LPSK(SZ:002333)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥839,763,454.35, representing an increase of 18.04% compared to ¥711,438,973.51 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥26,875,325.94, a decrease of 45.15% from ¥48,998,697.91 in 2019[18]. - The net cash flow from operating activities was -¥81,626,015.99, a decline of 496.07% compared to ¥20,609,102.87 in 2019[18]. - The basic earnings per share for 2020 was ¥0.0535, down 45.13% from ¥0.0975 in 2019[18]. - The net profit after deducting non-recurring gains and losses for 2020 was ¥18,152,329.81, a significant improvement from -¥90,229,394.98 in 2019, marking a 120.12% increase[18]. - The company reported a total of 8,722,996.13 yuan in non-recurring gains for 2020, compared to 139,228,092.89 yuan in 2019[23]. - The company reported a total revenue of 223,736,512.00 CNY from its subsidiary Suzhou Construction, contributing significantly to its overall performance[79]. - The net profit from the subsidiary Mingheng Technology reached 3,997,000.78 CNY, indicating a positive financial impact on the company[79]. Assets and Liabilities - Total assets at the end of 2020 were ¥1,634,341,240.25, an increase of 19.90% from ¥1,363,055,516.16 at the end of 2019[18]. - The net assets attributable to shareholders at the end of 2020 were ¥1,293,642,845.54, a slight increase of 2.14% from ¥1,266,559,186.28 at the end of 2019[18]. - The company’s total cash and cash equivalents increased by 23.39% to RMB 163,482,402.50[61]. - The company’s inventory for aluminum profiles decreased by 11.75% to 972.28 tons compared to the previous year[47]. - The company’s accounts receivable rose to ¥195,154,165.83, accounting for 11.94% of total assets, an increase of 9.68% due to credit terms extended to reliable customers in engineering sales[66]. Business Strategy and Operations - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has experienced uncertainty regarding its ability to continue as a going concern, as indicated by the audit report[18]. - The company restructured its business by divesting long-term loss-making subsidiaries and focusing on advantageous products, while also entering the smart city sector through the acquisition of 80% of Suzhou Zhongyifeng Technology Co., Ltd.[39]. - The company plans to enhance its marketing system and expand its sales channels, focusing on both direct sales and distribution partnerships[38]. - The company aims to enhance its market share in high-end applications such as new infrastructure, high-end manufacturing, and green buildings through high-quality production of new alloy materials[84]. Research and Development - The company has established a research center to drive innovation in aluminum alloy products for the construction sector, leading to the development of a new series of artistic doors and windows[39]. - The company’s research and development expenses increased by 31.30% to RMB 17,011,181.24, primarily due to investments in aluminum alloy door and window R&D[59]. - The company will strengthen its R&D capabilities by increasing investment and attracting technical talent, aiming to become a technology leader in the industry[84]. Market Conditions and Challenges - The company faced challenges due to increased competition and market changes, leading to a decline in profitability despite new project investments[29]. - The total revenue for the year was significantly impacted by the traditional marketing channel disruptions and product homogeneity in the industry[29]. - The market for aluminum materials is facing intense competition, with many companies shifting towards vertical integration within the industry[81]. Environmental and Social Responsibility - The company has achieved national-level green factory certification, demonstrating its commitment to sustainable practices and environmental performance[140]. - The company has implemented a comprehensive wastewater treatment system that includes membrane separation and resin adsorption processes, ensuring that nickel wastewater is treated to meet standards before discharge[134]. - The company donated 3 million RMB to the Suzhou charity foundation for COVID-19 prevention efforts[130]. - The company also donated 2 million RMB to Huashan Hospital for COVID-19 support[130]. Governance and Shareholder Relations - The company has established a three-year shareholder return plan (2020-2022) to enhance transparency and provide stable return expectations for investors[93]. - The cash dividend policy stipulates that cash dividends should not be less than 10% of the distributable profits achieved in the year, with a cumulative distribution of at least 40% of the average annual distributable profits over the last three years[95]. - The company has maintained independence from its controlling shareholder in terms of business, personnel, assets, and finances[189]. - The company has a focus on maintaining a strong governance structure with independent directors and a supervisory board[169]. Management and Personnel - The company has a total of 450 production personnel, 81 sales personnel, 144 technical personnel, 21 financial personnel, and 83 administrative personnel[182]. - The management team has undergone changes, with the board expanding to seven members to improve governance and oversight[179]. - The company has implemented a performance-based salary system, linking employee compensation to performance evaluations[184]. - The company established the "Zhongyifeng Luopusi Jin Academy" to enhance training for management and technical staff, aiming to improve overall employee quality and efficiency[184].