CHERVON-AUTO(SH:603982)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,385,756,806.49, an increase of 10.81% compared to 2019[24]. - Net profit attributable to shareholders for 2020 reached CNY 120,948,803.17, representing a growth of 40.82% year-on-year[24]. - Basic earnings per share for 2020 were CNY 0.6047, up 27.60% from CNY 0.4739 in 2019[25]. - The total assets of the company at the end of 2020 were CNY 2,231,396,286.09, an increase of 5.33% from 2019[24]. - The weighted average return on equity for 2020 was 8.01%, an increase of 1.15 percentage points compared to 2019[25]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 1,559,749,836.90, up 6.49% from the previous year[24]. - The gross margin improved by 0.94% due to product structure optimization and a significant reduction in financial expenses by 47.29%[26]. - The net cash flow from operating activities was CNY 212,210,864.92, a decrease of 25.67% compared to the previous year[24]. Dividend Policy - The proposed cash dividend is RMB 0.75 per 10 shares (before tax), totaling RMB 15,106,177.50 based on a total share capital of 20,141.57 million shares[5]. - The cash dividend payout ratio for the year is 12.49%[5]. - The company has implemented a cash dividend policy, ensuring that at least 20% of the distributable profit is allocated as cash dividends annually[99]. - The company plans to adjust its cash dividend policy to ensure flexibility based on annual performance and future funding needs, with a target of distributing at least 30% of the average annual distributable profit over the last three years[102]. - The profit distribution proposal has been approved by the board and will be submitted for shareholder approval[103]. - The cash dividend distribution is subject to the approval of the shareholders' meeting[103]. Risk Management - The company has detailed potential risks in the report, which investors should pay attention to[8]. - The report includes a forward-looking statement risk disclaimer, indicating that future plans do not constitute a commitment to investors[6]. - The company acknowledges potential risks from industry and market fluctuations, particularly related to the cyclical nature of the automotive sector[93]. - The company faced risks from raw material price fluctuations, as direct material costs significantly impacted gross margin, potentially leading to decreased profitability if prices rise sharply[94]. - The company reported a foreign exchange gain of 2.25 million yuan during the reporting period, highlighting exposure to currency fluctuation risks[96]. Corporate Governance - The company has received a standard unqualified audit report from Deloitte Huayong[4]. - The board of directors and supervisory board confirm the authenticity, accuracy, and completeness of the annual report[7]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[130]. Market and Industry Trends - The automotive market showed resilience with a total production and sales of 25.225 million and 25.311 million vehicles respectively, with a year-on-year decline of only 2% and 1.9%[41]. - The automotive industry has shown strong recovery post-COVID-19, with government policies aiding in the revival of consumer demand[41]. - The automotive industry is undergoing significant transformation, with a shift towards electrification, intelligence, connectivity, and sharing, which the company aims to leverage[88]. Research and Development - The company is actively involved in the development of electric drive systems and has established R&D centers in Jiangsu, Liaoning, and is expanding to Anhui and Hungary[36]. - The company is committed to enhancing its research and development capabilities, particularly in software systems and digital suspension technologies[90]. - New product development initiatives are underway, with an investment of 200 million allocated for R&D in innovative technologies[124]. Environmental Responsibility - The company donated 500,000 RMB to support COVID-19 pandemic relief efforts, demonstrating its commitment to social responsibility[51]. - The company has implemented a complete and effective energy management system and obtained ISO50001 certification to achieve energy conservation and emission reduction goals[150]. - The company is certified under the ISO 14001 environmental management system and conducts annual internal audits and triennial certification reviews to ensure compliance[162]. Shareholder Information - The company has a share lock-up period of 36 months for major shareholders, during which they cannot transfer or manage their shares[111]. - The company reported a net asset value per share that is subject to adjustments based on stock price fluctuations, particularly if the closing price falls below the audited net asset value for 20 consecutive trading days[115]. - The company’s top five customers generated sales of 107.87 million, constituting 77.84% of total annual sales, with BorgWarner Group being the largest customer at 40.55 million, or 29.26%[68]. Strategic Initiatives - The company plans to continue optimizing its product structure and enhancing profitability through technological advancements and market expansion strategies[26]. - The company has established a research and production base in Hungary, expected to commence production by mid-2022, to capture the explosive growth in the European new energy vehicle market[45]. - The company has implemented a "2+N" capacity expansion plan to enhance production capabilities and meet increasing demand, including the construction of a comprehensive production base in Anhui and a modern factory in Hungary[50].