XGMA(SH:600815)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,920,119,497.55, an increase of 2.60% compared to CNY 1,871,513,157.55 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 37,600,450.63, a significant recovery from a loss of CNY 1,153,456,549.61 in 2019[23]. - The basic earnings per share for 2020 was CNY 0.02, a turnaround from a loss of CNY 0.65 per share in 2019[24]. - The weighted average return on equity for 2020 was 2.79%, compared to a negative return of -405.12% in 2019[24]. - The cash flow from operating activities for 2020 was negative CNY 310,052,867.26, an improvement from negative CNY 614,667,509.21 in 2019[23]. - The company reported a negative net profit of CNY 97,315,188.69 after excluding non-recurring gains and losses, compared to a loss of CNY 1,148,165,370.35 in 2019[23]. - The company's total assets decreased by 8.92% to CNY 3,473,665,980.94 in 2020, down from CNY 3,813,811,456.43 in 2019[23]. - The company's net assets attributable to shareholders increased by 3.19% to CNY 1,369,330,146.74 at the end of 2020, up from CNY 1,326,961,235.33 in 2019[23]. - The company will not distribute profits or increase capital reserves due to negative retained earnings at year-end[4]. Quarterly Performance - In Q1 2020, the company reported operating revenue of CNY 241.83 million, with a net profit attributable to shareholders of CNY 14.96 million[27]. - The total operating revenue for Q2 2020 increased to CNY 638.06 million, while the net profit attributable to shareholders was CNY 15.85 million[27]. - In Q3 2020, the company experienced a decline in net profit, reporting only CNY 2.51 million, despite an operating revenue of CNY 430.25 million[27]. - The fourth quarter of 2020 saw a recovery in net profit to CNY 4.27 million, with operating revenue reaching CNY 609.98 million[27]. Non-Recurring Gains and Losses - The company reported a total of CNY 134.92 million in non-recurring gains and losses for 2020, compared to a loss of CNY 5.29 million in 2019[29]. Business Operations - The company’s main business includes manufacturing and selling construction machinery, with a focus on loaders, excavators, and road machinery[35]. - The engineering machinery industry is closely tied to macroeconomic factors, with 2020 showing unexpected growth due to effective pandemic control measures[37]. - The company has established a marketing network through direct sales and authorized dealers, expanding its reach to various international markets[36]. - The company aims to continuously innovate and improve its core technologies through independent research and development and technical cooperation[36]. - The company has developed over 10 types of machinery products, including loaders, excavators, and forklifts, with multiple models for different user needs[40]. Cost Management and Efficiency - Operating revenue increased by 2.60% compared to the previous year, while operating costs rose by 5.79%[55]. - Sales expenses decreased by 48.23%, management expenses decreased by 68.78%, and financial expenses decreased by 77.17%[55]. - The company implemented cost reduction and efficiency enhancement activities, collecting over 170 feedback suggestions and adopting more than 50 improvement measures[51]. - The company reduced the delivery cycle for loaders by 25% and for excavators by 40%, resulting in a 53.3% year-on-year increase in per capita output[51]. Market and Sales Performance - Domestic operating revenue was CNY 1.682 billion, reflecting a 5.80% increase, while foreign revenue was CNY 145.63 million, a 16.24% increase[59]. - The production volume of engineering machinery products was 4,088 units, while sales volume was 3,651 units, indicating a 26.89% decrease in sales compared to the previous year[60]. Research and Development - Research and development expenses totaled 28.29 million RMB, representing 1.47% of total revenue, with 98 R&D personnel making up 10.82% of the total workforce[68]. - The company has established a national-level technology center and collaborated with several universities and research institutions to enhance R&D capabilities[41]. Environmental Compliance - The company emitted a total of 5.1405 tons of chemical oxygen demand (COD) in 2020, exceeding the permitted annual emission limit of 1.708 tons[151]. - The average emission concentration for COD was recorded at 8 mg/L, which is significantly lower than the permitted limit of 500 mg/L[152]. - The company achieved a 100% safe disposal rate for solid and hazardous waste in 2020[153]. - The wastewater treatment plant has a designed capacity of 1000 m³/d, ensuring all wastewater is treated to meet discharge standards[153]. - The company has established a comprehensive environmental risk emergency mechanism and signed an environmental pollution liability insurance with China People's Property Insurance Company in 2020[155]. Shareholder Information - The company has 33,335 ordinary shareholders as of the end of the reporting period, an increase from 32,687 at the end of the previous month[162]. - The largest shareholder, Xiamen Haiyi Group Co., Ltd., holds 734,789,208 shares, accounting for 41.42% of total shares[164]. Corporate Governance - The company has undergone changes in its board and management, with several appointments and departures due to various reasons, including personal reasons and retirement[191]. - The total remuneration for the independent directors during the reporting period was 8 million RMB each[175]. - The management team emphasizes the importance of financial accuracy and transparency in reporting, which is crucial for investor confidence[176]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings, which may lead to increased user engagement and revenue growth[176]. - Future outlook suggests a commitment to innovation, with ongoing research and development efforts aimed at new technologies and products[176]. - The company plans to implement a mixed-ownership reform to improve operational efficiency and introduce market-oriented incentive mechanisms[88]. - The company is exploring potential acquisitions to strengthen its supply chain, with a budget of 200 million RMB allocated for this purpose[183]. Social Responsibility - The company is actively involved in social responsibility initiatives, including poverty alleviation and educational support[149]. - The company invested CNY 170,800 in poverty alleviation efforts, helping 72 impoverished individuals[145]. - The company has established a partnership with Haiyi Group for charitable activities[144].