ORIENT CABLE (NBO)(SH:603606)2021-03-26 16:00Financial Performance - The company achieved a net profit of ¥879,702,520.40 for the year 2020, with a distributable profit of ¥791,732,268.36 available for shareholders[6]. - A cash dividend of ¥2.30 per 10 shares (including tax) is proposed, totaling ¥150,444,039.83 to be distributed to shareholders[6]. - The retained earnings after the dividend distribution will amount to ¥1,398,726,549.21[6]. - The company’s total distributable profit accumulated to ¥1,549,170,589.04 by the end of 2020[6]. - The company achieved operating revenue of CNY 5.05 billion in 2020, a year-on-year increase of 36.90%[18]. - Net profit attributable to shareholders reached CNY 887.35 million, up 96.26% compared to the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 823.97 million, reflecting an increase of 89.28% year-on-year[20]. - The cash flow from operating activities was CNY 693.98 million, showing a slight increase of 3.27% from the previous year[18]. - The company's total assets at the end of 2020 were CNY 6.09 billion, a 54.50% increase from the end of 2019[18]. - The weighted average return on equity rose to 34.24%, an increase of 10.76 percentage points from the previous year[19]. - The company reported a net profit margin of 17.55% for 2020, up from 12.24% in 2019[20]. Dividend Policy - The company plans to maintain stable cash dividends to support long-term development and shareholder returns[6]. - The company has implemented a cash dividend policy that mandates a minimum distribution of 15% of the distributable profit each year[121]. - In 2020, the company distributed a cash dividend of 2.30 CNY per 10 shares, totaling approximately 150.44 million CNY, which represents 16.95% of the net profit attributable to shareholders[122]. Risk Management - The report includes a risk statement regarding forward-looking statements, emphasizing that future plans do not constitute a commitment to investors[7]. - The company faces risks from raw material price fluctuations, particularly in copper and aluminum, which are critical for cable production[114]. - The company is exposed to policy risks related to national industrial policies that can significantly impact the cable industry, including those affecting power grid and railway construction[115]. - The company anticipates potential market demand decline due to macroeconomic downturns, which could affect overall sales[116]. - The company operates in a highly fragmented market with over 4,000 significant competitors, leading to intense competition in the low and medium voltage cable segments[117]. - The company has established measures to mitigate risks from the COVID-19 pandemic, including strict prevention protocols and coordination of orders and production[119]. - The company is aware of the potential slowdown in offshore wind power investments due to policy adjustments, which may impact demand for submarine cables[120]. Market and Industry Trends - The revenue from the submarine cable system and marine engineering grew by 50.04%, contributing significantly to overall revenue growth[20]. - The global wire and cable market is projected to grow from USD 184.92 billion in 2019 to USD 269.46 billion by 2027, with a compound annual growth rate (CAGR) of 5%[28]. - The expected sales revenue for the Chinese wire and cable industry in 2021 is projected to reach CNY 1.6 trillion, with a CAGR of 5.09% from 2019 to 2024[29]. - The offshore wind power sector is expected to drive significant growth in the submarine cable installation and maintenance market due to increasing demand for high-capacity, high-voltage submarine cables[83]. - The global offshore wind power market saw an increase of over 6GW in new installed capacity in 2020, with China contributing more than 3GW, accounting for 50.45% of the global total[78]. - The total installed offshore wind power capacity in Guangdong, Jiangsu, and Zhejiang provinces is projected to exceed 30 GW during the 14th Five-Year Plan, with an average annual new installation of over 6 GW[101]. Research and Development - The company has a core technical staff ratio of nearly 20%, emphasizing the importance of talent acquisition and training in maintaining competitive advantage[34]. - The company has undertaken 18 national-level major scientific research projects, showcasing its commitment to technological innovation and collaboration with renowned research institutions[37]. - The company has developed the world's first 500kV submarine cable and ±535kV DC land cable, marking significant advancements in high-voltage transmission technology[40]. - The company has strengthened its R&D investment in marine cable products, indicating a focus on technological innovation and market expansion[66]. - Research and development expenses totaled ¥187,365,300.59, accounting for 3.71% of total revenue[65]. - The company has a total of 105,005.50 hours of outsourced labor, with total payments amounting to CNY 2,553,820.25[195]. Corporate Governance - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and senior management to ensure efficient decision-making and protect shareholder interests[139]. - The company has implemented strict internal control systems to enhance risk management and ensure sustainable development[199]. - The company maintains a clear separation from its controlling shareholder in terms of personnel, assets, finance, and operations, ensuring independent operations[197]. - The company has established a dedicated department for investor relations to enhance communication and protect investor rights[200]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating CNY 3 million for pandemic prevention efforts[53]. - The company has a long-term commitment to social responsibility, including improving employee living conditions and engaging in public welfare initiatives[113]. - The company has committed to integrating green and sustainable practices into its operations through continuous technological innovation[113]. - The company is committed to environmental responsibilities, implementing ISO14001 certified management systems and utilizing solar energy to reduce carbon emissions by 30%[145]. - The company has established emergency response plans for environmental incidents, ensuring rapid and effective management of potential risks[146]. Employee Management - The company has established a comprehensive incentive mechanism for its employees, focusing on performance and contribution to the company[131]. - The total remuneration paid to directors, supervisors, and senior management in 2020 amounted to CNY 6.5229 million[187]. - The company employed a total of 1,138 staff, with 932 in the parent company and 206 in major subsidiaries[191]. - The company emphasizes training and has a comprehensive vocational education training system in place[194]. Investment and Financing - The company issued convertible bonds, resulting in a new long-term debt of ¥692,193,496.37, which accounted for 11.36% of total liabilities[69]. - The actual net amount raised from the bond issuance was approximately 786.19 million yuan after deducting fees[158]. - The coupon rates for the convertible bonds are 0.30% for the first year, increasing to 2.00% by the sixth year[165]. - The company allocated 200,000,000 RMB to bank wealth management products, with an expected annual return rate of 3.5%[133]. Technological Innovation - The company focuses on technological innovation and has increased investment in new product development to enhance its market position[34]. - The company has successfully applied the new fusion joint technology in various projects, including State Grid transmission and transformation projects, petrochemical projects, offshore wind farms, and rail transit projects, indicating a positive market response[84]. - The company is focusing on the development of special cables, which are expected to become a significant growth point, driven by the demand for environmentally friendly and energy-saving cables[97].