Allied Machinery(SH:605060)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 670,074,039.49, a decrease of 1.82% compared to CNY 682,498,620.45 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 167,290,534.53, down 0.93% from CNY 168,863,496.54 in 2019[22]. - The net profit after deducting non-recurring gains and losses was CNY 163,142,972.07, a slight increase of 0.24% from CNY 162,748,456.85 in 2019[22]. - The net cash flow from operating activities decreased by 21.47% to CNY 149,081,770.90 from CNY 189,851,230.92 in 2019[22]. - The total assets at the end of 2020 were CNY 1,088,575,996.54, representing a 19.73% increase from CNY 909,207,436.97 at the end of 2019[22]. - The net assets attributable to shareholders increased by 20.30% to CNY 935,764,708.53 from CNY 777,888,469.94 in 2019[22]. - Basic earnings per share for 2020 were CNY 0.93, a decrease of 1.06% from CNY 0.94 in 2019[23]. - Diluted earnings per share for 2020 were also CNY 0.93, reflecting the same decrease of 1.06% from 2019[23]. - The gross profit margin for 2020 was 43.21%, a year-on-year decrease of 0.81%, while the operating profit margin increased by 0.86% to 28.72%[55]. - The company's cash flow from operating activities for 2020 was 149.08 million RMB, indicating a decrease of 21.47% compared to the previous year[58]. Revenue and Sales - Total revenue for Q4 2020 reached ¥200,892,001.57, marking a significant increase from ¥130,648,019.13 in Q1 2020[25]. - Net profit attributable to shareholders for Q4 2020 was ¥50,545,122.45, up from ¥31,404,387.41 in Q1 2020, reflecting a strong quarterly growth[25]. - Revenue from domestic operations was 420.68 million RMB, an increase of 2.74% year-on-year, while revenue from overseas operations decreased by 8.63% to 249.35 million RMB[63]. Research and Development - Research and development expenses increased by 12.05% year-on-year, amounting to 40.71 million RMB, reflecting the company's commitment to innovation[58]. - The company has received 4 invention patents and 10 utility model patents during the reporting period, enhancing its core competitiveness[53]. - The number of R&D personnel was 145, accounting for 12.52% of the total workforce[74]. Operational Strategy - The company primarily engages in the R&D, design, production, and sales of high-precision mechanical components and precision cavity molds[33]. - The production model is customized based on orders, with a focus on one-to-one supply for clients[34]. - The company aims to provide one-stop services from casting to precision machining for its products[33]. - The company has established a strict supplier evaluation system to ensure long-term stable cooperation with qualified suppliers[33]. - The pricing strategy is based on a cost-plus model, considering production costs and market conditions[36]. Market Position and Competition - The precision parts manufacturing industry is characterized by limited direct competition, with companies providing tailored services to a few key clients[85]. - Domestic companies are gaining competitive advantages in the casting and machining industry due to improvements in technology and management, positioning themselves favorably in international markets[86]. - The company has a competitive edge in technology, product quality, and efficient management, ensuring it remains at the forefront of the industry[42]. Financial Management and Shareholder Relations - The company plans to distribute a cash dividend of CNY 3.34 per 10 shares, totaling CNY 80,160,000.00[5]. - The company has established a profit distribution decision-making process that considers its development stage, investment needs, and long-term planning, ensuring reasonable profit distribution to shareholders[103]. - The company’s net profit attributable to shareholders for 2020 was RMB 167,290,534.53, with a dividend payout ratio of 47.92%[106]. - The company has committed to not transferring or entrusting its shares for 36 months from the date of its stock listing[109]. Risk Factors - The company faces risks from raw material price fluctuations, trade tensions, and currency exchange rate volatility, which could impact operational performance if not managed effectively[96][97][98]. - The ongoing COVID-19 pandemic presents uncertainties that could affect the company's overall performance in 2021[100]. - The company has a high customer concentration risk, with significant revenue dependence on a few major clients in the commercial air conditioning and compressor sectors[99]. Corporate Governance - The company has established a clear framework for compliance with regulatory requirements regarding share transfers[112]. - The board of directors has established specialized committees to enhance corporate governance and decision-making processes[164]. - The company has no significant deficiencies in internal controls, ensuring compliance with relevant regulations[170]. Employee and Management Structure - The total number of employees in the parent company is 541, and in major subsidiaries, it is 617, resulting in a total of 1,158 employees[158]. - The employee composition includes 881 production personnel, 22 sales personnel, 145 technical personnel, 24 financial personnel, and 86 administrative personnel[158]. - The total pre-tax remuneration for all listed management amounts to CNY 5.92 million[150]. Audit and Compliance - The audit report confirms that the financial statements fairly represent the company's financial position as of December 31, 2020[174]. - The audit procedures included testing the effectiveness of internal controls related to revenue recognition and accounts receivable impairment[177][178]. - The company did not experience any major accounting errors or changes in accounting policies that would impact financial reporting[121].