HIRON COLD CHAIN(SH:603187)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,890,489,147.79, representing a year-on-year increase of 23.11% compared to CNY 1,535,632,694.79 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 268,096,109.00, up 22.51% from CNY 218,836,696.43 in 2019[23]. - The net cash flow from operating activities increased significantly by 94.54% to CNY 373,915,592.51 in 2020, compared to CNY 192,200,685.60 in 2019[23]. - The basic earnings per share for 2020 was CNY 1.70, a 21.43% increase from CNY 1.40 in 2019[24]. - The total assets at the end of 2020 reached CNY 3,212,744,291.90, reflecting a 43.42% increase from CNY 2,240,129,547.69 at the end of 2019[23]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 1,816,006,962.52, up 24.09% from CNY 1,463,500,845.52 at the end of 2019[23]. - The total profit and net profit attributable to shareholders reached 312.45 million yuan and 268.10 million yuan, respectively, with year-on-year growth of 23.32% and 22.51%[47]. - The company's domestic revenue reached CNY 1,257,123,533.28, an increase of 28.17% year-on-year, while foreign sales revenue was CNY 550,092,929.67, up 29.38% year-on-year[64]. Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[4]. - The company’s board of directors and supervisory board members were all present at the board meeting, ensuring governance compliance[4]. - The company has not violated any decision-making procedures in providing guarantees to external parties[7]. - The company has adhered to all commitments made by its major shareholders and executives regarding share transfers and stock price stabilization[118]. - The company has improved its corporate governance structure, ensuring the protection of minority shareholders' rights and interests[156]. - The company has implemented a diversified communication channel with investors, enhancing interaction and transparency in its operations[156]. Strategic Initiatives - The company has outlined its future plans and development strategies, although these do not constitute a commitment to investors[6]. - The company aims to enhance its market share in the commercial refrigeration display cabinet sector, particularly as foreign enterprises may gradually lose competitiveness due to strategic adjustments and cost pressures[90]. - The company plans to focus on the development of commercial frozen and refrigerated display cabinets to consolidate its leading position and increase market share[93]. - The company will adopt a global market strategy, emphasizing both domestic and international markets, to increase export revenue and enhance its market position in the global industry[92]. - The company is committed to technological innovation and market expansion, focusing on artificial intelligence, deep learning, big data analysis, and cloud recognition in its product development strategy[95]. Market Position and Competition - The company operates in the commercial cold chain sector, focusing on providing refrigeration equipment for various industries[11]. - The company has a strong market position in the commercial frozen display cabinet sector, particularly in the cold drink industry, with a high market share[37]. - The commercial refrigeration display cabinet market is dominated by foreign enterprises and traditional large appliance companies, with increasing competition from specialized commercial display cabinet companies entering the mid-to-high-end market[87]. - The demand for commercial display cabinets is growing due to the rapid increase in consumer demand for fresh products, driven by domestic consumption upgrades and policy guidance for market upgrades[89]. Research and Development - The company emphasizes R&D and has a strong team, which has shortened the product development cycle and enhanced innovation capabilities[39]. - Research and development expenses amounted to CNY 57,774,775.53, accounting for 3.06% of total revenue, with a year-on-year increase of 22.25%[73]. - The company has developed a series of smart vending machines equipped with various advanced technologies, catering to the new retail and consumption concepts[40]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating CNY 1,000,000 to support COVID-19 relief efforts[55]. - The company has established a charity mechanism aimed at supporting difficult employees, impoverished students, and vulnerable groups[152]. - The company emphasizes environmental protection and employee rights, promoting green technologies and providing comprehensive labor protection for employees[154]. Risks and Challenges - The company faces risks from market competition and the inability to timely develop new products, which could impact business growth if production capacity does not meet customer demand[101]. - The company is exposed to raw material price fluctuations, with significant costs from compressors, steel, and other materials, which could affect operating performance[102]. - The company recognizes the seasonal nature of its main products, which could lead to capacity utilization issues during off-peak seasons, and plans to expand production capacity and explore international markets to mitigate this risk[104]. - The company has a high concentration of revenue from its top five customers, which poses a risk if any major customer changes, and it aims to maintain product quality and develop new clients to reduce this risk[105]. Employee and Management - The total number of employees in the parent company is 1,384, with a combined total of 1,411 employees including major subsidiaries[199]. - The total remuneration for all directors, supervisors, and senior management is 6.4923 million yuan[197]. - The company implements a differentiated salary policy, with senior management and directors on an annual salary system linked to performance evaluations[200]. - The management team has extensive experience in the cold chain and appliance industries, contributing to strategic decision-making[192]. Capital Management - The company successfully issued 5,001,270 convertible bonds with a total fundraising amount of CNY 50,012,700.00, providing financial support for its smart cold chain and automated vending equipment projects[53]. - The company approved the use of idle raised funds for cash management, with a maximum balance of 1 billion yuan for initial public offering funds, 400 million yuan for convertible bond funds, and 400 million yuan for idle self-owned funds[141]. - The company has engaged in various wealth management products, with expected annualized returns ranging from 1.15% to 3.50%[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 6 per 10 shares and to increase capital by converting 4 shares for every 10 shares held[5]. - In 2020, the company distributed a cash dividend of 0.64 RMB per share, amounting to a total of 103,286,068.20 RMB, representing 38.53% of the net profit attributable to shareholders[115]. - The cash dividend for 2019 was 0.64 RMB per share, totaling 67,920,000.00 RMB, which was 31.04% of the net profit attributable to shareholders[115].