Financial Performance - The company's operating revenue for 2020 was CNY 528,763,697.19, representing a 66.27% increase compared to CNY 318,024,319.30 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 132,371,970.46, which is an increase of 108.08% from CNY 63,616,426.50 in the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY 114,733,309.10, up 139.76% from CNY 47,853,754.35 in 2019[25]. - The basic earnings per share for 2020 was CNY 1.04, reflecting a growth of 108.00% compared to CNY 0.5 in 2019[25]. - The total assets at the end of 2020 amounted to CNY 1,181,462,269.48, a 12.46% increase from CNY 1,050,566,795.15 at the end of 2019[25]. - The company's cash flow from operating activities was CNY 31,034,197.60, a decrease of 14.34% from CNY 36,228,660.52 in 2019[25]. - The weighted average return on equity for 2020 was 15.40%, up from 7.77% in 2019[25]. - The company reported a total net asset of CNY 924,534,603.55 at the end of 2020, an increase of 11.93% from CNY 825,989,994.28 at the end of 2019[25]. Profit Distribution - The company reported a profit distribution plan to distribute cash dividends of 5 RMB per 10 shares (including tax) based on 129,343,555 shares[12]. - The cash dividend for 2020 represents 48.86% of the net profit attributable to ordinary shareholders, which was RMB 132,371,970.46[172]. - The total cash dividend amount for 2020 was 100% of the distributable profit of RMB 394,983,220.59[170]. - The company has maintained a consistent cash dividend policy over the past three years, with no bonus shares issued during this period[171]. - The company plans to retain the remaining undistributed profits for future operational support[170]. - The profit distribution plan was approved by the board of directors and the shareholders' meeting, ensuring compliance with the company's articles of association[168]. Market Risks and Competition - The company faces risks from a slowing macroeconomic environment, which could lead to reduced demand and investment in the power system, negatively impacting performance[6]. - The company acknowledges the risk of product quality issues, which could lead to significant operational impacts and reputational damage if they occur[10]. - The company is aware of the potential impact of regulatory changes on market competition and pricing strategies in the industry[9]. - Customer concentration risk is significant, as the company relies heavily on major clients like the State Grid and Southern Power Grid, making it vulnerable to changes in these key customer relationships[149]. - The company recognizes the risk of market competition increasing, particularly with the potential entry of new manufacturers and price competition, which could impact its market position and profit margins[150]. Technological Development and R&D - The company is focused on the R&D and production of high-voltage and ultra-high-voltage cable connectors, GIL, smart substations, and related products[35]. - The company has obtained 61 patents, including 20 invention patents, and plans to increase R&D investment to develop smarter and more environmentally friendly products to meet new grid construction requirements[156]. - The company is actively developing new technologies and products in response to the opportunities presented by national strategies such as carbon neutrality and the promotion of new infrastructure[153]. - The company is focusing on R&D for new products, including a 500kV cable connector that breaks foreign monopolies, enhancing its competitive edge in the market[44]. - The company has developed a high-level technical research and development team, with ongoing training initiatives to enhance execution capabilities and professional knowledge among employees[73]. Business Expansion and Market Presence - The company is focused on expanding its market presence and enhancing its product offerings in response to increasing demand for high and ultra-high voltage products[9]. - The company has established a strong market presence with successful projects in various 500kV cable transmission systems, enhancing its brand recognition and product acceptance[69]. - The company plans to enhance its market share with new products that are smaller, more reliable, and have a longer lifespan, responding to the growing demand in the power construction sector[108]. - The company is positioned to benefit from the increasing demand for urban power distribution technologies driven by new infrastructure projects and the growth of the electric vehicle and 5G sectors[58]. - The company plans to expand GIL production capacity to address bottlenecks and meet increasing market demand, particularly in key markets such as Jiangsu, Zhejiang, Guangdong, and Chongqing[141]. Governance and Compliance - The company is committed to enhancing its governance and operational standards to ensure sustainable growth and compliance with regulations[145]. - The company plans to enhance its corporate governance structure to ensure effective decision-making and management, thereby protecting shareholder interests[158]. - The company will disclose its profit distribution policy and cash dividend plans in its annual and semi-annual reports[180]. - The company has committed to ensuring compliance with social insurance and housing fund contributions for employees, with penalties for non-compliance[187]. - The company will not engage in unfair benefit transfers to other entities or individuals, ensuring the protection of its interests[187]. Investment and Financial Management - The company plans to invest a total of 353.94 million yuan in fundraising projects, primarily focused on power cable connectors and GIL expansion projects[81]. - The company has invested a total of CNY 35,394.4 million in projects, with CNY 23,677.8 million already utilized, achieving a progress rate of 60.14%[132]. - The company is actively expanding its business in intelligent power distribution equipment, with ongoing operations and new business generation[123]. - The company plans to raise up to ¥159,188.11 million through a stock issuance to expand GIL production capacity and build a modular substation project[84]. - The company has committed to using raised funds for specific projects, with a detailed plan for fund allocation[130].

Financial Performance - The company's operating revenue for 2019 was ¥318,024,319.30, a decrease of 0.64% compared to ¥320,070,653.13 in 2018[20]. - The net profit attributable to shareholders for 2019 was ¥63,616,426.50, down 15.49% from ¥75,275,286.09 in 2018[20]. - The net profit after deducting non-recurring gains and losses was ¥47,853,754.35, a decline of 26.61% from ¥65,201,451.76 in 2018[20]. - The net cash flow from operating activities was ¥36,228,660.52, a decrease of 37.88% compared to ¥58,318,179.79 in 2018[20]. - The total assets at the end of 2019 were ¥1,050,566,795.15, a decrease of 0.94% from ¥1,060,545,382.44 at the end of 2018[20]. - The net assets attributable to shareholders at the end of 2019 were ¥825,989,994.28, down 3.36% from ¥854,728,505.93 at the end of 2018[20]. - The company reported a basic earnings per share of ¥0.65, a decrease of 13.33% from ¥0.75 in 2018[20]. - The company achieved an operating revenue of 318.02 million yuan and a net profit attributable to the parent company of 63.62 million yuan in 2019[64]. - The company reported a cash dividend of RMB 5.00 per 10 shares, totaling RMB 48,897,675.00 for the year 2019[156]. - The cash dividend for 2019 was CNY 48,897,675, representing 76.86% of the net profit attributable to ordinary shareholders[160]. Market Risks - The company faces risks from a slowdown in macroeconomic growth, which could lead to reduced demand and investment in power transmission and distribution systems[5]. - The company has a high customer concentration risk, primarily relying on major clients such as the State Grid and Southern Power Grid, which could adversely affect operations if there are significant changes in these clients[6]. - The company is exposed to market competition risks, with potential new entrants and existing competitors increasing investment and technological advancements, which could pressure pricing and margins[8]. - The company operates in a highly concentrated industry, where changes in the economic environment can significantly impact market capacity and performance[5]. - The company’s business is closely tied to the macroeconomic environment and the health of downstream industries, affecting its growth prospects[5]. - The company’s operations are significantly influenced by the investment scale in national power network construction, which is subject to economic fluctuations[5]. - The company faces risks from macroeconomic slowdowns, which could impact the demand for power transmission systems and overall industry capacity[138]. - The company anticipates increased market competition, particularly in high and ultra-high voltage products, which may pressure pricing and profit margins[141]. Research and Development - The company focuses on the R&D and production of high and ultra-high voltage cable connectors and GIL products, providing integrated solutions for underground smart transmission systems[29]. - The company has developed a dual R&D model, focusing on both market-driven and customized product development, ensuring products meet necessary certifications for grid operation[34]. - The company has a strong focus on R&D, with 62 valid patents, including 19 invention patents, and has developed innovative products such as smart grounding boxes and intelligent fire extinguishing joints[51][52]. - In 2019, the company's R&D investment reached 22.33 million yuan, an increase of 42.57% year-on-year, marking the highest in its history[67]. - The company has achieved a significant increase in revenue, achieving a total of 1.5 billion yuan, representing a year-over-year growth of 20%[191]. - New product development includes the launch of a smart transmission system, expected to enhance operational efficiency by 30%[171]. - The company plans to invest 100 million yuan in research and development for new technologies over the next two years[174]. Strategic Plans and Market Expansion - The company aims to expand its market presence in traditional and renewable energy transmission sectors, including hydropower, wind power, and photovoltaic power stations[30]. - The company is positioned to benefit from the increasing demand for underground intelligent power transmission systems and urban power line renovation projects due to rising safety and capacity requirements[35]. - The company is actively responding to market demands and refining its business model to enhance operational efficiency and profitability[35]. - The company plans to leverage its core technology and project performance to expand into new business areas, including overhead line undergrounding and power IoT solutions[134]. - The company is exploring partnerships with international firms to enhance its global footprint, targeting a 5% increase in international sales[176]. - The company is actively participating in the underground transmission market, driven by the increasing demand for electricity from the growth of new energy vehicles and 5G technology[63]. - The company plans to develop new products such as energy management intelligent substations and integrated devices for GIS switches and transformers in 2020[135]. Corporate Governance and Shareholder Relations - The company’s financial report is guaranteed to be true, accurate, and complete by its board and management, ensuring accountability for any misstatements[3]. - The company has established an independent board system to enhance corporate governance and ensure fair decision-making processes[147]. - The company is committed to improving its governance and internal control systems to ensure sustainable development and protect shareholder rights[136]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[161]. - The company is committed to accepting supervision from regulatory authorities and investors regarding shareholding commitments[164]. - The company will ensure that any adjustments to the profit distribution policy will prioritize the protection of shareholder equity[189]. Operational Efficiency and Cost Management - The company has made significant improvements in manufacturing processes, enhancing production efficiency through nearly 32 small-scale improvements[52]. - The company’s sales expenses increased by 39.83% to 36,139,018.24 CNY, attributed to higher personnel and operational costs for market expansion[82]. - The management emphasized a focus on sustainability, aiming to reduce operational costs by 15% through energy-efficient practices[175]. - The company is committed to recruiting and training high-end professionals to support its sustainable development[146]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[170]. - The company is poised to leverage the growth of the power internet of things and the increasing requirements for urban power transmission technologies in the coming years[39]. - The market for GIL technology is expected to grow as more projects are implemented, indicating a positive future outlook for the company[92]. - The company plans to continue developing GIL products to meet the increasing demand in the domestic power industry[92].