锦鸡股份(300798) - 2020 Q4 - 年度财报

Financial Performance - The company's revenue significantly declined due to the impact of the COVID-19 pandemic, with a notable drop in demand from the downstream dyeing industry[6]. - The sales price of reactive dyes reached a new low in recent years, leading to a substantial decrease in net profit compared to the previous year[6]. - The subsidiary, Taixing Jinhui Chemical Co., Ltd., experienced significant losses due to the downturn in the dye intermediate industry, further affecting the consolidated net profit attributable to shareholders[6]. - The company's operating revenue for 2020 was ¥753.59 million, a decrease of 32.96% compared to ¥1,124.06 million in 2019[20]. - The net profit attributable to shareholders was ¥22.89 million, down 76.24% from ¥96.34 million in 2019[20]. - The net profit after deducting non-recurring gains and losses was ¥16.62 million, a decline of 81.96% from ¥92.14 million in 2019[20]. - The basic earnings per share decreased by 80% to ¥0.05 from ¥0.25 in 2019[20]. - The total profit for the year was 27.44 million yuan, down 75.49% year-on-year[56]. - The company reported a quarterly revenue of ¥228.34 million in Q4 2020, showing a recovery trend compared to previous quarters[22]. Strategic Initiatives - The company plans to enhance its profitability by improving R&D capabilities, expanding product categories, and accelerating the construction of disperse dye projects[9]. - The company aims to extend its industrial chain upstream by accelerating the construction of dye intermediate projects to enhance raw material self-sufficiency and reduce costs[9]. - The company is expanding its production capacity with ongoing projects for 15,000 tons of environmentally friendly high-end disperse dyes and a fine chemical product project[29]. - The company is focusing on technological innovation and the development of new products to meet the increasing demands of the market[38]. - The company plans to enhance energy-saving and environmental protection equipment technology to reduce energy consumption and pollution[39]. - The company has established partnerships with universities such as Nantong University and Dalian University of Technology for research and development in new materials and processes[42]. Risk Management - The company acknowledges various risks, including macroeconomic risks, safety production risks, and raw material price risks, which may impact future operations[9]. - The company emphasizes the importance of strengthening corporate culture and team collaboration to improve management efficiency and effectiveness[9]. - The company acknowledges risks from macroeconomic fluctuations, particularly in the textile and apparel sectors, which are sensitive to economic cycles and international trade tensions[126]. - The company has established long-term partnerships with key raw material suppliers to mitigate risks associated with raw material price fluctuations and supply shortages[130]. Environmental and Safety Compliance - The company has a daily wastewater treatment capacity of 1,500 tons at its subsidiary, Jin Hui Chemical, meeting the GB8978-1996 standard for wastewater discharge[49]. - The company has invested in environmental protection facilities and is committed to reducing pollution, but remains exposed to potential regulatory changes that could increase costs[129]. - The company has implemented comprehensive safety management measures, enhancing the overall safety production system and ensuring stable safety production conditions[64]. - Jin Hui Chemical completed safety management system improvements and passed 19 safety inspections, identifying and rectifying 160 safety hazards[66]. Research and Development - The company invested 24.57 million yuan in R&D, accounting for 3.26% of operating revenue, maintaining a stable R&D investment ratio[58]. - The company has applied for a total of 30 national invention patents, with 23 patents granted as of the end of the reporting period[43]. - The company plans to establish a national-level R&D center to enhance product development and optimize existing processes, aiming to improve product performance[125]. Profit Distribution - The profit distribution plan includes a cash dividend of 0.2 RMB per 10 shares, based on a total of 417,748,945.00 RMB[10]. - The company maintains a stable cash dividend policy, ensuring that cash dividends do not fall below 10% of the distributable profits for the year[139]. - The total distributable profit for the year was 94,344,558.34 CNY, indicating a cash dividend payout ratio of 36.50% of the net profit attributable to shareholders[147]. - The company did not distribute any stock dividends or capital reserves for the fiscal year 2020, maintaining a focus on cash dividends[146]. Market Trends and Competitive Position - The overall dye industry demand remains relatively stable, with a trend towards concentration due to stricter safety and environmental policies and intense market competition[6]. - The dyeing industry in China has become the largest in the world, with a production capacity of 790,000 tons in 2019, accounting for approximately 70% of global output[37]. - The company ranks among the top in the industry for active dye capacity, output, and sales over the past three years, with major production concentrated in Zhejiang, Jiangsu, and Shanghai, accounting for over 90% of the national total[121]. Financial Management - The company reported a net increase in cash and cash equivalents of ¥54,797,945.32, down 17.27% from the previous year[90]. - The company has a strong cash flow position with 400 million RMB in cash reserves, providing a solid foundation for future investments[163]. - The company has not experienced any significant changes in the feasibility of its projects[112]. - The company has not raised any additional funds beyond the initial offering[112]. Legal and Compliance Matters - The company faced a patent infringement lawsuit from Huntsman Advanced Materials (Switzerland) Ltd. involving an amount of CNY 20 million, which was dismissed by the Beijing Intellectual Property Court[176]. - The company was ordered to return equipment payments totaling CNY 2,082,320 and compensation of CNY 6,310,998.40 due to a ruling by the Taihu City People's Court[177]. - The company has not reported any significant litigation or arbitration matters that would impact its profits[176].