SKSHU(SH:603737)2021-04-28 16:00Financial Performance - In 2020, the company's operating revenue reached ¥8,200,228,400.23, representing a year-on-year increase of 37.31% compared to ¥5,972,263,435.78 in 2019[21]. - The net profit attributable to shareholders was ¥501,772,704.73, up 23.55% from ¥406,143,739.38 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥422,579,677.18, reflecting an 18.49% increase from ¥356,633,984.00 in 2019[21]. - The net cash flow from operating activities increased by 14.37% to ¥457,353,767.86, compared to ¥399,892,555.24 in 2019[23]. - By the end of 2020, the net assets attributable to shareholders rose to ¥2,508,157,051.92, a 45.41% increase from ¥1,724,914,433.56 at the end of 2019[23]. - Total assets increased by 60.24% to ¥9,094,152,554.86, compared to ¥5,675,296,091.06 at the end of 2019[23]. - Basic earnings per share for 2020 were ¥1.91, up 22.44% from ¥1.56 in 2019[22]. - The weighted average return on equity increased to 25.06%, up 1.45 percentage points from 23.61% in 2019[22]. Dividend Policy - The company plans to distribute cash dividends of 5.70 RMB per 10 shares, totaling approximately 153.26 million RMB, which represents 30.54% of the net profit attributable to shareholders for 2020[5]. - The company distributed a cash dividend of 30,372.61 million RMB for the year 2020, which represents 30.54% of the net profit attributable to ordinary shareholders[161]. - The cash dividend for 2019 was 6.60 RMB per 10 shares, totaling 122,909.14 million RMB, which was 30.26% of the net profit[161]. - The cash dividend for 2018 was 5.10 RMB per 10 shares, totaling 67,895.75 million RMB, which was 30.52% of the net profit[161]. - The company plans to distribute cash dividends of at least 20% of the distributable profits each year, subject to board approval based on annual profit conditions[156]. Risk Management - The company has outlined various risks in its operations and has provided measures to address these risks, emphasizing the importance of investor awareness[8]. - The company has a comprehensive risk statement detailing potential operational risks and corresponding countermeasures[8]. - The company is exposed to raw material price volatility, with over 90% of its main business costs tied to raw materials, and will strengthen price trend analysis and inventory management to manage this risk[149]. - The company has established a strict credit policy for large real estate developers to manage accounts receivable risks, enhancing collection management to improve cash flow[149]. Research and Development - The company has established a research and development philosophy focused on "extreme health, extreme performance, and extreme application," with nearly 2,000 R&D personnel[43]. - The company’s R&D expenses increased by 58.86% year-on-year to CNY 207,034,432.91, accounting for 2.52% of total operating revenue[83][87]. - The company submitted a total of 269 patent applications in 2020, including 120 invention patents and 24 utility model patents[109]. - The company has completed the development of several new products, including a low-odor UV product and graphene anti-corrosion coatings[111]. Market Strategy - The company aims to provide a "one-stop" service for consumers focusing on environmentally friendly wall coatings, and integrated green building solutions for real estate developers and engineering projects[41]. - The company is focusing on expanding its market presence and enhancing product offerings through new technology and product development[74]. - The company aims to strengthen its market position as industry consolidation increases, focusing on brand advantages and channel development[105]. - The company is committed to developing a comprehensive service system for one-stop product and decoration solutions[143]. Corporate Governance - The company has received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The company has maintained a commitment to transparency, with all board members present at the board meeting to ensure the authenticity of the annual report[9]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has no violations of decision-making procedures regarding external guarantees[7]. Social Responsibility - The company donated a total of 24.3962 million yuan through its public welfare foundation during the reporting period[59]. - The company is actively participating in public welfare initiatives, including poverty alleviation and educational support projects[60]. - The company contributed RMB 5.5 million to the "One Hundred Million Trees" project and made various donations totaling RMB 1.54 million for charitable activities[199]. Production and Operations - The company operates multiple wholly-owned subsidiaries across various regions, enhancing its market presence and operational capacity[12]. - The company is focused on expanding its production capacity across multiple bases, including Hebei, Hubei, and Xiuyu, to support its integrated supply chain strategy[63]. - The company achieved a logistics efficiency improvement of 118% through the application of smart manufacturing systems across its factories[62]. - The company is developing a multi-functional antibacterial and antiviral interior wall paint, currently in the trial sales phase[111].