Grace(SH:603256)2021-04-27 16:00Financial Performance - The company's consolidated net profit for 2020 was RMB 117,078,791.90, with a profit distribution proposal of RMB 0.81 per share, totaling RMB 71,101,800, representing a distribution ratio of 60.73%[6]. - The company's operating revenue for 2020 was ¥620,574,333.68, a decrease of 6.35% compared to ¥662,674,768.89 in 2019[26]. - Net profit attributable to shareholders for 2020 was ¥117,078,791.90, an increase of 12.31% from ¥104,242,513.99 in 2019[26]. - The total assets at the end of 2020 were ¥2,221,506,507.79, reflecting a growth of 17.20% from ¥1,895,423,004.53 at the end of 2019[26]. - The cash flow from operating activities for 2020 was ¥149,935,687.64, down 14.29% from ¥174,930,421.86 in 2019[26]. - Basic earnings per share for 2020 remained at ¥0.13, unchanged from 2019[26]. - The weighted average return on equity for 2020 was 8.09%, a decrease of 0.29 percentage points from 8.38% in 2019[26]. - The company reported non-recurring gains of ¥12,383,453.41 for 2020, compared to ¥6,590,157.66 in 2019[30]. - The cash flow from operating activities in Q4 2020 was ¥67,837,152.63, following a negative cash flow of -¥14,967,164.34 in Q3 2020[29]. - The net profit attributable to shareholders in Q4 2020 was ¥31,293,049.82, showing a recovery from ¥21,622,709.98 in Q3 2020[29]. Corporate Governance - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[8]. - The company received a standard unqualified audit report from KPMG Huazhen, affirming the accuracy and completeness of the financial report[5]. - The board of directors and supervisory board members attended the meeting, ensuring governance compliance[5]. - The company has not reported any violations in decision-making procedures for external guarantees, maintaining regulatory compliance[8]. - The company is committed to ensuring the authenticity and accuracy of the annual report, with key management affirming the report's integrity[4]. Market and Business Strategy - The company plans to expand its market presence and enhance product development, although specific figures and timelines were not disclosed in the report[10]. - The company emphasizes the importance of risk awareness regarding future operational and strategic plans, advising investors to consider potential risks[7]. - The company primarily engages in the production and sales of mid-to-high-end electronic-grade fiberglass cloth, with no changes in its main business since establishment[37]. - The company aims to replace high-end imported products and reduce reliance on imports by producing high-quality electronic-grade fiberglass cloth domestically[48]. - The company has established a strong brand value and reputation in the high-end electronic fabric sector, leading to stable partnerships with domestic and international clients[52]. Research and Development - The company has established a research and development department to enhance its technological innovation capabilities, focusing on new product development and performance improvement[104]. - The company has established 6 new research projects during the reporting period, focusing on new products, processes, and technologies[78]. - The company has a professional technical team and has obtained multiple authorized invention patents, enhancing its competitive edge in the industry[47]. - The company has applied for 2 invention patents and received 1 invention patent authorization during the reporting period[78]. Environmental and Social Responsibility - The company invested CNY 4.92 million in environmental protection in 2020, focusing on new equipment and maintenance to enhance operational efficiency[199]. - The company’s wastewater treatment facilities are operational, ensuring that all wastewater is treated and meets discharge standards before entering municipal pipelines[199]. - The company has a 100% compliance rate for hazardous waste disposal, with all solid waste managed by qualified environmental handling companies[195]. - The company donated RMB 500,000 for poverty alleviation efforts, specifically for the construction of a kindergarten in Guanghe County, Gansu Province[188]. - The company plans to continue enhancing communication with the government and actively participate in poverty alleviation efforts[190]. Risks and Challenges - The company faces potential risks from intense industry competition, which may lead to price reductions and impact profit margins[134]. - The growth rate of the electronic information manufacturing industry has been declining, with a drop from 9.3% in 2019 to 7.7% in 2020, which may affect the demand for electronic cloth[135]. - The company is exposed to exchange rate fluctuations, which may impact product pricing and profitability, necessitating a focus on high-end products and cost management[139]. - Interest rate volatility poses a risk to financial expenditures and operational efficiency, affecting the company's capital utilization[139]. - The COVID-19 pandemic has disrupted operations, with supply chain issues and increased logistics costs impacting production and sales in the first half of 2020[142]. Shareholder Commitments - The actual controller and major shareholders have committed to not engaging in any business that competes directly or indirectly with the company[152]. - The commitments made by the actual controller are effective and irrevocable as long as they hold more than 5% of the company's shares[152]. - The company has maintained compliance with its commitments regarding related party transactions and competition since its initial public offering[155]. - The company’s major shareholder has committed to avoiding any investment in businesses that compete with the company[152]. Financial Management - The company has a cash dividend policy that mandates at least 30% of distributable profits be paid out as cash dividends annually, provided certain conditions are met[146]. - The company will continue to monitor the impact of external factors, including the pandemic and trade tensions, on its financial health and operational strategies[142]. - The company has invested RMB 670 million in structured deposits, with no overdue amounts[182]. - The company has a total of RMB 250 million in structured deposits with an annualized return of 3.60%, yielding actual returns of RMB 4.5 million[182].