QCEC(SH:600218)2021-03-25 16:00Financial Performance - The net profit attributable to shareholders for 2020 was CNY 172,422,114.63, representing a 78.16% increase compared to CNY 96,779,498.68 in 2019[4]. - The operating revenue for 2020 reached CNY 4,455,989,703.12, a growth of 10.18% from CNY 4,044,447,405.35 in 2019[19]. - The net cash flow from operating activities increased significantly to CNY 433,957,095.24, compared to a negative cash flow of CNY -18,740,548.65 in 2019[19]. - The basic earnings per share for 2020 was CNY 0.47, an increase of 80.77% from CNY 0.26 in 2019[20]. - The weighted average return on equity rose to 8.18%, up by 3.31 percentage points from 4.87% in 2019[20]. - The net profit after deducting non-recurring gains and losses was CNY 115,620,963.62, reflecting a 115.33% increase from CNY 53,694,441.35 in 2019[19]. - The total assets at the end of 2020 were CNY 4,550,907,806.74, a 9.62% increase from CNY 4,151,631,842.39 in 2019[19]. - The company reported a significant improvement in product sales revenue and cost reduction measures, contributing to the profit increase[21]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 36,875,500.00[4]. - The remaining undistributed profit at the end of 2020 was CNY 566,894,553.52, to be carried forward for future distribution[4]. - The net profit attributable to the parent company for 2020 was 172,422,114.63 yuan, with a total distributable profit of 603,770,053.52 yuan at year-end[77]. - The company plans to conduct at least one cash dividend distribution annually over the next three years, with a minimum of 20% of the annual distributable profit allocated for dividends[77]. - The company has committed to maintaining a positive profit distribution plan in the event of profitability and positive distributable profits[81]. Market and Sales Performance - In 2020, the company sold 384,300 multi-cylinder engines, representing a year-on-year increase of 11.81%[37]. - The company achieved a sales volume of 5,349,600 multi-cylinder diesel engines, with a year-on-year growth of 19.70%[33]. - The company’s sales and service network extends across China and into Southeast Asia and Europe, enhancing its market reach[30]. - The company plans to sell 430,000 multi-cylinder engines in 2021, aiming for a revenue of 5.5 billion yuan[67]. Research and Development - The company has a robust R&D framework, participating in national key R&D plans and projects, ensuring its products meet advanced global standards[31]. - The company’s research and development expenses increased by 15.37%, totaling CNY 168,776,849.82[39]. - The company aims to improve product quality assurance capabilities and will continue to invest in R&D for "National VI" and "Non-Road National IV" products to meet customer demands[66]. - The company will utilize a newly established advanced product testing laboratory to enhance its R&D capabilities for meeting the National VI emission standards[68]. Financial Management - The company reported a decrease in sales expenses by 29.79%, from CNY 116,224,797.44 to CNY 81,605,957.95[39]. - The company has implemented IATF16949:2016 quality management system to continuously improve product quality and customer satisfaction[31]. - The company has established credit policies and internal controls for managing accounts receivable[145]. - The company has engaged Rongcheng Accounting Firm for auditing services, with a remuneration of RMB 53 million[88]. Environmental Responsibility - The company has established a comprehensive environmental management system, including a dedicated team for environmental protection[101]. - The company has implemented wastewater treatment measures since 2000, achieving compliance with discharge standards[102]. - The company has a strong commitment to social responsibility, participating in poverty alleviation efforts in collaboration with local government[99]. - The company has not faced any environmental penalties in recent years, receiving multiple honors for its achievements in environmental protection[104]. Governance and Compliance - The company has established communication channels for minority shareholders to express their opinions, including phone, email, and online platforms[78]. - The company’s board of directors and senior management are compensated based on a combination of base salary, performance salary, and term incentives[121]. - The company has improved its governance structure by revising internal regulations to align with the requirements of the Company Law and relevant regulations from the China Securities Regulatory Commission[132]. - The audit committee reviewed the financial statements and confirmed that they reflect the company's financial status and operating results, with the annual audit conducted in accordance with auditing regulations and standards[137]. Employee Management - The company employs 1,578 production personnel, 228 sales personnel, 895 technical personnel, 65 financial personnel, and 156 administrative personnel, totaling 2,922 employees[124]. - The company has implemented a performance-based salary system, with a focus on dynamic management of employee compensation to enhance motivation and responsibility[125]. - The company has implemented a training program for employees, focusing on high-skill and high-tech talent development to ensure a competitive workforce[126]. Future Outlook - The company plans to enhance its core competitiveness by accelerating technological upgrades and focusing on independent brand development in 2021[65]. - The company anticipates intensified market competition due to the implementation of the "Heavy-Duty Diesel Vehicle Pollutant Emission Limits and Measurement Methods (China Stage VI)" starting July 1, 2021[64]. - The company is focusing on cost control and efficiency improvement to maintain its competitive advantage in product costs[68].