BAOSHENG SCI(SH:600973)2021-03-14 16:00Financial Performance - The company's operating revenue for 2020 was CNY 34,138,495,290.67, representing a 2.57% increase from CNY 33,282,921,832.46 in 2019[24]. - The net profit attributable to shareholders of the listed company was CNY 218,513,116.57, a 41.87% increase compared to CNY 154,025,604.03 in 2019[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 162,152,025.78, reflecting a 21.00% increase from CNY 134,012,682.19 in 2019[24]. - Basic earnings per share for 2020 increased to CNY 0.16, a 23.08% increase compared to CNY 0.13 in 2019[28]. - The net profit attributable to shareholders for Q2 2020 was CNY 83,841,789.98, while Q3 2020 saw a slight decrease to CNY 79,934,731.76[29]. - The total operating income for Q4 2020 was CNY 9,168,831,429.18, showing a consistent revenue stream throughout the year[29]. - The weighted average return on equity for 2020 was 4.69%, an increase of 0.55 percentage points from 4.14% in 2019[28]. - The company reported a net profit of CNY 10,855,848.28 in Q4 2020, a significant drop compared to previous quarters[29]. - The company achieved a total revenue of ¥34,138,495,290.67 in 2020, representing a year-on-year growth of 2.57%[47]. - The net profit attributable to shareholders increased to ¥218,513,116.57, marking a significant rise of 41.87% compared to the previous year[47]. - The company reported a decrease in employee compensation payable to ¥23.08 million in 2020 from ¥29.42 million in 2019, a decline of about 21.5%[189]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 128,067,923.59, a decrease of 363.17% compared to positive CNY 48,663,173.57 in 2019[24]. - The net cash flow from operating activities in Q4 2020 was CNY 634,544,365.42, indicating a recovery from negative cash flow in earlier quarters[29]. - The company's total assets increased, with a notable rise in fixed asset purchases contributing to an investment cash flow of -1,085,670,334.94 CNY[62]. - Current assets increased to ¥13.31 billion in 2020 from ¥11.26 billion in 2019, representing a growth of approximately 18.2%[187]. - Cash and cash equivalents rose to ¥3.41 billion in 2020, up from ¥2.77 billion in 2019, marking an increase of about 23.1%[187]. - Total assets reached ¥19.88 billion in 2020, up from ¥16.98 billion in 2019, indicating an increase of approximately 17.4%[189]. - Total liabilities increased to ¥14.44 billion in 2020, compared to ¥12.08 billion in 2019, reflecting a growth of around 19.6%[189]. - Long-term borrowings surged to ¥1.39 billion in 2020 from ¥0.63 billion in 2019, representing a significant increase of about 119.5%[189]. Investments and R&D - The company launched 335 technology projects in 2020, completing 127 projects, and applied for 153 patents, including 32 invention patents[45]. - Research and development expenses amounted to 494,080,781.72 CNY, representing 1.45% of total revenue, with a year-on-year increase of 16.46%[60]. - The company employed 1,193 R&D personnel, which is 17.69% of the total workforce, indicating a strong focus on innovation[60]. - The company plans to enhance its technological innovation capabilities by accelerating the establishment of innovation platforms and R&D centers, including a national laboratory for submarine cables and optical cables[76]. Market Position and Strategy - The company maintained its position as a leading player in the cable industry, ranking among the top 10 most competitive companies in China's cable sector for five consecutive years[40]. - The company implemented a "2236" marketing strategy, enhancing its market capture and control capabilities[36]. - The company is focusing on expanding its market presence in new infrastructure projects, particularly in 5G, data centers, and artificial intelligence, leveraging its status as a state-owned enterprise[76]. - The company aims to strengthen its marketing transformation by enhancing its marketing network and focusing on high-quality sales strategies[76]. Risks and Challenges - The company has outlined potential industry and market risks in its report, advising investors to be cautious[8]. - The company anticipates risks related to policy changes, market competition, and reliance on key customers in the telecommunications and power sectors[81]. - The company has identified a potential risk of core technical personnel shortages due to increasing competition for skilled talent in the wire and cable industry[82]. - The company faced challenges in the offshore wind power sector, with a supply-demand imbalance and rising costs for components and construction[36]. Corporate Governance and Compliance - The company received a standard unqualified audit report from Zhongshen Zhonghuan Accounting Firm[5]. - The internal control audit was conducted by Zhongzheng Zhonghuan Accounting Firm with a fee of 350,000 RMB[97]. - The company has established a governance structure that meets the requirements of the China Securities Regulatory Commission[159]. - The company’s independent board and supervisory board operate independently, ensuring compliance and protecting shareholder rights[162]. - The company has no major litigation or arbitration matters during the year[95]. Shareholder Information - The total number of ordinary shares is 1,222,112,517, with 149,253,731 new shares issued, representing 10.88% of the total[120]. - The largest shareholder, Baosheng Group Co., Ltd., holds 31.90% of the shares, totaling 437,406,433 shares[127]. - The company plans to use part of the raised funds to supplement working capital, alleviating cash flow pressure from bank loan repayments[126]. - Baosheng Group holds 437,406,433 shares of Baosheng Co., and will not reduce its holdings within 36 months after the private placement[94].