LETS(SZ:002398)2021-03-29 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.8 RMB per 10 shares to all shareholders, based on a total of 720,490,406 shares[5]. - The proposed cash dividend for 2020 is RMB 0.8 per 10 shares, based on a total share capital of 720,490,406 shares, amounting to an expected total cash dividend of RMB 57,639,232.48[119]. - The cash dividend distributed in 2020 represents 15.48% of the net profit attributable to shareholders, compared to 13.77% in 2019 and 19.46% in 2018[117]. - The company has consistently executed its cash dividend policy to protect the rights of minority investors[114]. - The company did not propose any stock dividends for the reporting period, maintaining a focus on cash dividends[117]. - The company’s cash dividend policy is compliant with its articles of association and shareholder resolutions[114]. - The company plans to carry forward the remaining undistributed profit of RMB 222,944,606.75 to the next fiscal year[119]. Financial Performance - The company's operating revenue for 2020 was approximately ¥3.87 billion, representing a 14.06% increase compared to ¥3.39 billion in 2019[20]. - The net profit attributable to shareholders for 2020 was approximately ¥372.45 million, a decrease of 7.45% from ¥402.44 million in 2019[20]. - The net profit after deducting non-recurring gains and losses was approximately ¥340.68 million, down 9.35% from ¥375.81 million in 2019[20]. - The net cash flow from operating activities for 2020 was approximately ¥322.33 million, an increase of 4.55% from ¥308.30 million in 2019[20]. - The total assets at the end of 2020 were approximately ¥5.45 billion, a 22.43% increase from ¥4.45 billion at the end of 2019[20]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥3.21 billion, up 13.39% from ¥2.83 billion at the end of 2019[20]. - The basic earnings per share for 2020 were ¥0.54, a decrease of 6.90% from ¥0.58 in 2019[20]. - The weighted average return on net assets for 2020 was 12.41%, down from 15.26% in 2019[20]. - The company reported a total of ¥31.77 million in non-recurring gains for 2020, compared to ¥26.63 million in 2019[26]. Governance and Compliance - The financial report is confirmed to be true, accurate, and complete by the company's management, including the CEO and accounting head[4]. - The company has a comprehensive governance structure, including a board of directors and a supervisory board[4]. - The company is committed to maintaining transparency and accountability in its financial reporting practices[4]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[120]. - The company has committed to strict compliance with the 2017 restricted stock incentive plan, ensuring no financial assistance is provided to incentive objects[125]. Risks and Challenges - The company acknowledges various risks including pandemic recurrence, market conditions, raw material price fluctuations, labor costs, and industry competition[5]. - The company faces risks from potential COVID-19 resurgences, which could impact macroeconomic conditions and its performance[105]. - The company is exposed to market sentiment risks, as its performance is closely tied to national infrastructure and real estate investments[106]. - The company anticipates fluctuations in raw material prices due to environmental policies affecting the domestic chemical industry[106]. - The company will enhance automation and improve operational efficiency to mitigate rising human resource costs[106]. Business Operations and Segments - The company's construction technology services and new materials for additives are its two main business segments, with a strong presence across 17 provinces and regions in China, as well as in Malaysia and the Philippines[30]. - The company's subsidiary, Jianyan Testing Group, has established itself as the largest and most qualified construction quality testing enterprise in Fujian Province, with various high-level qualifications[36]. - The company's new materials subsidiary, Kezhijie New Materials Group, is recognized as a leading enterprise in the concrete additives industry, providing over 100 types of concrete additives and related products[31]. - The company's innovative approach includes transforming traditional business models through the integration of "Internet+" into its construction services[34]. - The company aims to leverage its strong qualifications and technical services to enhance its competitive edge and market presence[34]. Research and Development - The company established a research and development base covering 37 acres, with a building area of nearly 20,000 square meters[41]. - The company has formed a comprehensive research system involving multiple engineering technology centers and innovation platforms[41]. - R&D investment increased by 22.79% to ¥152,109,619.62 in 2020, accounting for 3.93% of operating revenue[71]. - The number of R&D personnel rose by 37.13% to 373, representing 14.07% of the total workforce[71]. - The company launched 139 new technology projects and received 4 new technology awards during the reporting period, bringing the total technology awards to 60[48]. Market Expansion and Future Outlook - The company aims to increase market share in the Chongqing and Hainan regions to 10% and in Shanghai to 5% by leveraging its platform advantages[100]. - The company plans to expand its new materials market, focusing on key development areas such as the Yangtze River Delta and the Greater Bay Area[100]. - The company anticipates a continued increase in domestic infrastructure investment, which is expected to drive growth in the construction materials industry[97]. - The company provided a future outlook, projecting a revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[123]. - The company is committed to integrating technology and innovation into its operations, aiming to become a leading provider of new materials and technologies in the industry[99]. Subsidiaries and Acquisitions - The company acquired 100% equity of Shenzhen Testing Group on April 30, 2020, marking a significant change in the consolidation scope[65]. - The company established several new subsidiaries in 2020, including Shenzhen KZJ New Materials Co., Ltd. and Anhui KZJ New Materials Co., Ltd.[66]. - The company established a new subsidiary, Anhui Kezhijie New Materials Co., Ltd., on December 9, 2020, with 100% ownership[145]. - The company issued 17,452,006 new shares through a private placement to its actual controller, Cai Yongtai, which were listed on December 28, 2020[199]. Legal and Financial Management - The company has ongoing litigation involving amounts such as 697.41 million CNY related to Beijing Kanglian Changxiang Medical Technology Co., Ltd., with no significant impact on annual operating performance expected[148]. - The company has accounted for bad debts related to various clients, including 632.23 million CNY from Chongqing Zhinen Building Materials Co., Ltd. and 532.82 million CNY from Henan Jinding Zhongyuan Concrete Co., Ltd.[148]. - The company has actively pursued legal actions to recover overdue payments, indicating a proactive approach to managing receivables[149]. - The company has made provisions for bad debts related to overdue payments, ensuring that the operating performance remains unaffected[149]. - The company reported that accounts receivable balances at year-end should not exceed 30% of annual sales revenue[136].