BLACK PEONY(SH:600510)2021-04-19 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 797,802,723.70 RMB, with the parent company reporting a net profit of 210,772,909.74 RMB[5]. - The proposed cash dividend for 2020 is 2.30 RMB per 10 shares, totaling 240,301,337.98 RMB, which represents 30.12% of the net profit attributable to shareholders[5]. - The company has retained undistributed profits from previous years amounting to 687,806,443.34 RMB, after accounting for the 2019 cash dividend distribution of 234,458,399.41 RMB[5]. - The company's operating revenue for 2020 was CNY 10,211,603,633.42, representing a 31.31% increase compared to CNY 7,776,961,217.28 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 797,802,723.70, a slight increase of 2.11% from CNY 781,340,730.12 in 2019[22]. - The net cash flow from operating activities decreased by 77.66% to CNY 928,025,191.33 from CNY 4,154,494,189.02 in 2019[22]. - The total assets at the end of 2020 were CNY 33,744,928,407.13, a 9.73% increase from CNY 30,751,317,655.76 at the end of 2019[22]. - The basic earnings per share for 2020 was CNY 0.79, up from CNY 0.76 in 2019, reflecting a 3.95% increase[23]. - The weighted average return on equity for 2020 was 9.26%, a decrease of 0.28 percentage points from 9.54% in 2019[23]. Risk Management and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures in providing guarantees[7]. - The board of directors and management have ensured the accuracy and completeness of the annual report, with no false statements or omissions[8]. - The company has outlined potential risks in its future development strategy, which investors should be aware of[9]. - The company emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements in the report[6]. Business Strategy and Development - The company plans to maintain the cash distribution amount per share, adjusting the total distribution amount if there are changes in the share capital before the dividend record date[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22]. - The company aims to enhance its core competitiveness by focusing on three main business lines: strengthening new infrastructure, optimizing new urbanization construction, and refining textile and apparel operations[29]. - The company is responding to national policies promoting new infrastructure and urbanization, aiming to capture growth opportunities in these sectors[31]. - The company is committed to innovation and technology development, focusing on enhancing its product offerings and operational efficiency[35]. Market and Sector Performance - The new infrastructure business primarily provides solutions for data centers and industrial renewable energy, with key products including precision air conditioning and energy management products[30]. - The new urbanization construction business includes infrastructure development and real estate projects, with a focus on regions such as Changzhou and Suzhou[33]. - The textile and apparel business operates a vertically integrated production system, emphasizing environmentally friendly practices and smart manufacturing[35]. - The textile industry in China is undergoing deep adjustments and transformations, focusing on improving development quality amid a slowing economic growth rate[36]. - The company has over 200 patents in the new infrastructure sector, contributing to national standards in the industry, enhancing its competitive edge[39]. Financial Management and Investments - The company has a diversified financing advantage, maintaining a stable cash flow and strong credit rating of "AA+", allowing for flexible funding options[45]. - The company has established long-term partnerships with major banks, ensuring stable financing rates and sufficient credit limits for business operations[46]. - The company reported a significant increase in raw material costs, totaling CNY 1,508,106,587.57, which accounted for 20.61% of total costs[80]. - The total cost of real estate construction was CNY 4,232,005,864.49, which is 57.83% of total costs, reflecting a 106.07% increase from the previous year[80]. - The company has a total of 1,932,701,729.45 RMB in guarantees provided to subsidiaries during the reporting period[148]. Environmental and Social Responsibility - The company is committed to sustainable development and innovation in the textile sector, addressing industry challenges and enhancing operational efficiency[41]. - The company has been recognized as a "Green Factory" by the Ministry of Industry and Information Technology in 2018 and has received multiple environmental responsibility awards[171]. - The company has completed the revision and filing of its emergency response plan for environmental incidents, enhancing its capability to respond to pollution events[172]. - The company has established a self-monitoring scheme for environmental compliance, combining manual and automatic monitoring methods[173]. - In 2020, the actual emissions were 18.41 tons for COD, 0.20 tons for total nitrogen, 0.17 tons for ammonia nitrogen, and 1.80 tons for total phosphorus, indicating compliance with the emission standards[168]. Shareholder and Corporate Governance - The largest shareholder, Changgao New Group Co., Ltd., holds 49.92% of the shares, with a total of 522,662,086 shares, and has pledged 39,308,176 shares[183]. - The second-largest shareholder, Changzhou State-owned Assets Investment and Operation Co., Ltd., holds 9.21% of the shares, totaling 96,458,412 shares[183]. - The company’s actual controller is the People's Government of Xinbei District, Changzhou City[185]. - The total pre-tax compensation for Goya Fang was 1,353,700 RMB, while the total for the vice chairman and president, Ge Weilong, was also 1,353,700 RMB[191]. - The company continues to focus on voluntary share increases among its management team, indicating confidence in future performance[191].