SHTD(SH:600647)2022-03-25 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of CNY 11,695,170.63, a decrease of 37.72% compared to 2019[5]. - The company's operating revenue for 2020 was CNY 10,999,545.53, down 30.96% from CNY 15,932,952.17 in 2019[19]. - Basic earnings per share for 2020 were CNY 0.0841, a decline of 37.70% from CNY 0.1350 in 2019[20]. - The weighted average return on equity decreased to 3.98% in 2020 from 6.75% in 2019, a drop of 2.77 percentage points[20]. - The company reported a significant increase of 59.76% in net profit after deducting non-recurring gains and losses, reaching CNY 7,171,544.00[19]. - The total profit for 2020 was CNY 12,244.1 million, with a net profit of CNY 11,869.1 million, resulting in earnings per share of CNY 0.08[33]. - The company reported a significant reduction in operating costs, which amounted to CNY 1,345.65 million, down 90.55% year-on-year[36]. - The company reported a significant investment income of CNY 4,133,099.61 in 2020, recovering from a loss of CNY 29,558,021.57 in 2019[141]. - The total comprehensive income for 2020 was CNY 11,869,142.38, down from CNY 18,637,679.57 in 2019, reflecting a decrease of approximately 36.5%[142]. Cash Flow and Investments - The net cash flow from operating activities was negative CNY 19,681,086.35, worsening from negative CNY 6,654,089.16 in the previous year[19]. - Investment activities generated a net cash flow of CNY 24,398.59 million, a decrease of 73.77% compared to the previous year[36]. - Cash received from sales of goods and services surged to ¥252,147,006.80, marking a 1433.91% increase compared to the previous year[46]. - The company's cash flow from operating activities showed a significant increase, with cash paid for purchasing goods rising to ¥257,857,985.15, a 1673.96% increase year-over-year[46]. - 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[151]. - The net cash flow from investment activities was 39,935,221.29 RMB, a decrease from 85,826,341.63 RMB in the previous year, indicating reduced investment returns[152]. Assets and Liabilities - The total assets at the end of 2020 were CNY 504,521,343.65, an increase of 2.34% from CNY 492,962,866.72 in 2019[19]. - The company's total liabilities, including current and non-current, were not explicitly detailed, which may require further analysis for a complete financial overview[132]. - 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, indicating a rise of approximately 11.3%[160]. - The company's cash and cash equivalents slightly decreased from 264,266,628.88 RMB in 2019 to 259,549,124.45 RMB in 2020, a reduction of approximately 1.3%[131]. - The total current assets decreased from 465,891,610.01 RMB in 2019 to 453,119,487.04 RMB in 2020, indicating a decline of about 2.7%[132]. Shareholder and Dividend Policies - 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[57]. - The company aims to maintain a stable profit distribution policy, with cash dividends accounting for at least 30% of the average distributable profit over the last three years[58]. - The company has not distributed cash dividends for the years 2018, 2019, and 2020, with net profits of -56,300,512.45 RMB, 18,778,081.94 RMB, and 11,695,170.63 RMB respectively[65]. - The company will ensure that independent directors and minority shareholders have opportunities to express their opinions during the decision-making process for profit distribution[60]. Management and Governance - The company has a diverse management team with extensive experience in various sectors, including finance, risk management, and corporate governance[93]. - The company is focused on enhancing its risk compliance and management capabilities through experienced personnel in key positions[94]. - The board of directors held a total of 6 meetings during the year, with all members attending[112]. - The company maintains a transparent information disclosure system, ensuring all shareholders have equal access to information[108]. - The company has a clear governance structure with defined responsibilities for the board of directors and management, ensuring effective oversight and accountability[107]. Market and Operational Risks - The company has outlined potential risks in its future operational plans and development strategies, advising investors to be cautious[6]. - The company faces market risks due to a slowdown in China's economic growth and the impact of the COVID-19 pandemic, which may lead to decreased market demand[55]. - The company faced intense competition in the building materials industry, which is characterized by low profit margins due to high homogeneity[31]. 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[175]. - The company's accounting policies comply with the requirements of enterprise accounting standards, ensuring a true and complete reflection of its financial status[177]. - The audit report indicates no significant misstatements in the financial statements, providing a level of assurance to stakeholders regarding the accuracy of the reported figures[127]. - The company applies specific accounting treatments for multiple transactions involving the disposal of subsidiary equity, determining if they should be treated as a single transaction[189].