Rocoi(SH:603829)2021-04-23 16:00Financial Performance - The company's operating revenue for 2020 was RMB 879,563,152.73, representing a 43.17% increase compared to RMB 614,338,989.24 in 2019[21]. - The net profit attributable to shareholders of the listed company was RMB 63,907,107.72, up 32.37% from RMB 48,279,633.81 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 61,603,903.24, reflecting a 39.67% increase from RMB 44,107,173.88 in 2019[21]. - The net cash flow from operating activities was negative RMB 92,184,144.76, a significant decrease compared to a positive RMB 42,863,522.46 in 2019, marking a 315.06% decline[21]. - The net assets attributable to shareholders of the listed company increased to ¥731,717,201.63, representing a 7.02% increase from ¥683,727,458.79 in the previous year[23]. - Total assets rose significantly by 37.21% to ¥1,386,822,470.95 from ¥1,010,756,869.03 in 2019[23]. - Basic earnings per share increased by 33.33% to ¥0.40, up from ¥0.30 in 2019[24]. - The weighted average return on net assets improved to 9.01%, compared to 7.23% in the previous year, marking a 1.78 percentage point increase[24]. - The company's operating costs were ¥674,321,810.34, rising by 37.45% year-on-year[52]. - Net profit for the company was ¥74,812,647.42, representing a 55.30% increase from the previous year[52]. - The gross profit margin for the distribution and control equipment manufacturing sector improved by 3.21 percentage points to 23.33%[67]. - Domestic revenue accounted for ¥850,609,976.33, with a gross margin increase of 2.97 percentage points to 23.38%[67]. Cash Flow and Investments - The net cash flow from operating activities showed a significant increase, with a net cash flow of ¥13,528,557.92 in Q4 2020, compared to a negative cash flow in the earlier quarters[27]. - The company reported a total operating revenue of ¥295,066,971.77 in Q4 2020, reflecting a strong quarterly performance[27]. - The net cash flow from investing activities decreased by 405.65% to -103.26 million yuan, mainly due to a reduction in cash received from investment recoveries[78]. - The net cash flow from financing activities increased significantly to 108.89 million yuan, compared to -38.44 million yuan in the previous period, due to increased borrowings[78]. - The company has engaged in cash asset management, with a total of RMB 115,000,000 in bank wealth management products, and an outstanding balance of RMB 25,000,000[147]. - The company has received a return of RMB 373,972.60 from a structured deposit linked to the CSI 300 index, with an annualized yield of 3.00%[147]. - The company has also received a return of RMB 738,016.44 from another structured deposit linked to the CSI 500 index, with an annualized yield of 3.68%[147]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 16,000,000 based on a total share capital of 160,000,000 shares as of December 31, 2020[5]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends each year[115]. - For the fiscal year 2020, the company plans to distribute cash dividends of RMB 1.00 per share, totaling RMB 16 million[116]. - The company’s cash dividend distribution ratio for 2020 is 25.04% of the net profit attributable to ordinary shareholders[117]. - The total number of ordinary shareholders increased from 9,328 to 10,256 during the reporting period, representing a growth of approximately 9.9%[156]. - The top three shareholders hold a combined total of 87,600,000 shares, accounting for 54.76% of the total shares[158]. Research and Development - The company has made significant investments in R&D, focusing on high and low voltage circuit breaker components and smart ring network cabinets[46]. - Research and development expenses rose to ¥38,069,150.46, marking a 69.61% increase year-on-year[64]. - Research and development expenses increased by 69.61% to 38.07 million yuan, representing 4.33% of total revenue[76][77]. - The company is committed to developing a technology research and innovation system centered around "Luokai Research Institute" and "Luokai Engineering Technology Center" to meet new demands for smart distribution products[106]. - The company aims to integrate its R&D, testing, and production departments to enhance product development capabilities and better meet market demands[105]. Market and Industry Outlook - The smart ring network cabinet industry is expected to grow due to urbanization investments and the need for reliable electricity supply, with a shift towards intelligent and networked equipment[40]. - The "14th Five-Year Plan" anticipates a rigid growth in electricity demand, with a projected increase of 6%-7% in total electricity consumption for 2021[41]. - The company plans to invest over $700 billion annually in smart grid construction to support the transition to clean energy and achieve carbon neutrality goals[42]. - The manufacturing sector's growth will drive demand for energy-efficient and intelligent distribution equipment, creating opportunities for the company[43]. - The company faces risks related to fluctuations in power investment and macroeconomic conditions, which significantly impact market demand for its products[109]. - The domestic market for high and low voltage circuit breakers and smart ring network cabinets is expected to maintain stable growth, driven by fixed asset investment, particularly in electricity and industrial sectors[101]. Corporate Governance and Compliance - The company has established a clear framework for managing share transfers to ensure compliance with legal obligations[128]. - The company has committed to not transferring more than 25% of its shares held during the first year after the lock-up period ends[130]. - The company will take legal action against any shareholder who violates the commitments made regarding share transfers[127]. - The company has maintained compliance with regulatory requirements by ensuring the board and supervisory committee meet the minimum member count[174]. - The internal control audit report issued by the auditing firm indicates a standard unqualified opinion[194]. - The company has not identified any significant deficiencies in internal control during the reporting period[194]. Social Responsibility and Community Engagement - The company actively participates in social responsibility initiatives, including employee welfare programs and community support[151]. - The company donated a total of 510,000 RMB to various charitable organizations during the reporting period, including 300,000 RMB to the Wu Jin District Guangcai Charity Promotion Association[151]. - The company has established environmental management procedures to control waste and emissions, ensuring compliance with quality standards[152]. - The company has implemented measures to enhance employee benefits and improve working conditions[151]. Employee and Management Information - The company has a total of 689 production personnel, 32 sales personnel, 193 technical personnel, 25 financial personnel, and 26 administrative personnel[182]. - The company emphasizes comprehensive training for employees, focusing on improving their capabilities and professional skills[185]. - The management team has a diverse background, with members having experience in both operational and strategic roles across multiple sectors[175]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 5.3896 million yuan[179]. - The company implemented a performance-based salary system, linking employee income closely to performance evaluation results[183].