TONGWEI CO.,LTD(SH:600438)2021-04-12 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 44.20 billion, an increase of 17.69% compared to CNY 37.56 billion in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately CNY 3.61 billion, representing a growth of 36.95% from CNY 2.63 billion in 2019[16]. - The net cash flow from operating activities for 2020 was approximately CNY 3.02 billion, up 28.31% from CNY 2.36 billion in 2019[16]. - The total assets at the end of 2020 were approximately CNY 64.25 billion, a 37.23% increase from CNY 46.82 billion at the end of 2019[18]. - The basic earnings per share for 2020 were CNY 0.8581, an increase of 26.45% compared to CNY 0.6786 in 2019[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2020 was approximately CNY 2.41 billion, a 4.06% increase from CNY 2.31 billion in 2019[16]. - The company's total equity attributable to shareholders at the end of 2020 was approximately CNY 30.54 billion, a 73.76% increase from CNY 17.58 billion at the end of 2019[18]. - The company achieved an operating revenue of 44.2 billion yuan, a year-on-year increase of 17.69%[31]. - The net profit attributable to shareholders reached 3.608 billion yuan, up 36.95% year-on-year, while the net profit excluding non-recurring gains and losses was 2.409 billion yuan, an increase of 4.06%[31]. - The total revenue for the year was approximately CNY 43.43 billion, an increase of 17.16% compared to the previous year, while the gross margin decreased by 1.95 percentage points to 17.16%[38]. Dividend and Share Capital - The company plans to distribute a cash dividend of 2.41 CNY per 10 shares, totaling approximately 1.08 billion CNY for all shareholders[3]. - The company has a total share capital of 4,501,548,184 shares as of 2021[3]. - In 2020, the company's net profit attributable to ordinary shareholders was 3,607,923,359.56 RMB, with a dividend payout ratio of 30.07%[76]. - The company has established a cash dividend policy to protect the rights of minority investors and ensure compliance with regulatory requirements[75]. Audit and Compliance - The company has received a standard unqualified audit report from Sichuan Huaxin (Group) Accounting Firm[2]. - The company has stated that there are no issues with the authenticity and completeness of the annual report as guaranteed by its management[2]. - The company has confirmed that all board members attended the board meeting[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4]. - The company has not violated decision-making procedures for providing guarantees[4]. - The company has implemented new revenue recognition standards effective January 1, 2020, impacting the presentation of certain financial statement items without affecting total assets, net assets, or net profit[84]. Risk Management - The company has detailed potential risks in its report, particularly in the section discussing future development strategies[5]. - The company emphasizes that forward-looking statements regarding future strategies do not constitute a commitment to investors[4]. - The company is closely monitoring the impact of natural disasters and disease outbreaks on feed demand, with strategies to assist farmers in recovery[72]. - The company is tracking international foreign exchange market trends to manage currency risk effectively[72]. - The company has implemented measures to mitigate risks from raw material price fluctuations, including strengthening team training and optimizing inventory management[72]. Business Strategy and Development - The company aims to integrate agriculture and renewable energy, focusing on a business model that combines agriculture (aquaculture) and photovoltaic resources[22]. - The company plans to continue expanding its market presence and developing new technologies in the agricultural and renewable energy sectors[22]. - The company aims to become a world-class supplier of safe food and a world-class clean energy operator, focusing on high-purity crystalline silicon and solar cell leadership[28]. - The company is focusing on the integration of "agriculture (fisheries) + photovoltaics" to expand its competitive edge[60]. - The company is committed to digital transformation, utilizing new technologies like RPA and AI to improve operational efficiency and risk management[71]. Environmental and Social Responsibility - The company has actively participated in community development and public welfare activities, contributing to local employment and education initiatives[107]. - The company has established multiple photovoltaic poverty alleviation power station projects in regions such as Jilin, Shandong, Ningxia, Inner Mongolia, and Sichuan, effectively improving local electricity access[102]. - The company plans to continue its "photovoltaic poverty alleviation" initiatives, contributing to local green energy industry development and improving ecological environments[105]. - The company has implemented a comprehensive waste management system, including the treatment of hazardous waste, with 67.613 tons of hazardous waste properly disposed of in 2020[111]. - The company has established an "Employee Care Mutual Fund" to support employees and their families in times of need, receiving widespread support from staff[107]. Research and Development - The company has applied for a total of 699 patents, with 506 patents granted as of the reporting period[28]. - Research and development expenses totaled CNY 1.035 billion, accounting for 2.34% of total revenue, with 2,578 R&D personnel representing 10.09% of the total workforce[43]. - The company is focusing on high-efficiency battery research and development, utilizing advanced technologies to enhance product quality and performance[51]. - The company is focusing on enhancing product quality and optimizing product structure to maintain a leading advantage in product cost-performance[71]. Corporate Governance - The company has implemented a performance assessment system to ensure reasonable remuneration payments based on job performance[156]. - The company has established a comprehensive creditor protection mechanism, ensuring efficient centralized management of funds and strict compliance with credit fund usage regulations, resulting in no bad credit records during the reporting period[107]. - The company’s governance structure is complete, and the internal control system is sound, contributing to stable operational performance[163]. - The company actively encourages employees to enhance their skills and supports them financially for further education and professional training[161]. Market Position and Competition - The competitive landscape in the feed industry is shifting towards comprehensive competition across the entire agricultural and animal husbandry supply chain[31]. - The company has established strategic partnerships with major players like Longi Green Energy and Trina Solar to enhance supply chain cooperation[33]. - The company aims to achieve over 23 billion CNY in revenue from its feed, food, and related industries in 2021, targeting a year-on-year growth of over 10%[71]. - The company has established itself as a leading manufacturer in the photovoltaic industry and will continue to expand its scale advantages in key manufacturing areas[69].