BROS(SH:601339)2021-04-22 16:00Financial Performance - In 2020, the company achieved a total revenue of ¥6,134,557,248.06, a decrease of 1.40% compared to ¥6,221,786,385.25 in 2019[22] - The net profit attributable to shareholders was ¥366,054,425.04, representing an increase of 22.92% from ¥297,808,907.84 in the previous year[22] - The net profit after deducting non-recurring gains and losses was ¥287,425,427.89, up by 9.16% from ¥263,316,539.88 in 2019[22] - The net cash flow from operating activities reached ¥1,215,437,188.44, an increase of 26.95% compared to ¥957,403,707.46 in 2019[22] - The net profit attributable to shareholders for Q4 2020 was CNY 187,054,567.70, showing a significant increase compared to previous quarters[26] - The operating cash flow for Q4 2020 reached CNY 611,627,050.45, indicating strong cash generation capabilities[26] - Basic earnings per share increased by 25.00% to CNY 0.25 from CNY 0.20[25] - Diluted earnings per share also increased by 25.00% to CNY 0.25 from CNY 0.20[25] - The gross profit margin for the cotton spinning industry segment was 10.58%, a decrease of 5.55 percentage points compared to the previous year[68] Dividend and Profit Distribution - The company plans to distribute a cash dividend of ¥2 per 10 shares, totaling ¥294,800,018.40, based on a total share capital of 1,500,000,000 shares[6] - As of the end of 2020, the accumulated undistributed profits amounted to ¥1,874,619,296.18 after accounting for the legal surplus reserve[6] - In 2020, the company distributed cash dividends totaling 294.8 million RMB, representing 78.22% of its net profit attributable to shareholders[123] - The company’s cash dividend payout ratio reached 104.21% in 2020, indicating a strong commitment to returning value to shareholders[125] Research and Development - The total R&D expenditure was ¥138,617,428.40, accounting for 2.26% of total revenue, with 1,029 R&D personnel, representing 6.20% of the total workforce[81] - The company launched two sets of trendy color cards and received two invention patents and two utility model patents during the reporting period[53] - The company has been focusing on the R&D and production of colored yarn, leveraging a unique processing method that enhances product value and environmental benefits[35] - The company launched 5 new innovative color card series and 2 trend color card series during the reporting period, enhancing its high-value product line[62] Market and Sales Performance - The company generated CNY 2.259 billion in revenue from the sale of grey fabric, accounting for 36.82% of total sales revenue[37] - The revenue from gray fabric was ¥2,259,425,304.40, showing a significant increase of 45.64% year-on-year, with a gross margin of 3.74%, down by 1.34 percentage points[71] - Domestic revenue in China was ¥2,298,895,150.84, a decline of 14.82%, with a gross margin of 1.06%, down by 11.69 percentage points[71] - International revenue reached ¥3,553,835,073.71, an increase of 14.94%, with a gross margin of 16.73%, down by 2.34 percentage points[71] - Yarn production volume was 204,851.44 tons, up by 5.19%, while sales volume was 216,343.31 tons, increasing by 12.31%[72] Operational Efficiency - The company has invested annually in upgrading production lines and dyeing processes to enhance product quality and innovation[55] - The company invested CNY 8.7875 million in equipment upgrades to enhance automation and efficiency, supporting new product development and pandemic response[63] - Sales expenses decreased significantly by 73.26% to CNY 38.13 million, reflecting cost control measures during the pandemic[66] - The company has implemented measures to enhance internal management and reduce costs while improving quality and efficiency[112] Strategic Initiatives - The company emphasizes technological innovation as its core competitive advantage, aiming to be a global leader in the color spinning industry[53] - The company is adapting to market changes by leveraging new sales models such as short videos and live streaming to expand its market reach[106] - The company is addressing labor shortages by investing in automation and intelligent textile machinery[106] - The company has established a production base in Vietnam, which now accounts for 60% of its total capacity with 1 million spindles, enhancing its cost advantage and international competitiveness[111] Financial Position and Assets - The net assets attributable to shareholders decreased by 1.01% to CNY 7,892,836,824.33 from CNY 7,973,621,681.07[25] - Total assets decreased by 8.07% to CNY 13,159,427,998.05 from CNY 14,314,591,438.11[25] - The company’s overseas assets amounted to approximately 6.32 billion RMB, representing 48% of total assets[52] - The company reported a net cash outflow from investment activities of ¥571,246,406.91, attributed to continued investment in expanding production capacity in Vietnam[84] Risk Management - The company faces risks from macroeconomic fluctuations, industry competition, and potential increases in raw material and labor costs[113][116] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9] - The company has not violated any decision-making procedures for providing guarantees[9] - The company has not encountered any major accounting errors or changes in accounting policies that would affect its financial statements[138] Corporate Governance - The company’s financial report has been audited by Tianjian Accounting Firm, which issued a standard unqualified opinion[5] - The actual controller and shareholders committed to not transferring or entrusting their shares for 36 months from the date of the company's stock listing, with a limit of 25% share transfer per year after that[128] - The company has committed to avoiding any direct or indirect competition with its main business and will prioritize investment opportunities for its subsidiaries[131] - There are no significant lawsuits or arbitration matters reported for the year[141]