ZHONGLI GROUP(SZ:002309)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥9,033,399,139.65, a decrease of 23.61% compared to ¥11,825,098,015.72 in 2019[20]. - The net profit attributable to shareholders was -¥2,920,384,456.42, representing a decline of 5,446.25% from a profit of ¥54,624,929.58 in 2019[20]. - The net cash flow from operating activities was ¥248,661,580.56, down 93.99% from ¥4,140,199,126.73 in the previous year[20]. - The total assets at the end of 2020 were ¥16,244,889,146.85, a decrease of 24.13% from ¥21,412,147,286.16 at the end of 2019[20]. - The net assets attributable to shareholders decreased by 35.08% to ¥5,625,218,627.89 from ¥8,664,201,695.33 in 2019[20]. - The basic earnings per share for 2020 was -¥3.35, a decline of 5,683.33% compared to ¥0.06 in 2019[20]. - The company reported a significant increase in the net profit attributable to shareholders after deducting non-recurring gains and losses, which was -¥2,718,708,086.32, compared to -¥425,798,426.06 in 2019, an increase of 538.50%[20]. - The company achieved a revenue of 9.033 billion yuan in 2020, a decrease of 23.61% year-on-year[39]. - The company’s main business includes special cables for 5G communication and photovoltaic components, with significant applications in the renewable energy and telecommunications sectors[31]. Risk Management - The company plans to strengthen risk identification and control to ensure stable development, with major risks identified including accounts receivable risk, national industrial policy risk, raw material price fluctuation risk, exchange rate fluctuation risk, and COVID-19 pandemic risk[5]. - The company acknowledges the potential impact of changes in national industrial policies on its main business in photovoltaic new energy[5]. - The company is committed to identifying and managing risks that may adversely affect its production, financial status, and sustainable profitability[4]. - The company recognizes the volatility of key raw material prices, such as copper, aluminum, PVC, and silicon wafers, which can significantly affect its profitability[5]. - The company is aware of the ongoing risks posed by the COVID-19 pandemic, which could impact global economic recovery and demand growth in the photovoltaic market[5]. - The company has established a risk control department to manage accounts receivable and enhance collection efforts[106]. - The company will strengthen risk identification and control to ensure stable development amid industry competition and policy changes[106]. Operational Challenges - The company has faced significant internal control deficiencies during the reporting period, which have been detailed by the board of directors and supervisory board[4]. - The company experienced a quarterly revenue increase in Q4 2020, reaching ¥2,942,123,117.57, compared to ¥1,560,315,311.78 in Q1 2020[25]. - The company faced production challenges due to the pandemic, resulting in lower-than-expected operational performance[144]. - The company has actively slowed down construction progress to mitigate fundraising risks[78]. - The company has faced procurement challenges due to escalating trade tensions, affecting project timelines[77]. Investment and Development - The company plans to invest in a new 5GW monocrystalline high-efficiency battery and 5GW high-efficiency large-size component project in Siyang, which will proceed as scheduled[41]. - The company has developed new products including intelligent temperature-sensing cables and high-temperature charging pile cables, enhancing its product innovation[40]. - The company plans to enhance the efficiency and quality of large-size monocrystalline photovoltaic cells and modules, aiming for full production of high-efficiency PERC cells and modules[105]. - The company is investing in large-size monocrystalline high-efficiency photovoltaic cell and module projects to meet market demand[108]. - The company plans to develop new poverty alleviation projects based on existing resources and advantages, as local governments continue to implement solar poverty alleviation projects[171]. Shareholder and Governance - The company will not distribute cash dividends, issue bonus shares, or increase share capital from reserves for the reporting period[6]. - The company has not made any adjustments to its profit distribution policy during the reporting period[113]. - The company has not proposed any cash dividend distribution plans despite having positive distributable profits in the reporting period[116]. - The company has a complete decision-making process for its cash dividend policy, ensuring compliance with regulations and protection of minority shareholders' rights[114]. - The company’s cash dividend commitment for 2018-2020 was fulfilled, with a total distribution of profits meeting the stipulated requirements[121]. - The company’s board approved the purchase of liability insurance for directors and supervisors, enhancing risk management practices[183]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development, implementing effective comprehensive treatment for wastewater and solid waste, and enhancing resource utilization efficiency[168]. - The company conducted regular third-party inspections of waste gas emissions, with all results in compliance throughout 2020[177]. - The company actively engages in social responsibility, focusing on employee welfare and environmental protection initiatives[166]. - The company operates under strict compliance with environmental laws, with three sets of waste gas treatment facilities ensuring emissions meet the second-level standards of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996)[172]. Market and Competitive Position - The photovoltaic sector contributed CNY 3.870 billion, accounting for 42.84% of total revenue, down 18.78% year-on-year[44]. - The communication sector saw a revenue increase of 6.86% to CNY 2.377 billion, representing 26.31% of total revenue[44]. - The company maintains long-term strategic partnerships with major clients in telecommunications and renewable energy sectors, enhancing brand influence and market competitiveness[36]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[157]. - The company aims to achieve a compound annual growth rate of 15-20% in global photovoltaic installed capacity from 2021 to 2025[104]. Financial Position and Guarantees - The company’s total assets are reported at CNY 879,460.39 million, with net assets of CNY 264,118.6 million, indicating a solid financial foundation[101]. - The total amount of guarantees approved during the reporting period was CNY 328,614.7 million, with actual guarantees amounting to CNY 358,460.94 million[158]. - The company provided guarantees totaling CNY 214,481.03 million that exceeded 50% of net assets[158]. - The company has a history of providing guarantees, with amounts ranging from 5,000 million to 19,954.26 million for various projects[155]. - The company has not fulfilled the guarantee obligations for several subsidiaries, indicating potential risk exposure[154].