Sinoma-int(SH:600970)2021-03-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥22.49 billion, a decrease of 7.72% compared to ¥24.37 billion in 2019[17]. - Net profit attributable to shareholders was approximately ¥1.13 billion, down 28.81% from ¥1.59 billion in 2019[17]. - The net profit after deducting non-recurring gains and losses was approximately ¥856.62 million, a decline of 42.38% from ¥1.49 billion in 2019[17]. - The net cash flow from operating activities increased significantly to approximately ¥1.75 billion, a 597.14% increase from ¥250.83 million in 2019[17]. - The company's total assets at the end of 2020 were approximately ¥34.21 billion, up 3.97% from ¥32.91 billion at the end of 2019[17]. - Basic earnings per share for 2020 were ¥0.65, a decrease of 29.35% from ¥0.92 in 2019[18]. - The weighted average return on equity decreased to 10.90%, down 5.92 percentage points from 16.82% in 2019[18]. - The company reported a total operating revenue for the reporting period of ¥22,491,954,185.13, a decrease of 7.72% compared to the previous year[41]. - The total operating cost was ¥18,803,408,651.65, down 7.09% from the previous year[46]. Dividend Distribution - The company plans to distribute a cash dividend of 2.30 RMB per 10 shares (including tax), totaling approximately 399.66 million RMB based on a total share capital of 1,737,646,983 shares as of December 31, 2020[4]. - The company distributed a cash dividend of 0.301 RMB per share for the 2019 fiscal year, totaling 523,611,729.75 RMB, based on a total share count of 1,739,573,853 shares[89]. - The cash dividends for the years 2018, 2019, and 2020 represented 33.71%, 32.89%, and 35.26% of the net profit attributable to ordinary shareholders, respectively[91]. - The company has a clear profit distribution policy and a three-year shareholder return plan, ensuring the protection of minority shareholders' rights[89]. - The proposed cash dividend for 2020 is subject to approval at the upcoming shareholders' meeting[90]. Risk Management - The company has identified various risks including industry risks, overseas operation risks, exchange rate risks, and public health event risks, which are detailed in the report[7]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantial commitments to investors, highlighting the importance of risk awareness[5]. - The company is enhancing its risk management framework to address overseas operational risks, including geopolitical instability and currency fluctuations, to maintain a controlled risk exposure[87]. Audit and Compliance - The company has received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm, ensuring the accuracy and completeness of the financial report[3]. - The company has maintained compliance with decision-making procedures and has not provided guarantees in violation of regulations[6]. - The internal control audit report issued by Xinyong Zhonghe CPA provided a standard unqualified opinion on the effectiveness of internal controls as of December 31, 2020[192]. - The financial statements for the year ended December 31, 2020, were prepared in accordance with accounting standards, reflecting the company's financial position and operating results fairly[195]. Business Operations - The engineering construction business accounted for over 70% of the company's new contracts and revenue, with a focus on cement and diversified engineering projects[24]. - The company is actively exploring various EPC models, including EPC+F (investment financing) and EPC+M (operation management), to adapt to market demands[24]. - The company's cement production capacity reached approximately 1.827 billion tons by the end of 2020, with a net increase of 19.24 million tons compared to 2019[26]. - The company reported a rapid development in the waste disposal business, with the capacity for collaborative disposal in cement kilns reaching 6 million tons, five times that of 2015[28]. - The company maintained a global market share of 70% in domestic cement production lines and ranked first in the global market for 13 consecutive years[32]. Research and Development - Research and development expenses totaled ¥608,636,167.00, accounting for 2.71% of total operating revenue[50]. - The company is investing 500 million RMB in research and development for new technologies in the next fiscal year[166]. - The company aims to enhance its digital transformation during the "14th Five-Year Plan," focusing on digital design, intelligent manufacturing, and smart operations across the entire industry chain[80]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability in its operations[180]. - The company has implemented a salary management mechanism that aligns employee compensation with market conditions and company performance, optimizing labor cost efficiency[176]. - The company has a structured approach to the appointment and election of directors and senior management, ensuring compliance with governance standards[174]. Social Responsibility - The company actively participated in poverty alleviation efforts, donating a total of RMB 4 million through the "Shan Jian Public Welfare" fund[133]. - The company is committed to fulfilling its social responsibilities, particularly in poverty alleviation, as part of its corporate governance strategy[132]. - The company helped 218 registered impoverished individuals to escape poverty through various initiatives[135]. Legal Matters - The company is involved in a civil lawsuit with a subsidiary, Oriental Trade, against Beijing Zhongchu Logistics, with a claim amount of 11.86 million yuan, and the second-instance judgment supports most of Oriental Trade's claims[106]. - Oriental Trade has a lawsuit against multiple companies, including Shanghai Dingqi Trading, with a claim amount of 106.55 million yuan, and the second-instance court has ruled in favor of Oriental Trade[106]. - The company has not faced any risks of suspension or termination of listing during the reporting period[103]. Future Outlook - In 2021, the global cement demand is expected to increase steadily compared to 2020, with a stable global production capacity, despite a decrease in large overseas cement investment projects[76]. - The company provided a future outlook with a revenue growth guidance of 10-12% for the next fiscal year[166]. - The company plans to enhance its digital marketing strategy, aiming for a 25% increase in online sales[166].