Sinoma-ec/SEC(SH:603126)2021-03-28 16:00Financial Performance - The company achieved operating revenue of ¥2,597,026,157.35, an increase of 14.25% compared to the previous year, primarily due to increased revenue from boiler equipment and EP projects[25]. - The net profit attributable to shareholders was ¥134,741,791.04, reflecting a growth of 9.46% year-on-year, driven by increased gross profit and investment income, along with reduced management expenses[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥111,710,997.86, up 87.86% from the previous year, mainly due to increased profits from core business operations[25]. - The net cash flow from operating activities increased by 19.37% year-on-year to ¥144,927,009.94, attributed to higher cash receipts related to operating activities and reduced social security expenses due to pandemic policy benefits[25]. - Basic earnings per share were ¥0.2207, a 9.47% increase compared to ¥0.2016 in 2019[24]. - The weighted average return on equity rose to 7.53%, an increase of 0.32 percentage points from the previous year[24]. - Total assets at the end of 2020 reached ¥4,193,701,683.68, an increase of 8.87% compared to the end of 2019[25]. - The net assets attributable to shareholders increased by 4.79% to ¥1,831,201,305.81 at the end of 2020[25]. - The total profit amounted to 189 million RMB, reflecting a year-on-year growth of 10.28%[43]. - The company reported a net loss of ¥17,357,074.64 in the first quarter, followed by a profit of ¥85,958,180.32 in the fourth quarter, indicating a recovery trend throughout the year[27]. Cash Dividend and Profit Distribution - The profit distribution plan for 2020 proposes a cash dividend of 0.8 RMB per 10 shares, totaling 48,840,000 RMB based on a total share capital of 610,500,000 shares as of December 31, 2020[7]. - The cash dividend for 2020 is set at 0.80 RMB per 10 shares, with a total cash distribution amounting to 4,884.00 million RMB, representing 36.25% of the net profit attributable to ordinary shareholders[96]. - The company’s profit distribution policy stipulates that if the company achieves profit, at least 30% of the distributable profit must be allocated as cash dividends[91]. - In mature stages without significant capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[90]. - The board of directors must consider the company's sustainable operation capability and reasonable returns to investors when formulating profit distribution plans[93]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, which requires detailed disclosure of reasons and intended use of retained earnings[97]. Audit and Compliance - The company guarantees the authenticity, accuracy, and completeness of the annual report, with no significant omissions or misleading statements[10]. - The company reported a standard unqualified audit opinion from the accounting firm Xinyong Zhonghe[21]. - The company has not faced any non-standard audit opinions from its accounting firm during the reporting period[102]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies were found[189]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2020[185]. Risks and Challenges - The company has detailed the risks it may face in the future and the corresponding countermeasures in the report[9]. - The company faces industry risks due to cyclical fluctuations and increasing competition, which may narrow profit margins in its cement waste heat power generation business[83]. - The company is exposed to overseas operational risks, including political and economic uncertainties in various countries, which could impact its international projects[84]. - The ongoing COVID-19 pandemic has impacted the global economy and supply chains, but the company is gradually recovering as domestic conditions improve[86]. Research and Development - The total R&D investment amounted to ¥97,331,456.25, representing 3.75% of total revenue[56]. - The company obtained 22 authorized invention patents and 142 utility model patents by the end of the reporting period, reflecting its commitment to innovation[48]. - Research and development investments have increased by 30%, focusing on sustainable technologies and product enhancements[152]. Environmental and Social Responsibility - The company actively fulfills its social responsibilities, as detailed in its annual social responsibility report[123]. - The company’s wastewater discharge meets the third-level standards of the Comprehensive Wastewater Discharge Standard (GB8978-1996) for chemical oxygen demand, suspended solids, and oil content[125]. - The company’s air emissions from various sources comply with the secondary standards of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996)[124]. - The company has established an emergency response plan for environmental incidents, which was approved by experts on October 19, 2019[128]. - The company has implemented a self-monitoring plan for environmental emissions, with quarterly and semi-annual testing schedules[129]. Shareholder Structure - The largest shareholder, China National Materials Group Corporation, holds 309,275,786 shares, representing 50.66% of total shares[137]. - The top ten shareholders include six state-owned entities and four individuals, indicating a strong presence of state ownership[138]. - The company has no strategic investors or general corporations among the top ten shareholders[139]. - The report indicates no changes in the controlling shareholder during the reporting period[141]. Leadership and Governance - The company reported a significant leadership transition with multiple board members changing roles, including the appointment of new executives in key positions[151]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal requirements for professional structure[170]. - The supervisory board is composed of 3 members, fulfilling the requirements of the Company Law and the company's articles of association[171]. - The company has established a dividend distribution policy and a three-year dividend distribution plan to protect the interests of minority investors[173]. Market and Strategic Initiatives - The company is focusing on expanding its market presence through strategic partnerships and investments in new technologies[151]. - The ongoing development of energy-saving technologies is a priority, reflecting the company's commitment to sustainability and innovation in the construction sector[151]. - The company plans to enhance its innovation capabilities by increasing R&D investment and improving the number of high-tech enterprises, targeting breakthroughs in key technologies[81].