XINGYE TECH.(002674)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,460,440,505.08, a decrease of 7.98% compared to ¥1,587,100,991.37 in 2019[19]. - Net profit attributable to shareholders was ¥115,537,730.38, down 2.11% from ¥118,024,529.84 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥102,451,065.20, a decline of 10.54% from ¥114,525,937.03 in 2019[19]. - The net cash flow from operating activities increased significantly by 316.23% to ¥179,252,491.64 from ¥43,065,583.91 in 2019[19]. - The total assets at the end of 2020 were ¥3,089,073,627.58, reflecting a growth of 3.82% from ¥2,975,434,180.40 at the end of 2019[19]. - The company's weighted average return on equity increased to 5.28%, up 0.14 percentage points from 5.14% in 2019[19]. - The company reported a quarterly revenue of ¥607,892,183.90 in Q4 2020, marking a significant increase from ¥130,497,695.61 in Q1 2020[24]. - The net profit attributable to shareholders in Q4 2020 was ¥70,083,963.67, a substantial rise from a loss of ¥5,085,678.08 in Q1 2020[24]. Shareholder Returns - The company did not distribute cash dividends for the year 2020 and repurchased 10,219,218 shares for a total amount of RMB 100,961,562.60, which is considered equivalent to cash dividends[4]. - The company plans to focus on long-term shareholder returns while considering future capital expenditure and operational needs[4]. - The cash dividend amount for 2020 was CNY 0.00, with the repurchase amount accounting for 87.38% of the net profit attributable to ordinary shareholders[157]. - The total distributable profit as of December 31, 2020, was CNY 373,053,502.30, with the repurchase amount fully accounting for the profit distribution[161]. - The profit distribution plan for 2020 is subject to approval at the company's annual general meeting[162]. - The company has committed to a stable and continuous dividend distribution policy, prioritizing cash dividends over stock dividends for profit distribution[165]. Governance and Compliance - All board members attended the meeting to review the annual report, reflecting strong governance practices[3]. - The company has engaged a reputable accounting firm, Deloitte, to ensure the accuracy of its financial statements[17]. - The company has not made any adjustments or restatements to previous years' accounting data, ensuring consistency in financial reporting[18]. - The company has not reported any significant changes in the feasibility of its projects during the reporting period[112]. - The company has not engaged in any business that competes with its subsidiaries since the signing of the commitment letter, ensuring no conflicts of interest arise[165]. - The company will strictly follow the regulations regarding related party transactions as outlined in the company’s articles of association[165]. Market and Operational Strategy - The company has a comprehensive strategy for market expansion and product development, although specific details were not disclosed in the provided content[3]. - The company has established a dual R&D system with a technical center and product development teams, focusing on customized development to enhance product competitiveness for downstream clients[35]. - The company has optimized its customer structure by abandoning low-value products and focusing on high-potential clients, enhancing its service capabilities[52]. - The company aims to enhance its brand strategy by increasing R&D investment and expanding its product structure, particularly in outdoor shoes and special functional leather[132]. - The company plans to maintain its market share in leather for shoe uppers and expand into the sofa leather and electronic product covering leather markets in 2021[139]. Environmental and Sustainability Efforts - The company has established a comprehensive wastewater treatment and recycling system, implementing advanced environmental protection measures in compliance with national regulations[39]. - The company is exploring green and environmentally friendly tanning processes to reduce pollution and processing costs, promoting sustainable development in the tanning industry[136]. - The company has been recognized as a "National Enterprise Technology Center" and has undertaken 24 independent technology innovation projects in 2020, applying for 14 invention patents[42]. - The leather industry is expected to focus on green manufacturing and the development of ecological leather to promote sustainable growth[129]. Risks and Challenges - The company emphasizes the importance of risk awareness in its forward-looking statements, advising investors to pay attention to potential risks[3]. - The fluctuation in raw material prices, particularly cowhide, poses a significant risk to the company's profitability[142]. - The ongoing COVID-19 pandemic and its impact on global economic recovery could negatively affect the company's exports of leather products[148]. - The company faces risks from stricter environmental regulations, which may increase operational costs due to the need for more environmental protection facilities[140]. Investment and Capital Management - The company raised a total of RMB 715,978,294.62 through a non-public offering of 61,510,162 shares at an issue price of RMB 11.64 per share in August 2016[109]. - The company plans to improve the efficiency of fund usage by reallocating surplus funds from terminated projects[112]. - The company has not engaged in any securities or derivative investments during the reporting period[106][107]. - The company has committed to returning 20 million yuan to its fundraising account before the due date, ensuring no misuse of raised funds for high-risk investments[168]. Related Party Transactions - The company reported a total of 561.97 million yuan in actual related party transactions with Fujian Xingye Dongjiang Environmental Technology Co., Ltd. for the year 2020, against an expected amount of 10.66 million yuan[190]. - Actual related party transactions with Jinjiang Shishi Environmental Technology Co., Ltd. amounted to 131.21 million yuan, compared to an expected 1.68 million yuan[190]. - The company engaged in related transactions, including a transaction amounting to 1,341,000 yuan for hazardous waste disposal at a pricing principle of 24 yuan per ton, representing 17.26% of similar transactions[188].