厦工股份(600815) - 2020 Q4 - 年度财报

Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and its key financial performance metrics for the reporting period Company Basic Information Xiamen XGMA Machinery Co., Ltd. (*ST XGMA, 600815) primarily engages in the R&D, manufacturing, and sales of construction machinery products and components - The company's stock ticker is *ST XGMA, stock code 600815, listed on the Shanghai Stock Exchange[19] - The company's stock continues to be subject to delisting risk warnings due to a negative net profit attributable to shareholders in 2019[8] Key Financial Data and Indicators In 2020, the company turned losses into profits, achieving a net profit of 37.60 million yuan, a significant improvement from a 1.153 billion yuan loss in 2019 Three-Year Key Accounting Data | Key Accounting Data | 2020 | 2019 | YoY Change (%) | 2018 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1.92 billion yuan | 1.872 billion yuan | 2.60 | 2.838 billion yuan | | Net Profit Attributable to Shareholders | 37.60 million yuan | -1.153 billion yuan | N/A | -731 million yuan | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -97.03 million yuan | -1.148 billion yuan | N/A | -845 million yuan | | Net Cash Flow from Operating Activities | -310 million yuan | -615 million yuan | N/A | 478 million yuan | | Net Assets Attributable to Shareholders | 1.369 billion yuan | 1.327 billion yuan | 3.19 | -185 million yuan | | Total Assets | 3.474 billion yuan | 3.814 billion yuan | -8.92 | 5.102 billion yuan | Three-Year Key Financial Indicators | Key Financial Indicators | 2020 | 2019 | YoY Change (%) | 2018 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.02 | -0.65 | 0.67 | -0.41 | | Basic EPS (Excluding Non-Recurring Items) (yuan/share) | -0.05 | -0.65 | 0.60 | -0.48 | | Weighted Average Return on Net Assets (%) | 2.79 | N/A | - | -405.12 | | Weighted Average ROE (Excluding Non-Recurring Items) (%) | -7.20 | N/A | - | -468.03 | - Non-recurring gains and losses totaled 135 million yuan in 2020, primarily from disposal of non-current assets (48.37 million yuan), government grants (44.24 million yuan), and reversal of impairment provisions for individually assessed receivables (23.77 million yuan), which were key to the company's turnaround[28][29] Company Business Overview This section outlines the company's main business, operating model, industry conditions, and core competitive advantages Main Business, Operating Model, and Industry Overview The company's core business encompasses the R&D, manufacturing, sales, and service of construction machinery products like loaders and excavators, operating through direct and dealer sales channels globally - The company's main business products cover a range of construction machinery, including loaders, excavators, road machinery, tunneling machinery, and environmental protection machinery[34] - The company's product sales primarily utilize direct sales and dealer sales models, with a marketing and service network spanning both domestic and international markets[35] - The construction machinery industry is highly cyclical, experiencing better-than-expected growth in 2020 due to effective domestic epidemic control, resumption of work, and stricter environmental regulations[36] Significant Changes in Major Assets and Core Competitiveness During the reporting period, the company disposed of idle assets, including construction in progress and land use rights, generating a positive impact of approximately 38.07 million yuan on current profit and loss Major Asset Sales in 2020 | Item | Counterparty | Transaction Price (Excl. Tax) | Impact on Profit/Loss | | :--- | :--- | :--- | :--- | | Transfer of construction in progress and land use rights for "2011JY03 Plot" | Xiamen Haiyi Construction Development Co., Ltd. | 89.38 million yuan | 23.38 million yuan | | Sale of Phase II land | Jiaozuo Chuangji High-end Intelligent Industrial Park Co., Ltd. | 113.13 million yuan | 14.69 million yuan | - The company's core competencies include: - Rich Product Portfolio: Covering over a dozen complete machine products such as loaders and excavators[39] - Technological R&D Advantage: Possessing a national-level technology center and a postdoctoral workstation, collaborating with multiple universities and research institutions[40] - Dealer Service Network: Over 150 dealer service providers and more than 500 sales and service outlets globally[41] - Brand Advantage: Nearly 70 years of history, awarded "China Famous Brand" and "China Top Brand Product" among other honors[42] Management Discussion and Analysis This section reviews the company's operational performance, analyzes its main business, asset and liability situation, and discusses the industry landscape and future development strategies Operating Performance Review In 2020, the company implemented various reforms, including institutional mechanism adjustments, sales channel restructuring, cost reduction, and risk management, leading to improved operational quality and a return to profitability - In 2020, the company implemented several reform measures, including: - Institutional Mechanism Reform: Established "Eight Centers," optimized processes, and implemented salary and performance reforms[44] - Sales Channel Restructuring: Added 4 direct sales companies and eliminated 25 underperforming dealers[45] - Cost Reduction and Control: Promoted technological cost reduction, integrated the supply chain, and revitalized idle assets (e.g., Jiaozuo Phase II land and headquarters plot)[46][47] - Risk Management: Established a new credit risk control system and strengthened debt collection[48] - Technology R&D: Developed cost-effective loader and excavator products and improved product quality[49] - Production Operations: Launched cost reduction and efficiency improvement activities, significantly shortened delivery cycles for complete machines, and increased per capita output by 53.3%[50] - In 2020, the company's total assets were 3.474 billion yuan, net assets were 1.369 billion yuan, operating revenue reached 1.92 billion yuan, total profit was 67.19 million yuan, and net profit attributable to the parent company was 37.60 million yuan, achieving a turnaround in performance[52] Main Business Analysis During the reporting period, the company's operating revenue slightly increased by 2.60%, while various expenses significantly decreased, driven by new revenue standards, personnel streamlining, and debt restructuring Major Changes in Income Statement and Cash Flow Statement Items | Item | Current Period Amount | Prior Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.92 billion yuan | 1.872 billion yuan | 2.60 | | Operating Cost | 1.769 billion yuan | 1.673 billion yuan | 5.79 | | Selling Expenses | 73 million yuan | 140 million yuan | -48.23 | | Administrative Expenses | 75 million yuan | 240 million yuan | -68.78 | | R&D Expenses | 28 million yuan | 48 million yuan | -40.67 | | Financial Expenses | 16 million yuan | 68 million yuan | -77.17 | | Net Cash Flow from Operating Activities | -310 million yuan | -615 million yuan | N/A | | Net Cash Flow from Investing Activities | 315 million yuan | 12 million yuan | 2,488.34 | Main Business by Product | By Product | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Earthmoving Machinery | 862 million yuan | -8.36 | 7.53 | Decrease of 0.93 percentage points | | Tunneling Machinery | 300 million yuan | 4.50 | 13.39 | Decrease of 12.49 percentage points | | Materials and Others (Commercial Trade) | 566 million yuan | 96.05 | 1.52 | Increase of 0.56 percentage points | Main Business by Region | By Region | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Domestic | 1.682 billion yuan | 8.87 | 5.80 | Decrease of 4.52 percentage points | | International | 146 million yuan | -39.99 | 16.24 | Increase of 4.62 percentage points | - In 2020, the production volume of construction machinery products was 4,088 units, a 6.77% decrease year-on-year; sales volume was 3,651 units, a 26.89% decrease year-on-year; and inventory volume was 1,880 units, a 30.28% increase year-on-year[60] Asset and Liability Analysis As of the end of the reporting period, the company's total assets decreased by 8.92% to 3.474 billion yuan, with significant changes in investment properties, intangible assets, and accounts payable - Investment properties balance at period-end was 111 million yuan, a 103.44% increase year-on-year, primarily due to the company leasing out some idle factory buildings and land[71] - Intangible assets balance at period-end was 128 million yuan, a 45.91% decrease year-on-year, mainly due to the disposal of some land use rights[72] - Advance receipts and contract liabilities were reclassified due to the implementation of new revenue standards; accounts payable decreased by 36.16% year-on-year, primarily due to payment for goods[72] - As of the end of the reporting period, the company's main restricted assets were monetary funds, totaling 96.82 million yuan in book value, primarily comprising various deposits and funds frozen due to litigation[74][75] Industry Landscape and Company's Future Development Despite the impact of the pandemic, the construction machinery industry achieved steady growth in 2020, with a projected stable increase from 2021 to 2023 - The Chinese construction machinery market is expected to grow steadily from 2021-2023, with environmental upgrades and the transition to National IV emission standards accelerating the replacement of existing equipment[85] - Company development strategy: Focus on two core businesses, loaders and excavators, with "institutional mechanism reform, smart manufacturing industrial park development, and overall solution provider" as the main lines, while exploring new growth points such as emergency equipment[86] - The 2021 operating plan includes eight key tasks: promoting mixed-ownership reform in the construction machinery sector, focusing on key regional markets, integrating the supply chain to reduce costs, developing independent core products, implementing lean production models, and more[88][89][90][91][92][93][94][95] - The company faces major risks including uncertainty in the external economic environment, intense market competition, and continuously rising raw material and labor costs[96][97] Significant Matters This section details the company's profit distribution, commitments, major litigation, related party transactions, and significant contracts Profit Distribution and Commitments Given the company's negative undistributed profits at the end of 2020, no profit distribution or capital reserve conversion to share capital will occur for the year - Due to the company's negative undistributed profits at year-end, in accordance with its profit distribution policy, the company will not distribute profits or convert capital reserves into share capital for 2020[4][100] - Controlling shareholder Xiamen Haiyi Group Co., Ltd. committed that the company's cumulative net profit attributable to the parent company for the three years starting from 2020 will not be less than 400 million yuan, with any shortfall to be covered by the controlling shareholder[104] Major Litigation and Arbitration During the reporting period, the company was involved in multiple significant lawsuits, primarily as a plaintiff seeking payment from dealers for sales contract disputes - The company, as a plaintiff, is involved in multiple sales contract disputes, with larger cases including lawsuits against Hunan Sanhui Machinery Equipment Co., Ltd. (principal claim of 83.88 million yuan) and Sichuan Jukai Construction Machinery Equipment Co., Ltd. (principal claim of 40.67 million yuan)[108] - XGMA International Trade, a subsidiary, is a defendant in a sales contract dispute with Huaxinheng Trading Co., Ltd., where the court ruled in the first instance that XGMA International Trade must pay 0.23 million euros in goods, for which the company has accrued a provision of 1.86 million yuan[110][111] Significant Related Party Transactions The company engaged in various routine operating transactions with related parties, including procurement and sales of goods, and also sold fixed assets to a related party, generating a significant gain - Routine operating related party transactions primarily include purchasing 51.08 million yuan of goods from and selling 49.02 million yuan of goods to XGMA (Sanming) Heavy Machinery Co., Ltd., and purchasing 27.60 million yuan of goods from Xiamen Yinhua Machinery Co., Ltd[114][115] - The company sold fixed assets to related party Xiamen Haiyi Construction Development Co., Ltd. for 89.38 million yuan, realizing a gain of 23.38 million yuan[117] - The company held a total of 327 million yuan in deposits and 20 million yuan in loans with related party Xiamen Haiyi Group Finance Co., Ltd. at period-end[115] Major Contracts and Their Performance During the reporting period, the company managed XGMA (Sanming) Heavy Machinery Co., Ltd. under a trusteeship agreement, recorded entrusted management income, and engaged in external guarantees and entrusted financial activities - The company managed XGMA (Sanming) Heavy Machinery Co., Ltd. under a trusteeship agreement, recognizing 1.89 million yuan in management income for the current period[123] - As of the end of the reporting period, the company's external guarantee balance was 9.86 million yuan, representing 0.72% of the company's net assets[126][127] - The company engaged in entrusted wealth management using its own funds, with a transaction amount of 100 million yuan and an outstanding balance of 25 million yuan[130] - The company used its own funds for entrusted bank loans totaling 350 million yuan for the "Belt and Road" International Headquarters project, with an expected annualized return rate of 9.00%[135][136] Changes in Ordinary Shares and Shareholder Information This section details the company's shareholder structure and significant changes in shareholdings Shareholder Information As of the end of the reporting period, the company had 33,335 ordinary shareholders, with Xiamen Haiyi Group Co., Ltd. as the controlling shareholder and the Xiamen Municipal State-owned Assets Supervision and Administration Commission as the ultimate controlling party Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End | Percentage (%) | Nature | | :--- | :--- | :--- | :--- | | Xiamen Haiyi Group Co., Ltd. | 734,789,208 | 41.42 | State-owned Legal Person | | Export-Import Bank of China Xiamen Branch | 122,239,488 | 6.89 | State-owned Legal Person | | China Construction Bank Corporation Xiamen Branch | 90,627,000 | 5.11 | State-owned Legal Person | | Xiamen XGMA Heavy Industry Co., Ltd. | 72,750,834 | 4.10 | State-owned Legal Person | | Agricultural Bank of China Limited Xiamen Branch | 70,116,812 | 3.95 | State-owned Legal Person | | Industrial and Commercial Bank of China Limited Xiamen Branch | 56,831,048 | 3.20 | State-owned Legal Person | | BRICS Yichuang (Xiamen) Intelligent Manufacturing Industry Equity Investment Fund | 46,322,240 | 2.61 | Unknown | | Bank of China Limited Xiamen Branch | 18,902,403 | 1.07 | State-owned Legal Person | - The company's controlling shareholder is Xiamen Haiyi Group Co., Ltd., and the actual controller is the Xiamen Municipal People's Government State-owned Assets Supervision and Administration Commission[159][161][163] Directors, Supervisors, Senior Management, and Employees This section covers changes in the company's board of directors, supervisors, and senior management, their remuneration, and overall employee information Changes and Remuneration of Directors, Supervisors, and Senior Management During the reporting period, the company's senior management team underwent significant changes, with Mr. Gu Tao elected as the new Chairman and Mr. Lin Chunming appointed as President - Changes in Directors, Supervisors, and Senior Management during the reporting period: - New Appointments: Gu Tao as Chairman, Lin Chunming as President, Li Xiyong as Vice President and CFO, Sun Tao as Vice President, Yang Quanfa as Chairman of the Supervisory Board, Shen Tingting as Supervisor[180] - Departures: Chen Tiansheng (Director), Liu Yihong (Chairman of the Supervisory Board), Tang Chong (Supervisor), Chen Zhaoli (Vice President), Guo Song (Executive Vice President), Zhang Jian (CFO) departed[180] - The total pre-tax remuneration received by all directors, supervisors, and senior management from the company at the end of the reporting period was 4.21 million yuan[179] Employee Information As of the end of the reporting period, the company had a total of 905 employees, with production personnel constituting the largest proportion Employee Professional Composition | Professional Category | Number of Employees | | :--- | :--- | | Production Personnel | 447 | | Sales Personnel | 244 | | Technical Personnel | 94 | | Financial Personnel | 32 | | Administrative Personnel | 88 | | Total | 905 | - The company is advancing salary system reform, establishing a compensation structure guided by position value, performance, and company operational goals[183] Corporate Governance This section provides an overview of the company's corporate governance practices and internal control effectiveness Overview of Corporate Governance During the reporting period, the company strictly adhered to relevant laws and regulations, continuously improving its corporate governance structure to ensure standardized operations - During the reporting period, the company operated in strict accordance with laws and regulations such as the "Company Law" and "Securities Law," maintaining a sound corporate governance structure[188] - The company disclosed its 2020 Internal Control Evaluation Report and a standard unqualified internal control audit report, indicating no material weaknesses in internal control during the reporting period[195] Financial Report This section presents the company's audit report, financial statements, and detailed notes to the financial statements Audit Report Rongcheng Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements - The auditing firm, Rongcheng Certified Public Accountants (Special General Partnership), issued a standard unqualified audit report[201] - Key audit matters identified were: 1. Revenue Recognition: Due to revenue being a key performance indicator, there is an inherent risk of management manipulating the timing of revenue recognition to achieve specific targets or expectations[203] 2. Allowance for Doubtful Accounts: The significant balance of accounts receivable (book value of 704 million yuan, accounting for 20.27% of total assets) means that the assessment of expected credit losses involves significant accounting estimates and judgments by management[204] Financial Statements The financial statements include the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Key Items (December 31, 2020) | Item | Amount | | :--- | :--- | | Total Assets | 3.474 billion yuan | | Total Current Assets | 2.66 billion yuan | | Total Non-Current Assets | 814 million yuan | | Total Liabilities | 1.951 billion yuan | | Total Current Liabilities | 1.156 billion yuan | | Total Non-Current Liabilities | 795 million yuan | | Total Owners' Equity | 1.523 billion yuan | | Owners' Equity Attributable to Parent Company | 1.369 billion yuan | Consolidated Income Statement Key Items (2020) | Item | Amount | | :--- | :--- | | Total Operating Revenue | 1.92 billion yuan | | Total Operating Costs | 1.977 billion yuan | | Operating Profit | 55.90 million yuan | | Total Profit | 67.19 million yuan | | Net Profit | 52.94 million yuan | | Net Profit Attributable to Parent Company Shareholders | 37.60 million yuan | Consolidated Cash Flow Statement Key Items (2020) | Item | Amount | | :--- | :--- | | Net Cash Flow from Operating Activities | -310 million yuan | | Net Cash Flow from Investing Activities | 315 million yuan | | Net Cash Flow from Financing Activities | -38 million yuan | | Net Increase in Cash and Cash Equivalents | -36 million yuan | Notes to Financial Statements The notes to the financial statements detail the company's accounting policies, estimates, and changes, including the first-time adoption of new revenue standards in 2020 - The company adopted new revenue standards from January 1, 2020, changing accounting policies by reclassifying advance receipts related to goods sales and services to contract liabilities and adjusting the presentation of related VAT output tax[370][371] - Accounts receivable at period-end totaled 962 million yuan, with an allowance for doubtful accounts of 258 million yuan, resulting in a book value of 704 million yuan; the top five customers by accounts receivable accounted for 34.44% of the total at period-end[398][415] - Inventory had a book value of 859 million yuan at period-end, with an inventory impairment provision of 98.53 million yuan, and finished goods constituting the largest portion of inventory[437][438]