ZHEFU(SZ:002266)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥8.34 billion, an increase of 27.60% compared to the previous year[15]. - Net profit attributable to shareholders for 2020 was approximately ¥1.36 billion, representing a significant increase of 189.64% year-over-year[15]. - The net profit after deducting non-recurring gains and losses was approximately ¥950.74 million, a substantial increase of 1,260.88% compared to the previous year[15]. - The company's total assets at the end of 2020 were approximately ¥18.72 billion, reflecting an increase of 11.23% from the previous year[15]. - The basic earnings per share for 2020 was ¥0.30, up 114.29% from ¥0.14 in the previous year[15]. - The weighted average return on equity for 2020 was 17.86%, an increase of 9.26% compared to the previous year[15]. - The total operating revenue for 2020 was CNY 8,343,351,966.66, representing a 27.60% increase compared to CNY 6,538,562,421.34 in 2019[38]. - The ecological protection and environmental governance sector generated CNY 7,359,711,557.27, accounting for 88.21% of total revenue, with a year-on-year growth of 35.00%[38]. - The company achieved operating revenue of ¥8,343,351,966.66 and a net profit attributable to shareholders of ¥1,361,975,574.91 during the reporting period[28]. - The company achieved operating revenue of ¥7,364,175,818.73 and net profit of ¥1,472,767,912.84 during the reporting period[29]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 0.4 RMB per 10 shares to all shareholders, based on a total share base of 5,367,822,662 shares[2]. - The cash dividend policy stipulates that at least 20% of the distributable profit should be distributed as cash dividends annually, with a cumulative distribution of no less than 30% of the average annual distributable profit over three years[83]. - The company has maintained a consistent cash dividend distribution policy, emphasizing sustainable development and reasonable returns for investors[83]. - The company’s cash dividend for the first half of 2020 was approved at RMB 0.10 per 10 shares, with the distribution completed by November 13, 2020[83]. - The company’s cash dividend distribution plan for 2020 includes a proposal to distribute RMB 0.40 per 10 shares, contingent on the total share capital at the time of distribution[84]. - The company declared a cash dividend of CNY 0.4 per 10 shares, with a total cash dividend amounting to CNY 268,410,866.10, which is 100% of the distributable profit[87]. - The company has not distributed any cash dividends for the fiscal year 2019, focusing instead on reinvestment strategies[85]. Investment and Acquisitions - The company completed a major asset restructuring, acquiring 100% of Shenlian Environmental Group and 40% of Sheneng Environmental for a total of 3,719.71 million CNY[139]. - The company completed the acquisition of 100% equity in Shenlian Environmental Group and 40% equity in Sheneng Environmental during the reporting period[28]. - The company signed a share transfer agreement to acquire 60% equity of Jingfeng Environmental for CNY 37,197,100, supporting its development and maintaining interests[34]. - The company has engaged in derivative investments, with a total initial investment of CNY 38,433.54, resulting in a loss of CNY 6,717.35 during the reporting period[66]. - The company has established a competitive advantage in hazardous waste treatment, supported by a strong management team and advanced technology[111]. Operational Challenges and Risks - The company warns investors to be aware of investment risks associated with its forward-looking statements[2]. - The net cash flow from operating activities for 2020 was negative at approximately -¥132.50 million, indicating challenges in cash generation[15]. - The company’s cash and cash equivalents decreased by 29.79% compared to the end of the previous year, attributed to project investments and raw material purchases[23]. - The company is exposed to metal price volatility risks, which can impact procurement and sales processes, although the influence is expected to decrease as hazardous waste collection prices are less correlated with market prices[78]. - The company faces market risks due to the cyclical nature of the power equipment manufacturing industry and potential overcapacity issues[76]. Corporate Governance and Compliance - The company has a commitment to ensure the accuracy and completeness of its financial reports, as stated by its management[2]. - The company has established a long-term commitment to comply with all relevant laws and regulations regarding related transactions and competition[91]. - The company has maintained strict compliance with all commitments made during the reporting period[89]. - The company has not faced any significant legal or regulatory penalties in the past 36 months, indicating a stable compliance record[93]. - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure transparency[131]. Research and Development - The company has a strong technological research and development capability, with significant breakthroughs in hazardous waste treatment technologies recognized at the international level[24]. - Research and development expenses totaled ¥330,132,048.72, representing a 31.45% increase year-on-year and accounting for 3.96% of the annual operating income[51]. - The company plans to increase its investment in R&D by 20% in 2021 to foster innovation and product development[136]. Market Expansion and Strategic Initiatives - The company is focused on expanding its market presence and enhancing its financial robustness through strategic derivative trading[67]. - The company is actively involved in the development of the 600MW fourth-generation commercial fast reactor liquid metal nuclear pump, marking a major breakthrough in core component manufacturing[26]. - The company is exploring new strategies for market expansion and product development, aiming for sustainable growth[10]. - The company plans to expand its business scope by entering the environmental protection field through a major asset restructuring, thereby increasing its risk resistance capabilities[74]. Employee and Management Structure - The company has a total of 5,787 employees who received salaries during the reporting period[167]. - The company has implemented specialized training programs for management, professional staff, and new employees[168]. - The remuneration for the chairman, Sun Yi, is 44.12万元, while the total remuneration for the president, Pan Chengdong, is 91.74万元[166]. - The company has established a performance evaluation and incentive mechanism linking management compensation to business performance[171]. Related Party Transactions - The company reported a total of 9,397.4 million yuan in related party transactions, with a significant portion related to procurement of raw materials[109]. - The company engaged in related party transactions with Lanxi Copper Industry and Guangdong Zili, amounting to 2,363.32 million yuan and 7,034.12 million yuan respectively, representing 0.33% and 0.98% of similar transaction amounts[108]. - The company’s related party transactions are conducted at market prices, ensuring compliance with regulatory standards[108]. Audit and Financial Reporting - The audit report issued was a standard unqualified opinion, confirming that the financial statements fairly present the company's financial position[185]. - The company maintained effective internal control over financial reporting in all material respects as per the audit opinion issued by Tianjian Accounting Firm[182]. - The company’s financial report did not reveal any material misstatements or errors in the financial statements for the year ended December 31, 2020[186].