CREAT(SZ:002350)2021-03-29 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.71 RMB per 10 shares (including tax) to all shareholders[5]. - The company has implemented a cash dividend policy, ensuring that at least 10% of the distributable profits are allocated as cash dividends annually, provided the company is profitable and has sufficient cash flow[128]. - The company’s cash dividend distribution is contingent upon achieving positive distributable profits and the absence of significant investment plans or cash expenditures exceeding 50% of the latest audited net assets[128]. - In 2020, the company distributed a cash dividend of ¥38,505,525.92, which is 70.30% of the net profit attributable to ordinary shareholders[137]. - The total cash dividend, including other methods like share buybacks, amounted to ¥45,354,205.82, representing 100% of the profit distribution total[138]. - The company proposed a cash dividend of ¥0.71 per 10 shares (including tax) for the 2020 fiscal year, with a total share base of 542,331,351 shares[139]. - The cash dividend payout ratio for 2020 was significantly higher compared to 2019, which was 35.91%[137]. - The company’s cash dividend policy allows for differentiated distribution ratios based on its development stage and capital expenditure plans[128]. - The company’s board of directors emphasized the importance of balancing shareholder interests with the company's long-term growth needs[139]. Financial Performance - The company’s operating revenue for 2020 was CNY 2,182,895,355.92, a decrease of 9.83% compared to 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 54,774,563.67, down 33.51% from the previous year[16]. - The net cash flow from operating activities was CNY 111,365,786.06, a decline of 46.03% compared to 2019[16]. - Basic earnings per share for 2020 were CNY 0.1023, a decrease of 34.17% from 2019[16]. - Total assets at the end of 2020 were CNY 3,317,373,546.47, a decrease of 1.90% from the end of 2019[16]. - The net assets attributable to shareholders increased by 4.96% to CNY 1,863,426,781.77 at the end of 2020[16]. - The company achieved a net increase in cash and cash equivalents of -¥16,478,681.64, reflecting a 91.13% improvement compared to the previous year[71]. - The company reported a significant reduction in total investments, with a current period investment of ¥8,566,409.64, down 93.23% from ¥126,594,219.45 in the previous year[82]. Risk Management and Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no false records or misleading statements[4]. - The company emphasizes the importance of risk awareness regarding future plans and development strategies, as outlined in the report[5]. - The report outlines the company's governance structure and the roles of its board and supervisory committee[7]. - The company has committed to maintaining transparency and accountability in its financial reporting practices[4]. - The company recognizes the potential risks associated with new business developments and plans to mitigate them through careful management and phased investments[123]. - The company is addressing risks related to high customer concentration by diversifying its market beyond state grid companies[121]. Research and Development - The company focuses on R&D in smart and automated power distribution equipment, leveraging its strong technical development capabilities and numerous patents[30]. - The company has accumulated 157 valid patent authorizations, including 43 invention patents, supporting its strong R&D capabilities and product innovation[37]. - Research and development expenses totaled ¥109,096,966.47, a decrease of 8.38% compared to the previous year, while the R&D expenditure as a percentage of operating income increased to 5.00%[69]. - The company is committed to ongoing research and development in energy-saving technologies and environmental protection solutions[95]. Market Strategy and Expansion - The company is focused on enhancing its product offerings and technological advancements in the distribution automation sector[10]. - The company plans to expand its product applications into industries such as solar thermal, chemical, metallurgy, and municipal sectors, aiming to increase market share[39]. - The company is positioned to benefit from the shift in focus from main grid construction to distribution network development, emphasizing smart and integrated solutions[32]. - The company is actively pursuing mergers and acquisitions to strengthen its position in the energy sector and enhance its technological capabilities[95]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2021[197]. Employee and Social Responsibility - The company provided comprehensive employee benefits, including medical insurance, annual health check-ups, and various recreational activities[187]. - The company actively engaged in social responsibility initiatives, focusing on environmental protection and community development[184]. - The company has implemented an employee stock ownership plan, granting 18.7 million shares to 56 key employees, aligning management interests with company development[51]. - The company emphasized the importance of talent management and employee rights, fostering a harmonious labor relationship[187]. Acquisitions and Investments - The company acquired a 41.50% stake in Anhui Hengzhi Copper Indium Gallium Selenide Technology Co., Ltd. for ¥15,620,973.08 in January 2020[63]. - The company completed the acquisition of the remaining 10% stake in Corei Bo Run on July 20, 2020, bringing its total ownership to 100%, making Corei Bo Run a wholly-owned subsidiary[99]. - The company acquired an additional 5% stake in Corei Bo Run for cash, increasing its ownership to 85% as of May 8, 2018, with the valuation based on 12 times the audited net profit for that year[99]. Compliance and Legal Matters - The company reported a significant change in accounting policy, adopting the new revenue recognition standard effective January 1, 2020, which introduced a five-step method for revenue recognition[147]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[146]. - The company is involved in 14 ongoing lawsuits related to sales contracts, with 10 cases already resolved and payments received[158].