TK(SZ:002117)2021-03-22 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,180,859,259.81, a decrease of 21.05% compared to ¥1,495,634,115.55 in 2019[17] - The net profit attributable to shareholders for 2020 was ¥163,330,111.01, down 38.76% from ¥266,721,676.93 in 2019[17] - The net cash flow from operating activities was ¥261,214,969.05, a decline of 38.27% compared to ¥423,158,918.42 in the previous year[17] - Basic earnings per share for 2020 were ¥0.2993, representing a decrease of 38.77% from ¥0.4888 in 2019[17] - The total assets at the end of 2020 were ¥2,287,369,802.38, a decrease of 2.05% from ¥2,335,153,191.93 at the end of 2019[17] - The net assets attributable to shareholders at the end of 2020 were ¥1,583,772,964.57, down 3.35% from ¥1,638,709,421.96 at the end of 2019[17] - The company reported a significant decline in net profit, with a decrease of 42.99% in net profit after deducting non-recurring gains and losses[17] - The weighted average return on net assets was 10.25% in 2020, down from 16.55% in 2019, reflecting a decrease of 6.30%[17] - The company's revenue decreased by 21.05% due to the impact of the pandemic and the acceleration of electronic invoicing trends[34] - Net profit attributable to shareholders fell by 38.76% during the reporting period[34] - Printing business revenue declined by 24.15% compared to the same period last year, facing significant challenges from the pandemic and electronic trends[34] - Revenue from composite products decreased by 27.59% year-on-year, but profit levels were maintained through cost control and service enhancement[35] - Revenue from the printing industry was ¥965,233,651.04, accounting for 81.74% of total revenue, down 24.80% from ¥1,283,480,795.21 in 2019[39] - Revenue from the service industry increased by 1.34% to ¥189,615,736.82, up from ¥187,105,702.00 in 2019[39] - Gross profit margin for the printing industry decreased by 3.25% to 36.60% in 2020, while the service industry maintained a gross profit margin of 39.89%[41] - The company reported a total of 157,420,000 RMB in entrusted financial management, with an outstanding balance of 20,000,000 RMB[105] - The company reported a net profit of CNY 22,691,863.45 in 2020, an increase from CNY 19,591,358.84 in 2019, showing growth in investment income[198] - The total profit for the year was CNY 182,982,751.42, down from CNY 312,922,075.25, reflecting a decline of 41.3%[199] - The operating profit for 2020 was CNY 185,304,771.71, compared to CNY 312,542,090.01 in 2019, indicating a decrease of 40.7%[199] Dividend Distribution - The company plans to distribute a cash dividend of ¥4 per 10 shares, based on a total of 545,666,421 shares[5] - The company distributed cash dividends of 218,266,568.40 yuan for the year 2020, amounting to 4 yuan per 10 shares[80] - The cash dividend for 2019 was also 218,266,568.40 yuan, which represented 81.83% of the net profit attributable to shareholders[79] - In 2018, the total cash dividend distributed was 254,644,329.80 yuan, accounting for 99.17% of the net profit attributable to shareholders[79] - The company has maintained a cash dividend payout ratio of over 40% of the net profit attributable to shareholders for several consecutive years[107] Risks and Challenges - The company faces risks including rising raw material costs, slowing growth in new businesses, and intensified competition in the ticketing business[5] - The company is exploring diversified development directions in response to the decline in traditional ticketing business due to technological advancements[65] - The company faces risks from rising raw material costs and increased competition in the ticketing market, with strategies in place to mitigate these challenges through centralized procurement and market share expansion[71] Research and Development - The company has established four R&D centers in Beijing, Shanghai, Jinan, and Guangzhou, focusing on anti-counterfeiting, information technology, and blockchain technology[31] - R&D expenses increased by 9.63% to ¥100,047,908.31 from ¥91,259,247.22 in 2019[50] - R&D investment increased by 2.67% to ¥100,982,412.16, representing 8.55% of operating revenue, up from 6.58% in 2019[51] - The company aims to enhance its competitive edge by focusing on research and innovation in electronic ticketing, new lottery sales channels, and electronic archiving, ensuring sustainable growth[70] - The company plans to leverage blockchain technology to develop new service models and expand its market presence in electronic ticketing and archiving services[71] Corporate Governance - The company has established a comprehensive corporate governance structure to protect shareholder rights[107] - The company has not engaged in any related party transactions during the reporting period[94] - The company has maintained a stable leadership structure with no significant changes in executive roles reported during the period[135] - The company’s governance structure aligns with the regulatory requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[153] - The audit committee confirmed that the 2020 financial statements comply with accounting standards and accurately reflect the company's operational status, with no significant omissions or alterations[161] - The company respects and adopts suggestions from independent directors, enhancing governance practices in areas such as financial auditing and strategic decisions[160] Employee and Management Structure - The total number of employees in the company is 1,606, with 289 in the parent company and 1,317 in major subsidiaries[147] - The company has a professional composition of 614 production personnel, 168 sales personnel, 682 technical personnel, 40 financial personnel, and 102 administrative personnel[147] - The total remuneration for directors and senior management during the reporting period amounts to 650.57 million yuan[146] - The company has established a comprehensive salary system based on legal, fair, competitive, and motivating principles[148] - The company has a strong emphasis on developing high-quality talent through its training and development programs[150] Financial Reporting and Audit - The audit opinion for the financial statements was a standard unqualified opinion, issued on March 20, 2021[176] - The audit was conducted by Xinyong Zhonghe Accounting Firm, ensuring compliance with Chinese auditing standards[176] - The financial statements fairly reflect the financial position and operating results of Donggang Co., Ltd. for the year 2020[176] - The internal control system was deemed effective as of December 31, 2020, with no major deficiencies reported[170] - The audit committee communicated with the accounting firm to ensure timely submission of the audit report, confirming no major issues were found during the audit process[162]