LSHEC(SH:603169)2021-04-22 16:00Financial Performance - The company reported a net profit attributable to the parent company of -284.74 million CNY for 2020, with cumulative distributable profits amounting to -1.10 billion CNY[5]. - The company's operating revenue for 2020 was ¥2,900,840,838.71, a decrease of 15.62% compared to ¥3,437,821,912.85 in 2019[19]. - The net profit attributable to shareholders was -¥284,740,601.02, representing a decline of 604.93% from a profit of ¥56,392,473.85 in the previous year[19]. - The net cash flow from operating activities was ¥666,300,874.28, down 7.63% from ¥721,357,528.42 in 2019[19]. - The company's total assets decreased by 5.66% to ¥10,541,020,007.63 from ¥11,173,157,866.39 in 2019[19]. - The basic earnings per share for 2020 was -¥0.2708, a decrease of 605.22% from ¥0.0536 in 2019[20]. - The company recorded an impairment provision of ¥80,414,600 for inventory, receivables, and contract assets due to the impact of the pandemic[20]. - The decline in performance was primarily attributed to the pandemic, which delayed production and reduced revenue[20]. - The company achieved a total industrial output value of CNY 2.973 billion and operating revenue of CNY 2.901 billion during the reporting period, with a year-on-year decrease of 15.62% in revenue[64]. Dividend and Profit Distribution - The company plans not to distribute cash dividends, issue bonus shares, or increase capital reserves for the year 2020[5]. - The company did not propose any cash dividends, bonus shares, or capital reserve transfers for the year 2020, as the net profit was negative[143]. - Over the past three years, the company has not distributed any dividends or bonus shares, maintaining a 0% payout ratio[143]. - The company plans to submit the profit distribution proposal to the shareholders' meeting for approval[143]. - The company has not reported any positive distributable profits for the past three years, indicating ongoing financial challenges[143]. Strategic Planning and Future Development - The company has outlined its future development strategies and potential risks in the operational discussion section of the report[6]. - The company aims to transform into a world-class energy equipment solution provider, emphasizing data insight and industry integration capabilities[56]. - The company has strengthened its strategic planning and set specific development goals for its subsidiaries and business units[56]. - The company is focusing on intelligent manufacturing and has established a smart manufacturing demonstration workshop to enhance its core competitiveness[46]. - The company aims to achieve equal quality standards for traditional core products in domestic and international markets by the end of 2025[120]. - The company plans to enhance its core competitiveness through technological innovation, focusing on key fields and technologies[127]. Market Position and Industry Context - The company operates in high-end pressure vessels, chemical engineering, and energy sectors, with no significant changes in its main business during the reporting period[28]. - The energy equipment manufacturing industry in China is experiencing overcapacity in low-end products, while high-end manufacturing is limited by funding and technology[37]. - The company has a strong market position as a leading manufacturer of pressure vessels and has filled over 100 technical and product gaps in the energy equipment sector[40]. - The company identifies significant growth opportunities in clean energy and energy-saving equipment sectors, particularly in photovoltaic and hydrogen energy[114]. - The company notes that the traditional oil refining sector will gradually decline, leading to a slowdown in demand for oil equipment[113]. Risk Management and Compliance - The report includes a risk statement indicating potential industry and market risks that the company may face in the future[6]. - The report emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements[6]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. - The company has not violated any decision-making procedures regarding external guarantees[6]. - The company faces risks from macroeconomic fluctuations that could negatively impact its operating performance, particularly if downstream industries experience a downturn[133]. Technological Advancements and Innovation - The company has achieved significant technological advancements, including the development of a full-welded plate heat exchanger, which fills a gap in the Chinese market[43]. - The company has implemented 68 technology innovation projects, submitted 43 patent applications, and authorized 25 utility model patents, enhancing its technological capabilities[62]. - The company has established technology-sharing alliances with several research institutions to promote the industrialization of new energy technologies[62]. - The company emphasizes the need for technological innovation and integration within the equipment manufacturing industry to enhance competitiveness[115]. Legal Matters and Compliance - The company is involved in a lawsuit against China Qinghua Energy Group for a contract dispute, claiming RMB 28.96 million in principal and interest[172]. - The company has a pending lawsuit against Gansu Honghui Energy Chemical for RMB 54.09 million in unpaid goods and interest[172]. - The company has reached a settlement with Qinghua Energy, with payment terms established for the contract amount[172]. - The company has no major litigation or arbitration matters for the year 2020[169]. - The company has no risk of suspension or termination of listing[169]. Community Engagement and Social Responsibility - The company has implemented targeted poverty alleviation measures, providing essential goods worth CNY 529,800 to support impoverished areas[195]. - The company has actively engaged in community support, including donating cultural and sports supplies to poverty-stricken villages[195]. - The company has focused on enhancing the confidence of impoverished households through direct engagement and support[195]. - The company has established partnerships with local party branches to promote poverty alleviation initiatives[195].