Jinggong Technology(SZ:002006)2021-04-16 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15%[2]. - The net profit attributable to shareholders was RMB 150 million, which is a 10% increase compared to the previous year[2]. - The company's operating revenue for 2020 was ¥1,069,894,615.27, representing a 23.63% increase compared to ¥865,386,565.14 in 2019[21]. - The net profit attributable to shareholders for 2020 was ¥28,342,068.26, a significant turnaround from a loss of ¥121,013,242.09 in 2019, marking a 123.42% improvement[21]. - The net cash flow from operating activities reached ¥206,089,770.87 in 2020, a remarkable increase of 1,072.22% from -¥21,197,954.28 in 2019[24]. - Basic earnings per share for 2020 were ¥0.06, compared to a loss of ¥0.27 per share in 2019, reflecting a 122.22% increase[24]. - The total assets at the end of 2020 amounted to ¥2,070,985,186.43, up 20.59% from ¥1,717,401,439.55 at the end of 2019[24]. - The weighted average return on equity for 2020 was 3.07%, a significant recovery from -12.55% in 2019, indicating a 123.75% improvement[24]. - The company reported a quarterly revenue breakdown for 2020, with Q4 revenue at ¥370,224,798.41, the highest among the quarters[27]. - The net profit attributable to shareholders in Q2 2020 was ¥22,692,803.90, showing a positive trend in profitability during the year[29]. Market Strategy and Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share by 2023[2]. - The company aims to enhance competitiveness by focusing on the development of high-end building materials machinery and promoting green production and consumption, with a target of achieving over 50% of new buildings being prefabricated by 2025[39]. - The company is recognized as a leading supplier in the solar photovoltaic equipment industry and has received multiple technology advancement awards[34]. - The company operates under a "sales-driven production" model, focusing on customer demand for its specialized equipment[34]. - The company aims to leverage its advantages in complete solutions and technology to improve product quality and market share, particularly in polyurethane and steel truss lines, while expanding into new technologies and products[43]. Research and Development - The company plans to invest RMB 200 million in R&D for new technologies and products in 2021[2]. - The company aims to accelerate the R&D of single crystal furnaces and diamond wire cutting machines to enhance its product offerings in the photovoltaic equipment sector[37]. - Research and development expenses increased by 34.79% to ¥62.06 million, indicating a strategic focus on innovation[91]. - The company completed the development and delivery of the first Korean pre-oxidation furnace and various carbon fiber production lines in 2020[93]. - The company is committed to enhancing its management and intelligent manufacturing capabilities while adapting its product structure to align with industry trends[45]. Risks and Challenges - The company is currently undergoing a bankruptcy restructuring process for its major shareholder, which may impact future operations[5]. - The company has identified risks including industry competition and foreign exchange fluctuations that could affect future performance[6]. - The construction machinery industry is facing increased competition due to trade tensions and protectionism, necessitating a shift from product sales to providing integrated solutions and services[40]. - The company faces risks from industry policies, particularly in the photovoltaic equipment sector, which may impact market demand[140]. - The controlling shareholder's shares are under judicial freeze, posing a risk of unstable control over the company[144]. Shareholder and Dividend Policy - No cash dividends or stock bonuses will be distributed to shareholders for the fiscal year 2020[6]. - The company did not distribute cash dividends for the years 2018, 2019, and 2020, with retained earnings rolling over to the next year[155]. - The company's profit distribution policy emphasizes a minimum cash distribution of 10% of the distributable profit each year, contingent on meeting specific conditions[155]. - The company reported a net profit of 28,342,068.26 yuan in 2020, but did not distribute any cash dividends, resulting in a cash dividend ratio of 0.00%[156]. - The company maintains a positive profit distribution policy, focusing on reasonable returns for investors and ensuring the continuity and stability of the policy[155]. Operational Efficiency - The company implemented cost control measures that resulted in the recovery of over ¥60 million in overdue receivables, enhancing overall profitability[65]. - The company’s cash flow from operating activities significantly improved year-on-year, indicating better financial health and operational efficiency[59]. - The company aims to raise funds through bank loans, corporate bonds, and capital market refinancing to meet business development needs[139]. - The company plans to enhance internal control and improve inventory and accounts receivable management to increase cash flow and product profitability[137]. Subsidiary Performance - The subsidiary Zhejiang Jinggong Robot Intelligent Equipment Co., Ltd. achieved a revenue of CNY 162,768,186.45 with a net profit of CNY 28,273,376.61 during the reporting period[119]. - The subsidiary Zhejiang Jinggong Precision Manufacturing Co., Ltd. generated an operating income of CNY 237,982,343.56 and a net profit of CNY 34,544,419.55, contributing significantly to the overall performance[116]. - The company’s subsidiary Zhejiang Jinggong New Material Technology Co., Ltd. reported a net loss of CNY 672,735.95, indicating challenges in its operations[119]. - The company completed the deregistration of its wholly-owned subsidiary Shaoxing Keqiao Jinggong Import and Export Co., Ltd. due to ongoing losses and lack of substantial business activities, which will not impact overall business development[125]. Compliance and Governance - The audit report for 2020 from Tianjian CPA provided a non-qualified opinion with an emphasis on matters related to the liquidity issues of the controlling shareholder, Jinggong Group, which filed for bankruptcy reorganization in September 2019[163]. - The board of directors is monitoring the situation regarding the controlling shareholder's bankruptcy reorganization, which may lead to changes in actual control of the company[165]. - The company has taken measures to ensure independence from the controlling shareholder in operations, personnel, assets, and finances[166]. - The independent directors are responsible for providing clear opinions on profit distribution proposals, ensuring transparency and compliance with regulations[155].