LH(SH:600099)2021-04-13 16:00Financial Performance - In 2020, the company achieved a net profit of CNY 7,722,787.28, representing a 33.17% increase compared to CNY 5,799,058.04 in 2019[5]. - The company's operating income for 2020 was CNY 599,596,430.72, up 3.72% from CNY 578,073,230.43 in 2019[20]. - The basic earnings per share increased to CNY 0.0352, a rise of 32.83% from CNY 0.0265 in 2019[22]. - The total profit reached 8,677,358.58 CNY, reflecting a year-on-year growth of 31.85%[42]. - The company reported a significant increase in net profit attributable to shareholders after excluding non-recurring gains and losses, which reached CNY 6,120,252.55, up 48.28% from CNY 4,127,503.09 in 2019[20]. - The company achieved operating revenue of 599,596,430.72 CNY, a year-on-year increase of 3.72%[39]. - The net profit attributable to shareholders was 7,722,787.28 CNY, up 33.17% compared to the previous year[42]. - The company reported a net cash flow from operating activities of 33,787,782.61 CNY, a significant improvement from the previous year's negative cash flow[41]. Asset and Liability Management - The total assets decreased by 4.69% to CNY 585,801,963.75 at the end of 2020, down from CNY 614,631,408.67 in 2019[21]. - The total liabilities dropped by 21.39% to 10,239.66 CNY, resulting in an asset-liability ratio of 17.48%, down 3.71 percentage points[39]. - The company's equity attributable to shareholders was CNY 483,405,355.83, slightly down from CNY 484,367,853.26, a decrease of about 0.2%[173]. - The company's total liabilities decreased to CNY 102,396,607.92 from CNY 130,263,555.41, reflecting a reduction of approximately 21.4%[173]. Research and Development - Research and development expenses increased by 22.68% to 7,363,663.95 CNY[41]. - The company has made significant progress in technological innovation, with multiple new products in the special vehicle and agricultural machinery sectors entering mass production[37]. - The company is investing $10 million in R&D for new technologies aimed at improving product performance and sustainability[138]. Market and Industry Insights - The special vehicle industry, where the company operates, accounts for approximately 40% of the global production of special vehicles, with a market size of about 1.5 to 1.6 million units[29]. - In 2020, the motorcycle industry in China saw a production and sales volume of 17.02 million and 17.07 million units, respectively, reflecting a year-on-year decline of 1.98% and 0.38%[30]. - The agricultural machinery sector experienced a rebound in 2020, achieving sales of approximately 73,000 units of transplanting machines[31]. - The company focuses on the forest firefighting machinery segment, with products including forest fire prevention equipment and emergency vehicle equipment[80]. Strategic Initiatives - The company plans to retain profits for new product development and market expansion, opting not to distribute dividends for 2020[5]. - The company aims to enhance product competitiveness and innovate business models, accelerating new product development and project progress for high-quality growth[85]. - In 2021, the company plans to expand market efforts in specialized vehicles, motorcycles, agricultural machinery, and firefighting machinery, targeting government procurement markets[87]. Governance and Compliance - The company has a cash dividend policy that aligns with shareholder interests and complies with corporate governance standards[94]. - The company has engaged Da Hua Accounting Firm for auditing services, with a remuneration of 400,000 RMB for a four-year term[104]. - The company has maintained a good integrity status for itself and its major stakeholders during the reporting period[106]. - The independent auditor confirmed that the internal control over financial reporting was effective as of December 31, 2020[158]. Employee and Management Structure - The total number of shares held by board members remained unchanged throughout the year, reflecting stability in leadership[133]. - The company has a diverse board with members having extensive experience in various sectors, enhancing strategic decision-making[135]. - The company has implemented a salary structure that includes fixed and performance-based components for different employee categories[145]. - The number of employees in the parent company is 444, while the number of employees in major subsidiaries is 89, totaling 533 employees[143]. Related Party Transactions - The actual amount of related party transactions in 2020 was CNY 73,913.2 million, which accounted for 13.96% of similar business transactions[108]. - The company reported related party sales of CNY 333.34 million, accounting for 55.59% of total revenue[156]. - Related party purchases amounted to CNY 75.70 million, representing 14.30% of similar transaction amounts[156]. Future Outlook - The company plans to continue restructuring and integrating assets and businesses over the next three years to address related party transactions[99]. - The company is projected to grow due to increasing demand across various sectors, with a global market size of approximately 1.5 to 1.6 million units[72]. - The company has set a future revenue guidance of $500 million for the next fiscal year, representing a 20% growth target[138].