SAFETY(SH:603028)2021-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2020 was RMB 53,771,703.59, with the parent company achieving a net profit of RMB 36,556,876.09[5] - The proposed cash dividend is RMB 0.75 per 10 shares, totaling RMB 16,560,000.00, which represents 30.80% of the net profit attributable to shareholders[5] - The company's operating revenue for 2020 was approximately CNY 750.50 million, an increase of 18.78% compared to CNY 631.85 million in 2019[23] - Net profit attributable to shareholders increased by 274.32% to CNY 53.77 million from CNY 14.37 million in the previous year[24] - The basic earnings per share rose to CNY 0.24, reflecting a 242.86% increase from CNY 0.07 in 2019[24] - The net profit after deducting non-recurring gains was CNY 47.54 million, up 356.33% from CNY 10.42 million in 2019[23] - The company achieved total operating revenue of ¥750,499,585.72 in 2020, an increase of 18.78% compared to the previous year[65] - Operating costs amounted to ¥690,089,944.86, reflecting an increase of 11.72% year-on-year[65] - The company’s R&D expenses rose by 22.17% to ¥26,337,566.74, indicating a commitment to innovation[65] Capital and Investments - The company plans to increase its share capital by 66,240,000 shares through capital reserve conversion, raising the total share capital from 220,800,000 to 287,040,000 shares[6] - The company has invested CNY 24 million to establish a joint venture, Suzhou Wuzhong Construction Engineering Quality Testing Center, holding an 80% stake[90] - A wholly-owned subsidiary, Jiangsu Saifutian New Materials Technology Co., Ltd., was established with an investment of CNY 20 million to expand business scope[91] - The company acquired 100% equity of Tongren Architectural Design (Suzhou) Co., Ltd. for CNY 255 million, enhancing its business capabilities in architectural design[93] Market and Business Development - The company expanded its business scope by adding a construction design segment, which contributed positively to profitability[24] - The company plans to continue focusing on product promotion and market development to sustain growth in the upcoming periods[24] - The elevator wire rope market in China grew from 3.655 million units in 2014 to 7.745 million units in 2020, indicating a strong demand for elevator wire ropes[36] - The company has a significant market share in the elevator wire rope sector, benefiting from high brand recognition and stringent supplier evaluations by manufacturers[36] - The company aims to enhance its market presence in the crane industry, which is currently experiencing high demand, by focusing on product development and marketing strategies[107] Risk Management - The report includes a detailed description of potential risks faced by the company, which investors should review[10] - Risks include industry competition, raw material price fluctuations, and potential goodwill impairment from acquisitions, which could impact future profitability[113][115][118] - The company has experienced significant fluctuations in raw material prices, which could lead to performance volatility if product prices do not align with raw material costs[115] Corporate Governance - The board of directors guarantees the authenticity, accuracy, and completeness of the annual report, with no significant omissions or misleading statements[8] - The company has established a governance structure that allows for independent decision-making by its board of directors and management[124] - The company has pledged to avoid and minimize related party transactions, adhering to fair and open market principles[123] - The company has established a compensation and assessment committee to evaluate senior management based on company performance and industry salary levels[181] Employee and Social Responsibility - The total number of employees in the parent company is 515, while the total number of employees in major subsidiaries is 296, resulting in a combined total of 811 employees[167] - The company has established a comprehensive training system aimed at enhancing employee skills and management capabilities, focusing on production management, safety, and professional development[169] - The company has actively engaged in social responsibility initiatives, particularly in poverty alleviation, and plans to increase support for these efforts in 2021[138] Future Outlook - The company plans to achieve an operating revenue of 900 million to 1 billion RMB in 2021[106] - The company is exploring market expansion opportunities, particularly in the Asia-Pacific region, to increase its user base and revenue streams[158] - The company aims to achieve its strategic goal of becoming a "global small giant" through capital market operations and sustainable development initiatives[112]