XLDY(SH:600769)2021-04-20 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 5,288,175.37 yuan, an increase of 71.46% compared to 2019[5]. - The operating revenue for 2020 was 30,668,649.13 yuan, representing a year-on-year growth of 32.34%[21]. - The net cash flow from operating activities reached 19,195,762.80 yuan, a significant improvement from a negative cash flow of -1,799,902.06 yuan in 2019, marking a 1,166.49% increase[21]. - Basic earnings per share for 2020 were 0.0141 yuan, reflecting a 71.95% increase from 0.0082 yuan in 2019[22]. - The weighted average return on equity rose to 9.16%, an increase of 3.45 percentage points compared to 2019[22]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which reached 3,029,636.31 yuan, up 72.92% from 2019[21]. - The company reported a non-recurring profit of CNY 2,258,539.06 in 2020, compared to CNY 1,332,146.93 in 2019, representing a year-over-year increase of 69.3%[27]. - The company’s total revenue for the year was 2,131.90 million RMB, with the top five customers accounting for 69.51% of total sales[50]. Assets and Liabilities - The total assets at the end of 2020 amounted to 154,487,582.94 yuan, up 10.52% from 2019[21]. - The company's net assets attributable to shareholders increased by 8.64% to 60,404,412.06 yuan by the end of 2020[21]. - The company's trading financial assets increased by 266.78% to CNY 17,845,136.15, primarily due to the purchase of financial products with cash funds[33]. - The company’s inventory decreased by 89.77% to CNY 528,551.92, attributed to adjustments in accounting standards[34]. - The company’s construction in progress decreased by 65.92% to CNY 1,551,504.18, mainly due to the commissioning of projects during the reporting period[34]. - Total liabilities increased to CNY 94.08 billion in 2020, up from CNY 84.19 billion in 2019, marking a rise of about 11.3%[138]. Market Position and Strategy - The company's core competitiveness is relatively weak compared to peers, but it benefits from a stable market share in the water supply sector due to its monopolistic characteristics[35]. - The water supply business is primarily focused on surrounding industrial parks, with a competitive advantage in comprehensive supply costs due to a shorter supply radius[32]. - The company plans to expand its market presence by leveraging its regional advantages and exploring outside markets[32]. - The company’s user base is expected to grow significantly as more enterprises settle in the surrounding parks, indicating potential demand for water supply[35]. - The company implemented a three-year action plan to strengthen its core business and enhance competitiveness in external markets[39]. Government Relations and Subsidies - The company received government subsidies amounting to CNY 60,526.48, which are closely related to its normal business operations[27]. - The company actively responded to government policies by providing water fee discounts to support high-tech industries like semiconductors and LCD displays[40]. Risk Management - The company has outlined potential risks in its future development strategy, urging investors to be cautious[6]. - The self-water industry is heavily regulated by the government, with significant impacts from government policies on business operations[71]. Corporate Governance - The company has established a clear cash dividend policy in accordance with regulatory requirements, ensuring compliance with the company's articles of association and shareholder resolutions[73]. - In the past three years, the company has not distributed any cash dividends or stock bonuses, with retained earnings of CNY 5,288,175.37 in 2020, CNY 3,084,204.89 in 2019, and CNY 5,092,467.93 in 2018[75]. - The company has not proposed any cash profit distribution plans despite having positive distributable profits for ordinary shareholders during the reporting period[76]. - The company has appointed Zhongshun Zhonghuan Accounting Firm with an audit fee of CNY 250,000 for the current year[78]. - There are no significant litigation or arbitration matters reported for the year[80]. Employee and Management - The company has a total of 68 employees, with 49 in the parent company and 19 in major subsidiaries[107]. - The employee composition includes 31 production personnel, 13 technical staff, 3 financial staff, and 14 administrative staff[107]. - The company has implemented a performance evaluation mechanism for employees, linking compensation to quarterly and annual assessments[108]. - The company actively organizes training activities to enhance employee skills and improve competitiveness[109]. Audit and Compliance - The internal control self-assessment report for 2020 was submitted and is available on the Shanghai Stock Exchange website[117]. - The internal control audit report issued by Zhonghuan Accounting Firm provided a standard unqualified opinion[121]. - The company identified revenue recognition as a key audit matter due to the risk of management manipulation to meet specific targets[125]. - Management is responsible for preparing financial statements in accordance with accounting standards and ensuring the absence of material misstatements due to fraud or error[129]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year to drive growth[139]. - Future guidance indicates a cautious but optimistic outlook for revenue growth, targeting a percentage increase in line with market trends[166].