ZHENHUA(SZ:000733)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 3,949,731,031.60, representing a 7.67% increase compared to CNY 3,668,281,841.80 in 2019[14]. - The net profit attributable to shareholders for 2020 was CNY 605,569,382.22, a significant increase of 103.48% from CNY 297,613,144.40 in 2019[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 513,050,307.32, up 264.17% from CNY 140,883,812.40 in 2019[14]. - The basic earnings per share for 2020 was CNY 1.1763, which is a 103.48% increase compared to CNY 0.5781 in 2019[14]. - The weighted average return on net assets for 2020 was 10.69%, an increase from 5.72% in 2019[14]. - Total profit reached CNY 729 million, a significant increase of 83.82% year-on-year[25]. - Net profit attributable to the parent company was CNY 606 million, up 103.48% compared to the previous year[25]. - The company reported a net profit of 21,172 million RMB, representing a growth of approximately 35.4% year-over-year[63]. Cash Flow and Financial Position - The net cash flow from operating activities for 2020 was negative CNY 69,239,138.75, a decrease of 126.68% compared to CNY 259,506,185.23 in 2019[14]. - The total assets increased by 2.18% to 8.96 billion yuan at the end of 2020[15]. - The net assets attributable to shareholders rose by 11.03% to 5.97 billion yuan[15]. - The total liabilities increased to CNY 1,043,032,227.46 in 2020 from CNY 732,662,614.00 in 2019, marking an increase of approximately 42.41%[194]. - The company's total liabilities decreased to ¥2,985,707,651.76 from ¥3,384,249,007.99, reflecting a reduction of about 11.76%[190]. - The total equity attributable to shareholders increased to ¥5,971,323,543.91, up from ¥5,378,283,307.83, representing a growth of approximately 11.01%[191]. Revenue Sources and Market Performance - Revenue from new electronic components amounted to CNY 3.92 billion, accounting for 99.22% of total revenue, with a year-on-year growth of 18.39%[27]. - Domestic revenue was CNY 3.94 billion, representing 99.64% of total revenue, with a growth of 7.62% year-on-year[27]. - The company sold 725,357.4 million units of electronic components, an increase of 4.17% from the previous year[29]. - The company achieved a total revenue of CNY 3.95 billion in 2020, representing a year-on-year growth of 7.67%[25]. Research and Development - The company applied for 299 patents during the reporting period, including 137 invention patents[24]. - Research and development expenses increased by 42.75% to ¥331,808,634.79, constituting 9.45% of the latest audited operating income[40]. - The number of R&D personnel increased by 17.56% to 770, enhancing the company's innovation capacity[41]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares, based on a total of 514,805,618 shares[2]. - The company reported a cash dividend of 1.50 CNY per 10 shares for the year 2020, totaling 77,220,842.70 CNY[76]. - The total distributable profit for the year was CNY 847,491,596.43, after accounting for statutory and discretionary reserves[79]. Corporate Governance and Management - The company has not made any changes to its controlling shareholders during the reporting period[11]. - The company appointed Zhongtian Yun Accounting Firm as the internal control auditor, with an audit fee of RMB 400,000[92]. - The company has a diverse leadership team with members holding various positions in subsidiaries, indicating a strong internal structure[152]. - The company’s board includes independent directors with extensive backgrounds in finance and academia, enhancing governance and oversight[153]. Social Responsibility and Environmental Compliance - The company has committed to high-quality development while fulfilling its social responsibilities, focusing on safety and environmental protection[115]. - The company has actively engaged in poverty alleviation efforts, aligning with national goals for poverty eradication[116]. - The company has maintained compliance with environmental discharge standards across all subsidiaries, with no exceedance reported[121]. Legal and Regulatory Matters - The company is involved in bankruptcy proceedings for its subsidiary, Shenzhen Communication, which was declared bankrupt on March 1, 2021[92]. - The total amount involved in ongoing litigation cases for the company's controlled enterprises is RMB 142.83 million, with 15 cases as plaintiffs and 1 case as a defendant[96]. - The company has no expected liabilities arising from the ongoing litigation cases[97]. Future Outlook and Strategic Focus - The external environment remains uncertain, but the company sees opportunities and challenges in the industry during the "14th Five-Year Plan" period[25]. - The company is focusing on the development and production of new electronic components and plans to expand its market presence[63]. - The company is committed to improving operational efficiency through cost management and information technology upgrades[73].