XZB(SH:603040)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 376,087,187.77, representing a 12.05% increase compared to CNY 335,654,032.42 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 148,404,828.45, a 13.93% increase from CNY 130,263,555.42 in 2019[23]. - The cash flow from operating activities for 2020 was CNY 172,027,941.51, showing a significant increase of 47.40% compared to CNY 116,706,646.33 in 2019[23]. - The total assets at the end of 2020 were CNY 1,050,480,780.59, which is a 16.08% increase from CNY 904,939,617.87 at the end of 2019[23]. - The basic earnings per share for 2020 decreased to CNY 1.44, down 12.73% from CNY 1.65 in 2019[24]. - The weighted average return on equity for 2020 was 17.47%, a decrease of 0.44 percentage points from 17.91% in 2019[24]. - The company reported a total of CNY 21,967,459.52 in non-recurring gains and losses for 2020, compared to CNY 19,386,896.27 in 2019[29]. - The company achieved an operating revenue of 375.09 million yuan in 2020, representing a year-on-year growth of 12.05%[57]. - The net profit attributable to the parent company was 148.40 million yuan, an increase of 13.93% compared to the previous year[57]. Shareholder Actions - The company plans to distribute a cash dividend of RMB 5 per 10 shares to all shareholders, totaling approximately RMB 51.2 million, representing a cash dividend payout ratio of about 34.50%[5]. - The company intends to increase its share capital by 3 shares for every 10 shares held, resulting in a total share capital of approximately 133.1 million shares after the distribution[5]. - The total share capital at the end of 2020 was 103,305,779 shares, a 29.97% increase from 79,482,884 shares at the end of 2019[23]. - The cash dividend distributed was 39,741,442 RMB, with a bonus share distribution of 23,844,865 shares, resulting in a total share capital of 103,327,749 shares after the distribution[144]. - The company has maintained a cash dividend payout ratio of at least 20% of distributable profits, with a higher ratio of 34.50% in 2020 compared to 30.51% in 2019[105]. Corporate Governance - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants[4]. - The company assures that the financial report is true, accurate, and complete, with no false records or misleading statements[7]. - The company’s board of directors and management have confirmed their attendance at the board meeting, ensuring governance compliance[7]. - The company will ensure that any related party transactions are conducted at fair market prices and comply with legal disclosure requirements[109]. - The controlling shareholders have promised to avoid engaging in competitive activities with the company and will take steps to exit any potential competition[108]. - The company will maintain an independent financial accounting department and will not share bank accounts with controlling shareholders[110]. - The company has established a commitment to independent personnel management, ensuring no interference in the appointment of senior management[110]. - The company will continue to operate with a complete and independent organizational structure, adhering to legal governance standards[110]. - The company has maintained a consistent governance structure with no changes in the board of directors or management personnel during the reporting period[168]. Risk Management - The company has outlined potential risks in its future development plans, which investors should be aware of[8]. - The company emphasizes the importance of investment risk awareness regarding its forward-looking statements[6]. - The company has identified risks related to the global trade environment, including trade protectionism and currency fluctuations, which could increase operational costs[96]. - The company has significant growth potential in the automotive sector, driven by the increasing vehicle ownership and demand for its products[94]. - The company expects a temporary impact on production and operations due to the COVID-19 pandemic, with the extent of the impact depending on the progress of epidemic prevention measures and local policies[95]. Research and Development - The company has established a new R&D innovation center to focus on automotive precision electronic components and new energy vehicles[59]. - The company has developed over 100 types of valve locks and 300 types of valve spring discs, with a focus on lightweight design and high precision[48]. - The company holds 65 domestic patents and 13 foreign patents, including key technologies for valve locks and hydraulic tappets, contributing to significant economic benefits[49]. - Investment in research and development has increased by 25% compared to the previous year, underscoring the commitment to innovation[169]. - The company is focusing on optimizing internal management and enhancing team capabilities to improve overall operational efficiency[62]. Market Position and Strategy - The company’s main business involves the R&D, production, and sales of precision components, primarily for automotive and motorcycle engines[34]. - The company has a diverse customer base including major brands such as Volkswagen, BYD, and Bosch, indicating strong market presence[34]. - The company is a leading player in the domestic cold precision forging sector, with a strong R&D capability and proprietary intellectual property in its main products[43]. - The company has expanded its market presence, gaining new project approvals from clients such as BMW and PSA, indicating strong growth potential[58]. - The company is actively pursuing overseas market expansion and new project collaborations while ensuring employee safety amid macroeconomic challenges[93]. Financial Management - The company has engaged in cash asset management, with a total of 30,850,000 RMB in bank wealth management products and 2,000,000 RMB in securities investment products[129]. - The company has multiple ongoing financial products with varying maturity dates and returns, including RMB 6,000 million yielding 3.80% and RMB 3,000 million yielding 2.75%[133]. - The company has successfully recovered a total of RMB 1,000 million from various financial products, with returns ranging from 2.65% to 4.20%[134]. - The company has established a systematic approach to cash management, allowing for the rolling use of funds within the approved limits[131]. - The company has demonstrated effective financial management practices, achieving significant returns on its investments while maintaining compliance with regulatory requirements[132]. Employee and Social Responsibility - The company maintained a high customer satisfaction rate and improved employee welfare during the reporting period, contributing to significant performance growth[138]. - The company has actively engaged in social responsibility initiatives, including employee care and safety production measures[138]. - The company implemented a "machine replacement" plan to enhance automation and information technology levels, ensuring a safe and healthy work environment for employees[139]. - The company emphasized green manufacturing and environmental protection, achieving high material utilization rates without generating toxic waste[139]. Shareholder Structure - The largest shareholder, Hangzhou Zuofeng Investment Management Co., Ltd., holds 53,235,000 shares, accounting for 51.53% of the total shares[155]. - The total number of ordinary shareholders increased from 7,201 to 7,680 during the reporting period, representing a growth of approximately 6.6%[153]. - The number of shares held by the top ten shareholders includes significant stakes from institutional investors, indicating strong institutional support[155]. - The company has not issued any new securities during the reporting period, maintaining its existing capital structure[151]. Audit and Compliance - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies were found[190]. - The audit procedures included testing the effectiveness of internal controls related to revenue recognition, highlighting the importance of this area[196]. - The audit report emphasizes the importance of effective communication with governance regarding the planned audit scope and significant findings[199]. - Key audit matters were identified based on discussions with governance, highlighting their significance to the financial statements[199].