FIRMACO(SH:600967)2021-04-26 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.83 CNY per 10 shares, totaling approximately 140.24 million CNY, which represents 21.37% of the net profit attributable to shareholders for the year 2020[7]. - In the first half of 2020, the company distributed a cash dividend of 0.34 CNY per 10 shares, amounting to about 57.45 million CNY, accounting for 8.75% of the annual net profit attributable to shareholders[7]. - The total cash dividend distributed for 2020 is approximately 1.17 CNY per 10 shares, which constitutes 30.12% of the net profit attributable to shareholders for the year[7]. - The company distributed cash dividends totaling ¥117.59 million, an increase of 98.51% compared to ¥59.24 million last year[73]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive profits available for distribution to ordinary shareholders[130]. Financial Performance - The company's operating revenue for 2020 was approximately ¥13.23 billion, an increase of 4.36% compared to ¥12.68 billion in 2019[29]. - The net profit attributable to shareholders for 2020 was approximately ¥656.14 million, representing a growth of 14.70% from ¥572.04 million in 2019[29]. - The net cash flow from operating activities reached approximately ¥4.48 billion, an increase of 18.62% compared to ¥3.78 billion in 2019[29]. - The total assets at the end of 2020 were approximately ¥30.17 billion, reflecting a growth of 19.03% from ¥25.34 billion at the end of 2019[29]. - The basic earnings per share for 2020 was ¥0.39, up 14.71% from ¥0.34 in 2019[30]. - The weighted average return on equity for 2020 was 6.93%, an increase of 0.37 percentage points from 6.56% in 2019[30]. - The net profit after deducting non-recurring gains and losses for 2020 was approximately ¥633.40 million, a 20.41% increase from ¥526.03 million in 2019[29]. Audit and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[5]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[9]. - The company has not violated any decision-making procedures regarding external guarantees[11]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[6]. - The company has detailed potential risks in the management discussion and analysis section of the report[11]. Research and Development - The company completed 221 patent applications in 2020, including 147 invention patents, showcasing its strong innovation capabilities[52]. - The company has established a comprehensive manufacturing capability, including design, process research, and testing for military and civilian products, supported by 2 national-level innovation platforms and 19 provincial-level R&D centers[49]. - The company is focused on transforming into an innovative enterprise with self-reliance in technology and aims for a modern industrial system with higher quality and efficiency[86]. - The company plans to strengthen its technological innovation capabilities, particularly in key projects and technologies related to railway vehicles and environmental transport[112]. Market and Strategic Position - The company is a key supplier for national security and military equipment, positioning itself well within the "Strong Army" strategy[46]. - The company is the only main battle tank research and production base in the country, highlighting its core competitiveness in the defense industry[47]. - The military product business is expected to be driven by the implementation of the "Strong Army" strategy and the completion of major scientific research projects[43]. - The company is actively involved in new infrastructure and urbanization projects, which are expected to create development opportunities for its railway vehicles and components[45]. Environmental Management - The company achieved zero industrial wastewater discharge, saving over 400,000 tons of fresh water annually, enhancing water resource utilization[194]. - All atmospheric pollutants, including sulfur dioxide and nitrogen oxides, were compliant with national emission standards[195]. - The company has strengthened the management of hazardous waste, adhering to environmental protection regulations[196]. - The wastewater treatment equipment and six air pollution control facilities achieved a 100% operational rate in 2020, meeting national emission standards[187]. Social Responsibility - The company is committed to fulfilling its social responsibilities and promoting green production and consumption practices[110]. - The company invested a total of 950,000 RMB in poverty alleviation efforts, including a donation of 800,000 RMB to Gannan County and 150,000 RMB to Yinhao Town[175]. - The company helped 315 registered impoverished individuals to escape poverty through various initiatives[176]. - The company conducted vocational training for 65 individuals as part of its employment assistance programs[177]. Challenges and Risks - The company faces risks related to ongoing COVID-19 pandemic impacts on its supply chain and international trade[118]. - The company is challenged by the complexity of military product research and development, requiring enhanced technological capabilities[119]. - The global military trade market is becoming increasingly competitive, with heightened demands for product performance and quality, necessitating a shift towards integrated solutions rather than standalone products[104]. - The company aims to enhance its military capabilities and address the challenges posed by declining traditional equipment demand and increased competition in research and procurement[107].