RC(SZ:300596)2021-03-08 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-over-year increase of 15% compared to RMB 1.04 billion in 2019[23]. - The net profit for 2020 was RMB 200 million, which is a 20% increase from RMB 166.67 million in the previous year[23]. - The company's operating revenue for 2020 was ¥2,482,787,134.26, representing a 25.50% increase compared to ¥1,978,311,486.09 in 2019[37]. - The net profit attributable to shareholders for 2020 was ¥292,993,191.27, an increase of 11.70% from ¥262,314,192.05 in 2019[37]. - The total assets at the end of 2020 were ¥3,813,249,520.04, a 21.05% increase from ¥3,150,143,864.34 at the end of 2019[37]. - The basic earnings per share for 2020 was ¥1.43, a 3.62% increase from ¥1.380 in 2019[37]. - The company reported a total sales volume of 60,310,021.89 kg for polymer material anti-aging agents, which is a 44.54% increase compared to 41,725,321.18 kg in 2019[116]. - The revenue from the polymer material anti-aging agent segment was ¥957,637,696.00, accounting for 38.57% of total revenue, with a year-on-year increase of 12.07%[112]. - The revenue from light stabilizers reached ¥1,237,307,808.72, which is 49.84% of total revenue, showing a year-on-year growth of 28.87%[112]. - Domestic sales contributed ¥1,555,122,607.95, representing 62.64% of total revenue, with a significant year-on-year increase of 40.01%[112]. - The overseas business generated revenue of ¥927,664,526.31, making up 37.36% of total revenue, with no changes in tax policies affecting this segment[115]. Acquisitions and Investments - The company plans to acquire 92.2109% equity of Jinzhou Kangtai Lubricant Additive Co., Ltd., which will become a subsidiary if the acquisition is completed[15]. - The company initiated the acquisition of Jinzhou Kangtai Lubricant Additive Co., Ltd., expanding into the lubricant additive market, which is projected to be a new trillion-level market space[96]. - The company has ongoing significant non-equity investments, with a total investment of ¥500,000.00 in a wholly-owned subsidiary, Li'anlong (Tianjin) New Material Technology Co., Ltd.[148]. - The company has established a new subsidiary, Lianlong (Tianjin) New Material Technology Co., Ltd., in September 2020, expanding its consolidation scope[120]. Research and Development - Research and development expenses increased by 10% in 2020, totaling RMB 50 million, reflecting the company's commitment to innovation[23]. - The company has a strong R&D team with over 150 personnel, enhancing its capability in innovative production processes for antioxidants[104]. - The company has developed various patented technologies for its products, including high-performance antioxidants and light stabilizers, ensuring a competitive edge in the market[104]. - The company has submitted new patents for anti-aging structures and is researching future application fields such as electronic materials, new energy vehicles, and biodegradable materials[57]. - The company has formed partnerships with several universities and established multiple research centers to enhance its R&D capabilities[57]. - The company developed 12 new products in 2020, with 3 completing pilot tests and receiving orders[127]. Market Position and Strategy - The company aims to become a global leader in polymer material anti-aging technology, driven by innovation and market expansion strategies[54]. - The company is positioned to benefit from favorable policies and market trends in the new materials industry, with significant growth potential in the anti-aging technology sector[68][71]. - The company aims to leverage its comprehensive product offerings and competitive pricing to enhance its market position against global giants like BASF and SONGWON[194]. - The company is focusing on technological innovation and application services to strengthen its competitive edge in the anti-aging materials sector[194]. - The company is positioned as a leading enterprise in the domestic anti-aging agent industry, showing rapid progress in product matching, operational scale, technological innovation, and global operational capabilities[200]. Operational Challenges and Risks - The company faces risks from raw material price fluctuations, which significantly impact production costs due to the high proportion of direct materials in the main business costs[7]. - The company acknowledges the risk of macroeconomic factors affecting its export business, particularly due to significant appreciation of the RMB during the reporting period[10]. - The company is facing challenges in management due to rapid business expansion, requiring enhanced human resource planning and management[11]. - The company has noted that the integration and synergy effects from the acquisition of Kangtai may not meet expectations, posing risks to shareholder interests[15]. - The company has a high dependency on accounts receivable, which could lead to risks if major clients face operational difficulties due to economic changes[11]. - The company has implemented various measures to address uncertainties caused by the COVID-19 pandemic, which continues to affect global economic operations[7]. Production and Capacity - The company plans to expand its production capacity by 30% in 2021 to meet increasing market demand[23]. - The production capacity for antioxidants is 34,900 tons with a utilization rate of 84.44%, and there is an additional 60,000 tons under construction expected to be operational in Q4 2021[104]. - The production capacity for light stabilizers (excluding intermediates) is 21,100 tons with a utilization rate of 97.06%, and there is 3,200 tons under construction expected to start in Q2 2021[104]. - The company completed the construction and commissioning of production lines for Li'anlong Zhongwei and Li'anlong Kairun, with the Zhuhai project expected to be completed in Q4 2021, laying a solid capacity foundation for stable short-term performance growth[96]. Corporate Governance and Management - The company has a stable management team with over 20 years of experience in anti-aging technology, providing a solid foundation for sustainable development[76]. - The company launched a second employee stock ownership plan to boost employee motivation and engagement following the completion of the first plan[93]. - The company adheres to the ISO9001:2015 quality management system, ensuring that its product quality meets or exceeds international standards[82]. Environmental and Safety Management - The company maintained a high level of EHS management, achieving the "four zeros" goal, which includes zero serious injuries and zero major environmental incidents[97]. - The company focused on internal control and efficiency improvements, implementing measures that enhanced production operation efficiency and reduced costs[93]. - The company maintained a strong focus on safety management for its new projects, ensuring compliance with environmental regulations during construction and trial production phases[108]. - The company has received environmental assessment approvals for two projects, including a 4,000 tons/year polymer functional additive project currently in trial production[107].