DEVELOP(SH:688377)2021-03-30 16:00Financial Performance - The net profit attributable to the parent company for 2020 was CNY 80.2565 million, with a cumulative undistributed profit of CNY 342.3007 million at year-end[4]. - The company's operating revenue for 2020 was CNY 708.10 million, an increase of 2.05% compared to CNY 693.90 million in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 80.26 million, a decrease of 15.36% from CNY 94.82 million in 2019[20]. - The net cash flow from operating activities increased by 102.42% to CNY 154.39 million in 2020, compared to CNY 76.27 million in 2019[20]. - The company's total assets at the end of 2020 were CNY 1,863.16 million, a 56.84% increase from CNY 1,187.93 million at the end of 2019[20]. - The basic earnings per share for 2020 was CNY 0.48, down 26.15% from CNY 0.65 in 2019[21]. - The company reported a total revenue of CNY 46.8 million for the year 2020, with a net profit of CNY 28.06 million, representing a year-on-year increase of approximately 30.5%[47]. - The company reported a total revenue of 2,350 million, with a net profit margin of 33.5%[192]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2020, representing a growth of 15% year-over-year[194]. Dividend and Profit Distribution - The proposed cash dividend distribution is CNY 1.60 per 10 shares, totaling CNY 31.14672 million based on a total share capital of 194,667,000 shares as of December 31, 2020[4]. - The company does not plan to implement capital reserve transfers or stock dividends, with remaining undistributed profits carried forward for future distribution[4]. - The company has committed to a cash dividend policy, ensuring that the cumulative cash dividends over three years will not be less than 30% of the average distributable profit for those years, provided certain conditions are met[122]. - The company has not proposed any capital reserve conversion or stock dividend distribution for the year 2020, opting to carry forward undistributed profits for future allocation[123]. Risks and Compliance - The company has faced various risks including industry, market, international trade, and foreign exchange risks, which are detailed in the report[3]. - The report includes a standard unqualified audit opinion from the accounting firm Tianye[3]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[6]. - There are no violations of decision-making procedures regarding external guarantees[6]. - The company’s governance structure is confirmed to be compliant, with all board members present at the meeting[3]. - The report includes a forward-looking statement risk declaration, indicating uncertainties in future plans and strategies[5]. - The company has maintained good integrity status, with no overdue large debts or penalties from regulatory bodies[143]. - The company has not faced any situations that could lead to delisting or bankruptcy during the reporting period[142]. Research and Development - Research and development expenses accounted for 5.01% of operating revenue in 2020, up from 4.16% in 2019[21]. - The total R&D investment for the year was ¥35,431,871.70, representing a 22.75% increase from the previous year's investment of ¥28,865,060.41, and accounting for 5.01% of total revenue[43][44]. - The company applied for 15 patents and obtained 22 patents during the reporting period, bringing the total number of patents to 116, including 37 invention patents[42]. - The company has made significant investments in new product development, with a focus on underwater oil extraction and new wellhead oil extraction technologies, with R&D budgets exceeding CNY 3 million and CNY 4.2 million respectively[47]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[128]. - The company has invested 50 million in research and development to innovate new technologies and improve existing products[194]. Market Position and Strategy - The company has established long-term strategic partnerships with major oil and gas service companies such as TechnipFMC, Schlumberger, and Baker Hughes, enhancing its market position[37]. - The company employs a "sales-driven production" model, allowing it to align production with customer demand and secure long-term supply agreements[31]. - The company is positioned as one of the few suppliers capable of entering the procurement systems of multiple global oil and gas service companies, particularly in the deep-sea equipment sector[37]. - The company’s main products include wellhead and Christmas tree components (40.34% of revenue), deep-sea equipment components (25.46%), fracturing equipment components (28.17%), and drilling equipment components (4.62%) in 2020[30]. - The company has established itself as a key supplier of specialized components for major international oil and gas service companies in the Asia-Pacific region[41]. - The company aims to become a global leader in high-end equipment component manufacturing, focusing on deep-sea and fracturing equipment components, aligning with national high-end equipment manufacturing development plans[113]. - The company is focusing on maintaining capital expenditures to ensure competitiveness in the oil and gas sector amid fluctuating oil prices[103]. - The company plans to enhance its technological research and development capabilities by investing in new R&D facilities and equipment, aiming for breakthroughs in high-value-added products[118]. Shareholder and Management Information - The company reported a total of 720 million shares held prior to the IPO, with a commitment not to transfer or manage these shares for 12 months post-listing[131]. - The company has a lock-up period of 36 months for shares held prior to the IPO, during which no transfers or management by others are allowed[131]. - The company’s major shareholders include Nanjing Diweier and several individuals, with significant shares released from lock-up in 2021 and 2023[172]. - The total pre-tax compensation for the Chairman and General Manager, Zhang Li, was CNY 1.176 million[191]. - The total shares held by the Chairman and General Manager, Zhang Li, remained at 0 shares[191]. - The company has a total of 150.38 million shares under lock-up agreements, with various shareholders set to release shares on specified dates[173]. Operational Efficiency and Cost Management - The company is focusing on cost control and efficiency improvements as part of its "innovation and cost reduction" initiative[65]. - The company plans to implement cost-cutting measures that are expected to save $20 million annually[128]. - The company reported a 25% increase in operational efficiency due to recent technological upgrades[192]. - The management team has maintained a stable indirect shareholding structure, with no changes reported during the period[196]. Future Outlook - The company provided a revenue guidance of $1.5 billion for the next quarter, representing a 10% increase from the previous quarter[128]. - The company expects a revenue growth of 10% for the next fiscal year, projecting a total revenue of approximately 2,585 million[192]. - New product launches are anticipated to contribute an additional 5% to overall revenue in the upcoming quarter[192]. - The company is planning to expand its market presence in Southeast Asia, targeting a 25% increase in sales from this region over the next year[198]. - The company has outlined a positive outlook for the upcoming year, projecting a revenue growth of 20% for 2021[194].