TFE(SH:600237)2021-04-26 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 7,909,179.27 CNY, a significant increase of 105.17% compared to a net loss of 152,870,011.63 CNY in 2019[5]. - The total operating revenue for 2020 was 847,086,629.33 CNY, representing a year-on-year increase of 3.04% from 822,056,685.80 CNY in 2019[24]. - The company's net assets attributable to shareholders at the end of 2020 were 1,104,316,409.41 CNY, a slight increase of 0.72% from 1,096,407,230.14 CNY in 2019[24]. - The total assets decreased by 4.46% to 1,677,367,227.90 CNY in 2020, down from 1,755,589,865.20 CNY in 2019[24]. - The basic earnings per share for 2020 was 0.0140 CNY, recovering from a loss of 0.2709 CNY per share in 2019[26]. - The cash flow from operating activities for 2020 was 69,025,898.43 CNY, a decrease of 42.91% compared to 120,916,975.96 CNY in 2019[24]. - The weighted average return on net assets for 2020 was 0.7188%, an increase of 13.8007 percentage points from -13.0819% in 2019[26]. - The company reported a net loss of CNY 371,210,180.30 in 2020, compared to a net loss of CNY 379,119,359.57 in 2019, indicating a slight improvement in financial performance[161]. - The company achieved a total operating revenue of 847.09 million RMB, representing a year-on-year growth of 3.04%[43]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic and Sino-US trade tensions, impacting market demand and sales prices for most products[41]. - The company faced various risk factors as detailed in the report, which may impact future performance[10]. - The company is addressing intensified market competition in the capacitor film industry by leveraging its advantages in the supply chain and enhancing product quality[69]. - The company recognizes the risk of talent shortages due to business expansion and is committed to attracting and retaining skilled professionals[71]. - The company is monitoring raw material price fluctuations closely, as prices are closely tied to international oil prices, impacting production costs[70]. Business Strategy and Development - The company aims to increase the proportion of high value-added products in its sales mix[41]. - The company plans to optimize sales channels and customer groups to enhance market development efforts in response to improving domestic demand[41]. - The company plans to invest in multiple projects related to its main business, expected to be completed and reach production capacity within one to two years, enhancing product competitiveness in mid-to-high-end markets and the future new energy sector[42]. - The company plans to focus on high-quality, leading products in the power electronic capacitor sector and accelerate new product development and market expansion[65]. - The capacitor film industry is expected to shift towards product quality and differentiation, with a focus on ultra-thin, high-temperature, and long-life products[64]. Research and Development - Research and development expenses totaled 27.27 million RMB, accounting for 3.22% of operating revenue, with no capitalized R&D expenditures[55]. - Research and development expenses increased to CNY 27,265,894.23, up from CNY 23,735,336.37, reflecting a growth of 14.3%[166]. - The company aims to strengthen its R&D capabilities in key materials and advanced technologies, targeting markets such as new energy and automotive electronics[66]. Corporate Governance and Management - The company has a structured approach to executive compensation, with basic and performance-based salary components[130]. - The total pre-tax remuneration for the current board members and senior management during the reporting period amounts to 83.25 million CNY[125]. - The company has a diverse board with members having extensive experience in various sectors, including finance and engineering[126]. - The company has implemented a diverse and competitive compensation policy to motivate employees[134]. - The company has established a modern corporate governance structure, aligning with regulatory standards[138]. Environmental and Social Responsibility - The company supported 13 registered impoverished households to escape poverty through various initiatives, with a total investment of CNY 27.94 million in poverty alleviation efforts[98]. - The company has initiated 26 industry development poverty alleviation projects, with an investment of CNY 1.04 million[98]. - The company has committed to supporting the education of 35 impoverished students with a total investment of CNY 0.64 million[99]. - The company has constructed 10 sets of dust collection devices and 6 sets of activated carbon adsorption devices, all of which are in normal operation and regularly maintained[104]. - The company was rated as an "Environmental Integrity Enterprise" for the year 2019 by the Anhui Provincial Ecological Environment Department[108]. Audit and Compliance - The audit report provided a standard unqualified opinion, indicating that the financial statements fairly present the company's financial position[147]. - The audit procedures included testing the effectiveness of internal controls related to revenue recognition and inventory impairment[150][151]. - The financial statements were prepared in accordance with the accounting standards, ensuring fair representation of the company's financial results[147]. - The audit report was issued on April 25, 2021, by the accounting firm Rongcheng[157]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 54,667, a decrease from 56,464 at the end of the previous month[112]. - The largest shareholder, Tongling Dajiang Investment Holding Co., Ltd., holds 111,705,979 shares, accounting for 19.79% of total shares[114]. - The company has no other significant matters to disclose during the reporting period[119]. - The company has no restrictions on share reduction during the reporting period[122].