HSSM(SZ:002290)2021-03-25 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,822,307,287.44, representing a 5.58% increase compared to ¥1,726,050,720.03 in 2019[16] - The net profit attributable to shareholders in 2020 was ¥55,080,118.89, a significant recovery from a loss of ¥1,198,141,827.50 in 2019, marking a 104.60% increase[16] - The net cash flow from operating activities increased by 27.94% to ¥85,004,403.61 in 2020, up from ¥66,439,340.64 in 2019[16] - Basic earnings per share improved to ¥0.23 in 2020, compared to a loss of ¥4.94 per share in 2019, reflecting a 104.66% increase[16] - The weighted average return on equity rose to 13.32% in 2020, a significant recovery from -188.63% in 2019[16] - Total revenue for 2020 was approximately ¥1.82 billion, representing a year-over-year increase of 5.58% from ¥1.73 billion in 2019[41] - The main business revenue from household appliance exterior composite materials was CNY 1.79 billion, contributing significantly to the overall revenue[37] - Revenue from home appliance composite materials accounted for 98.04% of total revenue, with a year-over-year growth of 9.39% to approximately ¥1.79 billion[41] - Domestic business revenue was approximately ¥1.51 billion, making up 82.88% of total revenue, with a year-over-year increase of 4.56%[42] - Export business revenue increased by 11.85% to approximately ¥276.32 million, representing 15.16% of total revenue[42] Assets and Liabilities - Total assets at the end of 2020 were ¥1,448,142,513.88, a decrease of 4.81% from ¥1,521,299,189.93 at the end of 2019[16] - The net assets attributable to shareholders increased by 14.27% to ¥441,173,386.92 at the end of 2020, compared to ¥386,093,268.03 at the end of 2019[16] - The net increase in cash and cash equivalents was -¥14,634,009.72, an improvement of 81.44% from -¥78,847,023.97 in 2019[55] - Accounts receivable increased to ¥359,927,855.49, representing 24.85% of total assets, up from 20.34%[59] - Inventory rose to ¥367,700,750.70, making up 25.39% of total assets, compared to 19.27% at the beginning of the year[59] Research and Development - The company holds a total of 69 patents, including 4 invention patents, enhancing its innovation capabilities[31] - Research and development expenses were approximately ¥60.05 million, accounting for 3.30% of total revenue, reflecting a 1.03% increase year-over-year[54] - R&D personnel increased to 131 in 2020, a rise of 20.18% from 109 in 2019, with R&D personnel accounting for 16.90% of total staff[55] - The company aims to enhance product value and competitiveness through continuous R&D and optimization of product design[38] - The company plans to focus on new product development and process improvements to adapt to the upgrading trends in the domestic appliance market[38] Risks and Challenges - The company faces potential risks in 2021, including sales not meeting expectations, raw material price fluctuations, and exchange rate risks[4] - The main risks identified include potential underperformance in sales of appliance exterior materials, fluctuations in raw material prices, and management risks due to increasing competition[81] - The company faces exchange rate fluctuation risks, particularly with USD settlements for export products, and plans to use financial tools to manage this risk[82] - The actual controller of the company is under legal scrutiny, which may pose risks to the company's control structure if shares are judicially disposed of[83] Corporate Governance - The company has maintained a consistent leadership team with no changes in the board or management personnel during the reporting period[168] - The board of directors consists of 9 members, including 3 independent directors, representing one-third of the board[182] - The company has established a supervisory board consisting of 3 supervisors, with one employee representative, complying with legal and regulatory requirements[183] - The independent directors bring a wealth of experience from various industries, enhancing the company's governance[170] - The company maintains independence from its controlling shareholder in business, personnel, assets, and finance[182] Shareholder Information - The total number of shares outstanding is 242,712,330, with 89.20% being unrestricted shares[147] - Shenzhen Zhongke Chuang Asset Management Co., Ltd. holds 32.00% of the shares, totaling 77,667,917 shares, which are currently frozen[149] - The actual controller, Zhang Wei, holds 77,667,917 shares through Zhongke Chuang Asset, which are currently under judicial freeze[157] - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[154] - The company has not experienced any changes in its controlling shareholder during the reporting period[156] Legal and Compliance - The company is involved in multiple commercial factoring contract disputes, with amounts claimed including 200 million RMB and 35 million RMB[104] - The actual controller of the company, Zhang Wei, has been arrested and is facing multiple charges including organized crime and fraud[109] - The company has received a civil judgment requiring the defendant to pay a total of 10 million yuan plus interest for a commercial factoring contract dispute[106] - The company has not reported any significant changes in its operational strategy or market expansion plans during the reporting period[166] Social Responsibility and Environmental Impact - The company contributed 200,000 RMB to charity in response to the COVID-19 pandemic, demonstrating its commitment to social responsibility[131] - The company has established a wastewater treatment system with a daily processing capacity of 100 tons, which has been operating normally since its establishment[135] - The company has implemented an environmental emergency response plan, which has been filed with local environmental authorities[137] - The company conducts quarterly environmental monitoring as per its environmental impact assessment[138]