Original(SH:603991)2021-04-26 16:00Financial Performance - The company reported a net profit attributable to shareholders of the parent company of -48.08 million yuan for the year 2020, with the parent company achieving a net profit of -35.28 million yuan[5]. - The company's operating revenue for 2020 was ¥311,316,193.23, a decrease of 32.60% compared to ¥461,865,586.09 in 2019[21]. - The net profit attributable to shareholders for 2020 was -¥48,079,600.06, improving from -¥57,054,233.15 in 2019[21]. - The cash flow from operating activities for 2020 was ¥66,992,899.93, an increase of 46.71% from ¥45,662,732.98 in 2019[21]. - The total assets at the end of 2020 were ¥571,712,508.62, down 17.12% from ¥689,845,578.34 at the end of 2019[23]. - The basic earnings per share for 2020 was -¥0.65, compared to -¥0.77 in 2019[24]. - The weighted average return on equity for 2020 was -12.17%, an increase of 0.44 percentage points from -12.61% in 2019[24]. - The company reported a net profit attributable to shareholders of -57,054,233.15 RMB for the year 2019, resulting in a cumulative distributable profit of 79,594,961.20 RMB at the end of the year[117]. - For the year 2020, the company achieved a net profit attributable to the parent company of -48,079,600.06 RMB, with remaining distributable profit of 44,318,200 RMB[118]. Risk Management - The report includes a risk statement indicating that future plans and development strategies do not constitute a substantive commitment to investors, highlighting the importance of investment risk awareness[6]. - The company has faced various risks as detailed in the operational discussion and analysis section of the report[8]. - The company faces risks from fluctuations in raw material prices, which could impact operational stability due to their dependence on petroleum products[110]. - The company recognizes the risk of core technology leakage and personnel turnover, which could affect its R&D capabilities[108]. - The company is working on diversifying its product lines to mitigate risks associated with a narrow product range, which currently focuses on environmentally friendly low-smoke halogen-free materials[111]. Research and Development - The company focuses on the R&D, production, and sales of environmentally friendly polymer materials for wire and cable applications[33]. - The company applied for 75 invention patents and 2 utility model patents, with 35 invention patents granted[36]. - The company focuses on R&D and has a well-equipped testing center with over 180 sets of testing equipment[36]. - The company is positioned in the mid-to-high-end market for environmentally friendly special polyethylene materials[35]. - The company is focusing on the research of thermoplastic polypropylene-based insulation and semi-conductive shielding materials for medium-voltage power cables, achieving preliminary results[77]. - The company has implemented various production processes to manufacture environmentally friendly low-smoke halogen-free polymer materials for optical communication cables and electrical equipment lines[78][79]. Corporate Governance - The board of directors and supervisory board members have guaranteed the authenticity, accuracy, and completeness of the annual report, with no false records or misleading statements[7]. - The company has established a strict quality control system and has obtained ISO9001:2015 certification to ensure product reliability and safety[112]. - The company has a strong governance structure with independent directors overseeing operations, which is crucial for maintaining investor confidence[189]. - The company has maintained its commitment to corporate governance through regular elections and appointments of board members[197]. - The company has a structured remuneration decision-making process involving a compensation and nomination committee[196]. Market Position and Strategy - The company aims to enhance its competitive advantage in niche markets through rapid product structure and business scale development[33]. - The company aims to enhance its R&D investment and explore new cooperation models to improve profitability[42]. - The company is committed to expanding its product line and market space, particularly in the environmentally friendly low-smoke halogen-free polyolefin cable materials segment[105]. - The company recognizes the long-term growth potential in the cable industry driven by urbanization and industrialization trends in China[103]. - The company intends to accelerate its international market expansion and strengthen cooperation with foreign enterprises[105]. Shareholder and Equity Management - The company has not proposed any profit distribution or capital reserve transfer for both 2019 and 2020 due to negative net profits, in accordance with its articles of association[117][118]. - The company has committed to not engaging in any direct or indirect competition with its controlled enterprises[123]. - The company has established a three-year shareholder return plan for 2020-2022 to better safeguard shareholder returns[117]. - The company will avoid related party transactions to protect the interests of non-affiliated shareholders[128]. - The company will ensure that neither it nor its subsidiaries will engage in any business that competes directly or indirectly with its main operations[127]. Operational Challenges - The company has faced challenges due to the COVID-19 pandemic, impacting sales in the optical communication sector[42]. - The company has faced performance declines over the past two years due to the impact of the COVID-19 pandemic and intensified competition in the wire and cable industry[154]. - The company experienced a significant drop in sales volume for optical communication cables, with revenue down 44.07% to CNY 124.66 million[49]. - The company reported a 39.49% decrease in production volume for optical communication cables, with sales volume also down by 39.43%[52]. Audit and Compliance - The report is audited by Lixin Zhonglian Certified Public Accountants, which issued a standard unqualified audit opinion[4]. - The company has not disclosed any significant events or changes in its stockholder situation in the report[9]. - The company and its former actual controller received corrective measures from the China Securities Regulatory Commission for regulatory compliance issues[148]. - The company has undergone a change in its actual controller and board members, with the previous controller no longer holding any positions[148].