SGC(603269)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥834.23 million, representing a year-on-year increase of 36.55% compared to ¥610.94 million in 2019[21]. - The net profit attributable to shareholders decreased by 4.17% to ¥46.47 million in 2020 from ¥48.50 million in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 23.55% to ¥37.28 million in 2020 from ¥30.17 million in 2019[21]. - The net cash flow from operating activities improved significantly, reaching ¥25.17 million in 2020, a 210.02% increase from a negative cash flow of ¥22.88 million in 2019[21]. - The total assets of the company at the end of 2020 were approximately ¥2.11 billion, a 36.53% increase from ¥1.55 billion at the end of 2019[21]. - The basic earnings per share for 2020 was ¥0.46, down 13.21% from ¥0.53 in 2019[22]. - The weighted average return on equity decreased to 6.19% in 2020, down 1.14 percentage points from 7.33% in 2019[23]. - The company's net assets attributable to shareholders increased by 24.47% to approximately ¥858.58 million at the end of 2020 from ¥689.78 million at the end of 2019[21]. - The company achieved operating revenue of ¥834,233,649.44, an increase of 36.55% compared to the same period last year[52]. - The net profit attributable to shareholders decreased by 4.17% to ¥46,474,455.09, while the net profit excluding non-recurring gains and losses increased by 23.55% to ¥37,278,992.52[52]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares, totaling 22,503,773.20 RMB, based on a total share capital of 112,518,866 shares[5]. - The company’s cash dividend policy is designed to protect the rights of shareholders, especially minority investors, in accordance with regulatory guidelines[125]. - In 2019, the company distributed cash dividends totaling CNY 18,294,000.00, representing 37.72% of the net profit attributable to shareholders[126]. - The company plans to distribute cash dividends of CNY 22,503,773.20, which accounts for 48.42% of the net profit attributable to shareholders for 2020[127]. Acquisitions and Market Expansion - The company completed the acquisition of TCT and Jiangsu Ocean in July 2020, which contributed to the increase in revenue and net profit[27]. - The company acquired 100% of Jiangsu Ocean for ¥80.66 million to enhance its closed cooling tower production capacity and market presence[53]. - The acquisition of TCT in Malaysia, increasing ownership to 100%, aims to expand into the Southeast Asian market, covering countries like Malaysia, Singapore, and Indonesia[53]. - The company plans to establish a wholly-owned subsidiary in Thailand, replacing the existing branch, to enhance local service quality and business expansion[90]. - The company also acquired 60% equity of TRUWATER COOLING TOWERS SDN BHD for 32.4 million MYR (approximately 53.70 million RMB), which will also become a wholly-owned subsidiary[91]. Research and Development - Research and development expenses increased by 38.16% to ¥21,776,010.61, highlighting a commitment to innovation[59]. - The company aims to enhance its R&D capabilities and manufacturing processes, focusing on technological upgrades and quality control[114]. - The company is committed to increasing R&D investment to improve product technology and design quality[114]. - The company plans to establish a cooling tower intelligent control research and testing center with an investment of ¥55.88 million to enhance product testing capabilities[56]. - New product development initiatives are underway, with an investment of 50 million allocated for R&D in innovative water treatment technologies[200]. Market and Industry Insights - The industrial cooling tower market in China has a sales scale where less than 10 companies exceed annual sales of 100 million yuan, indicating a fragmented industry[42]. - The nuclear power cooling tower market is expected to grow rapidly in the next 5 to 10 years due to the development of inland nuclear power[46]. - The cooling tower industry in China has seen insufficient R&D investment, with many companies lacking the resources for necessary technological advancements[44]. - The company ranks first in production and sales among domestic manufacturers of mechanical ventilation cooling towers in China, according to the China General Machinery Industry Association[88]. Environmental and Compliance Measures - The company has implemented various pollution prevention measures, including dry filtration and activated carbon adsorption for exhaust gas treatment, with a processing capacity of 50,000 m³/h for plastic production[168]. - The company has a wastewater treatment system that ensures all wastewater is treated and meets discharge standards before being released[164]. - The company has established a solid waste management system, recycling industrial solid waste and entrusting hazardous waste to qualified units for disposal[166]. - The company has committed to maintaining compliance with environmental regulations and has reported normal operation of its environmental protection facilities during the reporting period[168]. Governance and Shareholder Commitments - The company has implemented measures to enhance governance and management capabilities, as well as invested in R&D for high-value-added products[121]. - The controlling shareholders, Jin Aoda and Wu Zhuping, pledged to compensate investors for any losses incurred due to misleading information in the prospectus[135]. - The company will ensure compliance with legal requirements for share repurchases and investor compensation[134]. - The company has established a framework for social supervision to protect investors' legal rights effectively[136]. - The company has established a commitment to avoid any improper benefits through related party transactions[140]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[198]. - The company anticipates a rapid growth in the nuclear cooling tower market over the next 5-10 years due to the development of inland nuclear power[109]. - The management emphasized the importance of sustainability initiatives, with plans to invest 50 million in eco-friendly technologies[196]. - The company is exploring potential acquisitions to strengthen its competitive position, with a budget of 500 million allocated for this purpose[196].