Hexing(SH:603556)2021-04-11 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 481,204,578.43 for the year 2020, with a statutory surplus reserve of RMB 19,517,076.65[4]. - The total distributable profit at the end of 2020 was RMB 2,303,431,329.08, considering previous undistributed profits and inflation adjustments[4]. - The proposed cash dividend is RMB 5.00 per 10 shares, amounting to an estimated total cash dividend of RMB 244,342,020.00 based on the total share capital of 488,684,040 shares[4]. - The company's operating revenue for 2020 was ¥2,805,952,366.54, a decrease of 5.02% compared to ¥2,954,172,901.03 in 2019[16]. - The net profit attributable to shareholders for 2020 was ¥481,204,578.43, down 3.85% from ¥500,474,255.87 in 2019[16]. - The net profit after deducting non-recurring gains and losses was ¥298,324,753.20, reflecting a significant decline of 21.54% from ¥380,239,422.09 in the previous year[16]. - The net cash flow from operating activities decreased by 16.70% to ¥411,727,242.18 in 2020, compared to ¥494,285,211.01 in 2019[16]. - The total assets at the end of 2020 were ¥7,068,558,101.34, an increase of 4.17% from ¥6,785,839,638.17 at the end of 2019[16]. - The weighted average return on net assets for 2020 was 8.81%, down 1.18 percentage points from 9.99% in 2019[17]. - The basic earnings per share for 2020 were ¥0.98, a decrease of 4.85% compared to ¥1.03 in 2019[17]. Market Presence and Strategy - The global electricity meter market's annual expenditure was $16 billion in 2020, projected to grow to $19 billion in 2021, with China expected to reach $5.6 billion[27]. - The company is the largest exporter of smart electricity meters in China, covering over 90 countries and regions, with significant market presence in Latin America, Africa, Southeast Asia, and South Asia[29]. - The total bidding amount for electricity meters by the State Grid in 2020 was approximately ¥134.25 billion, a year-on-year increase of 1.70%[28]. - The company has established a global marketing platform and a comprehensive sales network, enhancing its marketing advantages in both domestic and overseas markets[25]. - The company has launched several new products, including integrated ring network cabinets and smart gateways, to enhance its market share in the power distribution sector[30]. Research and Development - The company maintained a strong R&D focus, holding 171 patents, including 43 invention patents, and continued to develop new products such as the next-generation smart meter based on IR46 international standards[34][40]. - The company’s R&D model focuses on customer needs and integrates product development processes to improve quality and efficiency[25]. - The total R&D expenditure for the period amounted to ¥240,389,500.54, representing 8.57% of the operating revenue[51]. Financial Health and Investments - The company reported a significant increase in investment activities, with a net cash flow of ¥1,535,608,874.95, compared to a negative cash flow of ¥628,052,200.74 in the previous year[43]. - The company’s long-term receivables increased by 498.08% to approximately ¥124.13 million, primarily due to new project contracts[31]. - The company reported a significant increase in other non-current assets by 414.71% to ¥36,357,453.48, mainly due to increased prepayments for fixed asset purchases[53]. Social Responsibility and Community Engagement - The company contributed 150,000 RMB to local development projects in 2020, supporting sustainable resource and ecological development[97]. - The company has been actively participating in poverty alleviation projects, including the "联乡结村" initiative in Zhejiang[96]. - The company donated 200,000 RMB to the Red Cross for epidemic prevention efforts and procured medical supplies globally during the COVID-19 pandemic[102]. - The company has received multiple awards for its social responsibility efforts, including recognition as a model worker home and best enterprise for social responsibility in Hangzhou[103]. Corporate Governance - The company’s governance structure includes independent directors who contribute to strategic decision-making and oversight, ensuring compliance and accountability[125]. - The total remuneration for directors, supervisors, and senior management in 2020 amounted to CNY 5.779 million[128]. - The company has established a transparent performance evaluation and incentive mechanism to enhance management performance[135]. - The internal control system was audited by Ernst & Young Huaming, which issued a standard unqualified opinion on the effectiveness of the internal controls for the financial report[141]. Employee and Management Structure - The company employed a total of 3,376 staff, with 1,716 in production, 235 in sales, 827 in technology, 76 in finance, and 522 in administration[131]. - The company has a competitive and incentive-based salary policy, ensuring that average employee income exceeds regional and industry averages during prosperous economic periods[132]. - The company has established a performance evaluation system for senior management based on operational performance and market salary levels[128]. Financial Reporting and Compliance - The financial statements were approved by the board on April 9, 2021[191]. - The company adheres to the accounting standards set by the Ministry of Finance of the People's Republic of China[194]. - The audit report aims to provide reasonable assurance that the financial statements are free from material misstatement, highlighting the auditor's responsibilities[153].