TONGLI RISHENG(SH:605286)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,749,210,357.60, representing a 15.70% increase compared to CNY 1,511,833,926.95 in 2019[20]. - Net profit attributable to shareholders for 2020 was CNY 146,947,850.10, up 28.46% from CNY 114,390,983.46 in 2019[20]. - Basic earnings per share for 2020 increased to CNY 1.17, a rise of 28.57% from CNY 0.91 in 2019[21]. - The company's total assets at the end of 2020 reached CNY 1,141,278,818.17, reflecting a 12.30% increase from CNY 1,016,292,665.50 in 2019[20]. - The weighted average return on equity for 2020 was 21.62%, an increase of 0.77 percentage points from 20.85% in 2019[21]. - The total profit for the year reached CNY 17,254,750, a 29.73% increase compared to the previous year, with net profit attributable to shareholders at CNY 14,694,790, up 28.46%[46]. - The company's total revenue for the year was approximately 1.74 billion CNY, with a gross profit margin of 17.14%, a decrease of 1.73% compared to the previous year[50]. Dividend Policy - The company plans to distribute a cash dividend of 1.3 RMB per 10 shares, totaling 21,840,000 RMB, which accounts for 14.86% of the net profit attributable to shareholders in 2020[5]. - The cumulative cash distribution over the last three years is not less than 30% of the average annual distributable profit[93]. - The company has a cash dividend policy prioritizing stable returns to investors, with a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[89]. - The company will consider its business development stage and funding needs when proposing differentiated cash dividend policies[90]. - The cash dividend policy has not been adjusted during the reporting period[97]. - Retained undistributed profits will be used for raw material procurement, working capital, and major project expenditures[96]. Audit and Compliance - The company received a standard unqualified audit report from Tianheng Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2020[186]. - The audit identified revenue recognition as a key audit matter due to inherent risks of management manipulating revenue to meet targets[189]. - The audit firm confirmed that they maintained independence and complied with ethical requirements throughout the audit process[194]. - The company did not disclose any significant deficiencies in internal controls during the reporting period[182]. Risk Management - The company has detailed potential risks in the report, which investors should review[8]. - The company faces risks from a slowdown in the elevator industry, which is closely tied to the real estate market, potentially impacting sales growth[84]. - Increased competition in the elevator component market is anticipated due to the rise of domestic manufacturers and changing production models among elevator manufacturers[84]. - Raw material price fluctuations pose a risk, as direct material costs significantly impact product costs and gross margins[85]. - Safety production risks exist despite established management systems, necessitating ongoing maintenance and employee training[86]. Research and Development - The company filed 12 new patent applications and received 27 patents during the reporting period, reflecting its commitment to R&D and innovation[43]. - Research and development expenses for the year amounted to 48.26 million CNY, representing a 7.58% increase compared to the previous year[60]. - The total R&D expenditure for the period was ¥48,264,305.65, accounting for 2.76% of the operating revenue[62]. - The company aims to enhance its production capacity and optimize product structure, focusing on smart manufacturing and upgrading its R&D center[81]. - The company will invest in advanced R&D equipment and expand its technical team to close the technology gap with international brands[81]. Market Position and Strategy - The company specializes in the research, production, and sales of elevator components and metal materials, with a diverse product line including escalator components, elevator components, and elevator metal materials[31]. - The company operates on a direct sales model, supplying products to globally recognized elevator manufacturers, establishing long-term stable partnerships[32]. - The global elevator market is experiencing steady growth in developed countries and rapid growth in emerging markets, driven by urbanization and increasing demand for comfortable living and working environments[32]. - The company’s market position and share continue to improve due to its technological advantages and strong customer relationships, ensuring sustainable growth[37]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the technology sector[161]. Corporate Governance - The company has committed to transparency and accountability in its operations, promising to address any breaches of commitment publicly[119]. - The company emphasizes the importance of maintaining its independent operational status and decision-making autonomy[120]. - The company has established comprehensive regulations regarding decision-making authority and procedures for related party transactions in its corporate governance documents[125]. - The company guarantees that any unavoidable related party transactions will be conducted under fair and normal commercial terms, without seeking more favorable conditions than those offered to third parties[124]. - The controlling shareholders and senior management have made commitments to not interfere with company operations or misappropriate company interests, ensuring responsible conduct[115]. Employee and Social Responsibility - The company has actively participated in social responsibility activities, donating over RMB 1.5 million to local charities[141]. - The company has established a "Three Strengths Foundation" to support employees in need, providing financial assistance and coordinating help during difficult times[142]. - The company has implemented a training plan to enhance employee capabilities through internal and external learning opportunities[170]. - The total number of employees in the parent company is 717, while the total number of employees in major subsidiaries is 898, resulting in a combined total of 1,615 employees[168]. - The company has established a comprehensive compensation system to attract and retain talent, focusing on performance-based rewards and benefits[169].