Huafu(SZ:002042)2021-06-29 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 a loss of ¥444,230,430.81, representing a decline of 210.42% from a profit of ¥402,294,451.12 in the previous year[25] - The net cash flow from operating activities decreased by 56.24% to ¥828,351,709.37, down from ¥1,892,922,477.41 in 2019[25] - The basic earnings per share were -¥0.31, a drop 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 decreased by 10.77% to ¥5,622,219,847.15 from ¥6,300,744,089.76 in 2019[25] - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of ¥754,531,371.57 compared to a profit of ¥51,365,361.62 in 2019, marking a decrease of 1,568.95%[25] - The weighted average return on net assets was -7.31%, down from 6.07% in the previous year[25] - The company reported a net loss of approximately 431.66 million yuan for the year 2020, resulting in a cash dividend distribution of 0.00 yuan, which corresponds to 0.00% of the net profit attributable to ordinary shareholders[130] Revenue Breakdown - The company's revenue for Q4 reached ¥5,572,764,176.04, while the total annual revenue decreased by 10.42% year-on-year[41] - The main business revenue from the cotton spinning industry was approximately ¥14.16 billion, accounting for 99.48% of total revenue, down 10.46% from ¥15.81 billion in 2019[49] - Revenue from yarn products was approximately ¥5.71 billion, representing 40.11% of total revenue, a decline of 20.25% from ¥7.16 billion in 2019[52] - Revenue from net chain products was approximately ¥8.30 billion, accounting for 58.33% of total revenue, down 3.55% from ¥8.61 billion in 2019[52] - Overseas sales of main business were approximately ¥1.30 billion, a significant decrease of 45.16% from ¥2.36 billion in 2019[52] - Domestic sales of main business were approximately ¥12.86 billion, a decrease of 4.36% from ¥13.45 billion in 2019[52] Market and Industry Context - The textile and apparel retail sales in China decreased by 6.6% in 2020, reflecting the impact of the pandemic on the industry[47] - The total export of textiles and apparel from China reached $291.21 billion in 2020, with a year-on-year growth of 9.5%[47] - The company experienced a significant decline in revenue due to the dual impact of the pandemic and sanctions, alongside rising costs from structural adjustments[41] Strategic Initiatives - The company plans to enhance domestic market development and strengthen supply chain integration, focusing on partnerships with leading brands and e-commerce platforms[47] - The company aims to accelerate the construction of intelligent spinning factories and develop a digital cotton interconnection platform[47] - The company is committed to continuing its "main business and shared industry" strategy while enhancing its front-end and back-end supply chains[47] - The company plans to invest in a new 100,000 spindle spinning factory in Vietnam in 2021[74] - The company is focusing on a product strategy that emphasizes functional technology, fashion responsiveness, sustainability, and high-quality development[116] Research and Development - The company reported a total of 117 national patents filed, with 79 patents granted, including 43 invention patents, leading the color-spun yarn industry[43] - Research and development expenses amounted to ¥153,121,988.42, accounting for 1.08% of the operating revenue[81] Cash Flow and Investments - Operating cash inflow totaled ¥16,123,060,552.31, a decrease of 18.54% compared to the previous year[83] - The total cash inflow from investing activities increased by 289.89% to ¥786,652,962.49, while cash outflow decreased by 8.92% to ¥1,148,248,095.71, resulting in a net cash flow from investing activities of -¥361,595,133.22, an improvement of 65.81%[87] - The net cash flow from financing activities was -¥304,123,802.65, a decrease of 74.75% from -¥576,958,913.87, attributed to an increase in bank loan repayments[87] Environmental Compliance - The company has established wastewater treatment stations that are operating well and meet production needs[179] - The company strictly adheres to environmental impact assessment regulations for new, modified, and expanded projects[180] - Zhejiang Shabiao Fiber Co., Ltd. reported no environmental violations in 2020, with a wastewater pretreatment capacity of 5,000 tons per day, utilizing biological-chemical processes[183] - Aksu Biaoxin Fiber Co., Ltd. also had no environmental violations in 2020, with a wastewater pretreatment capacity of 6,000 tons per day, employing similar treatment methods[184] - Huafu Vietnam Industrial Co., Ltd. maintained compliance with local environmental laws in 2020, with a wastewater treatment system designed for 6,000 cubic meters per day, currently processing an average of 2,500 cubic meters daily[185] Shareholder Information - The total number of ordinary shareholders for Huafu Fashion Co., Ltd. at the end of the reporting period was 16,674, an increase from 15,798 at the previous month-end[195] - Huafu Holding Co., Ltd. is the largest shareholder, holding 34.27% of the shares, amounting to 520,705,950 shares[195] - The total number of shares for Huafu Fashion Co., Ltd. is 1,519,375,555, with 99.92% being unrestricted shares[192]