ZLC(SH:600818)2021-04-16 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 96,133,553.22 RMB, compared to a net loss of 63,033,486.89 RMB in 2019, marking a significant turnaround [4]. - The company's operating revenue for 2020 was 734,397,436.23 RMB, representing a 25.60% increase from 584,723,847.72 RMB in 2019 [20]. - The basic earnings per share for 2020 was 0.30 RMB, a recovery from a loss of 0.20 RMB per share in 2019 [20]. - The weighted average return on equity for 2020 was 16.05%, a substantial improvement from -10.63% in 2019 [20]. - The company reported a net cash flow from operating activities of 10,797,380.05 RMB, up 15.35% from 9,360,718.27 RMB in 2019 [20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 7,967,546.72 RMB in 2020, compared to a loss of 58,668,404.03 RMB in 2019 [20]. - The company's net assets attributable to shareholders increased by 13.53% to 645,447,545.90 RMB at the end of 2020, up from 568,514,841.36 RMB at the end of 2019 [20]. - The company reported a non-recurring profit of 88.166 million RMB in 2020, a significant recovery from a loss of 4.365 million RMB in 2019 [23]. - The operating profit was RMB 116.75 million, a significant turnaround from a loss of RMB 70.26 million in the same period last year [35]. - The company reported a total comprehensive income of CNY 31,528,192.14 for the year, reflecting a significant increase compared to the previous year [181]. Business Operations - The company has a dual business model focusing on bicycle-related products and equity investments, with subsidiaries involved in bowling equipment and public bicycle rental services [25]. - The company plans to develop a large-scale cultural tourism complex, enhancing its geographical advantage near major logistics hubs and attractions [29]. - The company is actively participating in public-private partnership (PPP) projects to address last-mile transportation issues for residents [32]. - The company aims to maximize shareholder value while promoting green and low-carbon transportation solutions [31]. - The company is developing new products that combine traditional manufacturing with electronic products to meet mainstream consumer trends [71]. - The company plans to enhance product development and technology upgrades to improve market share in the growing bicycle industry [55]. Market Trends - The production of two-wheeled bicycles in China reached 44.368 million units in 2020, with a year-on-year increase of 24.3% [27]. - The electric bicycle production in China totaled 29.661 million units in 2020, marking a year-on-year growth of 29.7% [27]. - The bicycle manufacturing industry in China saw a revenue growth of 16.17% in 2020, indicating strong market demand [26]. - The bicycle industry is expected to maintain high demand due to rising living standards and a focus on health and fitness, with significant growth potential in high-end and smart bicycles [68][69]. Investments and Divestitures - The company established a wholly-owned subsidiary, investing RMB 50 million to set up Laidikes, focusing on the production and sales of rice paper, with a registered capital of RMB 62.50 million after additional investment [33]. - The company sold 10% and 3.05% stakes in Yingnei IoT for RMB 6.50 million and RMB 19.79 million respectively, retaining a 12.5% stake post-transaction [34]. - The company divested 4.2857% of its stake in Cloud Accounting for a total of USD 1.20 million, maintaining a 2.4693% stake thereafter [34]. - The company made an equity investment of RMB 26 million in Nantong Longyang Aquatic Co., acquiring an 8% stake [60]. - The company disposed of a 13.0453% equity stake in Yingnei IoT for CNY 650 million, resulting in a gain of approximately CNY 76.08 million [143]. - The company also sold a 4.2857% stake in Cloud Accounting for USD 28 million, generating a profit of about USD 4.89 million [143]. Financial Position - As of the end of 2020, the total assets of the company were 954,386,311.94 RMB, a 4.08% increase from 916,970,347.24 RMB at the end of 2019 [20]. - The company's total liabilities decreased by 50.43% in debt repayment, indicating improved financial management [47]. - Interest expenses decreased by 43.24% to ¥6,675,956.52 due to a reduction in total financing loans [48]. - The company's total assets increased to ¥907,877,001.23 in 2020, compared to ¥816,254,040.79 in 2019, marking a growth of 11.2% [158]. - Total equity increased to ¥650,129,100.13 in 2020 from ¥584,024,051.83 in 2019, reflecting an increase of 11.3% [155]. - Cash and cash equivalents rose to ¥157,221,270.60 in 2020 from ¥55,229,639.06 in 2019, a significant increase of 184.8% [153]. Research and Development - The company's research and development expenses decreased by 11.71% to RMB 27.41 million, indicating a focus on cost management [37]. - R&D expenses totaled ¥27,408,173.96, accounting for 3.73% of total revenue [45]. - Research and development expenses for 2020 were ¥27,408,173.96, down from ¥31,044,719.12 in 2019, reflecting a decrease of 11.5% [160]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 34,774, an increase from 33,448 prior to the report [107]. - Shanghai Zhonglu (Group) Co., Ltd. held 124,966,334 shares, representing 38.88% of total shares, with 88,160,734 shares pledged [109]. - The company has no significant changes in its internal control audit or accounting firm appointments during the reporting period [86]. - The company has not reported any penalties from securities regulatory authorities in the past three years [125]. Compliance and Governance - The company’s financial statements are prepared based on the going concern assumption, indicating confidence in its operational sustainability [190]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring transparency and accuracy in its financial reporting [191]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and results for the year ended December 31, 2020 [138].