ADD(SH:603089)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,137,747,546.02, representing a 2.60% increase compared to CNY 1,108,868,100.60 in 2019[21] - The net profit attributable to shareholders for 2020 was CNY 109,899,215.36, a significant increase of 47.55% from CNY 74,484,977.12 in the previous year[21] - The net profit after deducting non-recurring gains and losses was CNY 4,336,356.82, showing a decrease of 93.45% compared to CNY 66,188,785.91 in 2019[21] - The cash flow from operating activities for 2020 was CNY 86,309,844.03, down 34.00% from CNY 130,774,076.21 in 2019[21] - The total assets at the end of 2020 were CNY 1,803,520,557.68, an increase of 16.04% from CNY 1,554,222,222.46 at the end of 2019[21] - The net assets attributable to shareholders increased by 24.51% to CNY 1,023,370,353.88 at the end of 2020, compared to CNY 821,912,089.55 at the end of 2019[21] - The basic earnings per share for 2020 were CNY 0.52, up 44.44% from CNY 0.36 in 2019[23] - The weighted average return on net assets for 2020 was 13.16%, an increase of 3.79 percentage points from 9.37% in 2019[23] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares, totaling CNY 33,374,598.75 based on the total share capital as of March 31, 2021[5] - The company has proposed a cash dividend of CNY 0.15 per share for the 2020 fiscal year, totaling approximately CNY 33.37 million[148] Market and Business Expansion - The company expanded its main business to include rubber damping products and engine sealing components through mergers and acquisitions, enhancing its product structure to better meet customer needs[34] - The company is committed to providing automotive parts and related services for the mid-to-high-end automotive aftermarket, focusing on the development and production of automotive suspension systems and shock absorbers[34] - The company aims to enhance product quality and efficiency through a strategy focused on "market-oriented synchronized R&D, flexible lean production, and large-scale intensive supply"[130] - The company plans to expand its market presence in the automotive aftermarket, which is expected to grow alongside the increasing vehicle ownership[105] - The company aims to deepen its international market development by strengthening services for three main customer categories, including international auto parts importers and manufacturers[136] Production and Operational Efficiency - The company adopts an "order-based" production model, optimizing production processes to meet the diverse and personalized needs of customers[51] - The company has developed a lean production management system to efficiently handle the complexities of small-batch, multi-variety production in the aftermarket[68] - The company has optimized its production layout and is investing in smart manufacturing to improve efficiency and reduce costs[75] Research and Development - The company has established a robust R&D management system, enhancing its ability to develop products in sync with market demands[65] - The company utilizes a customer-oriented R&D model to quickly provide multiple product development solutions based on client requirements[52] - The company’s total R&D expenditure accounted for 4.69% of its operating revenue[94] Risks and Challenges - The company has indicated potential risks in future plans and operations, advising investors to be cautious[6] - The company faces risks from a potential global economic downturn, which could slow the growth of global vehicle ownership and impact product sales[139] - Currency fluctuations, particularly in USD and EUR, pose a risk to the company's profitability due to its export-oriented business model[142] - Raw material price volatility could adversely affect the company's profitability if product prices are not adjusted accordingly[143] - Trade barriers in key markets like Europe and the US could negatively impact the company's export business and competitiveness[144] Environmental Compliance - The company ensures compliance with environmental regulations, with all major pollutants discharged within approved limits during the reporting period[195] - Wuhu Rongji has implemented pollution prevention facilities for wastewater, waste gas, noise, and solid waste, all in accordance with environmental impact assessment requirements[198] - Monitoring devices have been installed at major discharge points for wastewater and waste gas, connected to environmental protection departments for real-time monitoring[199] Corporate Governance and Compliance - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and management, ensuring effective decision-making and operational management[190] - The company has made commitments to ensure that its management does not engage in activities that could harm the company's interests[165] - The company has committed to ensuring that any related party transactions are conducted under fair and reasonable commercial terms[163] Financial Management - The company has a diversified investment strategy in cash asset management, utilizing idle fundraising[180] - The company has successfully managed its guarantees without incurring any overdue liabilities[178] - The company has projected a total of RMB 3,000,000 for borrowing from related parties, with no amounts borrowed during the reporting period[175]