SGP(SH:603586)2021-04-06 16:00Financial Performance - The company's operating revenue for 2020 was RMB 1,286,781,515.19, a decrease of 20.67% compared to RMB 1,622,080,434.07 in 2019[21] - The net profit attributable to shareholders for 2020 was RMB 163,108,294.71, down 19.70% from RMB 203,134,868.85 in the previous year[21] - The net profit after deducting non-recurring gains and losses was RMB 126,908,034.27, a decrease of 27.58% compared to RMB 175,248,803.18 in 2019[21] - Basic earnings per share decreased by 18.00% to CNY 0.82 in 2020 from CNY 1.00 in 2019[22] - The company's total revenue for 2020 was CNY 1.287 billion, a decrease of 20.67% year-on-year[51] - Net profit for 2020 was CNY 163 million, down 19.71% compared to the previous year[51] - Brake pad revenue decreased by CNY 226 million, a decline of 17.69%, while brake disc revenue fell by CNY 92 million, a drop of 29.60%[52] Cash Flow and Assets - The net cash flow from operating activities increased by 33.09% to RMB 351,062,497.77 from RMB 263,769,215.94 in 2019[21] - As of the end of 2020, the total assets were RMB 2,611,297,356.92, a decrease of 6.98% from RMB 2,807,246,296.49 at the end of 2019[21] - The net assets attributable to shareholders at the end of 2020 were RMB 2,168,616,456.31, a slight decrease of 0.79% from RMB 2,185,869,575.18 in 2019[21] - The company's cash and cash equivalents at the end of the period were ¥722,728,349.08, a decrease of 15.10% compared to the previous year[72] Market and Sales - The company primarily operates in the foreign AM market, which is the main source of sales revenue and profit, with most products being ODM products sold under clients' brands[36] - The domestic AM market is served through self-owned brands and a dealer model, with the company establishing direct sales channels including physical and online stores[38] - The global automotive ownership reached approximately 1.55 billion vehicles by 2020, supporting stable market demand for automotive brake pads and discs[41] - Over 80% of the company's main business revenue is generated from exports, primarily to Europe, North America, the Middle East, and Southeast Asia[97] Research and Development - The company has developed over 6,500 types of automotive brake pads and 4,200 types of brake discs, primarily targeting the international market[31] - The company has developed 260 brake friction material formulas and possesses an independent R&D system for these materials[46] - The company is actively investing in the development of new energy vehicle products, aligning with national policies to promote electric vehicle production[83] - The company is committed to enhancing its R&D capabilities by improving product formulations and developing new brake pad models to increase product coverage[94] Risk Management - The company has disclosed potential risks in its report, which investors should review carefully[7] - The company faces risks related to potential product quality issues that could lead to significant financial losses and affect sales[97] - The appreciation of the RMB against the USD poses a risk of foreign exchange losses for the company, as most export transactions are settled in USD[98] - The company has implemented strict quality control measures to mitigate risks associated with potential leaks of commercial technology and trade secrets[98] Corporate Governance - The company has established a fair and transparent governance structure, ensuring compliance with relevant laws and regulations[182] - The company has a diverse board of directors with members holding various positions in other organizations, enhancing its governance and industry connections[171] - The management team has a strong commitment to corporate governance, with independent directors overseeing key decisions[170] - The company has not faced any penalties from securities regulatory authorities in the past three years[174] Shareholder Relations - The company plans to distribute a cash dividend of RMB 7.00 per 10 shares to shareholders, subject to approval at the annual general meeting[4] - The company will ensure that any share reductions after the lock-up period will not be below the issuance price, maintaining shareholder value[107] - The company has committed to a stock price stabilization plan if the closing price falls below the latest audited net asset value per share for twenty consecutive trading days[109] Environmental Responsibility - The company has implemented various environmental protection measures, including a wastewater treatment station and air purification systems[137] - The company is committed to energy conservation and pollution reduction, adhering to national environmental protection policies[132] - The company emitted 6.97 tons of particulate matter and 5.16 tons of volatile organic compounds (VOCs) in 2020[135] - The company has established a VOCs online monitoring system connected to environmental authorities for real-time emissions tracking[140] Employee Welfare - The company has established a comprehensive employee welfare system, ensuring compliance with labor laws and protecting employee rights[132] - The company has implemented a performance-based remuneration policy that links employee compensation directly to company performance and individual work performance[176] - The company provided direct relative pensions totaling CNY 447,840 for 5,188 employees' eligible relatives[133] Future Plans - In 2021, the company plans to focus on high-quality development, aiming to create greater value for shareholders and increase employee income while effectively controlling costs[91] - The company will continue to optimize its product structure and enhance customer satisfaction by providing high-quality brake products, aiming to maintain its market leadership in the international AM market[91] - The company plans to issue convertible bonds to fund the construction of intelligent factories, improving production capacity and efficiency to meet growing customer demand[96]