Daimay(SH:603730)2021-04-28 16:00Financial Performance - The company achieved operating revenue of RMB 3.95 billion in 2020, a decrease of 18.01% compared to 2019[16]. - Net profit attributable to shareholders was RMB 393.15 million, down 37.13% year-on-year[18]. - The net profit after deducting non-recurring gains and losses was RMB 223.12 million, a decline of 62.57% compared to the previous year[19]. - The company's gross profit margin decreased to 25.80% in 2020 from 30.43% in 2019, primarily due to changes in revenue recognition standards[20]. - Basic earnings per share were RMB 0.68, down 37.04% from RMB 1.08 in 2019[17]. - The total profit for 2020 was RMB 46,566.55 million, down 34.37% year-on-year[50]. - The company reported a total revenue of approximately 170.03 million, with a net profit of 29.30 million for the reporting period[24]. - The company reported a financial expense increase due to foreign exchange losses from appreciating RMB, contrasting with gains in the previous year[55]. - The company’s total assets at the end of 2020 were RMB 5.49 billion, an increase of 4.06% from the previous year[16]. Dividend Distribution - The company plans to distribute a cash dividend of 5.00 CNY per 10 shares, totaling 289,766,202 CNY, and will also increase its share capital by 2.5 shares for every 10 shares held, resulting in an increase of 144,883,101 shares[4]. - The company distributed a cash dividend of 5 RMB per 10 shares, totaling 289,766,202 RMB, which accounted for 73.70% of the net profit attributable to ordinary shareholders[89]. - In 2019, the cash dividend was also 5 RMB per 10 shares, amounting to 200,297,260 RMB, representing 32.03% of the net profit attributable to ordinary shareholders[89]. - In 2018, the company paid a cash dividend of 5 RMB per 10 shares, totaling 200,297,260 RMB, which was 35.89% of the net profit attributable to ordinary shareholders[89]. Audit and Compliance - The company has received a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[3]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[5]. - The company has not reported any violations of decision-making procedures regarding external guarantees[5]. - The company’s financial report is available for review, ensuring transparency and accountability[12]. - There were no significant lawsuits or arbitration matters during the reporting period[112]. - The company has not disclosed any employee stock ownership plans or other incentive measures during the reporting period[112]. - The company has implemented strict internal control systems to ensure compliance with laws and regulations, protecting the rights of shareholders and stakeholders[125]. Operational Challenges and Risks - The company has outlined potential risks in its operations, which are detailed in the report[5]. - The report emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting the importance of investment risk awareness[5]. - The company faced challenges due to the COVID-19 pandemic, with global automotive sales declining by 13% in 2020[48]. - Major raw material costs significantly impact production costs, with fluctuations in prices for chemicals, steel, plastics, and electronic components increasing management difficulties[80]. - The automotive parts industry generally faces annual price reductions of 1%-3% as requested by vehicle manufacturers[35]. - The company anticipates that the global chip shortage may lead to production losses of 2 to 4.5 million vehicles in 2021, impacting its supply chain[86]. Market Presence and Strategy - The company operates multiple subsidiaries across various regions, including North America, Europe, and Asia, enhancing its market presence[8]. - The company specializes in the research, development, production, and sales of passenger car parts, establishing a strong presence in markets including China, the USA, France, and Mexico[25]. - The company has developed partnerships with major automotive manufacturers such as Mercedes-Benz, BMW, and Tesla, ensuring a stable supply chain[25]. - The company has established a strong global customer base, supplying parts to major automotive manufacturers such as Mercedes-Benz, BMW, and Tesla[38]. - The company aims to enhance its global supply capabilities in automotive interior components, focusing on product development, manufacturing, and sales[76]. - The company plans to invest in sales network construction to improve market coverage and strengthen control over sales channels[77]. Research and Development - The company is committed to continuous product development and innovation, aligning with market demands and technological advancements[26]. - The company has a strong capability in mold manufacturing, with most molds designed in-house to control development costs and timelines[41]. - The company has participated in multiple R&D projects with major automotive giants since 2012, enhancing its synchronous development capabilities[40]. - The company emphasizes the importance of technological innovation and market-oriented research and development mechanisms[78]. - The company’s research and development expenses were RMB 151,382.22 million, a decrease of 15.95% compared to the previous year[53]. Shareholder and Governance - The controlling shareholder is Zhejiang Zhoushan Daimai Investment Co., Ltd., holding 56.37% of the shares[140]. - Major shareholders have agreed not to transfer or manage their shares for 36 months post-IPO, with specific conditions for share reduction thereafter[92][97]. - The company has committed to avoiding any competition with its own business by ensuring that major shareholders do not invest in competing companies[98]. - The company has outlined a commitment to ensure that any potential conflicts of interest are managed to protect shareholder interests[99]. - The company has established a dedicated investor relations department to enhance communication with minority shareholders and ensure their rights are protected[160]. Employee Management - The total number of employees in the company, including the parent company and major subsidiaries, is 8,038[155]. - The company has established a salary management system that includes basic salary, position salary, performance salary, overtime pay, bonuses, and subsidies[156]. - The company plans to conduct quality and professional skills training for employees in a phased manner[157]. - The company has 85 employees with a master's degree or above, and 410 employees with a bachelor's degree[155]. Financial Management - The company has engaged multiple banks and securities firms for financial products, including CITIC Bank and Heng Tai Securities[120][121]. - The maximum single entrusted financial management amount was CNY 100,000,000[120]. - The company has successfully recovered all invested amounts from its financial products[119][120][121]. - The company has no overdue amounts in its entrusted financial management[117]. - The company plans to continue utilizing idle funds for entrusted financial management in the future[119].