SEC(603988)2021-04-09 16:00Financial Performance - The company's operating revenue for 2020 was CNY 856,405,784.42, representing a 40.86% increase compared to CNY 608,001,747.55 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 171,214,258.74, a 50.89% increase from CNY 113,473,240.99 in 2019[20]. - The net profit after deducting non-recurring gains and losses was CNY 107,660,598.41, up 41.13% from CNY 76,285,554.90 in 2019[20]. - The cash flow from operating activities increased by 80.30% to CNY 74,586,889.83 from CNY 41,368,085.95 in 2019[20]. - The basic earnings per share for 2020 were CNY 0.73, a 52.08% increase from CNY 0.48 in 2019[22]. - The weighted average return on equity increased to 23.48% in 2020, up 6.69 percentage points from 16.79% in 2019[22]. - The gross profit margin decreased from 31.39% in 2019 to 29.14% in 2020 due to rising raw material costs[44]. - The company achieved an operating revenue of 856.41 million yuan in 2020, significantly increasing its main business performance[43]. - Net profit attributable to shareholders reached CNY 171.21 million, up 50.89% year-on-year, exceeding the annual target by 145.22%[44]. - The company reported a significant increase in R&D expenses, which rose by 38.86% to CNY 29.12 million[47]. Market and Industry Trends - The significant growth in revenue and profit was attributed to the recovery of the market and increased demand in the wind power industry[22]. - The manufacturing sector showed a recovery trend with a 6.6% increase in added value in 2020, indicating a positive outlook for the industry[32]. - The production of medium and large AC motors increased by 4.1% year-on-year, with a total output of 62.92 million kilowatts[32]. - Wind turbine sales accounted for 51.34% of total revenue, indicating a high concentration in product sales[44]. - The electric motor manufacturing industry is expected to focus on high-quality development and technological innovation during the "14th Five-Year Plan" period[65]. - The market for high-efficiency, energy-saving, and high-quality electric motors is projected to continue expanding, driven by national policies promoting green and intelligent manufacturing[75]. Research and Development - The company maintained a focus on R&D and innovation in electric motor technology, aiming to enhance market competitiveness amid challenging industry conditions[31]. - The company has enhanced its research and development efforts, successfully developing new products such as high-power vertical motors and synchronous motors for large diesel generators[34]. - The proportion of R&D investment to operating revenue is 3.40%, with 118 R&D personnel, accounting for 15.97% of total employees[58]. - Research and development expenses for 2020 were ¥29,121,081.17, an increase of 38.9% from ¥20,971,181.15 in 2019[179]. Cash Flow and Assets - The total assets at the end of 2020 were CNY 1,265,545,670.26, a 20.08% increase from CNY 1,053,898,773.71 at the end of 2019[21]. - Cash and cash equivalents at the end of 2020 amounted to CNY 62,041,395.27, an increase from CNY 46,456,295.55 at the end of 2019[190]. - Total liabilities amounted to ¥508,861,673.62, up from ¥359,061,036.13, marking an increase of around 42%[173]. - The company reported a significant increase in short-term borrowings, with current liabilities totaling ¥481,057,395.94, compared to ¥349,885,541.63 in 2019, a rise of approximately 38%[173]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 8.80 per 10 shares, totaling CNY 206,976,000.00[5]. - The company's net profit for 2020 was 171,214,258.74 RMB, resulting in a cash dividend payout ratio of 120.89%[86]. - The company has maintained a consistent cash dividend policy over the past three years, reflecting its commitment to returning value to shareholders[87]. - The company proposed a cash dividend of 2.52 RMB per 10 shares for the 2019 fiscal year, totaling 59,270,400 RMB distributed to shareholders[84]. Risks and Challenges - The company faced challenges in 2021 as wind power demand is expected to weaken due to subsidy reductions and price competition[44]. - The company is facing risks from fluctuating prices of key raw materials, such as copper and silicon steel, which could impact its operating performance[80]. - The company is addressing potential risks from overseas operations due to the impact of the COVID-19 pandemic and geopolitical changes, which have led to a decrease in export orders[81]. Governance and Compliance - The company has established a comprehensive quality management system in accordance with ISO9001:2015, ISO14001:2015, and OHSAS18001:2007, ensuring high product reliability[35]. - The company has maintained independence from its controlling shareholders in business, personnel, assets, and financial aspects[150]. - The internal control audit report issued by Tianjian Accounting Firm provided a standard unqualified opinion on the effectiveness of the company's internal controls[154]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2020[157].