Fynex Textile(SH:600493)2021-03-30 16:00Financial Performance - The company achieved a total operating revenue of ¥1,049,746,676.39 in 2020, representing a 2.56% increase compared to ¥1,023,581,621.88 in 2019[21]. - The net profit attributable to shareholders of the listed company was ¥29,627,686.74, marking a 14.16% increase from ¥25,953,606.96 in the previous year[21]. - The net cash flow from operating activities significantly increased to ¥129,428,197.45, up 804.85% from ¥14,303,808.92 in 2019[21]. - The total assets of the company reached ¥1,910,833,283.78 at the end of 2020, reflecting a 13.18% increase from ¥1,688,374,429.65 in 2019[21]. - The company's net assets attributable to shareholders increased to ¥766,934,916.39, a 3.23% rise from ¥742,957,347.85 in 2019[21]. - Basic earnings per share for 2020 increased by 14.15% to CNY 0.1089 compared to CNY 0.0954 in 2019[22]. - The net profit attributable to shareholders for Q4 2020 was CNY 12,911,133.09, showing a significant increase from CNY 7,676,232.57 in Q3 2020[23]. - The weighted average return on equity rose to 3.93% in 2020, up from 3.57% in 2019, an increase of 0.3558 percentage points[22]. - The company achieved a consolidated revenue of RMB 1,049.75 million in 2020, a 2.56% increase from RMB 1,023.58 million in the previous year[48]. - The net profit for the year was RMB 296.28 million, representing a 14.16% increase compared to the previous year[48]. Dividend Policy - The proposed cash dividend distribution is ¥0.4 per 10 shares, totaling ¥10,880,000 (including tax) based on a total share capital of 272,000,000 shares[6]. - The cash dividend payout ratio for the year is 36.72%, indicating a strong return to shareholders relative to the net profit[6]. - The company plans to retain the remaining undistributed profits for future distribution, amounting to ¥111,680,955.08 at year-end[6]. - The company is committed to maintaining a stable cash dividend policy, distributing at least 10% of the available profit if the net profit is positive[129]. - The company plans to distribute cash dividends not less than 40% of the current profit distribution in the next three years[132]. - The company aims to ensure that the cash dividends distributed in each accounting year are at least 10% of the distributable profits[132]. - The company will prioritize cash dividends during profit distribution, with a minimum of 80% if in a mature stage without major capital expenditures[132]. Operational Efficiency - The company maintained effective control over selling and administrative expenses, contributing to the increase in net profit[48]. - The company has developed new products, including eco-functional fiber fabrics, which cater to health and wellness trends[43]. - The company maintained a high production-to-sales ratio of over 90%, indicating effective inventory management[54]. - The company achieved a significant improvement in dyeing quality and brand influence through product research and process innovation, leading to energy savings[35]. - The company upgraded its new factory with advanced intelligent and green high-end equipment systems, including a smart three-dimensional warehouse logistics system that can save nearly 50% of labor and significantly improve logistics efficiency[38]. Market Strategy - The company’s product exports account for 70-80% of its sales, primarily targeting markets in Hong Kong, the Middle East, Europe, and Japan[28]. - The company plans to enhance brand building and marketing management to strengthen its market position[101]. - The company aims to improve its technological capabilities by upgrading equipment and adopting advanced production technologies[101]. - The company is focused on expanding its market presence by participating in various textile exhibitions and enhancing brand awareness[47]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[190]. Research and Development - The company completed 14 invention patent applications in 2020 and received authorization for 9 patents from the National Intellectual Property Administration[42]. - The company led the drafting of 1 national standard and participated in the drafting of 2 national standards and 2 industry standards in 2020[42]. - Research and development investments increased by 18%, focusing on innovative fabric technologies[190]. - The company is committed to investing in technology innovation and maintaining a continuous increase in technical input to improve product technology content[120]. Environmental Responsibility - The company is committed to implementing green manufacturing practices to meet stricter environmental regulations[101]. - The wastewater treatment and reuse system achieves a wastewater reuse rate of 50%, exceeding domestic discharge standards, contributing to green production[38]. - The company reported no exceedance of pollution discharge standards during the reporting period[165]. - The average COD discharge concentration was 35.62 mg/L, significantly below the standard limit of 200 mg/L[165]. - The total annual expenditure on environmental protection measures decreased from CNY 1,204.59 million in 2019 to CNY 941.15 million in 2020[167]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements[7]. - The company is focused on maintaining strong governance and transparency in its operations, as evidenced by detailed disclosures in the report[189]. - The company has established a common interest foundation among shareholders to ensure equal rights, particularly for minority shareholders[200]. - The company has a diverse board with a mix of genders, including 3 female directors out of 11 total[188]. Challenges and Risks - The company faces uncertainties in the international market due to the ongoing COVID-19 pandemic and geopolitical tensions[122]. - The company anticipates facing risks related to raw material cost fluctuations and environmental regulatory pressures in 2021[124]. - The company will continue to monitor the volatility of the RMB exchange rate and utilize financial tools to mitigate its impact on profits[125]. Social Responsibility - The company is committed to fulfilling its social responsibility by participating in national poverty alleviation efforts and improving the living standards of impoverished individuals[159]. - The total investment for targeted poverty alleviation amounted to CNY 2,569,235[161]. - Investment in vocational skills training for employment poverty alleviation reached CNY 737,162.5, with 317 participants[161]. Legal Matters - The company is involved in a lawsuit with Foshan Basuni Machinery Co., Ltd. regarding a sales contract dispute, with a claim amount of CNY 207.7 million[143]. - Another lawsuit involves a dispute with Ping An International Financial Leasing (Tianjin) Co., Ltd. and Basuni Co., with a claim amount of CNY 258.4 million[143]. - The company has not reported any major litigation or arbitration matters other than those mentioned[143].