Zhejiang Yingfeng Technology (SH:605055)2021-04-28 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 80.6425 million yuan, with a cumulative undistributed profit of 282.9811 million yuan at year-end[5]. - In 2020, the company's operating revenue decreased by 13.74% to CNY 779.66 million compared to CNY 903.83 million in 2019[21]. - The net profit attributable to shareholders decreased by 29.25% to CNY 80.64 million in 2020 from CNY 113.98 million in 2019[21]. - Basic earnings per share fell by 31.25% to CNY 0.22 in 2020, down from CNY 0.32 in 2019[22]. - The company's total assets increased by 22.42% to CNY 1.61 billion at the end of 2020, compared to CNY 1.32 billion at the end of 2019[21]. - The cash flow from operating activities decreased by 11.06% to CNY 122.52 million in 2020 from CNY 137.76 million in 2019[21]. - The weighted average return on equity decreased to 11.52% in 2020, down from 18.92% in 2019, a reduction of 7.4 percentage points[22]. - The company reported a net loss of CNY 745,231.96 in the first quarter of 2020, with a recovery in subsequent quarters leading to a net profit of CNY 23.51 million in the fourth quarter[24]. - The company achieved operating revenue of 779.66 million yuan, a decrease of 13.74% compared to the previous year[44]. - The net profit attributable to shareholders was 80.64 million yuan, with a net profit of 80.19 million yuan after deducting non-operating gains and losses[44]. - The company implemented cost reduction measures, resulting in a decrease in operating costs by 11.47% to 597.66 million yuan[45]. - The company reported a significant decline in sales volume for knitted and woven products, with decreases of 8.36% and 21.56% respectively[50]. - The gross margin for the dyeing business was 23.26%, with a slight decrease of 1.99 percentage points compared to the previous year[50]. Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year, considering its development stage and future funding needs[5]. - The profit distribution policy mandates that at least 20% of the annual distributable profit is allocated as dividends, with a minimum of 10% distributed in cash[84]. - The company aims to prioritize cash dividends while considering its sustainable development and operational needs[83]. - The profit distribution proposal for 2020 has been approved by the board of directors and requires further approval from the 2021 annual general meeting[91]. - The company reported a net profit of approximately CNY 80.64 million for the fiscal year 2020, with a dividend payout ratio of 0%[93]. - In 2019, the company reported a net profit of approximately CNY 113.98 million, also with a dividend payout ratio of 0%[93]. - The company has accumulated undistributed profits to meet operational needs and support long-term strategic development[94]. - The company’s profit distribution policy can be adjusted based on changes in the external operating environment, business conditions, and regulatory requirements[90]. Risk Management - The company has detailed various risks it may face in its production and operation processes in the report[8]. - The company emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements in the report[6]. - Fluctuations in raw material and energy prices significantly affect the company's main business costs, with potential adverse impacts on operations if not effectively managed[76]. - The company faces risks from macroeconomic fluctuations, particularly affecting demand for dyeing services due to the economic slowdown in the textile and apparel sectors[77]. - The company has increased its investment in environmental protection, but faces risks related to rising costs if stricter environmental regulations are imposed[77]. - The company has developed differentiated mid-to-high-end fabric dyeing processes to meet diverse customer needs, but faces risks associated with the uncertainty and resource intensity of new technology development[79]. Environmental and Social Responsibility - The company emphasizes clean production and green manufacturing, having established an environmental management system certified by ISO14001 and recognized as a "National Green Factory"[37]. - The company achieved a wastewater reuse rate of over 60% through advanced treatment processes, contributing to its competitive advantage in energy conservation and environmental protection[38]. - The company has actively participated in environmental protection initiatives, including "Five Water Co-Governance" and "Five Air Co-Governance" projects[115]. - The company has established a complete emergency response system for environmental incidents[119]. - The company has integrated corporate social responsibility into its development strategy, focusing on sustainable growth and stakeholder interests[113]. - The company has made significant investments in environmental facilities to promote transformation and traditional industry development[113]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company’s board of directors and senior management guarantee the authenticity, accuracy, and completeness of the annual report[8]. - The board of directors must ensure that the profit distribution plan is reviewed and approved by independent directors and shareholders, ensuring transparency and participation[88]. - The company has set up four specialized committees under the board: strategy, audit, nomination, and remuneration and assessment[156]. - The company has maintained stable leadership, with key executives serving their roles since December 2019[138]. - The company has a strong focus on the textile dyeing industry, with key personnel having extensive experience in management and technology development[139]. - The company’s board includes independent directors with diverse backgrounds in finance and technology, enhancing governance and strategic oversight[139]. Market Strategy and Innovation - The company focuses on textile dyeing and finishing, providing customized services for knitted and woven fabrics[30]. - The company aims to enhance management and service quality through technological innovation and green practices[30]. - The company has established a comprehensive supplier management mechanism to ensure timely and sufficient supply of raw materials[31]. - The company has established a production information management system that integrates dyeing technology with digital and intelligent technologies, optimizing the entire dyeing process from order to product completion[32]. - The company has adapted to market demands for "small batches, multiple varieties, and short delivery times" by developing a smart factory model that optimizes order management and production processes[38]. - The company plans to enhance its competitive edge by increasing investment in product technology development and expanding its business scope[43]. - The company aims to enhance its production capacity for high-end textile dyeing and increase market share, focusing on technology innovation and environmental protection[72]. - The company plans to develop high-quality textile dyeing technologies and energy-saving techniques, including digital inkjet printing technology and efficient short-process dyeing techniques[74]. - The company will strengthen its brand building and expand its market presence through improved marketing networks and internet promotion[74]. Human Resources - The company has established a talent cultivation system to address the increasing demand for skilled personnel due to rapid business growth and project investments[80]. - The company intends to enhance its human resources by cultivating technical and management talents and improving employee training programs[75]. - The company emphasizes the development and training of product R&D professionals, tailoring training plans to meet business needs[151]. - The company has a policy to encourage employees to participate in management and provide feasible suggestions for business development[150]. - The number of R&D personnel was 233, accounting for 10.45% of the total workforce[58]. Shareholder Information - Zhejiang Zheyu Holdings Co., Ltd. holds 60.63% of the shares, totaling 218,273,700 shares[125]. - Shaoxing Yingfeng Leading Investment Partnership holds 10.52% of the shares, totaling 37,894,700 shares[125]. - The top ten shareholders include five individuals, with Ma Yuebo holding 5.79% (20,842,100 shares) and Ma Yingbo holding 5.73% (20,614,700 shares)[125]. - The limited shares held by major shareholders are locked for 36 months from the listing date, set to unlock on January 29, 2024[127]. - The company has no strategic investors or general legal entities becoming top ten shareholders during the reporting period[128]. - The controlling shareholder is Zhejiang Zheyu Holdings Co., Ltd., established on May 12, 2016, primarily engaged in external industrial investment and import-export activities[129]. - The actual controller, Fu Shuangli, serves as the chairman and general manager, with no prior control of other listed companies in the past ten years[130].