Huada(SH:603358)2021-04-28 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 229,140,061.34 for the year 2020[5]. - The company's operating revenue for 2020 was approximately ¥4.13 billion, a decrease of 1.05% compared to ¥4.18 billion in 2019[22]. - Net profit attributable to shareholders increased by 47.02% to approximately ¥229.14 million in 2020, up from ¥155.86 million in 2019[22]. - The net cash flow from operating activities rose by 29.56% to approximately ¥544.99 million in 2020, compared to ¥420.65 million in 2019[22]. - Basic earnings per share increased by 46% to ¥0.73 in 2020, compared to ¥0.50 in 2019[23]. - The weighted average return on equity improved by 2.46 percentage points to 8.42% in 2020, up from 5.96% in 2019[23]. - Total assets at the end of 2020 reached approximately ¥5.08 billion, reflecting a 9.48% increase from ¥4.64 billion at the end of 2019[22]. - The net assets attributable to shareholders increased by 5.09% to approximately ¥2.79 billion at the end of 2020, compared to ¥2.65 billion at the end of 2019[22]. - The company reported a total of ¥15.08 million in non-recurring gains and losses for 2020, compared to ¥7.19 million in 2019[28]. - The company experienced a significant increase in net profit in the fourth quarter of 2020, reaching approximately ¥107.23 million[29]. Profit Distribution - The proposed profit distribution plan includes a cash dividend of RMB 4.3 per 10 shares, totaling RMB 134,848,000.00[5]. - The company distributed 4 shares for every 10 shares held and paid a cash dividend of 4.3 RMB per 10 shares in 2020, with a total cash dividend amounting to 134,848,000 RMB, representing 58.85% of the net profit attributable to ordinary shareholders[116]. - The company has not proposed any cash profit distribution plan despite having positive distributable profits for the reporting period[116]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[6]. - The company has outlined various risks and countermeasures in its report, which can be found in the section discussing future developments[6]. - The company faces risks related to fluctuations in the automotive industry's demand, which could adversely affect sales if the manufacturing sector experiences a downturn[110]. - The cost of automotive sheet metal, which constitutes approximately 80% of the company's main business costs, is subject to price volatility, impacting profitability[111]. - The company has not faced any risks of suspension from listing during the reporting period[130]. Corporate Governance - The audit report issued by Zhongxinghua Accounting Firm confirms a standard unqualified opinion for the financial statements[4]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies in internal controls[191]. - The company confirmed that there were no major differences between its governance practices and the requirements set by the China Securities Regulatory Commission[183]. - The company’s governance structure complies with modern enterprise systems and the requirements of the "Corporate Governance Code" for listed companies[183]. Market Position and Strategy - The company focuses on the development, production, and sales of passenger car body parts and related molds, with a strong manufacturing capability in the domestic market[34]. - The company has established stable partnerships with major domestic automakers, becoming a first-tier supplier for well-known brands such as SAIC Volkswagen and Dongfeng Honda[36]. - The company is focusing on the electric vehicle market, particularly in the production of battery system casings, with strategic expansions in Jiangsu, Fujian, Guangdong, and Sichuan[51]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[29]. - The automotive industry is experiencing a shift towards electrification, intelligence, and connectivity, increasing demand for main control chips and power semiconductors[88]. Research and Development - Research and development expenses amounted to 158,115,209.36 CNY, representing 3.82% of total operating revenue[73]. - The number of R&D personnel was 205, making up 8.54% of the total workforce[73]. - The company developed 1,679 new products during the reporting period, enhancing cost efficiency through technological innovation[49]. - The company has developed core technologies in automated stamping molds and high-strength stamping parts, enhancing its competitive edge in the automotive parts industry[39]. Employee Management - The total number of employees in the parent company is 806, while the total number of employees in major subsidiaries is 1,595, resulting in a combined total of 2,401 employees[177]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 611.19 million yuan[172]. - The company has established a comprehensive training management system, focusing on technical, quality, production, financial, and new employee onboarding training[179]. - The company emphasizes the importance of employee performance evaluations in determining salary adjustments and promotions[178]. - The company has implemented an employee quality improvement project through training to enhance overall operational efficiency[179]. Shareholder Information - The total number of ordinary shareholders increased from 9,508 to 10,971 during the reporting period[153]. - The largest shareholder, Chen Jinghong, holds 175,898,436 shares, representing 56.09% of the total shares[153]. - The second-largest shareholder, Ge Jianghong, holds 21,925,492 shares, representing 6.99% of the total shares[153]. - The third-largest shareholder, Liu Danqun, holds 17,578,848 shares, representing 5.61% of the total shares[153]. - The actual controller of the company is also Chen Jinghong, with no other controlling entities involved[158]. Operational Efficiency - The company has implemented an ERP information management system to improve resource efficiency and control production costs effectively[42]. - The company has established production bases in multiple locations, including Jiangsu and Guangdong, to reduce transportation costs and enhance product competitiveness[44]. - The company has a structured salary management system that includes base salary, performance bonuses, overtime pay, and attendance bonuses, ensuring compliance with local labor standards[178]. - The company has maintained a strong order acquisition momentum, particularly in the development of new energy vehicle battery boxes[76]. Financial Assets and Investments - The total amount of structured deposits from Pudong Development Bank Jiangyin Branch reached ¥85,000,000 with a return rate of 2.80%[147]. - The total amount of structured deposits from China Construction Bank Jiangyin Branch was ¥110,000,000 with a return rate of 2.96%[146]. - The company’s investment activities generated a net cash outflow of -160,541,456.63 CNY, a decrease in outflow compared to the previous year[77]. - The company invested 4 million yuan to acquire a 75% stake in Shenzhen Yuntu Electric System Co., Ltd., increasing its registered capital to 20 million yuan[91].