SZEW(SH:600548)2021-03-24 16:00Financial Performance - The company reported a total revenue of approximately 1.5 billion RMB for the year 2020, reflecting a year-on-year growth of 10%[14]. - In 2020, the company's operating revenue reached CNY 8,026,737,099.99, representing a 25.61% increase compared to CNY 6,390,295,110.82 in 2019[30]. - The net profit attributable to shareholders was CNY 2,054,523,306.30, a decrease of 19.88% from CNY 2,564,317,594.25 in the previous year[30]. - The basic earnings per share for 2020 was CNY 0.936, down 20.44% from CNY 1.176 in 2019[31]. - The total assets of the company increased by 20.78% to CNY 55,144,962,042.63 at the end of 2020, compared to CNY 45,658,413,658.91 at the end of 2019[30]. - The net cash flow from operating activities was CNY 1,100,633,933.07, a decrease of 35.08% from CNY 1,695,357,337.06 in 2019[30]. - The company reported a weighted average return on equity of 10.83% for 2020, down from 13.73% in 2019, a decrease of 2.89 percentage points[31]. - The company achieved a net profit of 2,054,523 thousand RMB in 2020, a decrease from 2,564,318 thousand RMB in 2019, with a year-on-year growth of approximately 0.32% after excluding deferred tax asset impacts from 2019[151]. - Total operating revenue for 2020 was 8,026,737 thousand RMB, representing a year-on-year increase of 25.61% due to the inclusion of new environmental businesses[153]. Dividends and Shareholder Returns - The board has proposed a final cash dividend of RMB 0.43 per share for the year 2020, subject to approval at the annual general meeting[5]. - The company proposed a cash dividend of CNY 0.43 per share for the 2020 fiscal year, totaling approximately CNY 938 million, which accounts for 45.96% of the net profit attributable to ordinary shareholders[69]. Audit and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Hua Ming[4]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[7]. - The company has not violated decision-making procedures for providing guarantees[7]. - The financial report is guaranteed to be true, accurate, and complete by the company's management[6]. Operational Developments - The user base increased by 15% year-on-year, reaching 2 million active users by the end of 2020[15]. - The company plans to expand its market presence by launching two new highway projects in 2021, expected to add 50 kilometers of new routes[15]. - Research and development expenses increased by 20% in 2020, focusing on new traffic management technologies[14]. - The operational efficiency improved, with a reduction in average toll collection time by 25%[14]. - The company is exploring opportunities for international expansion, particularly in Southeast Asia, with potential investments of up to 200 million RMB[15]. - The company is actively involved in the development of urban infrastructure projects through public-private partnerships (PPP) to improve service delivery[17]. Acquisitions and Investments - The company completed the acquisition of a regional competitor, which is expected to contribute an additional 300 million RMB in annual revenue[15]. - The company completed the acquisition of 89.93% of Longda Company, which was included in the consolidated financial statements starting from November 26, 2020[40]. - The company acquired 67.14% of the equity in Lande Environmental and 50% of the equity in Shenshan Qiantai during 2020, enhancing its market position[64][65]. - The company completed the acquisition of 89.93% equity in Longda Expressway on December 1, 2020[53]. Environmental Initiatives - New environmental initiatives were introduced, aiming for a 15% reduction in carbon emissions by 2025[14]. - The company is focusing on organic waste treatment as a key area for development under its large environmental industry strategy, supported by national environmental policies[116]. - The company established a wholly-owned subsidiary, Shenzhen Expressway New Energy Holdings Co., Ltd., with a registered capital of 1.4 billion yuan to focus on wind power and other clean energy investments[124]. Financial Management and Capital Structure - The company issued RMB 4 billion perpetual bonds during the reporting period, which were included in other equity instruments[35]. - The company issued CNY 10 billion in short-term financing bonds in 2020, effectively managing its funding costs[64]. - The company plans to optimize its capital structure and maintain adequate cash reserves to mitigate liquidity risks[188]. - The company actively expanded its financing channels, obtaining approval for RMB 4 billion in short-term financing and RMB 2 billion in green corporate bonds[191]. Impact of COVID-19 - The company experienced a decline in revenue during the pandemic due to a policy that exempted all vehicles from toll fees from February 17 to May 6, 2020[89]. - The company reduced toll fees for over 63 million vehicles during the pandemic, with an average of over 3,000 personnel deployed daily for epidemic prevention[92]. - The implementation of new toll policies is expected to have a long-term positive impact on operational efficiency and cost reduction in the highway sector[88]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[30]. - The group plans to focus on solid waste resource management and clean energy sectors, aiming to become a leader in organic waste treatment and dismantling of old vehicles[77]. - The group is set to leverage its dual main business structure to expand into the environmental protection and clean energy sectors, while maintaining its strengths in toll road operations[83].