HNHS(SH:600156)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 91,353.87 million, a decrease of 12.01% compared to CNY 103,824.45 million in 2019[19]. - The net profit attributable to shareholders of the listed company was CNY 3,323.23 million, a significant increase of 158.62% from a net loss of CNY 5,668.89 million in 2019[19]. - The net cash flow from operating activities improved to CNY -1,709.55 million, a 74.15% increase compared to CNY -6,612.67 million in 2019[19]. - The total assets at the end of 2020 were CNY 128,180.90 million, reflecting a 16.21% increase from CNY 110,304.84 million at the end of 2019[19]. - The net assets attributable to shareholders of the listed company increased by 4.83% to CNY 72,141.83 million from CNY 68,818.59 million in 2019[19]. - Basic earnings per share for 2020 were CNY 0.0826, a recovery from a loss of CNY -0.141 in 2019, representing an increase of 158.58%[20]. - The weighted average return on equity improved to 4.72%, an increase of 13.2 percentage points from -8.48% in 2019[20]. - The company's total revenue for the year was 913.54 million yuan, a decrease of 12.01% compared to the previous year[54]. - The company reported a net profit of 33.23 million RMB in 2020, following a loss of 56.68 million RMB in 2019[76]. Research and Development - Research and development expenses increased by 30.04% to 1,051.36 million RMB from 808.47 million RMB year-on-year[36]. - The company developed 189 new textile products, with 5 achieving mass production, generating sales revenue of 45.6 million RMB[32]. - Total R&D investment amounted to 10.51 million yuan, with a ratio of R&D investment to operating income at 1.15%[57]. - Research and development expenses for 2020 were ¥10,513,594.96, an increase from ¥8,084,684.79 in 2019, reflecting a growth of about 30.0%[160]. Operational Adjustments - The company has shifted its product focus from pure ramie to high-count multi-fiber blended fabrics, enhancing its innovation capabilities[32]. - The company has established online sales channels on platforms like Pinduoduo and Taobao to mitigate the impact of the pandemic on offline sales[33]. - The company has implemented a project to upgrade its high-end ecological fashion ramie fabric production line, with significant progress made in construction and equipment installation[33]. - The company maintained stable operations despite the challenges posed by the COVID-19 pandemic, ensuring a quick recovery of production[32]. Financial Position - The company's total assets reached CNY 1,281,808,984.26, an increase of 16.2% from CNY 1,103,048,446.29 in the previous year[155]. - Total liabilities rose to CNY 568,707,805.99, compared to CNY 408,357,828.78 in 2019, marking a 39.2% increase[155]. - The equity attributable to shareholders was CNY 721,418,252.22, compared to CNY 688,185,918.28 in 2019, indicating a growth of 4.8%[155]. - The company's cash and cash equivalents increased by 86.74 million yuan, a 151.05% improvement compared to the previous year[59]. - The company reported a decrease in inventory to CNY 141,698,744.57 from CNY 188,844,982.12, a decline of 25.0%[154]. Market and Industry Context - In 2020, the revenue of the textile industry in China decreased by 21.88% to 23.868 billion RMB compared to 30.554 billion RMB in 2019[70]. - The company's export delivery value fell by 25.48% to 2.314 billion RMB in 2020, reflecting the impact of the pandemic[70]. - The company maintained its leading position in the hemp textile industry despite a 2.4% decline in its main textile business, which is significantly lower than the industry average[70]. Governance and Compliance - The company has implemented strict governance structures in compliance with relevant laws and regulations to protect shareholder rights[132]. - The company has no reported changes in its ordinary share capital structure during the reporting period[106]. - The company has no significant litigation or arbitration matters during the reporting period[90]. - The company actively fulfills social responsibilities, ensuring employee safety and health, and has paid all taxes in full[92]. Environmental Responsibility - The company has established emergency response plans for environmental incidents, complying with national regulations[102]. - The wastewater discharge concentrations for various pollutants are within the national standards, with no exceedances reported[96]. - The company has implemented self-monitoring plans to ensure compliance with environmental discharge standards[103]. - The company’s subsidiaries, Dongma and Xuesong, are monitored by environmental protection departments as key pollutant discharge units, with specific wastewater discharge standards in place[93]. Shareholder Information - The total number of ordinary shareholders increased from 26,125 to 26,808 during the reporting period[108]. - The largest shareholder, Hunan Huasheng Group Co., Ltd., holds 162,104,312 shares, representing 40.31% of total shares[110]. - The company held 3 shareholder meetings during the reporting period, ensuring compliance with regulations and enhancing participation through online voting[133]. Management and Personnel - The company employed a total of 1,667 staff, including 1,230 production personnel and 90 sales personnel[127]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 2.355542 million yuan[122]. - The company has established a training system that combines internal and external training for employees[129].