HAC(SH:600202)2021-03-08 16:00Financial Performance - The net profit attributable to the shareholders of the parent company for 2020 was CNY 50,412,656.62, after deducting the statutory surplus reserve of CNY 4,873,044.48 and cash dividends distributed in 2019 of CNY 15,333,626.88, with an available profit for distribution of CNY 97,886,258.73[6] - The company's operating revenue for 2020 was ¥917,175,848.42, representing a year-on-year increase of 1.40% compared to ¥904,500,342.13 in 2019[22] - The net profit attributable to shareholders for 2020 was ¥50,412,656.62, a decrease of 0.32% from ¥50,575,127.55 in 2019[22] - The basic earnings per share for 2020 was ¥0.1315, down 0.30% from ¥0.1319 in 2019[23] - The total assets increased by 13.33% to ¥2,281,480,746.83 in 2020 from ¥2,013,172,524.14 in 2019[22] - The net cash flow from operating activities was negative at -¥86,262,496.74, worsening by 217.92% compared to -¥27,133,513.82 in 2019[22] - The company reported a decrease in the weighted average return on equity to 7.31% in 2020 from 7.88% in 2019, a reduction of 0.57 percentage points[23] - The company’s net assets attributable to shareholders increased by 5.34% to ¥705,179,563.69 at the end of 2020 from ¥669,444,769.18 at the end of 2019[22] Dividend Policy - Due to the impact of the COVID-19 pandemic, the company plans not to distribute dividends for 2020, with the available profit carried over to 2021 to supplement working capital[6] - The company has a cash dividend policy that prioritizes cash dividends when conditions allow, with a distribution of 0.40 yuan per 10 shares in 2019[84] - The cash dividend payout ratio for 2019 was 30.32%, with a distribution of 0.40 RMB per 10 shares[88] - The company did not propose a capital reserve fund conversion plan for 2020, reflecting a focus on liquidity management[89] Audit and Compliance - The audit report issued by Zhongshen Yatou Accounting Firm confirmed the financial report's authenticity and completeness, providing a standard unqualified opinion[5] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8] - There are no violations of decision-making procedures regarding external guarantees[8] - The company has detailed risk factors in the report, emphasizing the importance of investor awareness regarding investment risks[9] - The board of directors and supervisory board members have all attended the board meeting, ensuring accountability for the report's accuracy[4] Operational Highlights - The company continues to focus on the design, manufacturing, and sales of high, medium, and low-pressure air coolers, with no significant changes in its main business operations[28] - Revenue from power station cooling products decreased by 45.19% to 269.75 million yuan, while revenue from petrochemical products increased by 60.78% to 637.27 million yuan[38] - The total order amount for the year was 945.62 million yuan, a decrease of 1.59%, with domestic orders increasing by 10.07% to 873.71 million yuan, and international orders decreasing by 56.96% to approximately 71.92 million yuan[39] - The company completed the R&D of a 60MPa ultra-high pressure cooler, filling a domestic gap in high-pressure cooling technology[42] Cash Flow and Liquidity - The company reported a significant delay in cash receipts due to postponed projects, affecting overall liquidity[6] - The company’s cash flow from operating activities showed significant fluctuations across quarters, with a peak of ¥226,903,358.04 in Q3 2020[24] - The company’s cash flow from operating activities was -86.26 million yuan, a decline of 217.92% compared to the previous year, primarily due to reduced material payments and increased deposits[40] - The net cash flow from investment activities was 182.39 million yuan, a significant increase of 2,405.57% year-on-year[46] - The company reported a net cash flow from financing activities of -51.79 million yuan, a decrease of 139.33% compared to the previous year[46] Research and Development - Research and development expenses totaled ¥34,694,856.10, accounting for 3.78% of operating revenue[60] - The number of R&D personnel was 113, making up 22.55% of the total workforce[60] - The company is focused on developing new products and technologies, including upgrades to key projects in indirect cooling systems and high-pressure coolers[78] Market and Competitive Position - The company aims to enhance its core competitiveness by increasing R&D and innovation efforts, particularly in the domestic nuclear power and air separation markets[75] - The company intends to expand its international market presence while solidifying its domestic market position[76] - The company faces market risks due to economic downturns affecting demand for power station products, particularly in the thermal power sector[80] Legal and Regulatory Matters - The company is involved in a legal dispute regarding the South Lake Road factory assets, with ongoing proceedings in the Supreme Court[70] - The company has received multiple court notifications and rulings, including a civil ruling from the Heilongjiang Provincial High People's Court in January 2020, which is currently under appeal[98] - There are no disclosed or ongoing significant litigation or arbitration matters that have not been previously reported[99] Environmental and Social Responsibility - The company has maintained its environmental management goals, achieving zero major environmental pollution incidents in 2020[110] - The company donated RMB 10,000 for poverty alleviation efforts in the reporting year[108] - The company strictly adheres to ISO14001 standards for environmental management since 2012[110] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,361, an increase from 24,882 in the previous month[115] - The largest shareholder, Harbin Industrial Investment Group Co., Ltd., held 130,449,385 shares, representing 34.03% of the total shares[117] - The top ten shareholders included individuals with varying shareholdings, with Zhang Shouqing holding 5,450,000 shares, or 1.42%[117] Management and Governance - The company has a diverse management team with extensive experience in various sectors, including engineering and finance[128] - The management team includes individuals with advanced degrees and professional qualifications, enhancing the company's strategic capabilities[128] - The company’s governance structure includes a remuneration and assessment committee that oversees compensation decisions[135] - The company has a structured process for appointing and evaluating its directors and senior management, ensuring alignment with shareholder interests[135]