SBS(SZ:002098)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.59 billion, a decrease of 17.15% compared to ¥1.92 billion in 2019[20]. - The net profit attributable to shareholders in 2020 was approximately ¥200.38 million, representing a significant increase of 267.67% from ¥54.50 million in 2019[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥35.15 million, a decrease of 30.53% compared to ¥50.59 million in 2019[20]. - The basic earnings per share for 2020 was ¥0.5597, an increase of 267.74% from ¥0.1522 in 2019[20]. - The total assets at the end of 2020 were approximately ¥2.21 billion, an increase of 8.04% from ¥2.04 billion at the end of 2019[20]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥817.06 million, a growth of 32.16% from ¥618.24 million at the end of 2019[20]. - The weighted average return on equity for 2020 was 27.88%, an increase of 18.62 percentage points from 9.26% in 2019[20]. - The net cash flow from operating activities for 2020 was approximately ¥260.67 million, a decrease of 10.60% from ¥291.58 million in 2019[20]. - In Q1 2020, the company's operating revenue was approximately ¥297.05 million, with a net profit attributable to shareholders of approximately -¥8.52 million[24]. - In Q2 2020, the operating revenue increased to approximately ¥450.17 million, and the net profit attributable to shareholders rose to approximately ¥45.23 million[24]. - The company reported a total of ¥165.24 million in non-recurring gains and losses for 2020, primarily from performance compensation income related to the acquisition of a subsidiary[26]. - In 2020, the company achieved a total revenue of CNY 1.5899 billion, a decrease of 17.15% compared to the previous year[43]. - The net profit attributable to the parent company was CNY 200.38 million, an increase of 267.67% year-on-year[43]. - The zipper business generated revenue of CNY 1.215 billion, accounting for 76.40% of total revenue, while the cross-border e-commerce business generated CNY 375.29 million, accounting for 23.60%[51]. - The revenue from self-owned brand products in the e-commerce business was CNY 350.02 million, a decline of 21.08% compared to the previous year[48]. - The company faced a 20.79% decline in revenue from cross-border e-commerce products compared to the previous year[51]. Business Segments - The company operates two main business segments: zipper manufacturing and cross-border e-commerce, with zippers being the primary profit source[29]. - The cross-border e-commerce segment, acquired in 2017, focuses on brand e-commerce and provides comprehensive services to online sellers[30]. - The company has expanded its business into cross-border e-commerce by acquiring a 65% stake in Shenzhen Jiazhi Chain Cross-border E-commerce Co., Ltd. in 2017[19]. Market Position and Competition - The company has established itself as a leading player in the zipper industry, recognized as a national high-tech enterprise and a key player in standard-setting for the industry[31]. - The zipper market is characterized by low entry barriers and a fragmented competitive landscape, with the company positioned to compete in the mid to high-end market[31]. - The company has five major production bases across China, making it the largest zipper manufacturer in terms of variety and specifications[31]. - The company’s products are exported to over 70 countries and regions, establishing long-term partnerships with numerous well-known domestic and international brands[31]. - The company holds over 700 patents related to zipper technology, establishing a strong intellectual property system to compete with multinational companies like YKK[34]. Financial Management and Investments - The company's monetary funds increased by 192 million yuan, a growth of 58.89%, primarily due to receiving financing lease payments of 280 million yuan[32]. - The company's intangible assets decreased by 38.42 million yuan, a decline of 27.42%, mainly due to impairment provisions for certain intangible assets[32]. - The company's trading financial assets increased by 19.3 million yuan, a growth of 148.46%, mainly due to an increase in financial products held by the company and its subsidiaries[32]. - The company has implemented an advanced IT management system, significantly improving operational efficiency and reducing costs[38]. - The company’s inventory management is supported by SAP systems, enhancing efficiency in order management and inventory control[45]. - The company has committed to avoiding potential competition with its controlling shareholder and has been fulfilling its commitments as of the reporting date[109]. Risks and Challenges - The company faces macroeconomic risks due to slow global economic recovery and increasing international trade disputes, which may impact demand in the zipper market[93]. - Fluctuations in raw material prices, such as polyester chips and zinc alloys, could increase production costs and reduce gross profit margins[94]. - The COVID-19 pandemic has led to decreased customer demand and order cancellations, affecting revenue and profits[95]. - Rising labor costs pose a risk to the company's operations, prompting a focus on lean management to improve efficiency[96]. - The company relies heavily on third-party platforms like Amazon, AliExpress, and eBay for its cross-border e-commerce business, with Amazon being the primary platform, which poses a risk if sales policies change[97]. - The company faces foreign exchange risk as its cross-border e-commerce transactions are primarily settled in USD; a significant appreciation of the RMB against the USD could lead to exchange losses[98]. - The company is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, which could lead to delisting if major violations are found[99]. - The controlling shareholder's pledged shares have reached the margin call line, posing a risk of share liquidation and potential change in company control[100]. Corporate Governance and Shareholder Relations - The company has not distributed cash dividends or conducted capital reserve transfers in the past three years, with no plans to do so for the 2020 fiscal year[106][107]. - The company has established a shareholder return plan for 2020-2022, focusing on sustainable and stable dividend policies[104]. - The company has not engaged in any investor communications or interviews during the reporting period[101]. - The company received a non-standard audit report with an emphasis on certain matters from Huaxing Accounting Firm, which objectively reflects the risks faced by the company[111]. - The company has a complete governance structure, including a shareholders' meeting, board of directors, and supervisory board, all operating independently from the controlling shareholder[199]. - The company emphasizes the protection of minority shareholders' rights and ensures equal treatment in shareholder meetings[194]. Environmental Responsibility - The company is classified as a key pollutant discharge unit, with total emissions of 87.05 tons/year for COD and 14.04 tons/year for ammonia nitrogen[143]. - The company has invested in environmental protection by regularly updating key water treatment systems and increasing monitoring capabilities for waste gas treatment[147]. - Shanghai Xunxing's waste gas and wastewater treatment facilities are operating normally, meeting national and local discharge standards[149]. - The company has established a comprehensive environmental emergency response plan, ensuring effective handling of environmental incidents[152]. - The company has not faced any major environmental issues during the reporting period, adhering to relevant laws and regulations[154]. Human Resources and Management - The total number of employees in the company is 4,165, with 2,878 in the parent company and 1,287 in major subsidiaries[188]. - The company completed 553 training sessions in 2020, covering various systems including production, finance, and sales[190]. - The company has established a competitive salary management system, adhering to national labor laws and regulations[189]. - The management team has a diverse educational background, including advanced degrees in economics, law, and finance[185]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.776 million[186]. - The company has a comprehensive annual assessment system and remuneration policy to determine the compensation for its directors and senior management[186]. Legal and Regulatory Compliance - The company is currently under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, with the investigation still ongoing as of the end of the reporting period[170]. - The company received a regulatory notice from the Fujian Securities Regulatory Bureau regarding internal control issues related to profit distribution in 2017, requiring improvements in internal controls and payment of remaining dividends[123]. - The company has not faced any penalties from securities regulatory authorities in the past three years[186].