WEDGE(SZ:000534)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥552,561,979.41, representing a 0.70% increase compared to ¥548,735,086.55 in 2019[26]. - The net profit attributable to shareholders for 2020 was ¥76,725,841.36, an increase of 8.56% from ¥70,675,636.77 in 2019[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥13,105,574.38, a significant increase of 437.52% compared to ¥2,438,134.38 in 2019[26]. - The net cash flow from operating activities for 2020 was ¥142,422,522.82, a decrease of 8.31% from ¥155,333,410.42 in 2019[26]. - The basic earnings per share for 2020 was ¥0.1560, up 8.56% from ¥0.1437 in 2019[26]. - The total assets at the end of 2020 were ¥2,125,769,141.68, reflecting a 3.09% increase from ¥2,062,082,761.02 at the end of 2019[26]. - The net assets attributable to shareholders at the end of 2020 were ¥999,767,746.84, a 5.48% increase from ¥947,856,160.28 at the end of 2019[26]. - The company achieved a net profit attributable to shareholders of 76,725,841.36 CNY in 2020, with a cumulative distributable profit of 242,912,701.21 CNY by the end of 2020[122]. - The cash dividend for 2020 is set at 0.60 CNY per 10 shares (including tax), representing 38.71% of the net profit attributable to shareholders[127]. Business Operations - The company transitioned its main business focus from power generation to the R&D, manufacturing, sales, and maintenance of high-temperature alloys and related technical services[21]. - The company expanded its business scope to include "investment in the pharmaceutical industry" as of September 30, 2019[24]. - The company's main business includes the research, production, and sales of micro-ecological preparations and high-temperature alloys, with a focus on expanding market presence[38]. - The product "Jin Shuangqi" achieved full coverage in grade hospitals and ranked first in sales within its category during the reporting period[38]. - The company is actively entering the retail market, with "Jin Shuangqi" ranking fourth in the micro-ecological preparation retail market[38]. - The company has established a complete R&D system for high-temperature alloy materials, covering from master alloy to powder metallurgy and high-temperature alloy components[47]. - The company has developed a core technology system for ultra-high purity high-temperature alloy smelting, primarily producing nickel-based master alloys[50]. - The company has successfully produced high-quality equiaxed, directional, and single crystal blades using self-developed nickel-based high-temperature master alloys[50]. - The company has initiated the construction of an industrialization base in Zhuhai to expand the production capacity of existing products and prepare for new probiotic product capabilities[55]. - The company has established a stable cooperation relationship with domestic research institutions and enterprises in the field of high-temperature alloys[50]. Research and Development - Research and development expenses rose by 71.22% to ¥77,792,122.49, reflecting the company's commitment to ongoing projects[78]. - The proportion of R&D investment to operating income increased from 15.98% in 2019 to 21.48% in 2020[79]. - The company has accumulated 13 invention patent applications, with 7 patents granted as of December 31, 2020[55]. - The company applied for a total of 38 invention patents and 28 utility model patents, with 40 patents authorized as of December 31, 2020[58]. - The company holds a total of 66 authorized patents in high-temperature alloy materials and components as of the end of the reporting period[79]. Market and Sales - The company achieved a total operating revenue of ¥552,561,979.41, representing a year-on-year growth of 0.70%[64]. - The sales volume of high-temperature alloy product one increased by 190.13%, while production volume decreased by 50.72%[66]. - The company successfully delivered 100,000 units in batch production for the first time, enhancing its market presence in aviation, gas turbines, and automotive sectors[59]. - The sales revenue from high-temperature materials increased by 270.50% to ¥26,116,706.28, making up 31.53% of the operating costs[72]. - The company’s revenue from the pharmaceutical manufacturing sector was ¥516,469,436.49, a decrease of 2.89% year-on-year[65]. - The company’s gross profit margin in the pharmaceutical manufacturing sector was 89.21%, a decrease of 0.25 percentage points compared to the previous year[65]. Corporate Governance and Compliance - The company has committed to ensuring the accuracy and completeness of its financial reports, with key personnel affirming this responsibility[6]. - The company has detailed the risks it faces and the measures it will take to address them in its annual report[8]. - Wanze Co. has the right of first refusal for any new technologies or products developed by controlling parties that are related to its production and operations[135]. - The company will strictly adhere to laws and regulations regarding related party transactions, ensuring fair and reasonable terms[134]. - The company guarantees the independence of its personnel, assets, finances, and operations to protect the interests of all shareholders, especially minority shareholders[134]. - The company has no undisclosed liabilities, ensuring transparency in its financial dealings[135]. - The company has committed to timely and accurate disclosure of its financial and operational performance reports[135]. Cash Flow and Investments - Operating cash inflow decreased by 47.78% to ¥701,838,612.22, primarily due to the inclusion of cash flows from subsidiaries in 2019[83]. - Operating cash outflow decreased by 52.94% to ¥559,416,089.40, also influenced by the previous year's cash flows from subsidiaries[83]. - Investment cash inflow increased by 185.67% to ¥382,870,229.98, mainly due to equity transfer payments received from Xi'an Xinhongye[83]. - Investment cash outflow decreased by 63.04% to ¥217,902,804.10, as previous expenditures on subsidiaries were significantly lower this year[83]. - Financing cash inflow decreased by 38.63% to ¥268,259,372.79, attributed to the repayment of long-term loans by the parent company[83]. - Net increase in cash and cash equivalents rose by 252.18% to ¥204,218,685.42, driven by equity transfer payments and debt recovery[83]. - Cash and cash equivalents at year-end amounted to ¥394,745,353.21, representing 18.57% of total assets, an increase of 9.53 percentage points[87]. Shareholder Relations - The company declared a cash dividend of 0.6 CNY per 10 shares, totaling 29,697,785.76 CNY for the reporting period[128]. - The total distributable profit available for shareholders at the end of 2020 was 242,912,701.21 CNY[128]. - The cash dividend accounted for 100% of the total profit distribution[128]. - No bonus shares were issued during the reporting period, and no capital reserve was converted into share capital[128]. - The company committed to a cash dividend policy, ensuring that if the annual distributable profit is positive and earnings per share exceed 0.05 yuan, it will distribute profits through cash or a combination of cash and stock, without exceeding the cumulative distributable profit[145]. Risk Management - The company is addressing risks related to profitability by leveraging stable cash flow from its microbial preparation business to support the growth of its high-temperature alloy business[112]. - The company has completed the cleanup of its real estate business and will no longer engage in real estate activities or invest in new real estate projects[142]. - The company has promised to adhere to the relevant measures for compensation and any commitments made regarding compensation for losses caused to Wanze Co. or its investors[142]. Social Responsibility - The company donated approximately 2 million RMB worth of intestinal microecological preparations to over 50 hospitals in various provinces for COVID-19 treatment, including 500,000 RMB specifically for hospitals in Wuhan[194]. - The company has not engaged in any significant environmental violations during the reporting period and is not classified as a key pollutant discharge unit by environmental protection authorities[198].