JIANGNAN CHEMICAL(002226)2021-03-22 16:00Financial Performance - The company achieved a total revenue of CNY 3,918,788,607.36 in 2020, an increase of 7.86% year-on-year[48]. - The company's operating revenue for 2020 was ¥3,918,788,607.36, representing a year-over-year increase of 7.86% compared to ¥3,633,186,954.20 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥446,841,905.32, which is a 10.43% increase from ¥404,645,676.51 in 2019[22]. - The basic earnings per share for 2020 was ¥0.3578, up 10.43% from ¥0.3240 in 2019[23]. - The total profit for the year was CNY 673,224,796.48, reflecting a 9.26% increase year-on-year, with net profit attributable to shareholders rising by 10.43% to CNY 446,841,905.32[48]. - The company reported a quarterly operating revenue of ¥1,214,970,540.37 in Q4 2020, showing a consistent growth trend throughout the year[26]. - The net profit attributable to shareholders in Q4 2020 was ¥51,786,600.11, indicating a strong performance in the last quarter[26]. - The company’s financial report for the year 2020 covers the period from January 1, 2020, to December 31, 2020, providing a comprehensive overview of its annual performance[14]. Dividend Distribution - The company reported a profit distribution plan to distribute a cash dividend of 0.55 RMB per 10 shares (including tax) and to convert 4 shares from capital reserves for every 10 shares held[5]. - The cash dividend distribution plan for 2020 is based on a share capital of 1,248,981,690 shares, with no bonus shares issued[150]. - The total cash dividend for 2020 represents 100% of the distributable profit[150]. - The company plans to distribute a cash dividend of RMB 0.55 per 10 shares for the year 2020, totaling RMB 68,693,992.95, which represents 15.37% of the net profit attributable to ordinary shareholders[146]. - In 2020, the company did not distribute any cash dividends or bonus shares in 2018, while in 2019, it distributed RMB 0.5 per 10 shares, totaling RMB 62,449,084.50, which was 15.43% of the net profit[147]. Business Operations and Strategy - The company underwent a major asset restructuring in 2018, expanding its main business from solely civil explosives to include both civil explosives and new energy[20]. - The company operates in a dual main business model, focusing on civil explosives and new energy sectors, which may enhance its market competitiveness[20]. - The company aims to maintain its leading position in the national civil explosive industry by transitioning from production to engineering services[39]. - The company plans to leverage smart operation systems supported by IoT, big data, and machine learning for efficient management of its renewable energy projects[39]. - The company aims to enhance its governance by integrating party leadership into corporate governance, focusing on political standards and performance orientation[137]. - The company is committed to improving its operational quality by implementing performance assessment metrics tailored to individual company challenges[137]. - The company is focused on high-quality development and safety as fundamental principles for its operations in 2021[135]. Risks and Challenges - The company has acknowledged various risks, including safety risks and market expansion risks, urging investors to remain cautious[5]. - The company emphasizes the importance of market conditions and management efforts in achieving financial targets, highlighting significant uncertainties in profit forecasts[5]. - The company has identified market risks due to increased competition in the civil explosives industry and potential slowdowns in infrastructure investment, which could impact demand for its products[146]. - The company recognizes the risks associated with the mining and infrastructure sectors, particularly in light of economic uncertainties exacerbated by the COVID-19 pandemic[140]. Subsidiaries and Investments - The company’s subsidiary, Shieldan New Energy, has signed investment and development agreements for wind and solar projects with over 20 provincial and municipal governments[35]. - The company has established nearly 200 wind and solar resource measurement towers, completing the resource assessment and operational layout for its new energy sector[48]. - The subsidiary Anhui Jiangnan Explosive Engineering Co., Ltd. reported a net profit of approximately CNY 45.53 million, contributing significantly to the overall net profit of the company[118]. - Anhui Jiangnan Chemical Co., Ltd. achieved total revenue of CNY 1.16 billion, with a net profit of CNY 173.60 million from its subsidiary Xinjiang Tianhe Chemical Co., Ltd.[120]. - The company has established several new subsidiaries in 2020, including Anhui Jingheng Automobile Transportation Co., Ltd. and Qinghai Zhongkuang Tianwo Construction Engineering Co., Ltd., enhancing its operational capacity[68]. Financial Management and Governance - The company has committed to maintaining independent operations, ensuring that its assets, personnel, and qualifications are independent from controlling parties[179]. - The company guarantees that its financial personnel will not hold dual positions in other enterprises controlled by the controlling party[173]. - The company will establish an independent financial accounting department and ensure independent financial decision-making without interference from the controlling party[173]. - The company has a performance compensation agreement stating that the net profit for 2017, 2018, 2019, and 2020 should not be less than 106.72 million CNY, 150.95 million CNY, 172.39 million CNY, and 206.65 million CNY respectively[179]. - The company has ensured that its senior management is independent and not involved in other enterprises controlled by the same parties[187]. Research and Development - The company filed a record 32 invention patent applications in 2020, reflecting its commitment to technological innovation[54]. - The company’s R&D efforts led to three international advanced and three domestically leading technology achievements in the civil explosives sector during the 13th Five-Year Plan[48]. - Research and development expenses amounted to 63,170,719.40 CNY, representing 1.61% of total revenue, with a year-on-year increase of 47.75%[72]. - The company is focused on technological innovation, collaborating with internal and external partners to develop new products such as high-performance explosives and digital electronic detonators[139]. Asset Management - The company reported a significant increase in deferred tax assets by 25.21%, amounting to ¥94,060,568.38, due to increased deductible losses[81]. - The company’s cash and cash equivalents at year-end were ¥1,047,716,725.89, making up 8.33% of total assets, a slight decrease of 0.10% from the beginning of the year[79]. - Accounts receivable increased to ¥1,899,949,557.80, representing 15.11% of total assets, up by 2.10% compared to the previous year[79]. - The company has a total of 7 subsidiaries engaged in hazardous materials transportation, ensuring comprehensive logistics capabilities[58]. Market Presence and Competition - The company is not engaged in overseas business operations, focusing solely on domestic markets[65]. - The company is actively pursuing technological advancements in explosive materials and related engineering services[128]. - The company has expanded its market presence through acquisitions, including the purchase of Fujian Shuo Long Construction Engineering Co., which enhances its blasting business and market competitiveness[134]. - The company aims to leverage its dual-core strategy in civil explosives and new energy sectors to drive diversified growth and enhance risk resilience[135].