HSSM(SZ:002290)2023-07-17 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,822,307,287.44, representing a 5.58% increase compared to CNY 1,726,050,720.03 in 2019[16] - The net profit attributable to shareholders in 2020 was CNY 55,080,118.89, a significant recovery from a loss of CNY 1,198,141,827.50 in 2019, marking a 104.60% improvement[16] - The net cash flow from operating activities increased by 27.94% to CNY 85,004,403.61 in 2020, up from CNY 66,439,340.64 in 2019[16] - Basic earnings per share for 2020 were CNY 0.23, a turnaround from a loss of CNY 4.94 per share in 2019, reflecting a 104.66% increase[16] - The weighted average return on equity improved to 13.32% in 2020, compared to -188.63% in 2019, indicating a significant recovery in profitability[16] - Total assets at the end of 2020 were CNY 1,448,142,513.88, a decrease of 4.81% from CNY 1,521,299,189.93 at the end of 2019[16] - The net assets attributable to shareholders increased by 14.27% to CNY 441,173,386.92 at the end of 2020, up from CNY 386,093,268.03 in 2019[16] Revenue Breakdown - The company reported a total revenue of CNY 1.82 billion for the year 2020, marking a year-on-year increase of 5.58%[37] - The main business revenue from home appliance exterior composite materials was CNY 1.79 billion, contributing significantly to the overall revenue[37] - Revenue from home appliance composite materials was ¥1,786,575,054.62, accounting for 98.04% of total revenue, with a year-on-year growth of 9.39%[41] - Domestic business revenue reached ¥1,510,255,691.84, making up 82.88% of total revenue, with a year-on-year increase of 4.56%[42] - Export business revenue was ¥276,319,362.78, which is 15.16% of total revenue, showing an 11.85% year-on-year growth[42] Operational Challenges and Risks - The company faces potential risks in 2021, including sales shortfalls, raw material price fluctuations, and exchange rate volatility[4] - The company has identified risks including potential underperformance in sales of appliance exterior materials, which are heavily influenced by the home appliance manufacturing sector[81] - Raw material price fluctuations pose a significant risk, as they constitute a large portion of production costs; the company plans to optimize its supplier system to mitigate these impacts[81] Research and Development - The company holds a total of 69 patents, including 4 invention patents, indicating a strong focus on innovation and product development[31] - R&D expenses amounted to ¥60,054,667.71, representing 3.30% of total revenue, an increase of 1.03% year-on-year[54] - The number of R&D personnel increased to 131 in 2020, up 20.18% from 109 in 2019, representing 16.90% of total employees[56] - R&D investment amounted to ¥60,054,667.71 in 2020, a slight increase of 1.03% from ¥59,444,531.49 in 2019, accounting for 3.30% of operating revenue[56] Corporate Governance and Management - The company has maintained a consistent leadership structure with no changes in key management positions during the reporting period[168] - The board of directors consists of 9 members, including 3 independent directors, which complies with legal and regulatory requirements[183] - The independent directors bring a wealth of experience from academia and the finance sector, enhancing the company's governance[171] - The company has a diverse board composition, with members having backgrounds in education, finance, and law, which supports strategic decision-making[170] Legal and Compliance Issues - The actual controller of the company faces legal challenges, which may lead to changes in the company's control structure if shares are judicially disposed of[82] - The company has been ordered to pay a total of 1,000 million CNY plus interest in a civil judgment related to a factoring contract dispute[105] - Another civil judgment requires the company to pay 449.35 million CNY plus interest for a factoring contract dispute with Guizhou Lvyuan Pharmaceutical Co., Ltd.[105] - The company is also required to pay 2,000 million CNY plus interest in a civil judgment concerning a factoring contract dispute with Shenzhen Huari Xincheng Financing Leasing Co., Ltd.[105] Social Responsibility and Environmental Compliance - The company contributed 200,000 RMB to social welfare through local charity organizations, demonstrating its commitment to social responsibility[130] - The company has established a wastewater treatment system with a daily processing capacity of 100 tons, which has been operating normally since its establishment[134] - The company conducts quarterly monitoring of environmental emissions to ensure compliance with established standards[137] Shareholder Information - The total number of shares outstanding is 242,712,330, with 89.20% being unrestricted shares[147] - The largest shareholder, 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 of the company, Zhang Wei, has been prosecuted for multiple serious crimes, impacting the company's operations[142] - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[154] Financial Management and Internal Controls - The company has established a robust internal audit system to control daily operations and major matters effectively[185] - The company has maintained effective internal controls over financial reporting in all material respects[199] - The company reported no significant internal control deficiencies during the reporting period[196]