ZJHM(SH:600987)2021-04-20 16:00Financial Performance - The net profit attributable to the parent company for 2020 was CNY 601,229,237.02, with a distributable profit of CNY 3,612,851,110.35 after accounting for previous distributions and reserves[6]. - The company's operating revenue for 2020 was approximately ¥5.23 billion, a decrease of 21.83% compared to ¥6.69 billion in 2019[28]. - Net profit attributable to shareholders was approximately ¥601.23 million, down 18.42% from ¥736.97 million in the previous year[28]. - The net cash flow from operating activities increased by 5.44% to approximately ¥1.06 billion, compared to ¥1.00 billion in 2019[28]. - Basic earnings per share decreased to ¥0.56, down 17.65% from ¥0.68 in 2019[28]. - The weighted average return on equity decreased by 4.16 percentage points to 12.07% from 16.23% in 2019[28]. - The company achieved total operating revenue of CNY 523.28 million, a year-on-year decrease of 21.83%[52]. - Operating profit was CNY 79.37 million, down 19.39% year-on-year, while net profit attributable to shareholders was CNY 60.12 million, a decline of 18.42%[52]. Dividend Distribution - The cash dividend proposed is CNY 2 per 10 shares, totaling CNY 216,163,768.20, which represents 35.95% of the net profit attributable to shareholders[6]. - The company distributed cash dividends of 2.2 yuan per 10 shares in 2020, totaling approximately 237.78 million yuan[106]. - In 2020, the company distributed a cash dividend of 2.00 CNY per 10 shares, totaling 216,163,768.20 CNY, which represents 35.95% of the net profit attributable to ordinary shareholders[107]. - In 2019, the cash dividend was 2.20 CNY per 10 shares, amounting to 237,780,145.02 CNY, accounting for 32.26% of the net profit attributable to ordinary shareholders[107]. - In 2018, the company issued 2.50 bonus shares per 10 shares and paid a cash dividend of 2.80 CNY per 10 shares, totaling 208,709,845.12 CNY, which was 31.53% of the net profit attributable to ordinary shareholders[107]. Risk Management - The report includes a risk statement highlighting potential uncertainties in future plans and strategies, urging investors to be cautious[7]. - The company has outlined its operational risks in detail within the report, emphasizing the importance of risk management[10]. - The company has confirmed no non-operational fund occupation by controlling shareholders or related parties, ensuring financial integrity[8]. - The company has not reported any violations in decision-making procedures regarding external guarantees, indicating compliance with regulations[8]. Operational Highlights - The total share capital as of December 31, 2020, was 1,080,818,841 shares, which will be used as the basis for the dividend distribution[6]. - The company reported a quarterly revenue of approximately ¥1.55 billion in Q4 2020, showing a sequential increase from ¥1.39 billion in Q3 2020[31]. - The net profit attributable to shareholders in Q4 2020 was approximately ¥202.29 million, up from ¥155.76 million in Q3 2020[31]. - The company’s net assets attributable to shareholders increased by 7.53% to approximately ¥5.18 billion at the end of 2020[28]. Industry Context - The overall dyeing industry in China saw a production volume of 52.5 billion meters in 2020, with a year-on-year decrease of 3.71%[40]. - The textile industry generated CNY 3.04 billion in revenue, a decrease of 20.21% year-on-year, with a gross margin of 24.58%[57]. - The gold jewelry industry in China is characterized by regional distribution, with key clusters in Guangdong, Zhejiang, and Shandong, benefiting from high resource availability and consumer spending[97]. - In 2020, gold demand fell to an 11-year low due to slowed jewelry sales, but a recovery in physical gold consumption is expected in 2021 as the pandemic is controlled[97]. Environmental and Social Responsibility - The company actively engaged in social responsibility, donating CNY 2.5 million for COVID-19 prevention efforts[51]. - The company has reduced its pollutant emissions by 114 tons compared to the previous year, with a total annual emission of 2,653.18 tons[177]. - The company’s pollution control costs decreased by 13.65% in 2020 compared to 2019, totaling RMB 137.83 million[182]. - The company plans to continue its poverty alleviation efforts in 2021 by creating local特色产业 and optimizing resource allocation[172]. Financial Management - The company has entrusted CNY 2.84 billion of idle funds for financial management, with an outstanding balance of CNY 1.04 billion[148]. - The company disclosed a plan to use up to CNY 1.2 billion of idle funds for low-risk financial products, which can be rolled over[149]. - The company has implemented strategies to utilize idle funds effectively through entrusted loans and wealth management products[165]. - The company has established a robust risk management framework to monitor and manage the performance of entrusted loans[165]. Corporate Governance - The company has established an independent financial department and accounting system to ensure financial independence from related parties[116]. - The company guarantees that it will not engage in any activities that compete with its subsidiaries, ensuring no conflicts of interest[119]. - The company has implemented a share buyback plan starting from November 7, 2019, committing not to reduce its holdings during the buyback period[119]. - The company has also initiated another share buyback plan starting from November 12, 2020, with a similar commitment not to reduce its holdings[119].