Yongjin Technology (SH:603995)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,044,342.19 million, an increase of 29.16% compared to 2019, primarily due to the production increase from the new capacity of 259,600 tons in April 2020 and the acquisition of Qingtuo Shangke, which added 64,100 tons[22]. - The net profit attributable to shareholders for 2020 was CNY 41,444.11 million, reflecting a year-on-year increase of 24.52%[22]. - The net cash flow from operating activities reached CNY 76,228.62 million, a significant increase of 96.18% year-on-year, driven by higher operating net profit and an increase in customer deposits[23]. - The company's total assets at the end of 2020 were CNY 620,649.20 million, up 19.59% from the previous year[22]. - The basic earnings per share for 2020 was CNY 1.80, a decrease of 6.25% compared to 2019[22]. - The weighted average return on equity for 2020 was 13.78%, down 7.44 percentage points from 2019[22]. - The company reported a net profit of CNY 15,515.43 million in Q4 2020, contributing to a total annual net profit growth[26]. - The company reported a total revenue of approximately ¥10.22 billion from East China, with a year-on-year increase of 49.96%, but a gross margin decrease of 0.70 percentage points to 6.26%[75]. - The expected consolidated revenue for 2021 is between 24.532 billion yuan and 26.576 billion yuan, with a year-on-year growth of 20% to 30%[124]. - The net profit attributable to the listed company is projected to be between 518 million yuan and 560 million yuan, reflecting a year-on-year increase of 25% to 35%[124]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 7 RMB per 10 shares to all shareholders, totaling approximately 163.11 million RMB (including tax) based on a total share capital of 233,017,400 shares as of April 13, 2021[7]. - The cash dividend proposal for 2020 is to distribute CNY 7 per 10 shares, totaling approximately CNY 163,112,180, which represents 39.36% of the net profit attributable to shareholders[143]. - The company has a history of stable cash dividend distribution, with a focus on balancing shareholder returns and sustainable development[141]. Risk Management - The company has outlined potential risks in its operations, which investors should be aware of[8]. - The company emphasizes the importance of risk awareness for investors regarding future plans and development strategies[8]. - The company faces risks related to market price fluctuations, particularly in raw materials, which could adversely affect operational performance if prices rise or product prices fall[134]. - The reliance on nickel and chromium in stainless steel production makes the company vulnerable to price volatility in these metals[134]. - Management risks are present as the company scales up operations, necessitating adjustments in organizational structure and management practices[137]. Research and Development - The company has developed four high-tech products, including "precision cold-rolled ultra-thin stainless steel strip," recognized as high-tech products and included in the National Torch Program[49]. - The company holds a total of 152 patents, including 21 invention patents and 131 utility model patents, reflecting its strong focus on technology and R&D[48]. - The company has established several research and development centers, including a provincial-level technology center and a post-doctoral workstation, to enhance its innovation capabilities[48]. - The company has made significant advancements in R&D, focusing on customer needs and launching customized products to meet market demands[58]. - The company is investing 50 million in R&D for new technologies aimed at enhancing user experience[149]. Production and Capacity - The company maintained a production capacity of over 1.6 million tons annually, focusing on the R&D, production, and sales of cold-rolled stainless steel strips[34]. - In 2020, the company achieved a production volume of 1.6663 million tons, representing a year-on-year increase of 36.20%, and sales of 1.6564 million tons, up 34.98% year-on-year[58]. - The company plans to expand its production capacity by 75,000 tons per year for ultra-thin precision stainless steel strips, highlighting growth potential in the market[137]. - The planned stainless steel production for 2021 is 2.15 million tons, representing an approximate increase of 29% year-on-year[122]. Corporate Governance - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has committed to linking executive compensation to the execution of return measures, enhancing accountability[177]. Market and Sales - The company’s products are widely applied in downstream industries such as home appliances, automotive parts, and chemical industries, indicating a broad market reach[35]. - The company has expanded its customer base, successfully developing high-value clients in various sectors, including electronics and automotive, and establishing relationships with major brands like SINOVA[61]. - The company’s sales model includes a prepayment of 10%-20% deposit for most customers, ensuring a low risk of overdue receivables[40]. - The company targets to achieve over 80% market share in steel buckle materials and 70% in button battery materials[125]. Environmental and Compliance - Environmental management measures were strengthened, with all pollutant emissions meeting standards and no penalties incurred during the year[62]. - The company maintains a good integrity status, with no major dishonesty issues reported[198]. - The company has outlined measures to ensure compliance with related party transaction regulations, including avoiding conflicts of interest during voting processes[187]. Acquisitions and Investments - The company successfully completed the acquisition of Fujian Qingtou Shangke Stainless Steel Co., which is expected to increase cold-rolled production capacity by 300,000 tons in 2021[66]. - The company and Dingxin Technology jointly invested 200 million CNY in Fujian Yongjin for the acquisition of Qingtuo Shangke[110]. - The company has cumulatively invested 396 million CNY in the Jiangsu Yongjin project for an annual processing capacity of 75,000 tons of ultra-thin precision stainless steel strips[111]. - The company plans to invest 27 million USD in establishing a subsidiary in Thailand, with a 67% ownership stake[109]. Audit and Financial Reporting - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the financial report's authenticity and completeness[6]. - The company has appointed Tianjian Accounting Firm as the financial and internal control auditing institution for the year 2020, with an audit fee of RMB 1,680,000[195]. - The company has implemented a new revenue accounting standard effective from January 1, 2020, which is not expected to have a significant impact on its financial status or operating results[194].