Riyue HI(SH:603218)2021-04-22 16:00Financial Performance - The net profit attributable to the parent company for 2020 was ¥979,377,269.23, with the parent company achieving a net profit of ¥337,430,247.36[7]. - The proposed cash dividend is ¥3.20 per 10 shares (including tax), totaling ¥309,633,282.88, which represents 31.62% of the net profit attributable to shareholders of the listed company[8]. - The company plans to allocate 10% of the parent company's net profit, amounting to ¥33,743,024.74, to the statutory surplus reserve[7]. - The total distributable profit for 2020, after adding undistributed profits from previous years, is ¥2,725,859,606.73[7]. - The net profit attributable to shareholders increased by 94.11% year-on-year to ¥979,377,269.23, driven by a 46.61% increase in sales revenue and an improved product mix[33]. - The basic earnings per share rose by 82.61% to ¥1.26, reflecting the significant increase in net profit[37]. - The company's total assets grew by 57.98% to ¥10,406,840,080.51, mainly due to the increase in retained earnings from net profit and successful fundraising from a private placement[37]. - The cash flow from operating activities decreased by 40.76% year-on-year, primarily due to rising material costs and a shift to cash payments for iron purchases[34]. - The gross profit margin improved, with total gross profit increasing by ¥575,629,060, a year-on-year increase of 66.02%[33]. - The company reported a total profit of CNY 20,754,380.71, with a tax impact of CNY -3,756,625.41 for the reporting period[44]. Production and Capacity - In 2020, the company's operating revenue increased by 46.61% year-on-year, reaching ¥5,110,598,276.22, primarily due to the full release of production capacity from the 180,000-ton marine key casting project[31]. - The company has established an annual production capacity of 400,000 tons of castings, with a maximum casting capability of 130 tons for large ductile iron castings[47]. - The company is constructing a key casting project for marine equipment with an annual capacity of 180,000 tons, expected to be completed and trial production by Q3 2021, increasing total capacity to 480,000 tons[47]. - The company has initiated a project for precision machining of large castings with an annual capacity of 100,000 tons, which has begun full production[47]. - The company aims to achieve a self-owned precision machining capacity of 220,000 tons by 2021, addressing the industry's trend towards larger products[50]. - The company is expanding its production capabilities with a new 220,000-ton precision processing project initiated in late 2020, aimed at enhancing operational efficiency[60]. - The company plans to achieve a total production capacity of 480,000 tons for casting and 440,000 tons for precision processing after completing ongoing projects[75]. Research and Development - The company invested 199.70 million yuan in R&D in 2020, reinforcing its comparative advantage in product technology development[61]. - The company holds 108 authorized patents as of December 31, 2020, including 48 invention patents, demonstrating a strong focus on technological innovation[59]. - Research and development expenses rose by 47.65% to CNY 199.70 million, focusing on new product development and technology advancements[87]. - The company is committed to the research and application of ductile iron technology, aiming to improve product performance and expand into new markets such as nuclear waste storage[138]. - The company is focused on continuous research and development to protect intellectual property and meet customer demands in the wind power industry[140]. Market and Sales - The company’s sales model is based on a one-to-one approach, facilitating better customer resource management and technical communication[51]. - In 2020, the company's wind power business achieved sales revenue of 445.46 million yuan, an increase of 55.93% compared to 285.68 million yuan in 2019[55]. - The company delivered over 50,000 tons of offshore wind power castings in 2020, a significant increase from 13,600 tons in 2019[70]. - The company is positioned to benefit from the growth of the wind power industry, which saw a 105% year-on-year increase in onshore wind power installations in China in 2020[55]. - The company has established a stable and close partnership with numerous domestic and international wind turbine customers, enhancing its market position[70]. - Domestic sales revenue increased by 54.02%, while export sales remained stable due to the impact of the pandemic on international deliveries[95]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[11]. - There are no violations of decision-making procedures regarding external guarantees[13]. - The company has implemented a comprehensive assessment system covering safety, environmental protection, production efficiency, and cost control, linking performance directly to employee incentives[78]. - The company’s net cash flow from financing activities surged by 141.80% to 2,630,723,124.59 yuan, primarily due to the completion of a private stock issuance[107]. - The company’s total assets reached approximately ¥10.4 billion, with significant contributions from fixed assets and cash reserves[112]. Dividend Policy - The company has a cash dividend policy that mandates at least 10% of distributable profits to be allocated for dividends, with higher percentages based on development stage and capital expenditure needs[161]. - The company has established a three-year dividend return plan (2019-2021), committing to distribute cash dividends of no less than 10% of the distributable profits each year after reserving statutory and surplus reserves[166]. - The board anticipates significant growth in operating and profit scale over the next three years, driven by a strong recovery in the domestic wind power industry and the implementation of the "two seas strategy" for overseas and offshore wind power markets[167][170]. - The company committed to maintaining the continuity and stability of its profit distribution policy to protect shareholder rights and ensure sustainable development[170]. Compliance and Governance - The company has received a standard unqualified audit report from Lixin Accounting Firm[5]. - The company has not proposed any ordinary share cash profit distribution plan during the reporting period despite having positive distributable profits, which is not applicable in this case[174]. - The controlling shareholders promised not to abuse their positions or interfere in the company's management, committing to uphold company interests[186]. - The company has committed to linking future equity incentive plans to the execution of return measures, ensuring alignment with company performance[188]. - The company has accepted suggestions and supervision from all shareholders, independent directors, supervisors, and public investors regarding its dividend distribution[166]. Accounting Changes - The company announced a change in accounting policy to adopt a new revenue recognition standard, transitioning from risk and reward transfer to control transfer as the basis for revenue recognition[192]. - The new revenue recognition model integrates previous standards into a unified approach, providing clearer guidance for accounting treatment of multi-element arrangements[193]. - The cumulative impact of the new revenue standard only adjusts the beginning retained earnings and related financial statement items for the year of initial application, without affecting comparative period information[199].