SHTD(SH:600647)2021-03-19 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 11,695,170.63 in 2020, a decrease of 37.72% compared to 2019[5]. - Total operating revenue for 2020 was RMB 239,192,452.48, representing a significant increase of 1,401.24% from RMB 15,932,952.17 in 2019[19]. - Basic earnings per share decreased to RMB 0.0841 in 2020, down 37.70% from RMB 0.1350 in 2019[20]. - The company reported a net profit of RMB 8,134,165.50 in Q4 2020, contributing significantly to the annual profit[21]. - The total profit for the year was RMB 12.24 million, with a net profit of RMB 11.87 million, and earnings per share of RMB 0.08[30]. - The company reported a significant decrease in investment cash flow, down 73.77% to RMB 24.40 million[33]. - The company reported a positive profit available for distribution to ordinary shareholders but did not propose a cash profit distribution plan, primarily to supplement working capital and ensure sustainable operations[65]. - The comprehensive income for the year amounted to CNY 11,695,170.63, which is a significant increase compared to the previous year's comprehensive income of CNY 18,778,081.94, indicating a decrease of about 37.7%[156]. Cash Flow and Liquidity - The company's cash flow from operating activities showed a negative net amount of RMB -19,681,086.35, worsening from RMB -6,654,089.16 in the previous year[19]. - The net cash flow from operating activities was negative at RMB -19.68 million, indicating challenges in cash generation[33]. - Cash received from sales of goods and services was 252,147,006.80 yuan, reflecting a dramatic increase of 1433.91% year-on-year due to the growth in trade business[43]. - The net cash flow from operating activities was -15,580,959.61 RMB, compared to -14,228,689.81 RMB in the previous year, indicating a decline in operational efficiency[147]. - Total cash inflow from operating activities reached 305,114,860.80 RMB, significantly higher than the previous year's 3,345,208.57 RMB[147]. - Cash outflow for operating activities totaled 320,695,820.41 RMB, up from 17,573,898.38 RMB in 2019, reflecting increased operational costs[147]. Assets and Liabilities - The total assets at the end of 2020 were RMB 504,521,343.65, an increase of 2.34% compared to RMB 492,962,866.72 at the end of 2019[19]. - The company’s net assets attributable to shareholders increased by 4.06% to RMB 299,440,519.48 at the end of 2020[19]. - The total liabilities at the end of the year were CNY 299,440,519.48, which is an increase from CNY 268,917,266.91 in the previous year, representing a rise of about 11.3%[156]. - The total current assets increased to ¥465,891,610.01 in 2020 from ¥453,119,487.04 in 2019, indicating a growth of approximately 2.5%[128]. - The total liabilities as of December 31, 2020, were CNY 137,999,108.38, compared to CNY 134,300,773.27 in the previous year[134]. Operational Performance - Operating costs increased to RMB 229.54 million, reflecting a year-on-year rise of 1,512.45% due to the expansion of the building materials trade[34]. - The gross profit margin for the trade business was 3.70%, showing a decrease of 0.69 percentage points compared to the previous year[36]. - The company actively sought opportunities in the building materials trade, achieving sales revenue of RMB 237.07 million in this sector[27]. - The company incurred operating costs of CNY 228,905,624.41 in 2020, compared to CNY 712,717.46 in 2019, which shows a significant increase in operational scale[141]. Shareholder and Dividend Policy - The company did not distribute dividends or increase capital from retained earnings for the 2020 fiscal year[5]. - The company has a cash dividend policy that stipulates a minimum cash dividend of 10% of the distributable profit if there are no major investment plans or cash expenditures[56]. - The company aims to maintain a stable profit distribution policy, with a cumulative cash distribution of no less than 30% of the average annual distributable profit over the last three years[56]. - The company will prioritize cash dividends when conditions are met, ensuring that the distribution process is transparent and compliant with regulations[61]. - The company did not distribute any cash dividends for the years 2018, 2019, and 2020, with retained earnings of -56,300,512.45 RMB in 2018, 18,778,081.94 RMB in 2019, and 11,695,170.63 RMB in 2020[64]. Management and Governance - The company has a diverse management team with experience in various sectors including finance, risk management, and human resources[89]. - The company has established a performance evaluation system for senior management, aiming to enhance its incentive and restraint mechanisms[110]. - The board of directors held a total of 6 meetings during the year, with all members attending[108]. - The company has a clear internal control system to prevent risks and ensure compliance with laws and regulations[104]. - The company actively engages with investors through various communication channels to maintain good relationships and enhance market image[105]. Market and Economic Conditions - The company faces market risks due to the slowdown of China's economic growth and the impact of the COVID-19 pandemic, which may lead to decreased market demand[54]. - The building materials industry is closely tied to national economic cycles, with increasing demand driven by industrialization and urbanization[27]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[171]. - The company adheres to the enterprise accounting standards, ensuring that financial statements reflect a true and complete picture of its financial status[173]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with monetary items remeasured at the exchange rate on the balance sheet date[187].