Huafu(SZ:002042)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥14,231,727,949.61, a decrease of 10.42% compared to ¥15,886,871,683.43 in 2019[25] - The net profit attributable to shareholders was -¥444,230,430.81, representing a decline of 210.42% from ¥402,294,451.12 in the previous year[25] - The net cash flow from operating activities was ¥828,351,709.37, down 56.24% from ¥1,892,922,477.41 in 2019[25] - The basic earnings per share were -¥0.31, a decrease of 214.81% compared to ¥0.27 in 2019[25] - Total assets at the end of 2020 were ¥17,610,075,576.16, a decrease of 3.96% from ¥18,335,875,515.57 at the end of 2019[25] - The net assets attributable to shareholders were ¥5,622,219,847.15, down 10.77% from ¥6,300,744,089.76 in 2019[25] - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a figure of -¥754,531,371.57 for 2020[25] - The weighted average return on net assets was -7.31% for 2020, a decrease of 13.38% from 6.07% in 2019[25] Revenue Breakdown - The main business in the cotton spinning industry generated revenue of approximately ¥14.16 billion, accounting for 99.48% of total revenue, with a decline of 10.46% year-on-year[46] - The company's total revenue for the cotton spinning industry was approximately CNY 14.16 billion, a decrease of 10.46% year-over-year[50] - Yarn revenue accounted for CNY 5.71 billion, down 20.25% compared to the previous year, with a gross margin of 1.46%[50] - The net revenue from the web chain segment was CNY 8.30 billion, representing a decline of 3.55% year-over-year, with a gross margin of 0.80%[50] - The sock products segment saw a significant increase in revenue to CNY 149.57 million, up 212.43% year-over-year, with a gross margin of 16.85%[50] - Domestic sales contributed CNY 12.86 billion, accounting for 90.38% of total sales, with a decrease of 4.36% year-over-year[50] - Overseas sales dropped to CNY 1.30 billion, representing a 45.16% decline compared to the previous year[50] Production and Capacity - The company’s yarn production capacity was 1.89 million spindles, with an annual output of 250,000 tons of new yarn[38] - Total production capacity remained at 1.89 million spindles, with a capacity utilization rate dropping to 71.00% from 91.00% year-on-year[65] - The company reported a total of 220,276 tons in sales volume, a decrease of 14.95% year-over-year, while production volume fell by 25.54% to 191,131 tons[53] - The inventory level decreased by 44.43% to 36,447 tons, primarily due to reduced stock[53] Cash Flow and Investments - Operating cash inflow decreased by 18.54% to ¥16,123,060,552.31, while net cash flow from operating activities fell by 56.24% to ¥828,351,709.37[77] - Investment activities generated a net cash outflow of ¥361,595,133.22, a significant improvement from the previous year's outflow of ¥1,059,005,163.69[77] - The company reported a 14.78% decrease in cash inflow from financing activities, totaling ¥11,755,988,039.44[77] - R&D investment accounted for 1.08% of total revenue, with a total R&D expenditure of ¥153,121,988.42[76] Strategic Initiatives - The company plans to enhance domestic market development and strengthen supply chain integration, focusing on product innovation and operational efficiency[44] - The company aims to accelerate the construction of a smart cotton spinning factory and develop a digital interconnection platform for the cotton industry[44] - The company is committed to a strategy of "maintaining the main business and sharing the industry," focusing on both upstream and downstream supply chain development[44] - The company plans to invest in a new 100,000 spindle spinning factory in Vietnam in 2021, expanding its overseas production capacity[66] - The company is actively developing domestic and non-U.S. markets to mitigate risks associated with geopolitical tensions and order volatility[106] - The company is integrating advanced information systems like SAP and ERP to enhance supply chain efficiency and responsiveness[109] Shareholder and Dividend Information - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The company implemented a cash dividend policy, distributing 1.41 per 10 shares, totaling approximately 201.12 million, consistent with its shareholder return plan[115] - In 2020, the company did not distribute any cash dividends due to operating losses, with a net loss of approximately 431.66 million CNY[121] - The cash dividend payout ratio for 2019 was 49.99% of the net profit attributable to ordinary shareholders[121] - The cash dividend payout ratio for 2018 was 67.30% of the net profit attributable to ordinary shareholders[121] Environmental Compliance - The company has established a comprehensive environmental risk emergency mechanism for key pollutant discharge enterprises[170] - The company conducts automatic sampling and testing of wastewater discharge parameters to ensure compliance with discharge standards[171] - Zhejiang Shabiao Fiber Co., Ltd. had a wastewater treatment capacity of 5,000 tons/day, with no environmental violations reported in 2020[173] - Aksu Biaoxin Fiber Co., Ltd. reported a wastewater treatment capacity of 6,000 tons/day, also with no environmental violations in 2020[174] - The wastewater discharge standards in Vietnam comply with the strictest local regulations, achieving all pollution indicators within limits in 2020[174] Corporate Structure and Governance - The company has a total of 10 subsidiaries, with Zhejiang Huafu Color Spinning Co., Ltd. contributing a net profit of ¥106,311,871.04, accounting for over 10% of the company's net profit[96] - The current accounting firm is Dahua Certified Public Accountants, with an audit fee of 1.1 million CNY and a continuous service period of 10 years[135] - The company has no major litigation or arbitration matters during the reporting period[139] - The company has not experienced any changes in its controlling shareholder during the reporting period[194] - The actual controller of the company remains unchanged during the reporting period[199]