HIUV(SH:688680)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,481,092,401.48, representing a 39.30% increase compared to CNY 1,063,220,037.18 in 2019[23]. - Net profit attributable to shareholders for 2020 was CNY 223,232,234.39, a significant increase of 233.78% from CNY 66,880,501.97 in 2019[23]. - The net profit after deducting non-recurring gains and losses was CNY 215,253,530.04, up 254.40% from CNY 60,737,615.31 in 2019[23]. - The company's cash flow from operating activities showed a net outflow of CNY -165,788,026.91, a decrease of 1,510.85% compared to CNY -10,291,958.81 in 2019[23]. - The total assets increased to CNY 1,527,644,240.48 at the end of 2020, a growth of 46.32% from CNY 1,044,071,299.04 at the end of 2019[26]. - The net assets attributable to shareholders rose to CNY 752,733,058.33, reflecting a 38.66% increase from CNY 542,858,943.92 at the end of 2019[23]. - Basic earnings per share for 2020 were CNY 3.54, a 224.77% increase from CNY 1.09 in 2019[24]. - The company's total revenue increased by 39.30% year-on-year, with net profit attributable to shareholders rising by 233.78%[87]. - The company achieved a significant increase in production capacity, particularly for white EVA films and co-extruded POE films, enhancing its supply capabilities[87]. Research and Development - The research and development expenditure accounted for 4.42% of operating revenue, up from 3.64% in 2019[25]. - The company achieved a total R&D investment of ¥65,484,991.84, representing a 69.36% increase compared to the previous year[63]. - The proportion of R&D investment to operating revenue increased by 0.78 percentage points to 4.42%[63]. - The research and development team increased from 62 to 72 members, with R&D personnel accounting for 12.74% of the total workforce[78]. - The company has filed 14 invention patents and 68 utility model patents, showcasing its strong innovation capabilities[79]. - The company is focusing on R&D investments to continuously launch new products and increase market penetration[57]. - The company is committed to addressing the technical challenges in encapsulant production, which require ongoing R&D investment to improve product performance and stability[53]. Market Position and Strategy - The company has established itself as one of the top three suppliers in the photovoltaic film industry, focusing on high-end special polymer films for various applications[36]. - The company aims to become an internationally leading manufacturer of special polymer films, continuously innovating to meet market demands[36]. - The photovoltaic industry is expected to experience significant growth due to global carbon neutrality goals, with the company positioned to benefit from this trend[42]. - The company operates on a "sales-driven production" model, aligning production schedules with customer orders to optimize efficiency[39]. - The company plans to continue focusing on the photovoltaic packaging materials sector and expand its market presence[104]. - The company aims to enhance its core competitiveness and sustainable profitability through increased R&D investment and technology accumulation[163]. Risk Management - The company has detailed various risks and countermeasures in the report, particularly in the section on operational discussion and analysis[4]. - The company faces risks related to market competition, particularly as the photovoltaic industry transitions to grid parity, intensifying competition among firms[91]. - There is a risk of insufficient working capital due to long sales collection cycles and short payment terms with suppliers[91]. - Fluctuations in raw material prices, particularly EVA resin, could adversely affect profitability if costs cannot be passed on to customers[93]. - The company must continuously innovate and adapt to rapid technological changes in the photovoltaic industry to avoid falling behind competitors[90]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures for external guarantees[9]. - The company has confirmed that all directors attended the board meeting[5]. - The company has not reported any instances where more than half of the directors could not guarantee the authenticity, accuracy, and completeness of the annual report[9]. - The company has established a profit distribution system that complies with relevant laws and regulations to protect shareholder interests[169]. Dividend Policy - The company plans to distribute a cash dividend of RMB 5.40 per 10 shares, totaling RMB 45.37 million, which represents 20.32% of the net profit attributable to shareholders[5]. - The cash dividend proposal for 2020 is to distribute RMB 5.40 per 10 shares, totaling RMB 45.37 million, which represents 20.32% of the net profit attributable to shareholders[145]. - The company will prioritize cash dividends over stock dividends, ensuring a stable profit distribution policy[142]. Investment and Expansion - The company signed an investment agreement for a photovoltaic packaging material project with a total investment of 240 million yuan, which is still ongoing as of the report date[193]. - An investment agreement for a photovoltaic module packaging material project was signed with a total investment of 220 million yuan, also ongoing as of the report date[193]. - The company entered into a contract for a photovoltaic film production base project with a total investment of 1 billion yuan, which is still in progress as of the report date[193]. - The company is in a growth phase with rapid expansion of photovoltaic film production capacity and significant capital expenditure plans[146]. Compliance and Regulations - The company guarantees compliance with the China Securities Regulatory Commission and Shanghai Stock Exchange regulations regarding share reductions and information disclosure[158]. - The company has confirmed that the prospectus submitted to regulatory authorities does not contain any false statements or significant omissions[172]. - The company will ensure that any related party transactions are necessary and fair, adhering to legal and regulatory requirements[171].