Shandong Daye (SH:603278)2021-03-29 16:00Financial Performance - In 2020, the company achieved a net profit of ¥102,526,540.95, with the profit attributable to shareholders also being ¥102,526,540.95[5]. - The distributable profit for the parent company was reported at ¥713,522,649.71, with a proposed cash dividend of ¥1.10 per 10 shares (including tax)[5]. - The company's operating revenue for 2020 was approximately ¥3.07 billion, representing a year-over-year increase of 12.59% compared to ¥2.73 billion in 2019[22]. - The net profit attributable to shareholders decreased by 32.65% to approximately ¥102.53 million in 2020 from ¥152.24 million in 2019[22]. - The net cash flow from operating activities turned negative at approximately -¥185.49 million, a decline of 194.34% compared to ¥196.62 million in 2019[22]. - Basic earnings per share (EPS) fell by 33.96% to ¥0.35 in 2020 from ¥0.53 in 2019[23]. - The weighted average return on equity (ROE) decreased by 3.54 percentage points to 5.93% in 2020 from 9.47% in 2019[23]. - The total assets increased by 30.42% to approximately ¥5.30 billion at the end of 2020, compared to ¥4.06 billion at the end of 2019[22]. - The gross profit margin for the metal wire products segment decreased by 3.25 percentage points to 8.21%[57]. - The company's revenue for 2020 was ¥3,073,687,238.21, representing a 12.59% increase from the previous year, while net profit decreased by 32.65% to ¥102,526,540.95[52]. Risk Management - The report includes a risk statement indicating that forward-looking statements are based on subjective assumptions and may involve investment risks[6]. - The company has detailed potential risks in the section discussing future development[8]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for providing guarantees[7]. Corporate Governance - The company has ensured that all board members attended the board meeting, affirming the report's accuracy and completeness[9]. - The board of directors must consider various factors, including industry characteristics and financial conditions, when proposing profit distribution plans[93]. - The board's profit distribution proposal requires approval from more than two-thirds of the voting rights at the shareholders' meeting[94]. - The company emphasizes the importance of aligning stock dividends with performance growth and maintaining reasonable factors such as net asset dilution[92]. - The company has committed to not transferring or entrusting the management of its pre-IPO shares for twelve months post-listing[100]. - The company has established a remuneration and assessment committee to oversee the compensation plans for senior management[193]. - The independent directors play a crucial role in decision-making, providing independent opinions to safeguard the interests of all shareholders[188]. - The company maintains independence from its controlling shareholder in financial, personnel, and operational aspects, with no interference in decision-making[187]. Production and Operations - The company operates several wholly-owned subsidiaries, including Jinyi Trading and Daye International[13]. - The company maintained its position as the largest tire wire manufacturer in China, serving both domestic and international tire producers[30]. - The company continues to focus on R&D in tire wire and related materials, ensuring its competitive edge in the rubber framework materials industry[30]. - The company established a comprehensive internal control system for procurement, ensuring efficient processes through various management regulations[31]. - In 2020, the total production of structural materials reached 4.1827 million tons, an increase of 3.62% year-on-year[33]. - The production of tire cord steel wire was 935,800 tons, growing by 3.99% compared to the previous year[33]. - The company has established a flexible production system to meet diverse customer demands while minimizing downtime[46]. - The company produced 482,200 tons of various steel wires, a year-on-year increase of 12.65%, and sold 486,600 tons, an increase of 17.28%[48]. Market and Sales - The company’s sales model primarily focuses on direct sales to well-known domestic and international tire manufacturers, with a rigorous supplier evaluation process[32]. - The company aims to enhance smart manufacturing capabilities to improve competitiveness amid rising labor costs and market pressures[35]. - The company is focusing on the development and promotion of ultra-high strength tire cord steel wire to reduce tire weight and improve performance[34]. - The company aims to enhance brand operations and expand its market influence to enhance pricing power in the market[49]. - The company plans to optimize its domestic sales network and expand its overseas business, focusing on new and high-end customers to ensure international market share aligns with production capacity growth[85]. Research and Development - Research and development expenses increased by 34.44% to ¥64,011,987.40, reflecting the company's commitment to product innovation[53]. - The company plans to invest significantly in R&D, with a focus on high-performance tire cord steel wire products, aiming to maintain a leading position in production technology within the industry[84]. - The company has a focus on developing a "production system training" project to reserve talent for production roles[184]. Environmental Responsibility - The company is classified as a key pollutant discharge unit in Weifang City, Shandong Province, with main pollutants including waste gas, wastewater, and solid waste[133]. - The actual emissions of particulate matter were between 3.3-5.6 mg/m³, which is below the standard of 10 mg/m³[134]. - The company’s wastewater treatment plant achieved a COD discharge of 45 mg/L, significantly below the standard limit of 500 mg/L[134]. - The company has established a hazardous waste storage facility and signed disposal contracts with qualified third-party organizations for hazardous waste management[135]. - The pollution control facilities operated normally during the reporting period, ensuring compliance with local environmental standards[136]. Shareholder Information - The company has established a cash dividend policy, ensuring that at least 10% of distributable profits are distributed as cash dividends annually[91]. - The cash dividend payout ratio for 2020 is 30.77% of the net profit attributable to shareholders[96]. - The company has not proposed a cash dividend plan for the year despite being profitable and having positive distributable profits[97]. - The company must disclose reasons for not proposing a cash dividend and the intended use of undistributed profits[97]. - The company’s controlling shareholders and actual controllers will compensate investors for losses caused by false statements in the prospectus[115]. Audit and Compliance - The audit report issued by Zhongxinghua Certified Public Accountants is a standard unqualified opinion[4]. - The internal control audit report for 2020 received a standard unqualified opinion, indicating effective internal controls[195]. - The company has not faced any risks of suspension or termination of listing during the reporting period[126]. - The company has not made any changes to accounting policies or estimates that would affect the financial statements[123]. Employee and Management - The company employed a total of 3,509 staff, with 2,940 in production, 426 in technical roles, and 43 in sales[181]. - The company has implemented a performance-oriented salary system to enhance employee motivation and align with market conditions[182]. - The total pre-tax remuneration for the directors and senior management during the reporting period amounted to 465.45 million yuan[171]. - The company has maintained a stable leadership structure with no significant changes in shareholding among key executives[171].