Financial Performance - Revenue for the year ended December 31, 2020, was RMB 121,620,000, a decrease of 9.8% from RMB 134,757,000 in 2019[9] - Profit for the year attributable to shareholders was RMB 2,419,000, representing a decline of 70.1% compared to RMB 8,079,000 in the previous year[9] - Basic and diluted earnings per share decreased by 66.7% to RMB 0.02 from RMB 0.06 in 2019[9] - In 2020, the Group's sales decreased by 9.8% to approximately RMB121.6 million compared to the previous year[21] - The net profit for the Group in 2020 was RMB2.4 million, primarily due to increased foreign exchange losses[21] - Revenue for the year decreased by approximately RMB13.2 million or approximately 9.8% to approximately RMB121.6 million compared to RMB134.8 million in 2019, primarily due to increased competition and reduced market demand[24] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 747,905,000, a slight increase of 0.3% from RMB 745,611,000 in 2019[10] - Total liabilities decreased slightly to RMB 114,205,000 from RMB 114,330,000 in 2019, a change of (0.1)%[10] - Total equity remained stable at RMB 633,700,000, reflecting a 0.4% increase from RMB 631,281,000 in 2019[10] - Net current assets increased by 1.8% to RMB 481,720,000 from RMB 473,203,000 in 2019[10] Operational Efficiency - The current ratio improved to 5.2 in 2020 from 5.1 in 2019[10] - Inventory turnover days increased significantly to 340.8 days from 239.7 days in 2019[10] - Trade receivables turnover days rose to 609.8 days compared to 531.7 days in the previous year[10] - Gross profit decreased by approximately 1.0% to approximately RMB30.3 million compared to RMB30.6 million in 2019, while overall gross profit margin increased from approximately 22.7% in 2019 to approximately 24.9% in 2020[27] Expenses and Income - Selling expenses decreased by approximately 53.2% to approximately RMB2.2 million compared to RMB4.8 million in 2019, mainly due to reduced employee benefit expenses[27] - Administrative expenses decreased from approximately RMB35.9 million in 2019 to approximately RMB25.5 million in 2020, primarily due to a decrease in allowance for impairment of properties held for sale[27] - Other income decreased by approximately 37.9% to approximately RMB0.8 million compared to RMB1.2 million in 2019, primarily due to fewer VAT refunds and government subsidies[27] Cash Flow and Financing - As at 31 December 2020, the total cash and bank balances of the Group were approximately RMB215.5 million, compared to approximately RMB212.2 million as at 31 December 2019[32] - The gearing ratio of the Group was zero as at 31 December 2020, consistent with the previous year[32] - As of December 31, 2020, the Group had no borrowings, maintaining a strong net cash position[32] Strategic Outlook - The Group aims to accelerate management upgrades and product offerings to maintain its leadership position in the tire industry[16] - The Board remains optimistic about the long-term prospects of the Group amidst the economic restructuring in China[16] - The Group plans to seek development opportunities while mitigating operational and investment risks[16] Governance and Management - The Board is committed to high standards of corporate governance and believes it is essential for enhancing investor confidence and maximizing shareholder returns[1] - The Company has adopted the Corporate Governance Code as its own code for corporate governance and has complied with the CG Code provisions for the year[1] - The Board comprises two executive Directors, two non-executive Directors, and three independent non-executive Directors, with Mr. Zhang Degang serving as the chairman[2] Environmental and Social Responsibility - The company is committed to sustainable development, focusing on the environmental and social impacts of its operations to create long-term value for stakeholders[186] - The Group has implemented a responsible waste management policy focusing on waste avoidance, reduction, reuse, and recycling[195] - The Company aims to reduce electricity consumption in line with its environmental policies[197] Employee Relations - Total employee remuneration for the year ended December 31, 2020, was approximately RMB15.9 million, down from RMB18.9 million in 2019[52] - The Group employed a total of 138 full-time employees as of December 31, 2020, a decrease from 146 employees in the previous year[52] - The Group has maintained a good relationship with its staff, with no disruptions in business operations due to labor disputes[52]
盛力达科技(01289) - 2020 - 年度财报