First(SH:603806)2021-03-25 16:00Financial Performance - The company's operating revenue for 2020 was CNY 8,393,142,040.58, representing a 31.59% increase compared to CNY 6,378,151,355.92 in 2019[16] - The net profit attributable to shareholders for 2020 was CNY 1,565,006,791.51, a 63.52% increase from CNY 957,062,795.31 in the previous year[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,521,473,835.37, up 87.72% from CNY 810,502,040.05 in 2019[16] - Basic earnings per share reached 2.09 CNY, a 59.54% increase from 1.31 CNY in 2019[17] - The weighted average return on equity increased by 4.68 percentage points to 20.92%[17] - The company's net profit increased by 31.31%, reaching approximately CNY 5.34 billion, attributed to improved operational efficiency[63] - The company achieved total operating revenue of 8,393,142,040.58 yuan in 2020, representing a 31.59% increase compared to the previous year, with a net profit attributable to shareholders of 156,500.68 million yuan, up 63.52%[45] Cash Flow and Assets - The net cash flow from operating activities for 2020 was CNY 272,341,482.92, a decrease of 37.38% compared to CNY 434,941,650.99 in 2019[16] - The net cash flow from operating activities decreased by CNY 162.60 million, attributed to increased cash payments for goods and services[47] - The total assets at the end of 2020 were CNY 11,544,851,528.69, reflecting a 39.01% increase from CNY 8,305,106,941.62 at the end of 2019[16] - Accounts receivable increased by 45.95% to 750.06 million yuan, attributed to expanded sales scale[32] - The company's cash flow from operations was negatively impacted by an increase in accounts receivable, notes receivable, and inventory due to the expansion of its business scale[108] Production and Sales - The company sold 865 million square meters of photovoltaic film in 2020, a 15.57% increase year-on-year, capturing approximately 55%-60% of the global market share[24] - The production volume of photovoltaic film was 87,391.66 million square meters, reflecting a year-on-year increase of 16.50%[51] - The main business revenue from photovoltaic film reached CNY 756,229.44 million, growing by 32.79% compared to the previous year[48] - The company expanded its production capacity for photovoltaic adhesive films to a designed capacity of 1.051 billion square meters, a year-on-year increase of 41.07%[43] - The company launched the largest scale of multi-layer co-extruded POE adhesive film production, enhancing product offerings for customers[42] Research and Development - Research and development expenses for 2020 amounted to 309 million yuan, maintaining a leading position in the industry[34] - The company holds 353 invention and utility model patents, with 121 valid invention patents, ensuring a strong technological advantage[34] - The company has developed new materials such as photosensitive dry film and aluminum-plastic composite film, with some products already entering industrialization[24] - The company is focusing on the development of high-end photosensitive dry films to achieve domestic production capabilities[104] - The company aims to develop new materials such as photosensitive dry film and FCCL, with plans for large-scale production based on market expansion[104] Market and Industry Outlook - Global photovoltaic installed capacity increased from 53 GW in 2015 to 130 GW in 2020, indicating a stable growth trend in the industry[29] - The company forecasts global photovoltaic installed capacity to reach 270 GW by 2025 under conservative estimates, with adhesive film demand projected to be 32.4 billion square meters[31] - The company is a leading player in the global photovoltaic encapsulation materials industry, benefiting from scale, brand, and customer resource advantages[77] - The average selling price for photovoltaic products is influenced by market supply and demand as well as raw material costs[79] Dividend and Shareholder Information - The company plans to distribute a cash dividend of CNY 4.50 per 10 shares and to increase capital by 2 shares for every 10 shares held, totaling CNY 346,298,567.40 in cash dividends and 153,910,474 shares to be distributed[3] - The cash dividend per 10 shares in 2020 was 4.50 RMB, down from 5.50 RMB in 2019[115] - The company plans to maintain a cash dividend policy where at least 10% of the annual distributable profit will be distributed, with a minimum of 20% cash dividends in the profit distribution for 2020-2022[112] - The company did not propose a cash profit distribution plan for ordinary shareholders despite having positive distributable profits in the reporting period[116] Risk Management - The company has detailed potential risks in the report, which investors should review carefully[5] - The company anticipates potential risks from product price declines and operational performance fluctuations due to rising raw material costs and market conditions[106] - The company acknowledges a risk of talent shortages due to the rapid expansion of its business, and plans to enhance talent recruitment and training in key areas[110] - The company aims to strengthen its accounts receivable collection efforts and improve credit policies to mitigate bad debt risks[107] Environmental and Social Responsibility - The company has implemented strict environmental protection measures, ensuring that pollution control facilities are designed, constructed, and operated simultaneously with main projects[156] - The company actively engages in social responsibility by supporting various public welfare initiatives, including donations to impoverished families and educational programs[153] - The company provided financial assistance of CNY 350,000 to 7 impoverished university students through the "Foster Love Scholarship Fund"[149] - A total of CNY 1 million was donated to help build cultural halls in rural areas, enhancing cultural life[149] Financial Instruments and Investments - The company has invested a total of ¥991.3 million in bank wealth management products and ¥1.3 billion in broker wealth management products, with no overdue amounts reported[139] - The company has a structured deposit of CNY 200,000,000.00 with a fixed return rate of 3.80%[145] - The company is considering future investments in various types of financial products based on market conditions[146] Corporate Governance - The company has established a mechanism to deduct compensation amounts from dividends payable to the controlling shareholder if they fail to compensate investors[122] - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its stock listing[117] - The company has a long-term commitment to transparency and accountability in its financial disclosures and investor relations[122]