Dynanonic(SZ:300769)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥942,128,306.07, a decrease of 10.62% compared to ¥1,054,087,723.12 in 2019[32]. - The net profit attributable to shareholders for 2020 was -¥28,401,615.50, representing a decline of 128.36% from ¥100,147,773.61 in 2019[32]. - The net cash flow from operating activities decreased by 66.89% to ¥95,585,895.67 in 2020 from ¥288,719,810.91 in 2019[32]. - The total assets at the end of 2020 increased by 121.28% to ¥3,782,051,724.86 from ¥1,709,189,918.61 at the end of 2019[32]. - The basic earnings per share for 2020 was -¥0.36, down 114.06% from ¥2.56 in 2019[32]. - The company reported a quarterly operating revenue of ¥367,377,925.46 in Q4 2020, which was the highest among the four quarters[36]. - The net profit attributable to shareholders in Q1 2020 was ¥6,510,256.11, but turned negative in subsequent quarters, reaching -¥17,205,815.00 in Q4[36]. - The company received government subsidies amounting to ¥44,138,895.57 in 2020, compared to ¥51,342,044.89 in 2019[39]. - The total net assets attributable to shareholders increased by 122.48% to ¥2,108,883,766.64 at the end of 2020 from ¥947,901,884.39 at the end of 2019[32]. - The company reported a weighted average return on net assets of -2.74% in 2020, down from 12.55% in 2019[32]. Sales and Production - The sales volume of lithium iron phosphate reached 30,700 tons in 2020, a year-on-year increase of 31.20%[78]. - The average selling price of lithium iron phosphate was 33,400 RMB/ton (including tax), a decrease of 15,000 RMB/ton (including tax), representing a decline of over 30%[78]. - The company's total revenue for 2020 was 942 million RMB, a year-on-year decrease of 10.62%[78]. - Revenue from lithium battery materials manufacturing accounted for 99.95% of total revenue, with a total of approximately ¥941.64 million, down 10.64% from ¥1,053.73 million in 2019[91]. - The annual production capacity of lithium iron phosphate reached approximately 80,000 tons, significantly increased from the previous year, with expectations to reach 120,000 tons by the end of 2021[80]. - The production capacity utilization rate for nano lithium iron phosphate was 84.12% during the reporting period[85]. - The company experienced a 31.24% increase in sales volume of lithium battery materials, reaching 30,657 tons compared to 23,359.28 tons in the previous year[99]. - The company has ongoing construction of additional production capacity amounting to 70,000 tons for lithium battery materials[98]. Expenses and Costs - The company experienced a significant increase in expenses due to capital expenditures and expansion of capacity and personnel, resulting in a substantial rise in expense ratios[7]. - The overall price of lithium iron phosphate decreased in the first half of 2020 compared to the same period in 2019, with prices remaining low in the second half, leading to limited profit contributions for the year[7]. - The energy procurement price accounted for over 30% of total production costs, indicating a significant impact on profitability[81]. - The direct material costs for lithium battery materials were approximately ¥609.37 million, representing 72.17% of total operating costs, with a slight increase of 0.78% year-over-year[104]. - The manufacturing costs increased by 3.31% year-over-year, primarily due to increased depreciation from additional equipment and capacity expansion[105]. Risks and Challenges - Risks include potential underperformance in the development of the new energy vehicle industry, which could suppress the company's capacity expansion and increase financial and operational risks[11]. - The company faces risks from rising raw material prices, particularly lithium carbonate and other chemical materials, which could weaken product profitability if costs cannot be passed on[12]. - The company's production capacity expansion poses challenges to its infrastructure, supply chain, and organizational capabilities, which could negatively impact its stable development if not managed effectively[10]. - The company plans to control the scale of expansion and manage risks effectively while diversifying its customer base to enhance market resilience[166]. - The company emphasizes a robust financial policy to improve its risk resistance capabilities amid industry uncertainties[166]. Research and Development - The company has established a lithium power research institute and engineering technology center, focusing on developing new products and optimizing production processes[50]. - The company aims to enhance its research and development capabilities by adopting a collaborative approach with external partners[50]. - Research and development (R&D) investment amounted to ¥51,547,701.00, accounting for 5.47% of the company's operating revenue[113]. - The company applied for 25 new patents during the reporting period, including 22 invention patents and 3 utility model patents[113]. - The company has a strong patent portfolio, including several patents for its unique synthesis technology for nano lithium iron phosphate, which is considered internationally leading[81]. Strategic Plans and Future Outlook - The company plans to maintain a high level of capital expenditure in the coming years to expand production capacity and meet downstream market demand, reinforcing its leading position in the industry[10]. - The company aims to lead with technological innovation and continuously promote the industrialization and scaling of new products in the lithium iron phosphate sector[161]. - The company anticipates rapid growth in supply and demand for lithium iron phosphate in the next two to three years due to increasing market share in the automotive sector and the potential launch of energy storage markets[164]. - The company plans to continue expanding its production capacity and investing in new technologies as part of its growth strategy[127]. - The company is focused on low-cost, large-scale, and high-quality development to contribute to the new energy materials sector[163]. Shareholder and Financial Policies - The company does not plan to distribute cash dividends, issue bonus shares, or increase capital from reserves[13]. - The company has maintained a stable profit distribution policy, with no cash dividends or stock bonuses for 2020, following a capital reserve increase of 8 shares for every 10 shares held in 2019[172]. - The company reported a net loss of ¥28,401,615.50 for 2020, resulting in a cash dividend payout ratio of 0.00%[178]. - The company has committed to maintaining shareholder value, with a dividend payout ratio of 30% of net profits for the fiscal year[192]. - The company has not proposed any cash dividends or stock bonuses for the 2020 fiscal year, focusing instead on long-term stability and risk management[176].