英洛华(000795) - 2020 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides essential preliminary information, the report's structure, and key terminology Company Profile and Key Financial Indicators This section presents the company's fundamental information and key financial indicators, highlighting 2020 revenue growth alongside a notable decline in net profit and operating cash flow Company Basic Information Yingluohua Technology Co., Ltd. (stock code: 000795) is a Shenzhen Stock Exchange-listed company, primarily engaged in neodymium iron boron magnetic materials and motor series products since 2015 - The company's main business expanded in 2015 due to asset restructuring, from solely neodymium iron boron magnetic materials to include motor series products[17] - The company's controlling shareholder changed to Hengdian Group Holdings Co., Ltd. in 2007[17] Key Accounting Data and Financial Indicators In 2020, the company's operating revenue reached 2.601 billion yuan, growing 3.93%, but net profit attributable to shareholders significantly declined by 28.36% to 102.12 million yuan 2020 Key Financial Indicators | Indicator | 2020 | 2019 (Adjusted) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 2,601,229,245.10 | 2,502,829,937.09 | 3.93% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 102,118,202.64 | 142,538,754.49 | -28.36% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) (Yuan) | 67,650,133.40 | 122,362,526.35 | -44.71% | | Net Cash Flow from Operating Activities (Yuan) | 140,028,070.37 | 265,426,402.72 | -47.24% | | Basic Earnings Per Share (Yuan/Share) | 0.09 | 0.13 | -30.77% | | Weighted Average Return on Net Assets | 4.46% | 6.15% | Decreased by 1.69 percentage points | | Total Assets (Yuan) | 3,946,173,377.87 | 3,477,694,321.34 | 13.47% | | Net Assets Attributable to Shareholders of Listed Company (Yuan) | 2,340,101,776.42 | 2,298,661,212.39 | 1.80% | Quarterly Key Financial Indicators The company's 2020 operating revenue showed sequential growth, but net profit attributable to shareholders turned into a loss in the fourth quarter 2020 Quarterly Financial Indicators (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 436,058,428.84 | 636,312,622.76 | 691,461,709.06 | 837,396,484.44 | | Net Profit Attributable to Shareholders of Listed Company | 26,318,977.51 | 45,379,643.98 | 36,756,383.37 | -6,336,802.22 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 20,088,813.03 | 25,533,463.03 | 25,219,468.19 | -3,191,610.85 | | Net Cash Flow from Operating Activities | -105,552,597.09 | 174,633,767.48 | 23,721,266.21 | 47,225,633.77 | Non-recurring Gains and Losses Items and Amounts In 2020, the company's non-recurring gains and losses totaled 34.47 million yuan, significantly increasing from 20.18 million yuan in 2019, primarily due to government subsidies 2020 Non-recurring Gains and Losses Items (Unit: Yuan) | Item | 2020 Amount | 2019 Amount | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | -2,433,158.04 | -11,570,326.37 | | Government subsidies recognized in current profit/loss | 49,333,645.53 | 40,725,716.49 | | Other non-operating income and expenses | -2,379,747.23 | -587,938.47 | | Total | 34,468,069.24 | 20,176,228.14 | Business Overview This section outlines the company's core businesses, operating model, and industry position, focusing on neodymium iron boron magnetic materials and motor series products Main Business, Operating Model, and Industry Position The company's core business focuses on neodymium iron boron magnetic materials and motor series products, operating on a "production-to-order" model with a leading position in key market segments - Main Business: The company primarily operates in two business segments: * Neodymium Iron Boron Magnetic Materials: Produces sintered and bonded NdFeB permanent magnetic materials for consumer electronics, wind power, and new energy vehicles[30] * Motor Series Products: Develops and manufactures various micro-special motors and components for electric wheelchairs, smart home appliances, and industrial robots[30] - Operating Model: * Procurement: Dedicated procurement departments manage raw materials with volatile prices, implementing on-demand purchasing and strategic reserves[31] * Production: Primarily adopts a "production-to-order" and "customized production" model, promoting "lean production"[32] * Sales: Combines direct sales with brand service providers and utilizes e-commerce platforms to expand online channels[33] - Industry Position: * Yingluohua Magnetics: One of the leading rare earth permanent magnet material production bases in China, capable of both sintered and bonded processes[34] * Lianyi Motor: Holds high recognition and brand influence in the micro-special motor industry, possessing a national-level motor technology center[34] Core Competitiveness Analysis The company's core competitiveness spans technology R&D, product advantages, intellectual property, international presence, and an experienced management team - Technology R&D and Talent: The company established a research institute to integrate R&D platforms and attract professional talent, achieving breakthroughs in material processes and integrated motor solutions[38][39] - Product Advantages: The company is one of the few capable of both bonded and sintered NdFeB magnetic material R&D and production, offering a comprehensive range of motor products and OEM services, including 9 new wheelchair models in 2020[40][42] - Intellectual Property and Brand System: In 2020, the company filed 352 new patent applications (including 114 invention patents), obtained 256 new authorized patents, and led or participated in multiple national and industry standards[43] Management Discussion and Analysis (MD&A) This section analyzes the company's 2020 operating results, financial position, and future outlook, noting revenue growth despite profit declines due to various factors, and outlining strategic plans and risks Annual Operating Overview In 2020, the company achieved 3.93% revenue growth to 2.601 billion yuan amidst the global pandemic, but operating profit and net profit significantly declined due to subsidiary performance issues and increased expenses 2020 Operating Performance Key Data | Indicator | 2020 Amount (Ten Thousand Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 260,122.92 | 3.93% | | Operating Profit | 7,712.76 | -54.87% | | Net Profit Attributable to Parent Company Owners | 10,211.82 | -28.36% | - Neodymium Iron Boron Business: Capitalized on opportunities in wind power, new energy vehicles, and energy-efficient home appliances, expanding market share in wind power and achieving breakthroughs in compressors[49] - Motor Business: Wholly-owned subsidiary Lianyi Motor experienced a decline in performance due to increased credit impairment and asset impairment provisions, along with higher exchange losses from export business[50] Main Business Analysis This section details the composition of the company's main business revenue and costs, highlighting the growth of neodymium iron boron business, declines in other segments, and a significant increase in financial expenses Revenue and Cost Analysis In 2020, operating revenue grew 3.93% to 2.601 billion yuan, primarily driven by the 13.47% growth in neodymium iron boron business, while motor series and industrial valve revenues declined, with the latter's gross margin turning negative 2020 Operating Revenue Composition (by Industry) | Industry | Operating Revenue (Yuan) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Neodymium Iron Boron | 1,527,662,138.97 | 58.73% | 13.47% | | Motor Series | 904,010,130.72 | 34.75% | -3.01% | | Industrial Valves | 63,814,352.14 | 2.45% | -35.63% | Main Business Gross Margin Changes | Industry | 2020 Gross Margin | Change from Prior Year | | :--- | :--- | :--- | | Neodymium Iron Boron | 17.58% | Decreased by 3.28 percentage points | | Motor Series | 22.34% | Decreased by 0.48 percentage points | | Industrial Valves | -29.54% | Decreased by 38.58 percentage points | Main Product Production, Sales, and Inventory | Industry Category | Item | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Neodymium Iron Boron | Sales Volume (Tons) | 5,243.17 | 4,368.52 | 20.02% | | | Production Volume (Tons) | 5,339.5 | 4,363.16 | 22.38% | | Motor Series | Sales Volume (Ten Thousand Units) | 473.41 | 449.88 | 5.23% | | | Production Volume (Ten Thousand Units) | 474.21 | 441.59 | 7.39% | Expense Analysis In 2020, the company's sales, administrative, and R&D expenses remained stable, but financial expenses significantly increased to 12.76 million yuan due to higher exchange losses 2020 Period Expenses (Unit: Yuan) | Expense Item | 2020 | 2019 | Year-on-Year Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Sales Expenses | 81,160,001.60 | 82,135,842.01 | -1.19% | No significant change | | Administrative Expenses | 153,340,761.01 | 151,746,021.61 | 1.05% | No significant change | | Financial Expenses | 12,762,295.06 | -5,591,416.92 | Not applicable | Primarily due to increased exchange losses in the current period | | R&D Expenses | 128,999,376.54 | 126,118,156.28 | 2.28% | No significant change | R&D Investment The company maintained its R&D investment in 2020 at 129 million yuan, representing 4.96% of operating revenue, with all expenditures expensed 2020 R&D Investment Overview | Indicator | 2020 | 2019 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Personnel (Persons) | 436 | 437 | -0.23% | | Proportion of R&D Personnel | 11.15% | 12.94% | -1.79% | | R&D Investment Amount (Yuan) | 128,999,376.54 | 126,118,156.28 | 2.28% | | R&D Investment as % of Operating Revenue | 4.96% | 5.04% | -0.08% | | Capitalized R&D Investment Amount (Yuan) | 0.00 | 0.00 | 0.00% | Cash Flow Analysis In 2020, net cash flow from operating activities significantly decreased by 47.24% to 140.03 million yuan, while financing cash flow turned positive due to increased borrowings 2020 Cash Flow Statement Key Items (Unit: Yuan) | Item | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 140,028,070.37 | 265,426,402.72 | -47.24% | | Net Cash Flow from Investing Activities | -175,529,548.62 | -177,265,029.98 | Not applicable | | Net Cash Flow from Financing Activities | 283,858,254.10 | -143,209,824.10 | Not applicable | | Net Increase in Cash and Cash Equivalents | 245,309,972.01 | -54,774,447.79 | Not applicable | Company Future Development Outlook The company anticipates continued growth in neodymium iron boron and motor industries driven by policy and market trends, focusing on strategic customer development, lean management, and risk mitigation - Industry Development Trends: * Neodymium Iron Boron Magnetic Materials: As a national key new material, it has broad application prospects in strategic emerging industries like new energy and new materials, with the industry still in a high-growth phase[109] * Motor Series Products: Benefiting from industrial automation, intelligence, and green trends, significant development is expected in energy conservation, new energy vehicles, and robotics[114][116] - Future Development Strategy: * Continue to focus on neodymium iron boron magnetic materials and motor series products as two leading industries[119] * Vigorously expand top-tier customers, strengthen lean management, and accelerate automation and intelligentization[120] * Enhance corporate governance and compliance, strengthen technological innovation and team building[121] * Optimize resource integration, promote industrial upgrading, and strengthen internal controls to reduce operational risks[121] - Risks Faced and Countermeasures: * Macroeconomic Risk: Strengthen industry dynamic analysis and timely adjust operating policies[124] * Market Competition Risk: Promote technological innovation, develop distinctive products, and strengthen marketing team building[125] * Raw Material Price Fluctuation Risk: Collaborate closely with major suppliers, establish stable supply channels, and implement strategic reserves[126] * Loss of Core Technical Personnel Risk: Increase efforts in talent acquisition, training, and optimal allocation[127] * Exchange Rate Fluctuation Risk: Closely monitor exchange rate policies and actively manage with financial instruments[128] Significant Matters This section details key events during the reporting period, including no dividend distribution, a subsidiary's unfulfilled performance commitment and compensation, accounting policy changes, and changes in consolidation scope Profit Distribution and Capital Reserve Conversion Despite profitability, the company plans no cash dividend distribution, bonus shares, or capital reserve conversion for 2020, consistent with the past three years - The company plans no cash dividend distribution, no bonus shares, and no capital reserve conversion for the 2020 fiscal year[141] Cash Dividend Distribution in Recent Three Years (Unit: Yuan) | Dividend Year | Cash Dividend Amount (Tax Included) | Proportion of Net Profit Attributable to Parent Company | | :--- | :--- | :--- | | 2020 | 0.00 | 0.00% | | 2019 | 0.00 | 0.00% | | 2018 | 0.00 | 0.00% | Fulfillment of Commitments While the controlling shareholder fulfilled commitments, subsidiary Zhejiang Yingluohua Rehabilitation Equipment Co., Ltd. failed to meet its 2020 performance target, with the compensation obligor agreeing to full compensation - Subsidiary Zhejiang Yingluohua Rehabilitation Equipment Co., Ltd. did not meet its 2020 performance commitment due to global pandemic impacts and increased investment for future development, with the compensation obligor, Mr. Fu Chengxian, agreeing to full compensation[155] Yingluohua Rehabilitation 2020 Performance Commitment Fulfillment (Unit: Ten Thousand Yuan) | Item | Committed Performance | Actual Performance | Reason for Not Meeting Forecast | | :--- | :--- | :--- | :--- | | Zhejiang Yingluohua Rehabilitation Equipment Co., Ltd. | 3,092 | 121.62 | Global pandemic impacted business, and increased expenses due to investments for future development | Changes in Accounting Policies Effective January 1, 2020, the company adopted new revenue recognition standards, reclassifying "Advances from Customers" to "Contract Liabilities" and "Other Current Liabilities" Impact of Adopting New Revenue Standards on Consolidated Balance Sheet as of January 1, 2020 | Item | Before Adjustment (2019-12-31) | After Adjustment (2020-01-01) | | :--- | :--- | :--- | | Advances from Customers | 22,625,138.27 | 0 | | Contract Liabilities | 0 | 20,022,246.26 | | Other Current Liabilities | 0 | 2,602,892.01 | Changes in Consolidation Scope In 2020, the company's consolidation scope changed twice, adding Zhejiang Maikong Medical Technology Co., Ltd. and Dongyang Yingluohua Equity Investment Fund Partnership (Limited Partnership) - The company acquired 70% equity in Zhejiang Maikong Medical Technology Co., Ltd. in October 2020, including it in the consolidated financial statements[161] - Due to changes in the investment decision committee members, the company included Dongyang Yingluohua Equity Investment Fund Partnership (Limited Partnership) in the consolidated financial statements in December 2020[161][162] Share Changes and Shareholder Information This section details the company's share capital structure, changes in shares, and shareholder information, including the controlling shareholder and actual controller Share Changes The company's total share capital remained unchanged at 1,133,684,103 shares during the reporting period, with minor reclassifications between restricted and unrestricted shares due to executive share unlocks Share Changes (Unit: Shares) | Share Type | Before Change | Change (Increase/Decrease) | After Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,601,810 | -325,553 | 2,276,257 | | II. Unrestricted Shares | 1,131,082,293 | +325,553 | 1,131,407,846 | | III. Total Shares | 1,133,684,103 | 0 | 1,133,684,103 | Shareholders and Actual Controller Information As of the end of 2020, the company had 88,528 shareholders, with Hengdian Group Holdings Co., Ltd. as the controlling shareholder (39.38% stake), and Dongyang Hengdian Community Economic Enterprise Federation as the actual controller Top Five Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Hengdian Group Holdings Co., Ltd. | Domestic Non-State-Owned Legal Person | 39.38% | 446,427,575 | | Hengdian Group Dongci Co., Ltd. | Domestic Non-State-Owned Legal Person | 8.65% | 98,077,839 | | Yingluohua Technology Co., Ltd. - First Phase Employee Stock Ownership Plan | Other | 1.60% | 18,104,181 | | Zhejiang Hengdian Import and Export Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.07% | 12,175,648 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.46% | 5,210,903 | - Controlling shareholder Hengdian Group Holdings Co., Ltd. pledged 181,000,000 shares of the company's stock[213] - The company's actual controller is Dongyang Hengdian Community Economic Enterprise Federation, which indirectly controls the company through Hengdian Group Holdings Co., Ltd[221][224] Directors, Supervisors, Senior Management, and Employees This section details changes in the company's board, supervisory board, and senior management, their backgrounds, compensation, and overall employee statistics Changes in Directors, Supervisors, and Senior Management In 2020, the company saw changes in its Chairman, CFO, and a Supervisor, alongside the appointment of a new Vice General Manager 2020 Key Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | | :--- | :--- | :--- | :--- | | Xu Xiaohua | Director, Chairman | Resignation | 2020-05-28 | | Li Baoping | Chairman | Election | 2020-05-28 | | Fang Jianwu | CFO | Dismissal | 2020-04-02 | | Liu Jiangyuan | CFO | Appointment | 2020-04-02 | | Wang Li | Supervisor | Resignation | 2020-07-23 | | Ge Xiangquan | Supervisor | Election | 2020-07-23 | | Wu Xiaokang | Vice General Manager | Appointment | 2020-11-27 | Employee Information As of the reporting period end, the company had 3,910 employees, with production personnel comprising the largest group at approximately 75.6% Employee Professional Composition | Professional Category | Quantity (Persons) | | :--- | :--- | | Production Personnel | 2,958 | | Sales Personnel | 170 | | Technical Personnel | 373 | | Financial Personnel | 59 | | Administrative Personnel | 350 | | Total | 3,910 | Corporate Governance This section describes the company's governance structure and operations, emphasizing compliance with regulations, independence from the controlling shareholder, and diligent performance by board committees Basic Corporate Governance Status The company consistently improved its corporate governance structure and internal management systems in compliance with relevant laws, maintaining independence from its controlling shareholder - The company's actual corporate governance status shows no significant discrepancies with the requirements of the Company Law and relevant CSRC regulations[256] - The company maintains complete independence from its controlling shareholder in terms of personnel, assets, finance, organization, and business operations[260][264] Internal Control Status The company conducted a self-assessment of its internal controls, with the accounting firm issuing a standard unqualified audit opinion, confirming no material weaknesses were found - No material weaknesses in internal control were identified during the reporting period[277] - The accounting firm issued a standard unqualified audit opinion on the company's financial report internal controls as of December 31, 2020[280][282] Corporate Bonds Information As of the report approval date, the company has no publicly issued and listed corporate bonds that are unexpired or fully unpaid Financial Report This section presents the audited 2020 financial report, including the standard unqualified audit opinion from Hexin Certified Public Accountants and key financial statements Audit Report Hexin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, with "Revenue Recognition" and "Goodwill Impairment" identified as key audit matters - The audit opinion type is standard unqualified opinion[286] - Key audit matters include: * Revenue Recognition: Due to revenue being a key performance indicator and differing domestic/international sales recognition methods, there is a risk of inappropriate recognition[290][291] * Goodwill Impairment: Goodwill impairment testing involves significant management judgment and estimates, making it material to the financial statements[294] Financial Statements This section includes the company's 2020 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Key Items (2020-12-31) | Item | Amount (Yuan) | | :--- | :--- | | Cash and Bank Balances | 906,352,826.05 | | Accounts Receivable | 819,557,962.05 | | Inventories | 724,714,432.76 | | Fixed Assets | 696,291,821.50 | | Total Assets | 3,946,173,377.87 | | Short-term Borrowings | 576,651,041.10 | | Accounts Payable | 410,440,331.91 | | Total Liabilities | 1,539,401,481.94 | | Total Equity Attributable to Parent Company Owners | 2,340,101,776.42 | | Total Owners' Equity | 2,406,771,895.93 | Consolidated Income Statement Key Items (2020) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 2,601,229,245.10 | | Operating Cost | 2,141,304,226.61 | | III. Operating Profit | 77,127,644.80 | | IV. Total Profit | 74,747,897.57 | | V. Net Profit | 74,112,460.06 | | Net Profit Attributable to Parent Company Shareholders | 102,118,202.64 |