WLY(SZ:002434)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was ¥6,064,883,536.23, representing an increase of 18.92% compared to ¥5,099,834,596.40 in 2019[25]. - The net profit attributable to shareholders for 2020 was ¥617,283,605.32, a growth of 54.19% from ¥400,330,892.65 in 2019[25]. - The net profit after deducting non-recurring gains and losses was ¥447,693,922.82, which is a significant increase of 145.15% compared to ¥182,618,674.70 in 2019[25]. - The basic earnings per share for 2020 was ¥0.47, up 56.67% from ¥0.30 in 2019[25]. - The total assets at the end of 2020 were ¥11,580,861,176.59, reflecting a 6.23% increase from ¥10,901,727,096.08 at the end of 2019[25]. - The net cash flow from operating activities was ¥883,573,771.11, an increase of 12.59% from ¥784,753,025.86 in 2019[25]. - The weighted average return on equity for 2020 was 9.65%, up from 6.62% in 2019, indicating improved profitability[25]. Sales and Market Performance - In 2020, the company's total sales of automotive transmissions reached 1.541 million units, representing a year-on-year growth of 16.28%[41]. - The sales of commercial vehicle transmissions were 753,000 units, an increase of 9.92% year-on-year[41]. - The sales of passenger vehicle transmissions were 786,000 units, showing a significant growth of 26.34% year-on-year[41]. - The company's commercial vehicle transmission sales increased by 9.92% year-on-year, with the G series high-end lightweight transmission sales growing by 67.51%, accounting for 42% of total sales[44]. - The passenger vehicle transmission segment contributed 63.36% to total revenue, amounting to approximately 3.84 billion yuan, reflecting a 39.63% increase year-on-year[96]. - The total sales revenue for the top five customers amounted to ¥4,383,250,973.37, accounting for 72.27% of the annual total sales[113]. Research and Development - The company established a research and development headquarters in Hangzhou to enhance innovation and technology upgrades[79]. - Research and development expenses increased by 21.49% to ¥328,917,946.55, reflecting the company's commitment to enhancing core competitiveness through new technology and product development[117]. - The number of R&D personnel increased by 10.97% to 698, indicating a focus on enhancing research capabilities[123]. - The company is actively developing new energy vehicle drive systems, with a target to have 50% of domestic car sales from new energy vehicles by 2035[119]. - The company has established multiple project teams to enhance new product R&D capabilities, focusing on strategic new products such as passenger car ECVT/DHT and commercial vehicle hybrid systems in 2021[173]. Strategic Partnerships and Collaborations - The company is collaborating with Bosch on continuously variable transmission technology for electric and hybrid vehicles, enhancing its capabilities in the new energy vehicle sector[53]. - The company has established a strategic partnership with Bosch to promote the application of ECVT in new energy electric vehicles[64]. - The company signed a strategic cooperation agreement with Bosch on January 15, 2020, to collaborate on continuously variable transmission technology for electric and hybrid vehicles[81]. Investment and Acquisitions - The company has invested RMB 20 million to establish Zhejiang Waliyang Precision Manufacturing Co., Ltd., holding 100% equity[57]. - The company acquired 100% equity of Liaoning Yixing Automotive Parts Co., Ltd. for RMB 23.387 million[57]. - The company has made strategic acquisitions to enhance its investment channels and improve operational capabilities, including the acquisition of Zhejiang Wanliyang Precision Manufacturing Co., Ltd.[154]. Market Trends and Future Outlook - The automotive market in China is expected to continue growing, driven by increasing demand and a low vehicle ownership rate compared to developed countries[43]. - By 2025, it is projected that new energy vehicles will account for approximately 20% of total vehicle sales in China, increasing to 40% by 2030 and over 50% by 2035[49]. - The overall automotive market in China is expected to recover in 2021, with sales projected to exceed 26 million units, representing a year-on-year growth of 4%[54]. - The company anticipates steady growth in the domestic automotive market in 2021, driven by favorable national policies and a recovering economy[167]. Risks and Challenges - There are risks related to market competition, talent acquisition, and fluctuations in the supply and prices of key raw materials and components[8]. - The company faces market competition risks due to the ongoing decline in vehicle sales since 2018, exacerbated by the COVID-19 pandemic, which has intensified competition in the automotive industry[176]. - The company is addressing risks related to raw material supply and price fluctuations, particularly for key components sourced from foreign suppliers, which could impact operations[182]. Operational Efficiency and Cost Management - The company focused on enhancing its operational efficiency and cost management, leading to improved overall profitability[77]. - The company has implemented market-oriented reforms in its parts manufacturing factories to enhance operational efficiency and profitability[85]. - The company has improved raw material utilization and reduced consumption through continuous product design and production technology enhancements[183]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of ¥4.5 per 10 shares, totaling approximately ¥59,187,000 based on the total share capital[8]. - The cash dividend distribution plan reflects the company's mature development stage and commitment to returning profits to shareholders[197]. - The total share capital for the cash dividend distribution is 1,312,600,000 shares, excluding 27.4 million shares held in the stock repurchase account[197].