Financial Performance - The company's operating revenue for 2020 was CNY 1,179,334,181.49, a decrease of 22.70% compared to CNY 1,525,576,954.27 in 2019[21] - The net profit attributable to shareholders for 2020 was CNY 243,721,039.16, representing a 4.60% increase from CNY 233,005,540.80 in 2019[21] - The net cash flow from operating activities decreased by 57.83% to CNY 56,554,282.56 in 2020, primarily due to a reduction in the balance of operating payables[22] - The total assets at the end of 2020 were CNY 2,117,186,753.13, an increase of 3.15% from CNY 2,052,585,339.10 at the end of 2019[21] - The net assets attributable to shareholders increased by 31.77% to CNY 1,020,513,608.96 at the end of 2020, driven by the net profit achieved during the year[23] - The basic earnings per share for 2020 were CNY 2.64, up 4.35% from CNY 2.53 in 2019[22] - The weighted average return on equity decreased by 8.5 percentage points to 27.19% in 2020, compared to 35.69% in 2019[22] Cash Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 6 per 10 shares, totaling CNY 73,866,000, and to increase capital reserves by converting 4 shares for every 10 shares held[5] - The company did not propose a cash dividend plan for the year 2020, despite having a positive profit available for distribution to ordinary shareholders[104] - In 2020, the company distributed a total of 73,866,000 shares as stock dividends, with a cash dividend amounting to 243,721,039.16 RMB, representing a payout ratio of 30.31%[104] - The company must disclose reasons for not proposing a cash dividend if it has profits but does not distribute them, along with the intended use of retained earnings[105] - The board of directors is required to strictly follow the cash dividend policy established in the company's articles of association and approved by the shareholders' meeting[102] Operational Highlights - The company has a designed production capacity of approximately 4.8 million cubic meters per year for ready-mixed concrete, positioning itself as a leading manufacturer in the region[31] - The company has established long-term partnerships with top cement manufacturers in Chongqing, ensuring a stable supply of quality materials[32] - The sales model is based on a just-in-time production approach, responding to customer demands with immediate production and delivery[35] - The company is focusing on increasing its self-supply of sand and gravel to mitigate rising external procurement costs[32] - The company has been recognized for its environmentally friendly production practices, receiving a green building material rating from local authorities[31] Market and Industry Trends - In 2020, the national fixed asset investment reached 51.89 billion yuan, with a year-on-year growth of 2.9%, and infrastructure investment grew by 0.9%[36] - The production volume of ready-mixed concrete in Chongqing for 2020 was 7.57 million cubic meters, a year-on-year decrease of 2.65%[38] - The average price of ready-mixed concrete in Chongqing at the end of 2020 was 380 yuan per cubic meter, down by 50 yuan from the beginning of the year[38] - The mechanism sand industry is projected to become the main source of construction sand, with an annual demand for sand expected to reach nearly 500 billion tons globally by 2030[78] - The concrete industry in China is anticipated to undergo consolidation, with an increase in mergers and acquisitions to enhance industry concentration and foster leading brands[79] Future Outlook and Strategies - The company expects a net profit growth of 5%-15% for the year 2021[82] - The company plans to enhance management levels and optimize internal control mechanisms to improve operational efficiency[82] - The company aims to expand its market presence in Chongqing, focusing on increasing sales of ready-mixed concrete[83] - The company will enhance its technology development by improving its R&D organizational structure and team[84] - The company intends to develop high-performance and specialty ready-mixed concrete products, with plans for production of prefabricated concrete components and dry-mixed mortar[86] Risks and Challenges - The company faces risks from the ongoing COVID-19 pandemic, which may impact its operations[87] - The company is exposed to macroeconomic fluctuations that could affect the ready-mixed concrete industry and its performance[88] - The company has a concentrated sales region in Chongqing, making it vulnerable to local market downturns[89] - The company is at risk of increased competition in the ready-mixed concrete market, which could affect its market share and profit margins[90] - The company’s production costs are significantly affected by raw material price fluctuations, which account for approximately 60% of its production costs[94] Corporate Governance and Compliance - The company has a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring clear division of responsibilities[179] - The company has no penalties from securities regulatory agencies in the past three years[172] - The company has not disclosed any internal control self-evaluation reports or significant internal control deficiencies[183] - The audit report emphasizes the importance of evaluating management's use of accounting policies and estimates[198] Social Responsibility and Community Engagement - The company invested a total of RMB 480,900 in poverty alleviation efforts during the reporting period, participating in 10 projects and helping 5 registered impoverished individuals[140] - The company actively participated in pandemic prevention efforts, establishing a task force and donating protective materials to impoverished areas[143] - The company has established a dedicated environmental safety department and obtained environmental management system certification, adhering to GB/T24001-2016 standards[147]

Financial Performance - Net profit attributable to shareholders rose by 75.99% to CNY 40,265,768.26 year-on-year[6] - Operating revenue grew by 50.79% to CNY 222,446,501.86 compared to the same period last year[6] - The company achieved a concrete sales volume of 536,400 cubic meters, an increase of 84.06% year-on-year[6] - Basic earnings per share rose by 76.00% to CNY 0.44 per share[6] - Revenue for the first quarter reached ¥222,446,501.86, representing a 50.79% increase from ¥147,518,963.00 year-over-year, attributed to reduced impact from the pandemic[13] - The net profit for Q1 2021 was CNY 40,265,768.26, up 76.0% from CNY 22,879,211.73 in the same period last year[20] - The total comprehensive income for Q1 2021 was CNY 40,265,768.26, consistent with the net profit, indicating no significant other comprehensive income items[20] Assets and Liabilities - Total assets increased by 55.14% to CNY 3,284,510,239.77 compared to the end of the previous year[6] - Total assets increased to ¥3,284,510,239.77, up from ¥2,117,186,753.13, reflecting strong growth in financial position[17] - The total liabilities decreased to CNY 989,390,518.02 from CNY 1,096,673,144.17, a reduction of approximately 9.8%[18] - The total equity increased significantly to CNY 2,295,119,721.75 from CNY 1,020,513,608.96, marking an increase of about 125.0%[18] Cash Flow - Cash flow from operating activities improved significantly to CNY 4,692,189.37 from a negative CNY 17,751,856.40 in the same period last year[6] - The cash flow from operating activities showed a net inflow of CNY 4,692,189.37, compared to a net outflow of CNY 17,751,856.40 in Q1 2020[23] - The company reported a net cash flow from financing activities of ¥1,223,008,362.51, significantly improved from a negative cash flow of ¥4,144,669.44 in the previous period, due to IPO proceeds[13] - The company raised CNY 1,249,665,100.00 from investment activities in Q1 2021, significantly higher than the previous year[23] Shareholder Information - The total number of shareholders reached 30,680 by the end of the reporting period[10] - The top shareholder, Li Dezhi, holds 59.46% of the shares, totaling 73,200,000 shares[11] Operational Efficiency - Accounts receivable decreased by 5.78% to ¥957,547,347.37 from ¥1,016,300,703.93, indicating improved collection efforts[12] - The company reported a significant reduction in overdue commitments, indicating improved operational efficiency[14] - Short-term borrowings decreased by 13.58% to ¥268,272,373.46 from ¥310,435,405.07, indicating reduced reliance on debt[17] Research and Development - Research and development expenses increased by 48.84% to ¥710,200.85, reflecting enhanced investment in R&D[13] - Research and development expenses for Q1 2021 were CNY 710,200.85, up from CNY 477,161.70 in Q1 2020, indicating a focus on innovation[19] Capital Structure - The company’s capital reserve surged by 660.30% to ¥1,386,598,563.52, primarily due to the IPO[13]