SINOJIT Technology(SH:601218)2021-02-04 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,048,770,631.53, representing a 36.86% increase compared to CNY 1,496,938,303.74 in 2019[24]. - The net profit attributable to shareholders of the listed company reached CNY 233,780,372.92, a significant increase of 257.48% from CNY 65,396,509.70 in the previous year[24]. - The net cash flow from operating activities was CNY 729,793,592.56, showing a 99.75% increase compared to CNY 365,356,749.82 in 2019[24]. - Basic earnings per share increased by 259.37% to CNY 0.2397 in 2020 compared to CNY 0.0667 in 2019[25]. - Diluted earnings per share rose by 258.57% to CNY 0.2363 in 2020 from CNY 0.0659 in 2019[25]. - The weighted average return on equity increased by 6.32 percentage points to 8.95% in 2020, up from 2.63% in 2019[25]. - Total revenue for Q4 2020 reached CNY 663,801,460.63, marking a significant increase from CNY 303,757,028.03 in Q1 2020[28]. - The company reported a net cash flow from operating activities of CNY 304,021,266.78 in Q4 2020, up from CNY -6,294,122.00 in Q1 2020[28]. - Non-recurring gains and losses amounted to CNY 2,970,112.20 in 2020, compared to CNY -1,265,486.06 in 2019[30]. Assets and Liabilities - The total assets as of the end of 2020 were CNY 4,239,307,619.68, a decrease of 7.06% from CNY 4,561,562,491.22 at the end of 2019[24]. - The total liabilities decreased from 2,052,154,682.74 to 1,514,098,218.30, a reduction of about 26.19%[182]. - Current liabilities decreased from 1,590,041,594.46 to 1,104,056,299.32, a reduction of about 30.58%[182]. - Long-term borrowings decreased from 223,868,756.16 to 212,235,179.72, a decrease of approximately 5.00%[182]. - The total equity increased from 2,509,407,808.48 to 2,725,209,401.38, an increase of approximately 8.59%[182]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares to all shareholders, pending approval at the annual shareholders' meeting[5]. - In 2020, the company distributed a cash dividend of 2.00 yuan per 10 shares, with a total distribution amounting to approximately 233.78 million yuan[90]. - The cash dividend policy stipulates that the company will distribute at least 10% of the annual distributable profit in cash if profits are positive and there are no major investment plans[87]. Research and Development - The company’s R&D expenses rose by 27% to CNY 61.79 million, reflecting its commitment to innovation[47]. - Research and development expenses totaled approximately 61.79 million RMB, representing 3.02% of operating revenue, with 231 R&D personnel making up 27.27% of the total workforce[60]. - The company applied for and accepted 11 utility model patents and was granted 1 invention patent and 19 utility model patents during the reporting period[42]. Operational Strategy - The company specializes in manufacturing components for large wind turbines, with a production capacity covering a range from 750KW to 12MW[34]. - The company operates on a "make-to-order" model, allowing for customized production based on client specifications[34]. - The company has established long-term cooperative relationships with major suppliers to ensure the stability of raw material procurement[35]. - The company successfully completed the 150MW wind farm project, contributing to its revenue growth[41]. Market and Industry Trends - The company aims to enhance its position in the wind energy sector, aligning with national policies promoting non-fossil energy sources[71]. - Offshore wind power has advantages such as higher generation capacity, larger single-unit capacity, and stability, leading to a global trend of shifting from onshore to offshore development[72]. - The cost of offshore wind power has decreased by over 30% since the first offshore wind farm was commissioned, with total installed capacity expected to surge from 13GW in 2015 to 100GW by 2030[72]. - The market trend indicates that wind power will transition to grid parity, supported by government policies promoting unsubsidized pricing[78]. Governance and Compliance - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors, highlighting investment risks[6]. - The company has not reported any violations regarding decision-making procedures for external guarantees[8]. - The company’s board of directors and management confirm the accuracy and completeness of the annual report, with no false records or misleading statements[8]. - The company has implemented a comprehensive governance structure to protect shareholder rights and ensure compliance with relevant laws and regulations[111]. - The company has no significant litigation or arbitration matters during the reporting period[97]. Social Responsibility and Environmental Commitment - The company actively participates in social responsibility initiatives, focusing on supporting disadvantaged communities[112]. - The company strictly adheres to environmental regulations and has not faced any administrative penalties from environmental authorities during the reporting period[113]. - The company is committed to becoming a world-class casting supplier, focusing on green development and sustainable practices[80]. Executive Compensation and Shareholding - The total remuneration for the chairman, Bao Shijin, was CNY 1,053,300, with a decrease in shareholding by 1,000,000 shares during the reporting period[137]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to CNY 10.2881 million[145]. - The company has a consistent policy of shareholding adjustments among its executives, indicating a strategic approach to equity management[137]. Risks and Challenges - The company is facing risks from fluctuations in the wind power industry, policy changes, and potential declines in customer demand, which may impact operational performance[84]. - Independent directors raised concerns regarding the authenticity and completeness of the 2020 semi-annual report, citing issues with related party transactions and accounting classifications[158].