NPEC(SH:600775)2021-03-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 3,952,265,022.15, a decrease of 15.19% compared to CNY 4,660,047,001.92 in 2019[24]. - Net profit attributable to shareholders for 2020 was CNY 77,318,175.74, an increase of 46.83% from CNY 52,657,894.58 in 2019[24]. - The net cash flow from operating activities for 2020 was CNY 534,653,617.28, a significant recovery from a negative cash flow of CNY -341,233,848.13 in 2019[24]. - The basic earnings per share for 2020 was CNY 0.0846, up 46.83% from CNY 0.0576 in 2019[27]. - The company reported a total asset value of CNY 6,001,947,699.44 at the end of 2020, a slight decrease of 0.30% from CNY 6,020,147,479.47 at the end of 2019[24]. - The weighted average return on equity for 2020 was 2.22%, an increase of 0.73 percentage points from 1.49% in 2019[27]. - The total profit for 2020 was RMB 15,196.99 million, with a net profit of RMB 11,778.12 million[56]. - The company's operating income target for 2020 was RMB 450,000 million, while the actual revenue achieved was RMB 395,226 million[128]. - The total profit target for 2020 was RMB 10,500 million, with the actual profit reaching RMB 15,196.99 million[128]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.26 per 10 shares, totaling RMB 23,759,801.75, based on a total share capital of 913,838,529 shares as of December 31, 2020[6]. - The cash dividend per 10 shares for 2020 was RMB 0.26 (including tax), which is an increase from RMB 0.175 in 2019[177]. - The total distributable profit available for shareholders in 2020 was RMB 171,272,061.28 after accounting for previous dividends and reserves[175]. - The company has maintained a consistent cash dividend policy, with cash dividends prioritized in the profit distribution plan established in 2019[172]. - The cash dividend proposal for 2020 is subject to approval at the annual general meeting scheduled before June 30, 2021[176]. - The cash dividend distribution reflects the company's commitment to providing reasonable returns to investors while ensuring sustainable development[172]. - The company has a clear and transparent decision-making process for profit distribution, which has been reviewed and approved by independent directors[175]. - The cash dividend policy has been revised to enhance stability and transparency, ensuring the protection of minority shareholders' rights[172]. Business Operations and Strategy - The company operates in three main business areas: smart cities, intelligent manufacturing, and electronic manufacturing services, leveraging technologies such as big data, cloud computing, AI, and 5G[37]. - The company plans to continue focusing on market expansion and new product development in response to changing market conditions[27]. - The company is actively expanding into new markets such as footwear, new energy, and high-end equipment, enhancing its core competitiveness[101]. - The company is committed to implementing lean management and enhancing its brand competitiveness to achieve its annual operational goals[128]. - The company plans to accelerate its transformation into a system integration and solution contractor in the modern digital city business[129]. - The company aims to enhance its core competitiveness through systematic innovation in technology research and development, business models, and talent cultivation[130]. Research and Development - The company invested RMB 249 million in R&D in 2020, representing 6.30% of its revenue, and established 2 new municipal-level research centers[47]. - The company applied for 85 patents in 2020, with 43 being invention patents, and held a total of 171 valid invention patents by the end of the year[51]. - R&D investment totaled CNY 248,868,168.48, accounting for 6.30% of operating income, with 743 R&D personnel, representing 22.88% of total employees[82]. - The company has improved its intellectual property management, increasing the number and quality of patents in smart manufacturing and smart cities, aiming for some patents to enter high-value categories[87]. Risk Management and Compliance - The company has detailed potential risks and corresponding countermeasures in the annual report[7]. - The board of directors and senior management have guaranteed the accuracy and completeness of the annual report[4]. - The company has not faced any violations in decision-making procedures for external guarantees[7]. - The company has not reported any instances where more than half of the directors could not guarantee the authenticity of the annual report[7]. - The company has implemented risk prevention measures to address various operational risks and ensure sustainable development[132]. Market and Industry Trends - The electronic information manufacturing industry achieved a revenue growth of 8.3% year-on-year, with a profit growth of 17.2%[39]. - The smart city IT market is expected to see annual investments exceeding RMB 200 billion during the 14th Five-Year Plan period[119]. - The global EMS market size reached 4 trillion RMB in 2020, with the Asia-Pacific region, led by China, accounting for approximately 71% of the market share[101]. Corporate Social Responsibility - The company made donations totaling RMB 80,000 to support impoverished households and assist school-age children during the year[170]. - The company has committed to fulfilling its promises regarding social responsibility and will not reduce its holdings in listed companies during market volatility[190].