiding any related party transactions that could harm the interests of the listed company and its minority shareholders[128]. Market Position and Future Outlook - The company aims to establish itself as a mainstream power battery provider by developing core products and gradually gaining customer recognition[103]. - The company is focusing on expanding its presence in the new energy sector, particularly in battery technology[195]. - The domestic power battery shipment volume reached 80 GWh in 2020, representing a year-on-year growth of 13% despite the impact of the COVID-19 pandemic[101]. - The company is planning to gift 80% equity stakes in Hunan Xinminya New Energy Technology Co., Ltd. and Sichuan Xinminya Battery Technology Co., Ltd. as part of its strategic initiatives[121].