Perfect(SH:603059)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was RMB 827,733,643.72, representing a 2.70% increase compared to RMB 805,994,374.65 in 2019[21]. - The net profit attributable to shareholders for 2020 was RMB 76,884,746.92, a decrease of 29.70% from RMB 109,365,718.83 in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 73,811,790.09, down 26.36% from RMB 100,229,378.79 in 2019[21]. - The net cash flow from operating activities was RMB 120,779,395.68, a decline of 25.06% compared to RMB 161,177,819.56 in 2019[21]. - Basic earnings per share decreased by 29.36% to CNY 0.77 in 2020 compared to CNY 1.09 in 2019[22]. - The company's weighted average return on equity fell to 8.10% in 2020, down from 11.86% in 2019, a decrease of 3.76 percentage points[22]. - The total amount of trading financial assets decreased by CNY 76,884,391.42 from the beginning to the end of 2020[30]. - The net cash flow from operating activities decreased by 25.06% to ¥120,779,395.68 in 2020 from ¥161,177,819.56 in 2019, primarily due to an increase in accounts receivable and prepayments to suppliers for raw materials[73]. - The net cash flow from investing activities improved by 25.76%, with a net outflow of ¥114,182,606.04 in 2020 compared to ¥153,794,675.86 in 2019, attributed to a reduction in the scale of investments[73]. - The net cash flow from financing activities turned positive at ¥6,276,748.51 in 2020, a significant improvement from a negative cash flow of ¥32,863,653.17 in 2019, mainly due to increased short-term borrowings[73]. Assets and Liabilities - The total assets at the end of 2020 were RMB 1,337,546,848.07, an increase of 12.18% from RMB 1,192,347,439.15 at the end of 2019[21]. - The total liabilities and equity increased by 5.62% to 1,026,858,505.88 RMB[60]. - The total liabilities of Beijia Group as of December 31, 2020, were RMB 310,688,342.19, compared to RMB 220,117,186.28 in 2019, indicating an increase of about 41.0%[168][169]. - Cash and cash equivalents increased by 94.56% to ¥160,583,463.83, up from ¥82,538,476.61 in the previous year, primarily due to an increase in time deposits[75]. - Accounts receivable rose by 30.02% to ¥152,362,273.58, up from ¥117,182,207.93, driven by increased sales in the wet wipes business[75]. - Inventory remained relatively stable, with a slight increase of 0.64% to ¥117,897,728.49 from ¥117,143,909.04[75]. - The company's long-term equity investments increased to RMB 82,350,881.56 in 2020 from RMB 77,163,774.22 in 2019, indicating a growth of approximately 6.5%[167]. - The short-term borrowings surged to RMB 32,638,280.38 in 2020 from RMB 5,508,612.39 in 2019, reflecting a significant increase of approximately 492.5%[168]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2.40 per 10 shares, totaling RMB 24,000,000.00, subject to shareholder approval[5]. - The cash dividend distribution policy emphasizes a minimum of 10% of the distributable profit to be paid out as cash dividends, provided there are no significant capital expenditures planned[102]. - The company reported a net profit of 76.88 million RMB for 2020, with a cash dividend payout ratio of 31.22%[104]. - The company has committed to avoiding any business activities that may compete with its subsidiaries, ensuring no conflicts of interest arise[105]. - The total cash dividends distributed over the last three years were 24 million RMB in 2020, 20 million RMB in 2019, and 8.8 million RMB in 2018[104]. Market and Product Development - The company primarily engages in the research, production, and sales of oral hygiene products and disposable sanitary products[32]. - The company is expanding its product line to include various types of dental floss and inter-dental brushes, catering to a wide range of consumer needs[37]. - The company aims to enhance market presence through the introduction of new products and technologies in the oral care segment[33]. - The company is actively pursuing market expansion strategies to increase its footprint in the oral care industry[33]. - The company is focused on developing innovative oral care solutions, including probiotics and vitamin C formulations for enhanced dental health[36]. - The company plans to enhance its production efficiency by increasing and expanding new production lines and improving automation levels[90]. - The company intends to explore overseas markets, particularly in Southeast Asia and South America, to meet the growing demand for oral care products and wet wipes[93]. Risks and Challenges - The company has outlined potential risks in its annual report, advising investors to pay attention to these risks[6]. - The decline in net profit was attributed to increased material costs, higher management expenses, and production losses due to the pandemic[22]. - The company faces risks from raw material price fluctuations, as key materials are linked to international oil prices, which can significantly impact profitability[96]. - The company is exposed to exchange rate fluctuations and potential reductions in export tax rebates, which could adversely affect its overseas business[99]. Governance and Compliance - The company has maintained a standard unqualified audit opinion from its accounting firm, ensuring the accuracy and completeness of its financial reports[4]. - The company has established a comprehensive quality control system and holds multiple international certifications, ensuring product quality and stability[50]. - The company has a well-defined governance structure that effectively protects the interests of shareholders and stakeholders[150]. - The independent directors participated fully in board meetings and shareholder meetings, ensuring accountability[151]. - The company has no significant litigation or arbitration matters during the reporting period[113]. Research and Development - Research and development expenses rose by 46.77% to 19,306,975.93 RMB, accounting for 2.33% of operating revenue[71]. - The R&D team consists of over 180 personnel, with more than 220 patents, supporting continuous product development and innovation[50]. - The company is investing in new technology development, allocating $10 million for R&D in the upcoming quarter[140].