COMEC(SH:600685)2021-03-30 16:00Financial Performance - The company achieved a total revenue of RMB 11.61 billion in 2020, a decrease of 46.82% compared to RMB 21.83 billion in 2019[16]. - Net profit attributable to shareholders reached RMB 3.66 billion, a significant increase of 567.92% from RMB 548 million in 2019[16]. - The company reported a net cash flow from operating activities of RMB -1.02 billion, a decrease of RMB 47.60 million compared to the previous year[18]. - The weighted average return on equity was 30.74%, an increase of 25.25 percentage points from 5.49% in 2019[18]. - Basic earnings per share were RMB 2.5910, reflecting a growth of 567.96% compared to RMB 0.3879 in 2019[17]. - The company achieved operating revenue of RMB 11.608 billion in 2020, a year-on-year decrease of 46.82% due to the continued downturn in the shipbuilding market and the completion of the transfer of control of Guangzhou Shipyard International[30]. - The company reported a significant increase in investment income, amounting to CNY 3.858 billion, compared to CNY 32.4 million in the previous year[38]. - The company reported a net profit of RMB 3,662,334,382.03 for 2020, compared to a net profit of RMB 548,320,338.54 in 2019[96]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 1.66 per 10 shares, totaling RMB 234,642,058.75, based on a total share capital of 1,413,506,378 shares as of December 31, 2020[4]. - The company has not made any adjustments to its cash dividend policy during the reporting period and aims to reasonably return profits to investors[95]. - The company plans to distribute a cash dividend of RMB 1.66 per 10 shares, totaling RMB 234,642,058.75 for the year 2020, which represents 6.41% of the net profit attributable to ordinary shareholders[95][96]. Audit and Compliance - The company has received a standard unqualified audit report from Da Xin Accounting Firm[3]. - The company appointed Da Xin Accounting Firm as the auditor for the 2020 financial report, with an audit fee of RMB 1.21 million[109]. - Da Xin Accounting Firm will also conduct an internal control audit for the company in 2020, with a fee of RMB 300,000[109]. - The company reported no significant litigation or arbitration matters during the year[110]. Risks and Challenges - The company has detailed potential risks in the report, which investors should review[5]. - The company faces uncertainties in its actual operating conditions due to various internal and external factors, which may affect its performance[91]. - The company is facing risks related to exchange rates, interest rates, customer financing difficulties, and rising costs of raw materials and labor due to the ongoing impact of the COVID-19 pandemic[93]. - The company will enhance contract performance management and strengthen credit investigations of shipowners to mitigate the risk of order defaults[93]. Investment and Asset Management - The company confirmed an investment income of RMB 3.22 billion from the disposal of the remaining 49% stake in Chengxi Yangzhou during the reporting period[18]. - The company disposed of a 27.4214% stake in Guangchuan International, resulting in an investment income of RMB 3.39 billion[18]. - The company completed the transfer of 27.4214% equity in Guangzhou Shipyard International to China Shipbuilding, optimizing its asset structure[36]. - The company reported a significant decline in revenue from the North American market, with a loss of RMB 313 million, a decrease of 171.45% year-on-year[43]. Research and Development - The company’s R&D expenses increased by 5.84% to CNY 590.36 million, reflecting its commitment to innovation[38]. - The company has 1,327 R&D personnel, making up 17.42% of the total workforce[63]. - The company is investing 500 million RMB in research and development for innovative ship designs over the next three years[185]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by the Guangzhou Ecological Environment Bureau, with three subsidiaries listed[146]. - The company reported no environmental pollution incidents or noise complaints in 2020[150]. - The company engaged in targeted poverty alleviation efforts, donating RMB 180,000 to support local communities and purchasing agricultural products worth approximately RMB 1.55 million[138]. - The company plans to continue targeted poverty alleviation efforts, including agricultural and forestry industry support, education assistance, and labor training[143]. Market and Industry Outlook - The global new ship transaction volume is expected to reach approximately 80 million deadweight tons in 2021, with a total value of USD 55 billion[89]. - The company aims to enhance its competitiveness in mid-to-high-end ship products through continuous optimization of supply structure and quality[88]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[185]. Corporate Governance - The company has maintained a consistent governance structure with no changes in the number of shares held by board members[182]. - The company has a diverse board with a mix of executive and non-executive directors, ensuring a balanced governance approach[182]. - The company has no strategic investors or general legal entities among the top ten shareholders[173]. Financial Management - The company has successfully managed entrusted assets without any overdue amounts during the reporting period[126]. - The company primarily invests in low-risk financial products such as central bank bills, government bonds, and corporate bonds[126]. - The company provided internal financing loans totaling 100 million for working capital to Guangzhou Huang Ship Ocean Engineering Co., with a quarterly interest rate of 3.00%[131].