RC(SZ:300596)2020-04-14 16:00Financial Performance - Tianjin Rianlon New Materials Co., Ltd. reported a significant increase in revenue, reaching RMB 1.2 billion, representing a year-over-year growth of 25%[19]. - The company achieved a net profit of RMB 150 million, which is a 30% increase compared to the previous year[19]. - The company's operating revenue for 2019 was ¥1,978,311,486.09, representing a 32.97% increase compared to ¥1,487,749,326.56 in 2018[27]. - The net profit attributable to shareholders for 2019 was ¥262,314,192.05, a 35.86% increase from ¥193,073,521.01 in 2018[27]. - The total revenue for 2019 reached approximately ¥1.98 billion, representing a year-on-year increase of 32.97% compared to ¥1.49 billion in 2018[91]. - The revenue from the polymer material anti-aging agent industry accounted for 99.62% of total revenue, amounting to approximately ¥1.97 billion, with a year-on-year growth of 32.73%[91]. - The company reported quarterly revenues of ¥409,492,579.11, ¥456,053,093.99, ¥568,528,111.20, and ¥544,237,701.79 for Q1, Q2, Q3, and Q4 respectively in 2019[32]. - The company’s operating profit reached CNY 287.53 million, up 24.73% compared to the previous year[78]. - Total profit amounted to CNY 291.62 million, reflecting a growth of 30.04% year-on-year[78]. Investment and Growth Strategy - The company plans to distribute cash dividends of 1.92 RMB per 10 shares to all shareholders, based on a total of 205,010,420 shares[8]. - Rianlon is investing RMB 200 million in R&D for new polymer materials, aiming to launch three new products in the next 12 months[19]. - The company has established partnerships with major chemical firms, including BASF and DuPont, to leverage technological advancements[19]. - The company aims to achieve a self-sufficiency rate of over 70% for key materials by 2020, transitioning from a major materials producer to a strong materials power[55]. - The company has a commitment to ensure the accuracy and completeness of the information provided during asset restructuring[182]. - The company is focused on long-term growth through strategic investments in new technologies and materials[115]. - The company aims to achieve a target of RMB 10 billion by 2028, focusing on creating globally leading products to meet differentiated customer needs[155]. Market and Competitive Position - The global polymer materials additives market was valued at over $80 billion in 2018, with the anti-aging additives market (including antioxidants and light stabilizers) accounting for nearly $20 billion[150]. - The company is positioned as the only full-series anti-aging additives provider in China, covering major categories of antioxidants and light stabilizers[153]. - The company is leveraging its latecomer advantage to become a well-known technology exporter in the global polymer materials field, focusing on high cost-performance products and rapid market response[148]. - The company has established a competitive advantage in technology innovation, quality management, and global marketing networks, leading to rapid growth in its U-pack product line[57]. - The company has a strong customer base, including global leaders such as BASF, DSM, and DuPont, enhancing its market position[72]. Operational Challenges and Risk Management - The company reported a significant fluctuation in raw material procurement costs due to international crude oil prices and market supply conditions, impacting production costs[4]. - The company faced risks related to accounts receivable, with a high proportion of receivables concentrated among financially stable global polymer material manufacturers, despite low bad debt occurrence[6]. - The company is enhancing cash flow by classifying clients for risk assessment and employing different sales strategies, alongside optimizing procurement processes to control accounts payable[159]. - The accounts receivable balance as of December 31, 2019, was ¥358,723,685.15, representing a 33.1% increase compared to the previous year, indicating a growing risk in receivables management[167]. - The company is actively monitoring macroeconomic factors and has implemented measures to hedge against currency fluctuations and other economic uncertainties[165]. Research and Development - The R&D team consists of 248 personnel, accounting for approximately 14% of the total workforce, including 8 PhDs and 31 master's degree holders[67]. - The company has a total of 133 patents, including 49 authorized invention patents, reflecting its commitment to R&D and innovation[83]. - The company developed 9 new products in 2019, with 5 completing pilot tests and receiving customer evaluations[102]. - The company is actively developing new products and technologies through a combination of independent and collaborative research efforts[154]. Environmental and Safety Compliance - The company emphasizes environmental protection and safety management, adhering to strict EHS management systems to mitigate risks associated with production processes[164]. - The company has reported no significant changes in its operational strategy for the upcoming year[114]. - The company is committed to maintaining compliance with national regulations regarding hazardous materials[114]. - The company has established long-term relationships with key suppliers to mitigate the risks associated with raw material price fluctuations, which significantly impact production costs[164]. Dividend Policy - The cash dividend for 2019 is set at RMB 1.92 per 10 shares, amounting to RMB 39,362,000.64, which represents 100% of the distributable profit[176]. - The total distributable profit for 2019 was RMB 64,500,890.4, after deducting the statutory surplus reserve[176]. - The cash dividend for 2019 accounts for 15.01% of the net profit attributable to ordinary shareholders[178]. - The cash dividend policy complies with the company's articles of association and shareholder resolutions[174].