SFH(SH:600615)2021-04-29 16:00Financial Performance - In 2020, the company achieved a net profit of ¥1,464,169.27, a decrease of 95.26% compared to ¥30,910,093.65 in 2019[5] - The total operating revenue for 2020 was ¥59,936,149.25, down 9.44% from ¥66,184,876.54 in 2019[21] - The company's basic earnings per share dropped to ¥0.008, a decline of 95.12% from ¥0.164 in 2019[23] - The weighted average return on equity decreased to 0.23%, down 4.79 percentage points from 5.02% in 2019[23] - The total profit for the year was CNY 1.93 million, down CNY 39.55 million or 95.34% year-on-year[32] - The net profit attributable to shareholders was CNY 1.46 million, a decrease of CNY 2.94 million or 95.26% compared to the previous year[32] - The company reported a significant decrease in investment income and an increase in management expenses due to intermediary fees[32] - The company reported a net profit of RMB 1,464,169.27 for 2020, but after accounting for previous losses, the distributable profit remains negative at RMB -50,248,109.04[62] - The company reported a net loss reduction from CNY -51,712,278.31 in 2019 to CNY -50,248,109.04 in 2020, indicating an improvement of about 2.84% in retained earnings[143] Revenue and Costs - The company's main business revenue decreased by 9.44% to CNY 59,936,149.25 compared to the previous year[37] - The cost of goods sold also declined by 9.16% to CNY 53,067,454.33, reflecting a decrease in performance from the subsidiary Chongqing Magnesium Technology Co., Ltd.[37] - Total operating costs increased significantly to CNY 77,829,493.00 from CNY 28,400,241.91 in 2019, indicating a substantial rise in expenses[150] - Management expenses increased by 83.63% to CNY 22,730,475.73, indicating higher operational costs[38] - The company incurred a tax expense of 516,781.67 million RMB in 2020, compared to 10,687,463.06 million RMB in 2019[155] Assets and Liabilities - The total assets at the end of 2020 were ¥676,698,305.92, a slight decrease of 0.11% from ¥677,457,020.00 at the end of 2019[22] - The total liabilities decreased from CNY 44,823,297.56 in 2019 to CNY 42,600,237.55 in 2020, a decline of about 4.94%[143] - The company's total assets amounted to CNY 662,559,169.13, slightly down from CNY 665,298,988.83 in the previous year[148] - The company's equity increased to CNY 635,416,401.69 from CNY 633,955,588.88, indicating a slight growth[148] Cash Flow - The net cash flow from operating activities was negative at CNY -15,689,001.30, a significant decline from CNY -2,459,555.56 in the previous year[38] - The cash flow from operating activities for 2020 was -15,689,001.30 million RMB, worsening from -2,459,555.56 million RMB in 2019[157] - The total cash inflow from operating activities was 867,475.69 RMB in 2020, down from 962,546.57 RMB in 2019, indicating a decline in operational revenue[160] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 11,927, an increase from 11,127 at the end of the previous month[91] - The largest shareholder, Longxin Holdings Co., Ltd., held 62,901,231 shares, representing 33.45% of total shares, with shares frozen[93] - The company reported no changes in the total number of ordinary shares and share capital structure during the reporting period[89] Corporate Governance - The company has a diverse board with members having extensive experience in various industries, including finance and management[106] - The board includes independent directors, which enhances corporate governance and oversight[106] - The company has not engaged in any related party transactions during the reporting period, ensuring transparency[105] - The company is committed to improving corporate governance and investor relations in compliance with relevant laws and regulations[117] Strategic Initiatives - The company initiated a major asset restructuring project in August 2020 to acquire 100% equity of Guangzhou Weining Electromechanical Co., Ltd. to expand its business layout[33] - The company plans to enhance its high-end product development capabilities through long-term cooperation with LEAR Group, a major global automotive parts supplier[34] - The company aims to become a primary or secondary supplier to major global automotive manufacturers within the next five years, focusing on the growing demand for automotive lightweighting[57] - The company plans to enhance management of its subsidiary and increase market share to improve revenue and operational efficiency in 2021[59] Audit and Compliance - The audit aimed to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[136] - The financial statements have been approved by the board of directors on April 28, 2021[187] - The company adheres to the accounting standards and principles, ensuring the financial statements reflect a true and complete picture of its financial status[190] Market Conditions - The company faced challenges in the automotive parts revenue due to the overall downturn in the automotive industry and the impact of the COVID-19 pandemic[33] - The automotive market in China saw a decline in production and sales, with total vehicle production and sales down by 1.9% and 1.8% year-on-year, respectively, in 2020[57] Employee Information - The company employed a total of 161 staff, with 85 in production, 7 in sales, 8 in technology, 10 in finance, 17 in administration, and 34 in other roles[114] - The company has established a compensation management system to enhance salary distribution and adjustments through performance evaluations[115]