Saurer Intelligent(SH:600545)2021-04-29 16:00Financial Performance - The company reported a net profit of -671,542 thousand RMB for the year 2020, indicating a loss [4]. - The board proposed not to distribute profits or increase share capital due to the lack of profitability in the consolidated financial statements [5]. - The company's basic earnings per share (EPS) for 2020 was -0.3043 CNY, a decrease of 194.6% compared to 0.3218 CNY in 2019 [21]. - Total revenue for 2020 was 4,849,549 thousand CNY, representing a 43.4% decline from 8,575,309 thousand CNY in 2019 [22]. - The net profit attributable to shareholders for 2020 was -561,458 thousand CNY, a decrease of 192.2% from 608,934 thousand CNY in 2019 [22]. - The weighted average return on equity (ROE) for 2020 was -12.49%, a decrease of 25.18 percentage points from 12.69% in 2019 [21]. - The company's net assets attributable to shareholders decreased by 20.4% to 3,934,982 thousand CNY at the end of 2020 from 4,942,804 thousand CNY at the end of 2019 [22]. - The company reported a net cash flow from operating activities of -1,092,621 thousand CNY for 2020, compared to -252,733 thousand CNY in 2019 [22]. - The company reported a net loss of 670 million RMB, compared to a net profit of 790 million RMB in the previous year, resulting in a cash flow decrease of 1.46 billion RMB [63]. - The total comprehensive income for the year was -102,812 thousand RMB, compared to -146,128 thousand RMB in the previous year, indicating an improvement [186]. Share Repurchase and Dividends - The company repurchased shares amounting to 491,079.06842 thousand RMB, which is considered equivalent to cash dividends for the year [4]. - The cash dividend amount for 2020 was RMB 491,079,068.42, but no percentage was applicable due to the negative profit [96]. - The company has not declared any cash dividends for 2019, citing economic pressures from the pandemic and the need for financial stability for future investments [90]. - In 2019, the total amount of share repurchase by the company was RMB 108,931.20602 thousand, accounting for 17.89% of the distributable profit for the year [91]. - The company distributed a total of RMB 557,384.175043 thousand in cash dividends from 2017 to 2019, representing 80.49% of the average annual distributable profit over the three years [91]. Operational Risks and Strategic Plans - The company emphasizes the importance of maintaining financial stability and risk resistance for future operations [5]. - The company has outlined significant risk factors in its operational analysis section, urging investors to be cautious [7]. - The company’s strategic development and future operational plans are subject to investment risks and do not constitute a commitment to investors [6]. - The company aims to enhance its core competitiveness by adjusting its sales structure, focusing on key customers, and expanding into new markets [82]. - The company plans to enhance its competitive edge by establishing a new Data and Services Division to leverage advancements in industrial internet and smart manufacturing technologies [42]. - The company aims to expand its market presence in Asia and along the "Belt and Road" initiative, targeting regions with lower labor costs to improve profitability [44]. Research and Development - The company has established R&D centers in China, Germany, and Switzerland to support both foundational and customized product development [30]. - The total R&D investment amounted to 540,373 thousand RMB, representing 11.14% of total revenue, with 25.7% of R&D costs capitalized [60]. - The company has over 501 R&D personnel and has registered more than 1,100 patents, enhancing its competitive edge in the textile machinery industry [32]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency [143]. Market Performance - Revenue from the Chinese market declined by 50.2% to RMB 2.38 billion, primarily due to the impact of the COVID-19 pandemic [39]. - The Turkish market saw a significant increase in revenue, growing by 119.9% to RMB 631.66 million [39]. - The spinning division generated revenue of RMB 3.86 billion, down 47.2% year-on-year [39]. - The technology division reported revenue of RMB 1.02 billion, a decline of 23.3% [39]. - The company reported a significant increase in orders as the textile machinery market begins to recover globally [44]. Governance and Compliance - The company guarantees the independence of its assets, ensuring that all assets are under its control and not misappropriated by controlling parties [100]. - The company has committed to maintaining an independent corporate governance structure, ensuring separation from controlling parties in terms of organizational structure [100]. - The company has established an independent financial accounting department and a separate financial management system, ensuring independent financial decision-making [100]. - The company has not faced any penalties from securities regulatory authorities in the past three years [149]. - The company’s internal control was evaluated as effective in all material aspects as of December 31, 2020, according to the internal control audit report [162]. Environmental and Social Responsibility - The company emphasizes environmental protection and has implemented the E³+I concept in product development to reduce energy consumption and improve production efficiency [116]. - The company actively participated in social welfare activities during the COVID-19 pandemic, providing resources to medical equipment manufacturers and donating to local charities [116]. - The company has a strong focus on employee rights and has implemented various training and team-building activities to foster a positive work environment [116]. - The company’s important subsidiaries have passed the ISO14001:2004 environmental management system certification, ensuring compliance with environmental regulations [117]. Financial Position - The total assets of the company as of December 31, 2020, were 12.85 billion RMB, with net assets attributable to shareholders at 3.94 billion RMB [46]. - The total liabilities rose to RMB 7,756,717 thousand in 2020, compared to RMB 6,872,172 thousand in 2019, indicating an increase of approximately 12.8% [178]. - Cash and cash equivalents decreased by 78.1% to 525,988 thousand RMB, primarily due to share repurchase expenditures and increased operating cash outflows [68]. - The company reported a decrease in retained earnings to RMB 962,457 thousand in 2020 from RMB 1,523,915 thousand in 2019, a decline of about 36.8% [178]. - The total equity attributable to shareholders decreased to RMB 3,934,982 thousand in 2020 from RMB 4,942,804 thousand in 2019, a decline of approximately 20.4% [178].