SMEIC(SH:900925)2021-03-17 16:00Financial Performance - The company's operating revenue for 2020 was approximately RMB 23.39 billion, representing a year-on-year increase of 4.96% compared to RMB 22.29 billion in 2019[20]. - The net profit attributable to shareholders of the listed company was RMB 1.13 billion, showing no significant change from RMB 1.13 billion in 2019[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1.06 billion, an increase of 6.21% from RMB 1.00 billion in 2019[20]. - The net cash flow from operating activities was RMB 1.10 billion, a significant increase of 419.55% compared to RMB 211 million in 2019[20]. - The total assets at the end of 2020 were approximately RMB 36.17 billion, up 4.68% from RMB 34.55 billion at the end of 2019[20]. - The net assets attributable to shareholders of the listed company increased to RMB 11.93 billion, a rise of 4.17% from RMB 11.45 billion in 2019[20]. - The basic earnings per share for 2020 remained at RMB 1.10, unchanged from 2019[21]. - The company reported a total non-operating income of CNY 65,073,377.16 in 2020, a decrease from CNY 127,281,019.79 in 2019[26]. - The elevator business generated revenue of CNY 22,250,125,384.88, with a gross margin of 16.98%, reflecting a 5.03% increase in revenue compared to the previous year[55]. - The total operating revenue for 2020 reached CNY 23,394,105,805.46, an increase of 4.97% from CNY 22,287,777,845.49 in 2019[169]. Cash Flow and Investments - The net cash flow from operating activities increased significantly by 419.55% to CNY 1,096,371,403.71, primarily due to an increase in new orders and corresponding prepayments[57]. - The cash flow from operating activities netted CNY 72,878,415.14, a slight increase from CNY 69,134,824.82 in 2019, reflecting a growth of about 4%[178]. - The total cash inflow from investment activities was CNY 1,501,484,146.80, compared to CNY 1,287,136,092.84 in 2019, indicating an increase of about 16.6%[176]. - The cash outflow for investment activities was CNY 1,713,114,042.61, significantly higher than CNY 232,521,799.99 in 2019, indicating a substantial increase of approximately 635%[178]. - The cash flow from financing activities showed a net inflow of CNY 59,818,827.82, a recovery from a net outflow of CNY 452,315,840.92 in the previous year[178]. Market Strategy and Operations - The company faces market risks and will adopt proactive sales strategies to maintain and expand market share[6]. - The company will implement cost reduction measures to mitigate risks associated with potential price declines in products[6]. - The company aims to implement a strategy of industrial intensification, technological advancement, and global resource integration[31]. - The company plans to focus on elevator modernization projects, driven by the aging population and the need for upgrades in older buildings[61]. - The company is actively exploring new markets and applications for precision hydraulic products, leveraging existing capabilities for growth[76]. Research and Development - Research and development expenses totaled CNY 790,155,286.92, accounting for 3.38% of total revenue, with a 5.18% increase from the previous year[56]. - The company has developed energy-saving and environmentally friendly mid-speed elevators with independent intellectual property rights, breaking foreign technology monopolies[31]. - The company’s self-developed products account for over 70% of total sales, showcasing its strong innovation capabilities[36]. - The company has launched several smart health technologies during the pandemic, including non-contact call functions and UV disinfection features for elevators[42]. Acquisitions and Investments - The company has made significant acquisitions, including a RMB 93.8 million purchase of a 70% stake in Liyang Shenling and a RMB 127 million acquisition of a 100% stake in Laogang Shenling[87]. - The company acquired a 47.6% stake in Shanghai Mitsubishi Electric Air Conditioning Co., Ltd. for RMB 805.08 million, aiming to integrate elevator and air conditioning businesses[67]. - The company’s long-term equity investments rose by 33.95% to CNY 3,317,245,190.58, attributed to acquisitions of joint ventures[59]. Corporate Governance - The company has maintained a stable board composition with no changes in shareholding for key executives during the reporting period[116]. - The company is committed to maintaining transparency and accountability in its financial reporting and governance practices[117]. - The board of directors has established specialized committees to ensure independent directors can effectively participate in company affairs[135]. - The company has disclosed its internal control self-assessment report for 2020, which is available on the Shanghai Stock Exchange website[139]. Environmental Compliance - The company transferred 250.95 tons of hazardous waste in 2020, ensuring compliance with environmental standards[94]. - The average concentration of chemical oxygen demand in wastewater discharge was 25.5 mg/L, significantly below the regulatory limit[94]. - The company established wastewater treatment systems to meet environmental protection standards[96]. - The company is committed to sustainable development and promoting low-carbon technologies[99]. Employee and Workforce Management - The total number of employees in the parent company is 28, while the main subsidiaries employ 4,184, resulting in a total of 4,212 employees[124]. - The company emphasizes a fair and competitive compensation system to motivate employees and align their interests with the company's growth[125]. - The company has established a comprehensive employee training system to enhance both employee value and corporate value[126]. - The company has undergone changes in its board and management, with several key personnel changes due to work reasons and retirements[122].