CEC CoreCast(SH:600764)2021-04-28 16:00Financial Performance - In 2020, the company's operating revenue reached CNY 4,669,646,918.06, representing a year-on-year growth of 14.62%[30]. - The net profit attributable to shareholders was CNY 747,971,201.63, an increase of 15.72% compared to the previous year[30]. - The net profit after deducting non-recurring gains and losses was CNY 718,561,738.67, showing a significant growth of 114.92% year-on-year[30]. - The net cash flow from operating activities was CNY 171,306,150.40, up 143.62% from the previous year[30]. - As of December 31, 2020, the total assets amounted to CNY 9,462,736,708.05, a year-on-year increase of 23.14%[30]. - The company's net assets attributable to shareholders reached CNY 6,828,986,388.72, reflecting a growth of 64.23% compared to the end of 2019[30]. - Basic earnings per share for 2020 were CNY 1.0724, an increase of 1.72% from the previous year[30]. - The weighted average return on equity was 12.01%, a decrease of 3.25 percentage points compared to the previous year[30]. - The company achieved a total revenue of RMB 4.67 billion in 2020, representing a year-on-year growth of 14.62%[64]. - The net profit attributable to shareholders reached RMB 747.97 million, an increase of 15.72% compared to the previous year[64]. - The company's total assets amounted to RMB 9.46 billion, with total liabilities of RMB 2.63 billion, resulting in total equity of RMB 6.83 billion[64]. Dividend Policy - The company plans to distribute a cash dividend of 3.16 RMB per 10 shares, totaling approximately 224.56 million RMB (including tax) based on a total share capital of 710,629,386 shares[6]. - The cash dividend policy stipulates that at least 30% of the net profit attributable to shareholders will be distributed as cash dividends, provided certain conditions are met[120]. - In 2020, the company distributed a cash dividend of 3.16 CNY per 10 shares, totaling 224,558,885.98 CNY, which represents 30.02% of the net profit attributable to ordinary shareholders[122]. - The cash dividend in 2019 was 2.73 CNY per 10 shares, amounting to 194,001,822.38 CNY, which accounted for 30.01% of the net profit attributable to ordinary shareholders[122]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[123]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The board of directors has ensured the accuracy and completeness of the annual report, taking legal responsibility for any misstatements[4]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not faced a situation where more than half of the directors cannot guarantee the authenticity of the annual report[8]. - The company has commitments to avoid and reduce related party transactions, ensuring compliance with fair transaction principles[125]. - The company has a commitment to maintain the independence of its subsidiary, ensuring no adverse effects on shareholder rights[125]. - The company has confirmed that all information provided during the restructuring process is accurate and complete[140]. Research and Development - Research and development expenses increased by 22.13% to RMB 326.29 million, reflecting the company's commitment to innovation[64]. - The total research and development personnel numbered 999, representing 24.57% of the company's total workforce[86]. - The company has established 26 certified research entities, including 4 national and defense-recognized laboratories, enhancing its technological innovation capabilities[51]. - The company has made breakthroughs in several core technologies, including underwater communication and intelligent transportation systems, enhancing its competitive edge[62]. - The company is recognized as a core supplier of underwater electronic equipment and has established partnerships with various research institutions to foster innovation[63]. Market and Industry Outlook - The defense budget for 2020 reached ¥126.8 billion, indicating a stable growth trend in military spending, which supports the electronic defense equipment sector[97]. - The strategic emerging industries are becoming the main driving force for development in the new stage, supported by favorable policies and showing significant growth characteristics[105]. - The smart manufacturing sector is projected to see a surge in demand for high-end equipment, particularly in the weaponry, aviation, and aerospace fields, indicating substantial market expansion opportunities[106]. - The satellite navigation and positioning service industry is expected to grow rapidly, particularly following the completion of the BeiDou system, which will enhance the communication and navigation market[106]. - The LNG unloading equipment and storage management systems market is anticipated to expand significantly, with over 100 LNG receiving stations planned or under construction by 2035[106]. Strategic Initiatives - The company aims to strengthen its position as a leading innovative enterprise in the marine defense and electronic information equipment sectors, contributing to national defense modernization[107]. - The company is focused on becoming a first-class central enterprise listed platform, emphasizing compliance, professional service capabilities, and efficient resource integration during the 14th Five-Year Plan period[107]. - The company’s mission is to support national defense construction and service national strategies by leading industry development and enhancing technological capabilities[107]. - The company is positioned as a capital operation platform for military industry-related businesses, integrating marine defense and information countermeasure equipment[107]. - The company is committed to building a "Great Wall at Sea" in the electronic defense field, focusing on the informationization of the navy[107]. Risks and Challenges - The company faces risks from increased competition in the military products market and potential production and operational risks due to international uncertainties[116]. - The company anticipates ongoing challenges in the automotive sector but is implementing strategies to recover and grow in the coming years[187]. - The company reported a significant decline in demand for cleaning machines due to reduced investments in the automotive industry caused by the pandemic[187]. Restructuring and Commitments - The company raised ¥2.113 billion through a private placement of shares, contributing to a 12.50% increase in share capital to ¥710,629,386.00[94]. - The restructuring involves commitments from multiple parties, including China Shipbuilding Industry Corporation and various research institutes, to ensure future profitability of the targeted companies[166]. - The company will bear compensation responsibilities if any losses occur to China Shipbuilding Industry Corporation due to violations of commitments made during the restructuring[158]. - The company has pledged to support the implementation of employee stock incentive plans linked to the execution of return compensation measures[164].