NARI-TECH(SH:600406)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was ¥38.50 billion, an increase of 18.75% compared to ¥32.42 billion in 2019[15]. - The net profit attributable to shareholders for 2020 was ¥4.85 billion, reflecting an 11.71% increase from ¥4.34 billion in 2019[15]. - The net cash flow from operating activities reached ¥5.64 billion, up by 20.30% from ¥4.68 billion in the previous year[15]. - The total assets at the end of 2020 amounted to ¥65.96 billion, a 14.87% increase from ¥57.42 billion at the end of 2019[15]. - The company's net assets attributable to shareholders were ¥34.15 billion, which is an increase of 11.87% compared to ¥30.52 billion in 2019[15]. - Basic earnings per share for 2020 were ¥1.06, an increase of 11.82% from ¥0.94 in 2019[17]. - The weighted average return on equity for 2020 was 15.06%, up by 0.24 percentage points from 14.82% in 2019[17]. - The company reported a diluted earnings per share of ¥1.06 for 2020, reflecting an increase of 11.73% from ¥0.94 in 2019[17]. - The net profit after deducting non-recurring gains and losses was ¥4.64 billion, an increase of 11.75% from ¥4.15 billion in 2019[15]. - The total revenue for the company in the electric power industry was ¥30,854,563,294.86, reflecting a year-on-year growth of 22.98%[54]. Dividend Distribution - The proposed cash dividend is CNY 4.2 per 10 shares (including tax), resulting in a total cash dividend of CNY 1,941,027,390.54, representing a cash dividend ratio of 40.01%[5]. - The company plans to maintain the distribution ratio and conversion ratio unchanged, adjusting the total distribution amount and conversion share capital accordingly if there are changes in total share capital before the distribution date[5]. - The company distributed a cash dividend of 2.9 RMB per 10 shares in 2019, totaling 1,340,362,837.22 RMB, which represents 30.86% of the net profit attributable to shareholders[94]. - In 2020, the cash dividend increased to 4.2 RMB per 10 shares, amounting to 1,941,027,390.54 RMB, accounting for 40.01% of the net profit attributable to shareholders[96]. Research and Development - Research and development expenses amounted to 2.51 billion RMB, accounting for 6.55% of the annual revenue[47]. - The company employed 2,973 R&D personnel, accounting for 33.76% of the total workforce[61]. - The company has established a high-quality R&D team and is focusing on attracting and training high-end talent to support business expansion and innovation[88]. - The company is committed to research and development, as indicated by the qualifications of its executives in engineering and technology[160]. - The company has allocated 200 million RMB for research and development in new technologies, aiming to improve operational efficiency[132]. Risk Management - The company has identified risks including industry policy risk, talent risk, product technology innovation risk, intellectual property protection risk, and overseas operation risk[7]. - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[6]. - The company is enhancing its overseas operations management to mitigate risks associated with international business expansion, including political and cultural differences[91]. - The company has a robust compliance system in place to manage risks associated with overseas operations and currency fluctuations[92]. Market Expansion and Strategy - The company is focused on expanding its business in energy automation and industrial control, leveraging technologies such as big data, cloud computing, and AI[24]. - The company aims to enhance its market position by integrating automation technologies into rail transit and industrial control sectors, with products deployed in major cities[28]. - The company is actively pursuing new business opportunities in emerging sectors such as smart water management and offshore wind power[84]. - The company plans to continue investing in R&D to support the transition to a low-carbon energy system, in line with the "carbon peak and carbon neutrality" goals[26]. - The company is targeting a sales volume of approximately 7 million new energy vehicles by 2025, which would account for about 20% of total new car sales[82]. Corporate Governance - The board of directors and senior management guarantee the authenticity, accuracy, and completeness of the annual report[3]. - The company has a dedicated investor relations management system, utilizing multiple channels for communication with investors[188]. - The company has implemented a strict insider information management system to maintain the confidentiality of sensitive information[190]. - The company has maintained a clear separation from its controlling shareholder in terms of personnel, assets, and financial operations[183]. - The company has established a performance evaluation mechanism for senior management, determining bonuses based on the completion of annual work goals and operational plans[196]. Employee Management - The company has a workforce of 8,806 employees, with 85.06% holding a bachelor's degree or higher, and 41.09% holding a master's degree or above, ensuring a strong talent pool[40]. - The company has established a corporate annuity plan and supplementary medical insurance plan to incentivize and support employees[178]. - The company employs a performance-oriented salary distribution system, linking compensation to job performance and responsibilities[178]. - The company is committed to improving employee compensation and benefits to retain talent and support sustainable development[88]. Compliance and Audit - The company received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[4]. - The internal control audit report was issued by Xinyong Zhonghe Accounting Firm, providing a standard unqualified opinion on the company's internal control situation for the year 2020[198]. - The company has not reported any significant issues regarding the suspension or termination of its listing status[106]. - The company has not encountered any issues related to the occupation of funds or overdue receivables during the reporting period[103]. Environmental and Social Responsibility - The company has committed to social responsibility initiatives, as detailed in its 2020 social responsibility report[134]. - The company has maintained compliance with ISO14001 environmental management standards and successfully passed annual third-party audits[135]. - The company upgraded its environmental protection facilities and conducted air, wastewater, and noise testing, all meeting national standards[135]. - The company is focused on maintaining a strong governance structure with independent directors and supervisors in place[158].