Sinomach Auto(SH:600335)2021-04-26 16:00Financial Performance - In 2020, the company's operating revenue was approximately CNY 44.13 billion, a decrease of 15.39% compared to 2019[25]. - The net profit attributable to shareholders was approximately CNY 427.46 million, down 20.49% from the previous year[25]. - The net cash flow from operating activities was approximately CNY 667.28 million, a significant decline of 84.80% compared to 2019[25]. - The basic earnings per share for 2020 was CNY 0.2934, reflecting a decrease of 20.49% year-on-year[25]. - The company's total assets at the end of 2020 were approximately CNY 32.20 billion, down 15.03% from the end of 2019[25]. - The net assets attributable to shareholders increased by 4.03% to approximately CNY 10.54 billion by the end of 2020[25]. - The company reported a significant increase of 34.01% in net profit after deducting non-recurring gains and losses, reaching approximately CNY 456.85 million[25]. Dividend Distribution - The company plans to distribute a cash dividend of 1.20 CNY per 10 shares, totaling approximately 174.83 million CNY (including tax) based on a total share capital of 1,456,875,351 shares as of December 31, 2020[7]. - In 2020, the company distributed a cash dividend of 1.20 CNY per 10 shares, totaling 174,825,042.12 CNY, which represents 40.90% of the net profit attributable to ordinary shareholders[113]. - In 2019, the cash dividend was 0.60 CNY per 10 shares, amounting to 87,412,521.06 CNY, accounting for 16.26% of the net profit attributable to ordinary shareholders[113]. - In 2018, the company paid a cash dividend of 1.50 CNY per 10 shares, totaling 218,531,302.65 CNY, which was 36.74% of the net profit attributable to ordinary shareholders[113]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the financial report's authenticity and completeness[6]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report[9]. Market and Industry Insights - In 2020, China's automobile production and sales reached 25.225 million and 25.311 million units, respectively, with year-on-year declines of 2% and 1.9%, significantly narrowing from 5.5 and 6.3 percentage points in 2019[37]. - The import volume of automobiles in China was 933,000 units in 2020, a year-on-year decrease of 11.4%, while terminal sales of imported vehicles fell by 10.6% to 1 million units[37]. - New energy vehicles (NEVs) saw production and sales of 1.366 million units and 1.367 million units, respectively, marking year-on-year growth of 7.5% and 10.9%[37]. - The export of automobiles from China was 1.082 million units, down 13.2% year-on-year, with an export value of $15.74 billion, a decrease of 3.6%[37]. - The market for super luxury brands grew by 16.0% year-on-year, while luxury brands saw a decline of 5.1%, and non-luxury brands dropped by 28.6%[37]. Strategic Initiatives - The company is committed to sustainable growth through strategic management and technological innovation[36]. - The company has extended its business scope into the upstream engineering field of the automotive industry, enhancing its competitiveness and operational stability[42]. - The company plans to focus on low-carbon emissions and support for the new energy vehicle industry as part of its future strategy[95]. - The company aims to become a leading global service provider in the automotive industry, focusing on high-quality development and core competencies[96]. - The company plans to enhance its automotive trade services and strengthen partnerships with manufacturers, while also expanding into related industries[101]. Risk Management - There are no significant risk events reported during the period, and potential risks are detailed in the section discussing operational conditions[9]. - The automotive industry faces significant risks due to supply chain challenges, particularly in key components like chips, exacerbated by the ongoing COVID-19 pandemic[105]. - The company acknowledges the complexities of international operations, including risks from geopolitical factors and the need for compliance in overseas projects[109]. - The company will implement measures to mitigate risks from currency fluctuations, particularly the impact of RMB/USD exchange rate volatility on future operations[110]. Social Responsibility - The company has actively participated in social responsibility initiatives, particularly in poverty alleviation efforts[168]. - Direct financial support for poverty alleviation amounted to 1,132,273 RMB, while consumption poverty alleviation totaled 1,201,203 RMB[168]. - A total of 501 registered impoverished individuals were lifted out of poverty through the company's initiatives[169]. - The company has committed to maintaining the achievements of poverty alleviation and transitioning to rural revitalization strategies in 2021[175]. Compliance and Legal Matters - The company has no significant litigation or arbitration matters pending for the current year, aside from the aforementioned case[149]. - The company is currently involved in litigation regarding the administrative penalty, seeking to overturn the decision[151]. - The company has implemented changes to accounting policies effective January 1, 2020, in accordance with revised accounting standards, which do not affect 2019 financial metrics[146]. - The company has engaged Tianjian Accounting Firm for auditing services, with a fee of ¥2,700,000 for the current year[147]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 1,027,608,282, representing 70.54% held by China National Machinery Industry Corporation[182]. - The major shareholder, China National Machinery Industry Corporation, has a controlling stake in several listed companies, including 51.22% in China National Machinery Precision Engineering Co., Ltd.[188]. - The actual controller of the company is the State-owned Assets Supervision and Administration Commission of the State Council[191].