DEVELOP(SH:688377)2021-04-13 16:00Financial Performance - The net profit attributable to the parent company for 2020 was CNY 80.2565 million, with a cumulative undistributed profit at year-end of CNY 342.3007 million[5]. - The proposed cash dividend is CNY 1.60 per 10 shares, totaling CNY 31.1467 million to be distributed to shareholders[5]. - The net profit attributable to shareholders decreased by 15.36% to CNY 80.26 million in 2020 from CNY 94.82 million in 2019[21]. - In 2020, the company's operating income was CNY 708.10 million, a 2.05% increase from CNY 693.90 million in 2019[21]. - The company's total assets reached CNY 1,863.16 million at the end of 2020, a 56.84% increase from CNY 1,187.93 million at the end of 2019[21]. - The basic earnings per share decreased by 26.15% to CNY 0.48 in 2020 from CNY 0.65 in 2019[22]. - The company reported a significant increase in net assets attributable to shareholders, which rose by 112.77% to CNY 1,517.21 million at the end of 2020[21]. - The company reported a total revenue of CNY 46.8 million for the year, with a net profit of CNY 28.06 million, representing a profit margin of approximately 60%[48]. - The company achieved a total revenue of 2,350 million, with a net profit margin of 33%[193]. Cash Flow and Investments - The net cash flow from operating activities increased significantly by 102.42% to CNY 154.39 million in 2020 compared to CNY 76.27 million in 2019[21]. - The company reported a net cash outflow from investment activities of CNY -674.83 million, primarily due to increased project investments[80]. - The company has invested CNY 565.29 million in trading financial assets as of the end of 2020, reflecting a strategic use of idle funds[53]. - The company has a total of 563,000,000 RMB in unexpired principal balance for structured deposits as of the end of the reporting period[147]. - The company has confirmed that all projects have not reached the expected benefits[156]. Research and Development - Research and development expenses accounted for 5.01% of operating income in 2020, up from 4.16% in 2019[22]. - Research and development (R&D) expenses increased by 22.75% year-on-year, totaling approximately ¥35.43 million, which represents 5.01% of total revenue[44][45]. - The company applied for 15 patents and obtained 22 patents during the reporting period, bringing the total to 116 patents, including 37 invention patents[43]. - The company is actively involved in the development of high-end manufacturing technologies for deep-sea oil and gas equipment, which is crucial for meeting stringent performance and reliability standards[40][42]. - The company has ongoing projects with a total expected investment of ¥35.8 million, focusing on advanced technologies for deep-sea oil extraction and fracturing equipment[47]. 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[31]. - The company’s main business includes four product series: 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[31]. - The company focuses on high-end API product specifications, particularly PSL3-4 levels, positioning itself as a key supplier in the deep-sea equipment sector in the Asia-Pacific region[38]. - The company aims to enhance its market position through the construction of a precision manufacturing project for key components in oil and gas equipment[39]. - The company is focusing on expanding its market presence in both domestic and international markets, particularly in high-end sectors[119]. Risks and Governance - The company faced various risks including industry, market, international trade, and foreign exchange risks, which are detailed in the report[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company’s governance structure and decision-making processes comply with regulations, with no violations reported[7]. - The report emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements[6]. Shareholder and Management Information - The company reported a lock-up period of 36 months for shares held by directors and senior management prior to the public offering[129]. - The company has established a clear framework for share transfer restrictions to maintain market stability[129]. - The company has committed to compensating investors for any losses incurred due to non-compliance with the outlined commitments[132]. - The total pre-tax compensation for the Chairman and General Manager, Zhang Li, was CNY 1.176 million[192]. - The company has no stock incentive plans applicable for the reporting period[198]. Future Outlook - The company’s future plans and development strategies are subject to uncertainties and do not constitute a commitment to investors[6]. - The company plans to increase capital expenditures in oil and gas exploration and development to maintain competitiveness, as global energy demand continues to grow[104]. - The company aims to achieve a 20% growth in sales through enhanced digital marketing strategies over the next year[193]. - Future guidance indicates a revenue target of 2,800 million for the upcoming fiscal year, representing a 19% increase[193].