HANRUI COBALT(SZ:300618)2021-04-25 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15%[15]. - The net profit attributable to shareholders was RMB 300 million, an increase of 20% compared to the previous year[15]. - The company's operating revenue for 2020 was ¥2,253,776,474.63, representing a 26.69% increase compared to ¥1,779,038,653.95 in 2019[22]. - The net profit attributable to shareholders in 2020 was ¥334,503,259.33, a significant increase of 2,312.45% from ¥13,865,703.02 in 2019[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥188,031,917.62, up 3,315.93% from ¥5,504,558.66 in 2019[22]. - The company's total assets at the end of 2020 reached ¥5,853,377,792.16, a 67.14% increase from ¥3,502,160,943.44 at the end of 2019[22]. - The net assets attributable to shareholders increased by 117.90% to ¥3,874,698,626.59 from ¥1,778,230,073.70 in 2019[22]. - The basic earnings per share for 2020 was ¥1.18, a dramatic increase of 2,260.00% compared to ¥0.05 in 2019[22]. - The diluted earnings per share for 2020 was ¥1.16, also reflecting a 2,220.00% increase from ¥0.05 in 2019[22]. - The net cash flow from operating activities for 2020 was ¥221,147,741.36, a 7.38% increase from ¥205,952,212.17 in 2019[22]. - The total distributable profit for the year is RMB 278,701,748.24, with cash dividends accounting for 100% of the profit distribution[173]. Market Expansion and Strategy - The company aims to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2022[15]. - Future guidance indicates a revenue growth target of 20% for 2021, driven by increased demand in the electric vehicle market[15]. - The company is exploring potential acquisitions in the lithium sector to diversify its product offerings and reduce dependency on cobalt[15]. - The company has established a comprehensive sales network covering major downstream industries in Japan, South Korea, Switzerland, Israel, India, and the United States[34]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[196]. - Market expansion plans include entering three new international markets, projected to increase market share by 5%[195]. Research and Development - Research and development expenses increased by 10% to RMB 100 million, focusing on sustainable mining practices[15]. - The company holds a total of 36 patents, including 20 authorized national invention patents and 16 utility model patents, reflecting its strong focus on R&D and innovation in cobalt powder technology[43]. - The company has ongoing research and development in new materials, including cobalt powder and lithium battery components, to enhance its product offerings[101]. - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency[194]. - The company will invest in R&D and collaborate with universities and research institutions to maintain its technological advantage and ensure sustainable development[149]. Production and Operations - New product development includes a cobalt-based battery technology expected to launch in Q3 2021, projected to increase production efficiency by 15%[15]. - The company achieved a substantial growth in cobalt product gross margin, driven by the booming demand in the new energy vehicle sector and the commissioning of a 3,000-ton cobalt powder production project[34]. - The company expanded its electrolytic copper production capacity, leading to a significant increase in electrolytic copper sales for the year[34]. - The company’s production capacity for electrolytic copper reached 20,000 tons annually, contributing to the increase in sales volume[65]. - The company aims to enhance its cobalt powder production scale and technology level through the establishment of a new production line with an annual capacity of 3,000 tons[122]. Financial Management and Investments - The company plans to distribute a cash dividend of RMB 2.2 per 10 shares, based on a total of 309,617,139 shares[6]. - The company has committed to investing RMB 42,486.6 million in various projects, with a cumulative investment of RMB 12,606.53 million completed[115]. - The company has allocated approximately 299.62 million yuan of unused raised funds, including interest income of 820,800 yuan, for cash management[125]. - The company has undergone several changes in the implementation of its fundraising projects, including the establishment of a subsidiary in the Democratic Republic of the Congo for cobalt production[125]. - The company has maintained strict approval procedures for the use of raised funds to ensure they are used for their intended purposes[129]. Risk Management and Compliance - The company has strengthened risk management and compliance culture to ensure high-quality development and operational efficiency[56]. - The company is committed to improving its internal control systems and risk management practices to ensure effective decision-making and operational safety[162]. - The company faces risks from market price fluctuations of cobalt and copper, which can significantly impact revenue and profitability[159]. Shareholder Returns - The company plans to distribute cash dividends of RMB 2.20 per 10 shares, totaling RMB 68,115,770.58 for the year 2020[173]. - The cash dividend policy aims to provide stable returns to investors while considering the company's long-term development and operational needs[169]. - The cash dividend distribution is subject to the company's profitability and the issuance of an unqualified audit report for the financial year[170]. - The company will maintain a minimum cash dividend ratio of 20% during its growth phase and 40% during its maturity phase with significant capital expenditures[169].