DGKG(SZ:000828)2021-03-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.26 billion, a decrease of 23.38% compared to ¥1.64 billion in 2019[26]. - Net profit attributable to shareholders for 2020 was approximately ¥912.71 million, down 15.01% from ¥1.07 billion in 2019[26]. - The net cash flow from operating activities for 2020 was approximately ¥866.33 million, a decrease of 18.77% compared to ¥1.07 billion in 2019[26]. - The total assets at the end of 2020 were approximately ¥13.99 billion, an increase of 18.53% from ¥11.80 billion at the end of 2019[26]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥7.78 billion, up 7.53% from ¥7.24 billion at the end of 2019[26]. - The company achieved an operating income of CNY 1.256 billion in 2020, a year-on-year decrease of 23.38%, while the net profit attributable to shareholders was CNY 913 million, down 15.01% year-on-year[53]. - The company's highway segment generated toll revenue of CNY 990 million, a decline of 24.40% compared to the previous year[54]. - The total operating revenue decreased by 23.38% to approximately 1.26 billion yuan compared to 2019[69]. - The toll revenue accounted for 78.79% of total operating revenue, down from 79.85% in 2019[69]. - The company reported a gross profit margin of 61.07% for toll revenue, which decreased by 8.48% year-on-year[72]. Investment and Development - The company is investing approximately 10.9 billion RMB in the construction of the Dongguan Rail Transit Line 1 PPP project, which has already commenced[7]. - The company is actively involved in the construction and operation of urban rail transit, with the first line project expected to enhance the regional transportation network[36]. - The company is expanding its new energy vehicle charging business, positioning itself as a major player in Dongguan's charging infrastructure[37]. - The construction of the urban rail transit Line 1 saw an investment of CNY 2.662 billion in 2020, with 13 new stations and 6 civil engineering sections initiated during the year[54]. - The company has established 45 electric vehicle charging stations in Dongguan, focusing on public transport and gradually expanding to social vehicles, positioning itself as the largest local charging enterprise[102]. - The company plans to leverage the growing demand for highway and rail transit services, supported by national infrastructure development plans aimed at creating a modern transportation network by 2035[100]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 2.5 RMB per 10 shares to all shareholders, based on a total of 1,039,516,992 shares[6]. - The cash dividend for 2019 was 3.00 CNY per 10 shares, amounting to 311,855,097.60 CNY, representing 29.04% of the net profit attributable to shareholders[120]. - The cash dividend payout ratio for 2020 is 100% of the total profit distribution[124]. - The company has maintained a consistent cash dividend policy, adhering to regulations and ensuring the protection of minority shareholders' rights[118]. - The total distributable profit for 2020 is 4,129,409,761.64 CNY, after accounting for the legal surplus reserve and previous dividends[124]. Risks and Challenges - The company faces risks related to highway operations, including fixed toll collection periods and potential impacts from national policy changes, such as the toll exemptions during the COVID-19 pandemic[7]. - The company is experiencing increased operational costs and a saturation of traffic flow on its highways, limiting substantial growth in profitability[7]. - The financial services segment, including financing leasing and factoring, is subject to liquidity risks and potential fluctuations in business profitability due to macroeconomic conditions[7]. - The company faces risks related to highway toll policies and potential changes in government regulations, which could impact profitability[109]. - The company is actively managing risks associated with the PPP project for the rail transit line, including construction delays and financial market fluctuations[110]. Corporate Governance and Management - The company has not reported any significant internal control deficiencies or non-standard audit opinions for the fiscal year[6]. - The audit firm Dahuahui Certified Public Accountants has been retained for two consecutive years, with an audit fee of 410,000 RMB[137]. - The company has independent directors with diverse backgrounds, including finance and management, enhancing governance[186]. - The total pre-tax remuneration for directors, supervisors, and senior management in 2020 amounted to CNY 503.96 million[197]. - The current board consists of 14 members, with only the chairman of the supervisory board receiving remuneration from a related party[197]. Social Responsibility - The company has actively participated in social responsibility initiatives, including establishing volunteer service teams and providing COVID-19 insurance for employees[149]. - The company invested approximately 500,000 yuan in poverty alleviation efforts in Tea Garden Village, Zhenxiong County, Yunnan Province, which was completed successfully and received positive feedback from villagers[151]. - The total financial input for poverty alleviation efforts was approximately 49.90万元, with additional material contributions of 0.53万元[152].