Hangzhou Cables(SH:603618)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was CNY 5,813,677,967.21, representing an increase of 18.42% compared to CNY 4,909,197,834.05 in 2019[21] - The net profit attributable to shareholders of the listed company was CNY 117,972,211.13, a slight increase of 1.47% from CNY 116,266,330.44 in the previous year[21] - The net profit after deducting non-recurring gains and losses decreased by 16.58% to CNY 88,848,023.59 from CNY 106,503,656.44 in 2019[21] - The net cash flow from operating activities was negative at CNY -65,438,309.22, a significant decline compared to CNY 8,289,532.39 in 2019[21] - The total assets at the end of 2020 were CNY 7,444,751,617.35, an increase of 12.31% from CNY 6,628,916,664.90 in 2019[21] - The net assets attributable to shareholders of the listed company increased by 3.52% to CNY 2,736,003,325.59 from CNY 2,643,073,686.49 in 2019[21] - The weighted average return on equity decreased to 4.42%, down from 4.76% in 2019[22] - The gross profit margin for the power distribution and electrical segment decreased by 2.38 percentage points to 14.39%[68] - Operating costs rose to ¥4,975,967,694.89, reflecting a year-on-year increase of 21.55%[66] Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, maintaining the distribution ratio despite potential changes in total share capital[5] - For the 2020 fiscal year, the proposed cash dividend is RMB 0.60 per 10 shares, estimated to total RMB 41,462,472.24, representing 35.15% of the net profit attributable to shareholders[110] - The cash dividend distribution for 2020 is subject to approval at the annual general meeting[110] - The cash dividends for the last three years were RMB 34,366,516.05 in 2018, RMB 69,103,014.30 in 2019, and an estimated RMB 41,462,472.24 in 2020[111] Acquisitions and Investments - The company acquired 100% equity of Zhejiang Fuchunjiang Optoelectronics Technology Co., Ltd. for ¥131,000,000 on December 23, 2020[30] - The company acquired 100% equity of Fuchunjiang Optoelectronics for RMB 131 million, with no overseas assets involved[46] - The company provided a joint liability guarantee of 120,000,000 RMB for its joint venture, Hangdian Industrial Co., Ltd., with no overdue amounts reported[128] - The total amount of guarantees provided by the company, including those to subsidiaries, was 250,355,300.13 RMB, representing 9.15% of the company's net assets[128] Research and Development - The total R&D expenses for 2020 amounted to CNY 208.75 million, representing 3.59% of operating revenue, an increase of 30.28% year-on-year[76] - The company applied for 10 patents in 2020, including 4 invention patents, indicating a strong capability in technology transformation[59] - The company has developed a series of new products including fire-resistant cables and 27.5 KV railway-specific cables, enhancing its competitive position in the market[47] - The company is focusing on high-voltage and ultra-high-voltage power cables, which are increasingly being adopted for long-distance transmission due to their advantages[38] Market Position and Strategy - The company focuses on two main business segments: power cables and optical communication, with a strong emphasis on high-voltage and special cables[30] - The company is positioned to benefit from the "Belt and Road" initiative, which is expected to enhance the demand for power construction in related countries[39] - The company is expected to leverage the growing market for renewable energy and smart grid infrastructure, enhancing its growth prospects in the coming years[37] - The company aims to enhance its R&D capabilities to meet the increasing demands of downstream industries for high-end wire and cable products[94] Corporate Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4] - The company has committed to not transferring more than 25% of their shares during their tenure and not transferring any shares within six months after leaving their positions[112] - The company will ensure compliance with all commitments made during the issuance and listing process, accepting supervision from regulatory authorities and investors[114] - The company emphasizes the importance of retaining core technical personnel to maintain its competitive advantage in the industry[105] Social Responsibility - The company has contributed a total of RMB 885,000 in social responsibility initiatives, including support for local hospitals during the COVID-19 pandemic[136] - The company has actively participated in poverty alleviation efforts, with a total investment of RMB 88.50 million in various initiatives[137] - The company has made a specific donation of RMB 500,000 to support the fight against COVID-19 in Fuyang District[138] Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 1,664, with 1,015 in the parent company and 649 in subsidiaries[181] - The management team consists of experienced professionals with backgrounds in finance, engineering, and management, enhancing the company's operational capabilities[173] - The company has established a compensation policy linked to economic performance and individual performance, promoting productivity[182] - The annual training plan includes onboarding for new employees, skill upgrades for current employees, and leadership development for potential middle-aged and young cadres[183] Financial Instruments and Debt Management - The company issued 7.8 million convertible bonds with a total value of 780 million RMB, which began trading on March 27, 2018[142] - The company's credit rating for the convertible bonds is "AA," with a stable outlook, as assessed by Shanghai New Century Credit Rating Co., Ltd.[148] - The company plans to rely on operational cash flow for future debt repayment[148] - The remaining unconverted bond amount is 749,865,000 RMB, which constitutes 96.1365% of the total issued convertible bonds[144]