NWM(SH:603700)2021-04-19 16:00Financial Performance - The company achieved total operating revenue of ¥1,590,152,353.41 in 2020, representing a year-on-year growth of 15.97%[27]. - Net profit attributable to shareholders of the listed company was ¥273,091,001.84, an increase of 28.64% compared to the previous year[27]. - The net profit after deducting non-recurring gains and losses was ¥245,100,630.87, up 30.32% year-on-year, primarily due to the rapid development of the smart water meter business[27]. - Basic earnings per share for 2020 were ¥1.34, reflecting a growth of 26.42% from ¥1.06 in 2019[26]. - Total assets at the end of 2020 reached ¥2,059,923,483.00, a 21.14% increase from ¥1,700,511,780.22 in 2019[25]. - The weighted average return on net assets increased to 20.16%, up 1.2 percentage points from 18.96% in 2019[26]. - The company reported a net cash flow from operating activities of ¥126,758,759.57, a decrease of 9.28% compared to the previous year[25]. - The company’s net assets attributable to shareholders were ¥1,452,633,108.50 at the end of 2020, an increase of 16.76% from ¥1,244,167,921.79 in 2019[25]. Dividend Policy - The company plans to distribute a cash dividend of 4 RMB per 10 shares, totaling approximately 80.86 million RMB, which accounts for 29.61% of the net profit attributable to shareholders in 2020[5]. - The cash dividend payout ratio for 2020 was 7.32%, amounting to 19,988,015.16 RMB[144]. - The company has established a cash dividend policy, ensuring a minimum of 20% of distributable profits are allocated to cash dividends annually, provided certain conditions are met[136]. - The company plans to distribute cash dividends with a minimum ratio of 80% if it is in a mature stage without significant capital expenditure arrangements[137]. - The company has committed to a differentiated cash dividend proposal based on its development stage and capital expenditure plans[137]. - The company’s net profit attributable to ordinary shareholders for 2020 was 273,091,001.84 RMB, with a dividend payout ratio of 29.61%[142]. Share Repurchase and Capital Structure - The total amount spent on share repurchases during the reporting period was approximately 19.99 million RMB, combined with the proposed cash dividend, totaling around 100.85 million RMB, representing 36.93% of the net profit attributable to shareholders[5]. - The company’s capital stock increased by 30.00% to ¥203,242,000.00 due to the capitalization of reserves[96]. - The company has a total of 203,242,000 shares after the recent capital increase, with 99,918,690 shares subject to limited sale conditions, representing 49.16% of total shares[200]. - The company has a total of 103,323,300 shares in circulation, with 39,090,000 shares under unlimited sale conditions, representing 50.84% of total shares[200]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[8]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity of the annual report[8]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[6]. - The company is exposed to macroeconomic risks, as its products are closely tied to urban water supply, which may be adversely affected by economic slowdowns[126]. - The company faces risks of declining gross margins due to increased competition in the smart water meter market and potential raw material price fluctuations[129]. Innovation and Product Development - The company focuses on smart water supply, manufacturing over 1,000 types of water metering products, serving over 2,300 domestic water companies, and exporting to over 80 countries[38]. - The company is developing Smart 3.0 products based on 5G technology, which will provide integrated data sensing for water supply companies, measuring parameters like water volume, pressure, and quality[39]. - The smart water service application cloud platform integrates various systems for seamless data exchange, enhancing decision-making for water companies[40]. - The company is committed to innovation and product development, expanding its offerings beyond traditional water metering products to include network flushing equipment and pressure analyzers[44]. - The company has developed a new generation of NB-IoT water meters, significantly reducing costs and improving gross margins[60]. - The company is actively pursuing a strategy of expanding its service capabilities and optimizing product structures to adapt to market demands[60]. Market Position and Strategy - The company has established long-term partnerships with over 2,300 water supply companies, maintaining a stable market position with sales revenue distribution across eight regions[58]. - The company aims to achieve a revenue target of 2 billion yuan for 2021, focusing on expanding both domestic and international markets[119]. - The company is transitioning towards a "manufacturing + service" model, integrating hardware and software solutions for comprehensive water management[117]. - The company anticipates significant growth in the smart water management sector, with the industry scale projected to exceed 100 billion yuan in the future[115]. - The company plans to enhance its production capacity to 5 million smart meters and establish a fully automated production line in a new factory utilizing advanced technologies like 5G and IoT[122]. Social Responsibility and Community Engagement - The company contributed RMB 25,000 in funds and RMB 2,000 in material donations for poverty alleviation efforts[188]. - The company received the "Outstanding Contribution Award" from the China Metrology Association for its efforts in social responsibility and poverty alleviation[188]. - The company actively participates in social welfare activities, including a donation of 1 million yuan for pandemic relief efforts and establishing a charity fund for local assistance programs[194]. - The company emphasizes employee rights protection, providing benefits such as free accommodation, regular health check-ups, and high-temperature subsidies[193]. Compliance and Governance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The company has confirmed that there are no significant accounting errors or changes in accounting estimates during the reporting period[159]. - The company has committed to not engaging in any activities that would harm the interests of shareholders and will compensate for any losses caused by breaches of this commitment[154]. - The company will publicly disclose any failure to fulfill commitments made in the prospectus and will compensate investors for any resulting losses[154]. - The company has ensured that its controlling shareholders and executives will not interfere with management activities or misappropriate company interests[154].