Huafon Aluminium(SH:601702)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 4,066,889,853.78, representing a 13.27% increase compared to CNY 3,590,436,563.59 in 2019[13]. - The net profit attributable to shareholders of the listed company was CNY 249,471,578.48, a 35.93% increase from CNY 183,527,991.85 in the previous year[13]. - The net profit after deducting non-recurring gains and losses was CNY 229,499,353.89, up 42.82% from CNY 160,686,126.63 in 2019[13]. - Basic earnings per share for 2020 were CNY 0.31, a 24.00% increase from CNY 0.25 in 2019[14]. - The weighted average return on net assets was 13.35%, an increase of 0.40 percentage points from 12.95% in 2019[14]. - The company reported a net cash flow from operating activities of CNY -26,166,976.21, a significant decrease of 117.66% compared to CNY 148,136,538.31 in 2019[13]. - The company achieved a significant increase in stamping parts sales volume, with a year-on-year growth of 120.71%[44]. - The company reported a significant reduction in sales expenses by 70.65%, while R&D expenses increased by 30.56% to RMB 200,206.39 million[38]. Assets and Liabilities - The company's total assets at the end of 2020 were CNY 4,999,755,433.47, an 11.79% increase from CNY 4,472,617,010.53 at the end of 2019[13]. - The net assets attributable to shareholders of the listed company increased by 75.72% to CNY 2,664,137,513.68 from CNY 1,516,143,906.65 in 2019[13]. - The total amount of raw materials cost in the aluminum industry was 2,547,105,941.69 yuan, accounting for 83.27% of total costs[46]. - The company's cash and cash equivalents at the end of the period amounted to 114,671,682.81 RMB, representing 2.29% of total assets, an increase of 41.94% from the previous period[55]. Dividend Policy - The company's cash dividend distribution plan proposes a cash dividend of CNY 0.38 per 10 shares, totaling CNY 37,944,162.80 based on the total share capital of 998,530,600 shares[3]. - The net profit attributable to shareholders for the year 2020 was ¥249,471,578.48, with a proposed cash dividend of ¥37,944,162.80, representing only 15.21% of the net profit[78]. - The cash dividend proposed is below the 30% threshold recommended by the Shanghai Stock Exchange for cash dividends relative to net profit due to the industry's capital-intensive nature and the impact of the pandemic[76]. Market and Industry Insights - The company primarily engages in the R&D, production, and sales of aluminum plates and foils, with applications in automotive and HVAC systems[19]. - The aluminum rolling materials industry is expected to benefit from the government's energy-saving policies, promoting increased use of aluminum in vehicles[25]. - In 2020, China's aluminum plate, strip, and foil production reached 16 million tons, with 11.85 million tons of aluminum plate and 4.15 million tons of aluminum foil, showing slight growth compared to 2019[24]. - The aluminum plate and strip industry in China is expected to grow significantly, with a compound annual growth rate of 9.09% from 2010 to 2018, driven by increasing applications in various sectors[64]. Research and Development - The company has a total of 39 authorized patents, including 16 invention patents and 23 utility model patents, indicating strong technological capabilities[31]. - The company has established a joint laboratory with Shanghai Jiao Tong University to enhance its research and development capabilities in aluminum alloy materials[30]. - The company plans to optimize its R&D system and focus on developing lightweight, high-strength, corrosion-resistant aluminum alloy thermal transmission materials and green materials[68]. Corporate Governance and Compliance - The independent directors have approved the profit distribution proposal, which will be submitted for shareholder approval[77]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4]. - The company has no major litigation or arbitration matters reported for the year[143]. - The company has not disclosed any significant related party transactions during the reporting period[144]. Shareholder Structure and Management - The largest shareholder, Huafeng Group Co., Ltd., holds 55.14% of the shares, totaling 550.6 million shares[173]. - The company has a total of 748.9 million restricted shares, which will be released on September 7, 2023[170]. - The total remuneration paid to all directors, supervisors, and senior management at the end of the reporting period amounted to 13.12 million yuan[196]. - The company employed a total of 1,762 staff, with 851 in the parent company and 911 in major subsidiaries[197]. Future Plans and Expansion - The company plans to expand its production capacity with a new project in Chongqing, targeting an annual output of 200,000 tons of aluminum plate and foil[31]. - The company aims to strengthen its position in high-end markets by focusing on high-end products like automotive battery shell foil and high-speed rail honeycomb panels, targeting new profit growth points[67]. - The company is currently in an expansion phase with a project aimed at producing 200,000 tons of aluminum sheets and foils annually, which requires significant funding[76].