GRANDWALL(SH:603897)2021-04-01 16:00Financial Performance - In 2020, the company achieved a total operating revenue of RMB 6,273,415,580.11, representing a year-on-year increase of 26.19% compared to RMB 4,971,330,414.00 in 2019[21]. - The net profit attributable to shareholders of the listed company for 2020 was RMB 174,219,560.54, an increase of 11.80% from RMB 155,838,116.54 in 2019[21]. - The basic earnings per share for 2020 was RMB 0.98, up 12.64% from RMB 0.87 in 2019[23]. - The company's main operating revenue reached 6,161 million RMB, an increase of 26.04% year-on-year, with a net profit of 174.1 million RMB, up 11.80% from the previous year[39]. - The company reported a total revenue of CNY 3,590,545,520.09 in 2020, compared to CNY 2,891,346,469.82 in 2019, marking an increase of approximately 24.2%[194]. - The company reported a total profit of RMB 208,569,927.52 for 2020, an increase of 13.9% from RMB 182,984,083.25 in 2019[197]. Assets and Liabilities - The company's total assets as of December 31, 2020, reached RMB 3,950,018,962.84, reflecting a 36.29% increase from RMB 2,898,190,371.37 at the end of 2019[22]. - Total liabilities rose to CNY 1,959,981,148.29 in 2020, compared to CNY 978,943,009.81 in 2019, marking an increase of about 100%[190]. - Current liabilities totaled CNY 1,338,751,251.38 in 2020, significantly higher than CNY 411,708,642.65 in 2019, reflecting a growth of approximately 225%[192]. - Owner's equity reached CNY 1,990,037,814.55 in 2020, up from CNY 1,919,247,361.56 in 2019, showing a growth of approximately 3.7%[190]. Cash Flow - The net cash flow from operating activities decreased by 34.52% to RMB 249,374,384.29 in 2020, down from RMB 380,865,193.80 in 2019[21]. - The net cash flow from operating activities for Q3 and Q4 2020 was negative, with values of -¥140,032,152.40 and -¥225,472,035.82 respectively[26]. - The net cash flow from financing activities dropped by 75.10% to 135.35 million RMB, due to increased cash dividend payments and reduced borrowings from convertible bonds[55]. Research and Development - R&D investment for the year was 151.64 million RMB, a 48.04% increase compared to the previous year, reflecting the company's commitment to innovation[41]. - Research and development expenses for 2020 totaled RMB 151,644,203.76, up 47.9% from RMB 102,437,387.16 in 2019[196]. - The company has a total of 118 patents, including 3 invention patents and 115 utility model patents, enhancing its competitive edge in the market[41]. Market and Industry - The main business focus remains on the research, production, and sales of electromagnetic wires, which are crucial for various industrial applications[31]. - The electromagnetic wire market in China accounts for approximately 50% of the global production, indicating a mature and competitive industry landscape[33]. - Future demand for electromagnetic wires is expected to diversify due to the emergence of new industries and the transformation of traditional downstream sectors[33]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares (including tax) to all shareholders, with a total distributable profit of RMB 585,927,292.77 as of December 31, 2020[5]. - The company has implemented a stable profit distribution policy, with cash dividends amounting to RMB 26,760,000 in 2018, RMB 49,952,927.64 in 2019, and RMB 53,521,082.10 in 2020, representing 14.80%, 32.05%, and 40.96% of the net profit respectively[78][79][80]. Risks and Challenges - The company has outlined potential risks in its future development in the report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company faces market risks due to dependence on economic conditions affecting downstream demand, particularly in the home appliance and automotive sectors[73]. - Raw material price fluctuations, especially in electrolytic copper, significantly impact the company's cost structure, with over 90% of main business costs attributed to these materials[74]. Corporate Governance - The company has established a comprehensive environmental management system to comply with current domestic environmental requirements, but future regulations may impose additional costs[75]. - The company has maintained a good integrity status, with no significant debts or court judgments outstanding[98]. - The company has not faced any penalties from securities regulatory agencies in the past three years[156]. Social Responsibility - The company donated RMB 600,000 to local charities for poverty alleviation projects in Huzhou, Zhejiang Province, during the reporting period[110]. - The company has actively participated in local poverty alleviation plans as part of its corporate social responsibility initiatives[110]. Shareholder Information - The total number of shareholders increased from 16,145 to 16,693 during the reporting period[137]. - The company has no known related party transactions among other shareholders, except for Gu Linxiang being the controlling shareholder of Zhejiang Great Wall Electronic Technology Group Co., Ltd.[141].