TENGEN(SH:605066)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,473,233,541.84, representing a year-on-year increase of 12.38% compared to CNY 2,200,775,191.79 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 246,828,267.77, up 14.37% from CNY 215,822,997.72 in 2019[21]. - The net profit after deducting non-recurring gains and losses was CNY 224,188,361.28, which is an increase of 28.19% from CNY 174,893,813.63 in 2019[21]. - The company's total assets at the end of 2020 reached CNY 3,164,794,070.63, a 53.53% increase from CNY 2,061,362,314.60 at the end of 2019[21]. - The basic earnings per share for 2020 was CNY 0.70, reflecting a 7.69% increase from CNY 0.65 in 2019[22]. - The weighted average return on equity for 2020 was 21.08%, down 8.93 percentage points from 30.01% in 2019[23]. - The company reported a net cash flow from operating activities of CNY 175,800,114.17, a decrease of 38.01% compared to CNY 283,595,893.16 in 2019[21]. - In 2020, the company achieved a sales revenue growth of 12.38% year-on-year, with a net profit attributable to shareholders increasing by 14.37% and a non-recurring net profit growth of 28.19%[52]. Dividend Policy - The company plans to distribute a cash dividend of 3.0 yuan per 10 shares (including tax) based on the total share capital on the dividend record date, without any stock bonus or capital increase[5]. - The company has not proposed any capital increase or stock bonus in its profit distribution plan[5]. - The company emphasizes a stable and continuous profit distribution policy, aiming for at least 30% of the average distributable profit over the last three years to be distributed in cash[108]. - In mature stages without major capital expenditures, the company plans to allocate at least 80% of profits for cash dividends[108]. - The company will prioritize cash dividends in profit distribution when conditions are met, ensuring a sustainable return to investors[107]. - The board will consider the company's financial status and investment needs when determining profit distribution proposals[112]. - The cash dividend distribution policy requires approval from shareholders holding more than 2/3 of the voting rights at the shareholders' meeting[114]. - In 2020, the company distributed a cash dividend of 3.00 RMB per 10 shares, resulting in a total cash distribution of 121,234,650 RMB, which represents 49.12% of the net profit attributable to ordinary shareholders[116]. Corporate Governance - The company guarantees the authenticity, accuracy, and completeness of the annual report content, with all board members present at the meeting[8]. - The company has established a strong reputation and brand image among major industry clients, including State Grid and top real estate companies, due to its competitive products and solutions[32]. - The company has a commitment to resolve related party transactions and competition issues, which is effective for the long term[118]. - The company guarantees that any unavoidable related party transactions will be conducted fairly and legally, adhering to relevant laws and regulations[128]. - The company has a robust governance structure, ensuring that all shareholders, especially minority shareholders, have equal rights and access to information[196]. - The company has maintained a consistent governance structure with independent directors contributing to oversight[188]. Research and Development - The company has a strong R&D capability, holding 570 patents as of December 31, 2020, including 81 invention patents, and applied for 192 new patents in 2020[45]. - The company invested over 94 million yuan in R&D during the reporting period, marking a 14% year-on-year increase, and applied for 192 patents, including 40 invention patents[55]. - The company aims to become a global leader in intelligent low-voltage electrical solutions and will enhance its R&D capabilities by utilizing raised funds for the construction of a research center[89]. - In 2021, the company will strengthen its research on advanced technologies, including solid-state and hybrid circuit breaker technologies, and develop new products such as intelligent reclosers and energy governance solutions[92]. Market Strategy - The company has established a dual-brand marketing strategy with "Tianzheng" targeting the general market and "TianE" focusing on high-end sectors such as new energy and data centers[41]. - The company will increase its sales network by adding a thousand new distribution points to improve market share and regional coverage[93]. - The company anticipates stable growth in electricity demand, which will drive the demand for low-voltage components[87]. - The company will implement a dual-brand marketing strategy to enhance customer relationships and achieve sustainable growth[90]. Operational Efficiency - The company has implemented a production strategy combining inventory-based and order-based manufacturing, ensuring rapid product delivery through a robust logistics network[42]. - The company's automated production lines and information systems have significantly improved production efficiency and product quality[57]. - The company has established a comprehensive information system including ERP, CRM, and MES, enhancing operational and management efficiency[48]. - The company has a dedicated research institute and R&D center to separate technology development from product development, enhancing responsiveness to market needs[41]. Risk Management - The company has detailed potential risk factors and their possible impacts in the report, particularly in the section discussing future development[7]. - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[6]. - Fluctuations in raw material prices significantly impact the company's gross margin, as raw materials account for a large portion of total costs[100]. - Rising labor costs in the Yangtze River Delta region may adversely affect the company's performance if efficiency improvements are not achieved[101]. Shareholder Information - The total number of ordinary shareholders increased from 24,645 to 26,113 during the reporting period[168]. - The largest shareholder, Tianzheng Group Co., Ltd., holds 99,146,960 shares, representing 24.72% of total shares[170]. - The company has a lock-up period of 36 months for the major shareholders' shares post-IPO[173]. - The total remuneration for the board of directors and senior management during the reporting period amounted to 973.24 million yuan[184]. Compliance and Legal Matters - The company has not encountered any major litigation or arbitration matters during the reporting period[147]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[190]. - The company has not reported any significant changes in its leasing agreements, with a total rental income of 200.84 million RMB from related parties[152].