SGEG(SH:601616)2021-04-15 16:00Financial Performance - In 2020, the company achieved a total operating revenue of RMB 1,038,304,415.31, representing a 48.55% increase compared to RMB 698,968,611.07 in 2019[22]. - The net profit attributable to shareholders of the listed company for 2020 was RMB 75,690,530.60, a decrease of 57.00% from RMB 176,026,848.22 in 2019[22]. - The net profit after deducting non-recurring gains and losses was RMB 66,744,153.74, which is a significant increase of 255.97% compared to RMB 18,750,055.18 in 2019[22]. - The cash flow from operating activities for 2020 was RMB 170,974,949.20, up 36.76% from RMB 125,015,846.94 in 2019[22]. - Basic earnings per share decreased by 56.99% to CNY 0.0809 in 2020 compared to CNY 0.1881 in 2019[23]. - Diluted earnings per share also decreased by 56.99% to CNY 0.0809 in 2020 compared to CNY 0.1881 in 2019[23]. - The weighted average return on equity decreased by 4.02 percentage points to 2.86% in 2020 from 6.88% in 2019[23]. - The total operating income for Q1 2020 was CNY 230,305,554.83, with Q2, Q3, and Q4 reporting CNY 342,152,452.70, CNY 280,776,442.36, and CNY 185,069,965.42 respectively[25]. - The company reported a net cash flow from operating activities of CNY 77,279,743.86 in Q4 2020, following CNY 48,918,572.38 in Q3[25]. - The total amount of non-recurring gains and losses for 2020 was CNY 8,946,376.86, with significant contributions from various non-operating income sources[28]. Assets and Liabilities - As of the end of 2020, the total assets of the company were RMB 3,282,715,090.03, a decrease of 5.10% from RMB 3,458,955,883.69 at the end of 2019[22]. - The net assets attributable to shareholders of the listed company increased to RMB 2,633,938,407.40, reflecting a 1.11% growth from RMB 2,605,026,626.80 in 2019[22]. - Total liabilities were RMB 532,409,786.65, a decrease of 29.5% compared to RMB 754,741,977.48 in 2019[180]. - Current liabilities decreased to RMB 454,473,153.16, down 28.4% from RMB 634,953,778.23 in the previous year[180]. - Long-term borrowings were reduced to RMB 48,700,000.00, a decrease of 42.5% from RMB 85,000,000.00 in 2019[180]. - The total equity remained stable at RMB 2,750,305,303.38, reflecting a slight increase from RMB 2,704,213,906.21 in 2019[180]. Research and Development - The company invests approximately 4% of its sales revenue annually in R&D and market promotion of new products and technologies[38]. - In 2020, the company achieved a record high of 42 new authorized patents, reflecting its commitment to innovation and technology leadership[39]. - The total R&D expenditure was 41.577 million yuan, accounting for 4.00% of total revenue, with 162 R&D personnel representing 16.65% of the total workforce[64]. - Research and development expenses for 2020 were ¥41,577,479.26, up from ¥28,623,180.11 in 2019, indicating a growth of 45.0%[185]. Market and Business Strategy - The company specializes in manufacturing and engineering of power distribution and power electronic equipment, providing comprehensive solutions in the power transmission and distribution sector[33]. - The company focuses on customized products for high-end sectors such as electronic information, data centers, and industrial machinery manufacturing, utilizing a "make-to-order" production model[34]. - The company has established a marketing network covering major cities in China, with a focus on the Yangtze River Delta, Pearl River Delta, and Beijing-Tianjin-Hebei regions[40]. - The company is recognized as a high-tech enterprise and actively participates in the formulation of national and industry standards[39]. - The company aims to enhance its core business product lines and participate in the smart manufacturing field of the distribution industry during the "14th Five-Year" period[77]. - The company plans to adopt a development strategy focused on digitalization, intelligence, specialization, and service[77]. - The company is focusing on the development of high-end components and power electronic control equipment, emphasizing product technology innovation and industry development trends[79]. Corporate Governance and Compliance - The company has committed to enhancing internal control and supervision to improve information disclosure quality and protect investor interests[80]. - The company has implemented the revised "Accounting Standards for Business Enterprises No. 14 - Revenue" effective January 1, 2020, which impacts the recognition of revenue[96]. - The company has appointed Da Hua Accounting Firm as its auditor for the 2020 fiscal year, with an audit fee of 800,000 RMB[100]. - The company has established four specialized committees within the board, focusing on audit, remuneration, nomination, and strategy, which conducted thorough reviews of key matters[159]. - The company strictly adhered to internal control regulations and disclosed an internal control evaluation report, ensuring transparency and compliance[155]. Shareholder Information - The company proposed a cash dividend of RMB 1 per 10 shares, totaling RMB 85,867,850.90, based on a total share count of 858,678,509 after accounting for repurchased shares[5]. - The total number of ordinary shareholders increased from 52,463 to 57,306 during the reporting period, indicating a growing investor interest[126]. - The largest shareholder, Xinyu Minjie Investment Management Co., Ltd., holds 213,474,250 shares, representing 22.82% of total shares[127]. - The total remuneration for the chairman, Zhao Shuwen, for the reporting period was RMB 1.625 million[135]. Future Outlook - The company aims to achieve a sales revenue growth of over 10% in 2021, with continuous positive profitability in its main business[80]. - Future guidance indicates a cautious outlook with expected revenue growth of 5% in 2021[112]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[112].