HIGHLY(SH:900910)2021-04-29 16:00Financial Performance - Revenue for 2020 was approximately ¥11.07 billion, a decrease of 8.79% compared to ¥12.14 billion in 2019[24]. - Net profit attributable to shareholders was ¥162.51 million, down 43.05% from ¥285.34 million in 2019[24]. - Basic earnings per share decreased by 42.42% to ¥0.19 from ¥0.33 in 2019[25]. - Operating cash flow net amount was ¥345.19 million, a decline of 50.78% compared to ¥701.35 million in 2019[24]. - Total assets increased by 7.24% to ¥14.95 billion from ¥13.94 billion in 2019[24]. - The weighted average return on equity decreased by 2.80 percentage points to 3.64% from 6.44% in 2019[25]. - The gross profit margin for 2020 was 13.16%, a decline of 1.23 percentage points from the previous year[56]. - The company reported a net profit of ¥90.12 million in Q4 2020, which was the highest quarterly profit for the year[26]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling approximately 132.5 million RMB, which represents 81.53% of the net profit attributable to shareholders for the year 2020[5]. - The company has maintained a stable profit distribution policy, with cash dividends not exceeding cumulative distributable profits[101]. - The company has a cash dividend policy prioritizing reasonable returns to investors, with a cash dividend of CNY 1.80 per 10 shares distributed in 2020, totaling CNY 158.99 million[102]. Audit and Compliance - The company has received a standard unqualified audit report from PwC, ensuring the accuracy and completeness of the financial report[4]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the annual report's accuracy[9]. - The company has not reported any major litigation or arbitration matters during the reporting period[113]. - The internal control audit report issued by PwC confirmed that the company maintains effective financial reporting internal controls[189]. - The company reported no significant deficiencies in internal controls during the reporting period[189]. Risks and Challenges - The company has outlined various risks in its future development, including industry environment risk, product price risk, and technology risk[8]. - The company faces risks from market fluctuations due to climate change and supply-demand relationships in the air conditioning compressor industry[96]. - The price of major raw materials, such as electrolytic copper and electrical steel, has significantly increased since the second half of 2020, leading to higher operating costs and profit pressure[97]. Operational Highlights - The company produced 26.08 million air conditioning compressors in 2020, a year-on-year increase of 1.04%, and sold 26.29 million units, up 0.87%[40]. - The sales of variable frequency compressors reached 16.04 million units, representing a year-on-year growth of 77.29%, with a variable frequency ratio of 61.03%, an increase of 26.31 percentage points compared to the previous year[40]. - The company’s total sales volume for the rotor-type compressor industry in 2020 was 185 million units, with a market share of 14.23%[32]. - The company’s electric motor sales reached 32.22 million units, a year-on-year increase of 5.03%, with variable frequency motor sales growing by 69.82%[41]. Investment and Expansion - The company acquired 60% of Marelli (Hong Kong) Holdings Limited, enhancing its position in the new energy vehicle market[43]. - The company plans to focus on market expansion and new product development in the upcoming year[30]. - The company aims to sell 2.81 million air conditioning compressors in 2021, representing a 6.90% increase from 2020's actual sales of 2.629 million units[95]. - The target for electric motor sales in 2021 is 3.7 million units, a 14.83% increase from 2020's actual sales of 3.222 million units[95]. Research and Development - The company’s R&D investment totaled ¥548,154,305.75, representing 4.95% of operating revenue, with 912 R&D personnel, accounting for 14% of total employees[66]. - The company will increase research and development investment and expand its R&D team to enhance competitiveness and maintain industry leadership[97]. Environmental Responsibility - The company reported that its wastewater and air emissions are below the allowed limits, demonstrating commitment to environmental responsibility[136]. - The company has established a new production capacity project for 1.5 million units of new D variable frequency air conditioning compressors, which has received approval from the local environmental authority[141]. - The company operates three sets of activated carbon adsorption devices and one set of particulate matter filtration equipment for air pollution control, all functioning normally during the reporting period[140]. Corporate Governance - The company maintains a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability in decision-making processes[179]. - The company has implemented a management system for insider information, with no incidents of insider trading reported during the reporting period[180]. - All proposals at the shareholders' meetings were approved without any rejections[182]. Social Responsibility - The company is actively involved in social responsibility initiatives, including pandemic response and charitable activities[135]. - The company contributed a total of 572,500 RMB to targeted poverty alleviation efforts, including 160,100 RMB in donated materials and 261,700 RMB in consumption poverty alleviation[131].