DOWELL(SZ:300535)2021-04-25 16:00Financial Performance - The company's operating revenue for 2020 was ¥469,644,448.65, representing an increase of 18.49% compared to ¥396,342,340.82 in 2019[19]. - The net profit attributable to shareholders for 2020 was ¥57,029,588.63, a significant increase of 44.86% from ¥39,368,772.53 in 2019[19]. - The net profit after deducting non-recurring gains and losses was ¥52,584,749.75, up 46.92% from ¥35,792,327.35 in 2019[19]. - The total assets at the end of 2020 reached ¥1,081,335,733.04, marking a 22.43% increase from ¥883,213,787.61 at the end of 2019[19]. - The basic earnings per share for 2020 was ¥0.5661, an increase of 47.42% compared to ¥0.3840 in 2019[19]. - The company reported a negative net cash flow from operating activities of ¥27,346,795.52 in 2020, a decline of 188.26% from a positive cash flow of ¥30,985,071.49 in 2019[19]. - The company received government subsidies amounting to ¥4,503,861.22 in 2020, compared to ¥1,941,581.67 in 2019[25]. - The weighted average return on equity for 2020 was 7.22%, an increase of 1.78% from 5.44% in 2019[19]. - The company achieved operating profit of 57.38 million yuan, reflecting a year-on-year increase of 32.9%[62]. - The company’s net profit for 2020 was RMB 57.030 million, indicating a strong financial performance despite market challenges[128]. Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.9 RMB per 10 shares (including tax) based on a total of 103,933,393 shares[8]. - In 2020, the company distributed cash dividends amounting to RMB 9.354 million, which accounted for 16.40% of the net profit attributable to ordinary shareholders[128]. - The cash dividend for 2018 was RMB 10.461 million, representing 25.26% of the net profit attributable to ordinary shareholders[128]. - The total cash dividends distributed over the last three years were RMB 27.154 million, with an average payout ratio of approximately 20.28%[128]. - The company has consistently maintained a positive profit distribution policy, with cash dividends being paid out in accordance with relevant laws and regulations[129]. - The cash dividend distribution reflects the company's commitment to returning value to shareholders while retaining sufficient earnings for future growth[129]. - The company has not proposed any cash dividend distribution plan for the current reporting period, indicating a focus on reinvestment strategies[130]. Business Expansion and Strategy - The company has expanded into new business areas, including smart manufacturing and eco-friendly wood board industries, which may face various market and operational uncertainties[8]. - The company aims to leverage its channel advantages to increase market share in newly entered sectors, despite the challenges of brand establishment and customer recognition[8]. - The company is committed to adjusting its development strategy and operational guidelines in response to industry dynamics[8]. - The company is focusing on diversifying its business to strengthen its core competencies and mitigate risks associated with entering new industries[117]. - The company has established a strategic plan to explore both domestic and international markets, aiming for a balanced approach of "focusing on domestic, expanding into Asia and Africa, and looking globally"[117]. Raw Material and Production Management - The company is closely monitoring raw material price fluctuations, which have rapidly increased since the end of 2020, impacting production costs and profit margins[7]. - The company emphasizes the importance of internal management and timely measures to mitigate risks associated with raw material price volatility[7]. - The company has established long-term stable relationships with suppliers to manage raw material costs effectively[7]. - The company employs a material requirement planning (MRP) production model to align production with market demand and inventory levels[39]. - The average price of raw material A increased from CNY 1,213.72 in the first half to CNY 1,282.74 in the second half, indicating significant cost fluctuations[70]. Environmental Commitment - The company emphasizes the importance of environmental protection and has invested in clean production technologies to comply with national standards[120]. - The company has established a comprehensive clean leather material system and waste resource utilization plan, showcasing its commitment to sustainable practices[71]. - The company has implemented a dual drainage system for wastewater, separating domestic and production wastewater, with treated wastewater meeting discharge standards[186]. - The company has received environmental approvals for its projects, including the 18,000 tons/year environmentally friendly specialty chemicals project[189]. - The company reported a total of 30.18 kg of nitrogen oxides emissions from its operations, adhering to the relevant emission standards[184]. Research and Development - The company has developed over 400 types of products in the leather chemical sector, covering the entire leather production process[30]. - The R&D team has established two centers in Chengdu and Shanghai, focusing on advanced leather chemical manufacturing technologies[54]. - The company emphasizes a market-oriented R&D approach, ensuring products meet customer needs and market demands effectively[55]. - The company has recognized the necessity of investing more in R&D to improve the industry's sustainable development and production levels[49]. - The company is focusing on developing high-performance functional materials to meet the demand for functional leather, such as waterproof and antibacterial leather[47]. Operational Efficiency - The company has developed a digital management system to improve operational efficiency, integrating various platforms to enhance financial, procurement, and logistics reporting[67]. - The company has implemented a comprehensive inventory management system to address the risks associated with high inventory levels and potential market fluctuations[119]. - The company has established a comprehensive performance evaluation system and provides targeted training programs for employee development[177]. - The company has established an intelligent manufacturing plant with an annual capacity of 53,000 tons, significantly enhancing product quality stability and market responsiveness[48]. Corporate Governance - The company’s financial report has been confirmed as true, accurate, and complete by its board of directors and management[4]. - The company has made promises to minority shareholders, which have been fulfilled on time[136]. - The company has not reported any instances of false records or misleading statements in its prospectus[135]. - The company has ensured compliance with relevant laws and regulations to avoid any direct or indirect competition with its subsidiaries[134]. - The company has not engaged in any major asset or equity sales during the reporting period[109]. Workforce and Management - The workforce increased from 538 to over 785 employees, enhancing the company's talent pool and operational capabilities[69]. - The management team has an average industry experience of over 10 years, contributing to the company's strategic foresight and operational excellence[58]. - The company is committed to training and developing its workforce to enhance management skills and promote internal career growth[117]. Investment Activities - The company invested CNY 52.25 million to acquire a 24.27% stake in Chengdu Tuozhan New Materials Co., Ltd., aiming to enhance sustainable growth and market expansion[65]. - The company has made a significant equity investment of 58.8 million yuan in a new wood processing venture, holding a 49% stake[103]. - The company has not reported any significant litigation related to its investments[103]. - The company has not initiated any poverty alleviation projects during the reporting period and has no subsequent plans[180].