众业达(002441) - 2020 Q4 - 年度财报

Important Notes, Table of Contents and Definitions Company Profile and Key Financial Indicators The chapter outlines ZYD Electric's profile, contact information, and key financial data from 2018-2020, highlighting robust 2020 performance with significant revenue, net profit, and operating cash flow growth Key Accounting Data and Financial Indicators In 2020, the company reported CNY 10.74 billion in revenue and CNY 261.07 million in net profit, with operating cash flow surging 136.88% to CNY 951.42 million, reflecting improved profitability and cash flow Key Accounting Data and Financial Indicators | Indicator | 2020 (CNY) | 2019 (CNY) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,741,254,224.33 | 9,925,260,476.31 | 8.22% | | Net Profit Attributable to Shareholders | 261,068,002.27 | 225,121,148.04 | 15.97% | | Net Cash Flow from Operating Activities | 951,416,605.95 | 401,641,065.19 | 136.88% | | Basic Earnings Per Share (CNY/share) | 0.48 | 0.41 | 17.07% | | Weighted Average Return on Net Assets | 6.60% | 5.94% | 0.66% | | Total Assets (CNY) | 6,257,770,847.13 | 5,365,084,010.13 | 16.64% | | Net Assets Attributable to Shareholders (CNY) | 4,035,438,379.98 | 3,843,506,612.43 | 4.99% | Quarterly Key Financial Indicators The company's 2020 quarterly revenue grew sequentially, with net profit stable in the first three quarters and strong operating cash flow in Q4, despite a slight Q4 net loss Quarterly Key Financial Indicators | Indicator (CNY) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,461,595,063.50 | 2,969,358,161.22 | 3,211,123,452.67 | 3,099,177,546.94 | | Net Profit Attributable to Shareholders | 87,174,234.49 | 84,805,537.59 | 91,098,942.79 | -2,010,712.60 | | Net Cash Flow from Operating Activities | 253,796,905.37 | 148,508,588.27 | 5,323,218.32 | 543,787,893.99 | Company Business Overview This chapter details the company's core business as a professional distributor of industrial electrical products, including the distribution of renowned international and domestic brands, system integration, and complete set manufacturing, underpinned by a "3+1" network and "3+1" team strategy for competitive advantage Main Business, Operating Model, and Competitive Landscape The company primarily distributes industrial electrical products from brands like ABB, Schneider, and Siemens, with distribution being the main source of revenue and profit, while system integration provides technical services and enhances customer loyalty in a highly competitive market trending towards comprehensive, multi-brand distributors - The company's main business involves industrial electrical component distribution, system integration, and complete set manufacturing, with distribution being the primary source of revenue and profit[26] - The company's profit model stems from product sales premiums and supplier sales discounts in distribution, alongside profits from system integration and complete set businesses[28] - The industry faces intense competition, with future market share expected to consolidate among distributors possessing national sales networks, multi-brand support, and comprehensive service capabilities[28] Core Competitiveness Analysis The company's core competitiveness is built on its "3+1" network (distribution, logistics, technical service, and internet integration) and "3+1" team (power distribution, industrial control, SME clients, and technical service), enabling comprehensive market coverage and integrated online-offline operations - The company's core competitiveness lies in its "3+1" network: distribution, logistics, and technical service networks, integrated via internet platforms for online-offline synergy[31][33] - The company leverages e-commerce platforms like "ZYDMall" and "Gongkongmao Mall" for B2B operations and launched "Industrial Express" for technical service outsourcing, establishing a digital closed-loop from sales to maintenance[33] - The company has developed specialized "3+1" teams: power distribution, industrial control, SME client, and technical service teams, ensuring comprehensive coverage and professional service for diverse customer segments and markets[33] Discussion and Analysis of Operations This chapter reviews the company's 2020 operating results, financial position, and future outlook, highlighting double-digit growth in revenue and net profit, significant online sales growth, and a robust financial status with ample operating cash flow, while also addressing key risks and strategic responses Annual Operating Performance Overview In 2020, the company sustained profitability, achieving CNY 10.74 billion in operating revenue (up 8.22%) and CNY 261.07 million in net profit attributable to shareholders (up 15.97%), with its online platform, ZYDMall, demonstrating significant digital transformation success by generating approximately CNY 5.12 billion in sales (up 51.09%) Annual Operating Performance | Indicator | 2020 Amount (CNY) | Y-o-Y Growth | | :--- | :--- | :--- | | Operating Revenue | 10,741,254,224.33 | 8.22% | | Net Profit Attributable to Shareholders | 261,068,002.27 | 15.97% | - The company's online business, "ZYDMall," performed exceptionally, achieving approximately CNY 5.12 billion in sales (tax inclusive) in 2020, representing a 51.09% year-on-year increase[36] Main Business Analysis The company's main business revenue primarily derives from industrial electrical product distribution, accounting for 98.44% of total income, with low-voltage electrical product distribution as the core, generating CNY 7.01 billion in revenue (up 12.01%), while regional analysis shows North China, East China, and South China as key revenue sources, and a high reliance on its top five suppliers Revenue by Product Segment | Product Segment | 2020 Revenue (CNY) | % of Operating Revenue | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Low-Voltage Electrical Product Distribution | 7,014,721,442.27 | 65.31% | 12.01% | | Industrial Control Product Distribution | 2,555,943,472.37 | 23.79% | 4.92% | | Medium-Voltage Electrical Product Distribution | 909,469,898.02 | 8.47% | 4.85% | | System Integration and Complete Set Manufacturing | 152,715,057.02 | 1.42% | -40.82% | Revenue by Region | Region | 2020 Revenue (CNY) | % of Operating Revenue | Y-o-Y Change | | :--- | :--- | :--- | :--- | | North China | 2,737,301,713.13 | 25.48% | 10.20% | | East China | 2,501,788,646.37 | 23.29% | 20.02% | | South China | 1,995,067,091.13 | 18.57% | -0.09% | - The company exhibits a high dependency on key suppliers, with the top five suppliers (Schneider, ABB, Siemens, Changshu Switchgear, Delixi) collectively accounting for 77.97% of total annual procurement[49] - The company's customer concentration is low, with the top five customers collectively accounting for only 3.37% of total annual sales, which helps diversify operational risk[48] Expense Analysis In 2020, the company demonstrated effective expense management, with sales expenses decreasing due to reclassification of transportation costs under new revenue standards, and a significant reduction in financial expenses driven by optimized cash flow and settlement methods, while administrative and R&D expenses remained stable Expense Items | Expense Item | 2020 (CNY) | 2019 (CNY) | Y-o-Y Change | Key Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 414,603,567.11 | 461,591,173.97 | -10.18% | Transportation costs reclassified to cost of goods sold under new revenue standards | | Administrative Expenses | 185,532,531.10 | 185,204,134.22 | 0.18% | Remained stable | | Financial Expenses | -36,329,188.67 | -7,835,619.49 | -363.64% | Accelerated cash turnover, optimized settlement methods, reduced financing costs | | Research and Development Expenses | 35,584,930.38 | 35,058,128.07 | 1.50% | Continued investment, remained stable | Cash Flow Analysis The company's cash flow significantly improved in 2020, with net cash flow from operating activities surging 136.88% to CNY 951.42 million due to optimized settlement methods, while investing activities turned positive with a net inflow of CNY 62.38 million, and financing activities saw a net outflow of CNY 253.12 million primarily for debt repayment and dividend distribution, resulting in a total net increase in cash and cash equivalents of CNY 760.35 million Cash Flow Summary | Item | 2020 (CNY) | 2019 (CNY) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 951,416,605.95 | 401,641,065.19 | 136.88% | | Net Cash Flow from Investing Activities | 62,380,513.49 | -229,431,168.75 | 127.19% | | Net Cash Flow from Financing Activities | -253,123,598.93 | -351,390,633.05 | 27.97% | | Net Increase in Cash and Cash Equivalents | 760,345,880.80 | -178,846,577.78 | 525.14% | - The substantial increase in operating cash flow is primarily attributed to the company's optimization of customer and supplier settlement methods[55] Analysis of Assets and Liabilities As of year-end 2020, the company's total assets reached CNY 6.26 billion, a 16.64% increase year-on-year, driven by a significant 183.39% surge in monetary funds due to accelerated cash turnover, while increased accounts payable and notes payable reflect leveraging supplier credit for business expansion, and a substantial 96.29% reduction in short-term borrowings indicates improved solvency and reduced reliance on external financing, with reclassification of prepayments due to new revenue standards Key Asset and Liability Items | Key Asset/Liability Item | 2020 Year-End (CNY) | 2020 Year-Start (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,244,866,550.65 | 439,279,545.93 | 183.39% | | Accounts Receivable | 1,043,782,949.66 | 1,050,956,665.64 | -0.68% | | Inventories | 1,077,867,852.07 | 935,674,622.17 | 15.20% | | Short-Term Borrowings | 3,754,693.41 | 101,268,048.88 | -96.29% | | Notes Payable | 878,470,000.00 | 294,741,495.95 | 198.05% | | Accounts Payable | 790,488,924.55 | 643,194,252.93 | 22.90% | - The company's initial adoption of new revenue standards led to the reclassification of CNY 208.51 million in "Prepayments" at the beginning of the year to "Contract Liabilities" (CNY 196.97 million) and "Other Current Liabilities" (CNY 11.55 million)[65][135] Company's Future Development Outlook The company anticipates market opportunities from new infrastructure, power grid upgrades, and manufacturing transformation, aiming to become a "globally leading professional electrical automation service provider" by executing its "3+1" operating strategy, while also identifying and addressing key risks such as reliance on major suppliers, macroeconomic fluctuations, and accounts receivable impairment - The company's core development strategy is "3+1": industry coverage, product coverage, regional coverage, plus human resource development, aiming to provide customers with one-stop industrial electrical products and services[97] - The company faces key risks including: - High reliance on major suppliers (top five suppliers account for a large proportion of procurement) - Market risks arising from macroeconomic fluctuations - Risk of bad debts from accounts receivable - Risk of not obtaining supplier sales discounts[99][101][102][103] 2021 Budget vs. 2020 Actual | Item (CNY Million) | 2021 Budget | 2020 Actual | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 11,837.94 | 10,741.25 | 10.21% | | Total Profit | 394.80 | 372.21 | 6.07% | | Net Profit | 301.99 | 272.44 | 10.85% | Significant Matters This chapter details the company's profit distribution, commitment fulfillment, accounting policy changes, equity incentive plans, and significant equity divestitures, including the proposed 2020 cash dividend of CNY 2.5 per 10 shares (tax inclusive), the adoption of new revenue standards, ongoing restricted stock incentive plan activities, and progress on the Microvast Power equity sale Profit Distribution Plan The company proposed a 2020 profit distribution plan to pay a cash dividend of CNY 2.5 (tax inclusive) per 10 shares to all shareholders based on the total share capital on the record date, maintaining a cash dividend payout ratio exceeding 50% of net profit attributable to common shareholders for the past three years - The proposed 2020 profit distribution plan is a cash dividend of CNY 2.5 per 10 shares (tax inclusive)[119] Cash Dividends and Payout Ratios | Dividend Year | Cash Dividend (Tax Inclusive, CNY) | % of Net Profit Attributable to Shareholders | | :--- | :--- | :--- | | 2020 (Proposed) | 136,135,902.25 | 52.15% | | 2019 | 119,799,593.98 | 53.22% | | 2018 | 114,354,157.89 | 55.51% | Accounting Policy Changes During the reporting period, the company adopted new revenue standards effective January 1, 2020, as required by the Ministry of Finance, which led to adjustments in the opening financial statements, reclassifying original "Prepayments" to "Contract Liabilities" and "Other Current Liabilities" - The company adopted new revenue standards effective January 1, 2020, adjusting the cumulative impact on contracts not yet completed at the initial adoption date[135] Impact of Accounting Policy Changes | Item | Before Adjustment (CNY) | After Adjustment (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Prepayments | 208,513,644.76 | - | -208,513,644.76 | | Contract Liabilities | - | 196,967,551.38 | 196,967,551.38 | | Other Current Liabilities | - | 11,546,093.38 | 11,546,093.38 | Implementation of Equity Incentive Plan During the reporting period, the company continued to implement its 2017 restricted stock incentive plan, with the board approving the fulfillment of conditions for the third vesting period of the initial grant and the second vesting period of the reserved grant in October 2020, leading to the release and listing of 1,621,930 shares in November, alongside the repurchase and cancellation of certain unvested restricted shares - In November 2020, the company completed the procedures for the third vesting period (initial grant) and second vesting period (reserved grant) of the 2017 restricted stock incentive plan, totaling 1,621,930 shares released from restrictions[155] - The company repurchased and canceled 58,470 restricted shares from 19 incentive recipients that were granted but not yet vested, at a repurchase price of CNY 6.05 per share[156] Share Changes and Shareholder Information This chapter details the company's 2020 share changes and shareholder structure, noting a reduction in total share capital from 544.8 million to 544.6 million shares due to the repurchase and cancellation of restricted stock, with the controlling shareholder, the Wu Kaixian family, maintaining a stable 49.70% stake at year-end, and institutional investors comprising other major shareholders Share Changes In January 2020, the company's total share capital decreased by 244,430 shares due to the repurchase and cancellation of certain restricted shares from the 2017 incentive plan, changing the total share capital from 544,846,509 shares to 544,602,079 shares - During the reporting period, the company's total share capital decreased by 244,430 shares due to the repurchase and cancellation of restricted stock, resulting in a year-end total share capital of 544,602,079 shares[185] Shareholder Information As of year-end 2020, the company had 32,834 common shareholders, with the controlling shareholder and actual controller, Wu Kaixian, and his concerted parties (Yan Suzhen, Wu Senyue, Wu Senjie) collectively holding a stable 49.70% of the shares, and the top ten shareholders also including two asset management plans managed by Golden Eagle Fund Top Shareholders (Controlling Shareholder and Concerted Parties) | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Wu Kaixian | 29.11% | 158,508,340 | | Yan Suzhen | 8.81% | 48,000,000 | | Wu Senyue | 5.90% | 32,121,000 | | Wu Senjie | 5.88% | 32,000,000 | | Total | 49.70% | 270,629,340 | Directors, Supervisors, Senior Management and Employees This chapter provides an overview of the company's directors, supervisors, senior management, and employees, noting the departure and election of independent directors due to term expiration, a total workforce of 3,345 employees with sales personnel comprising the largest segment (2,238), and the implementation of performance-linked compensation and continuous training programs Corporate Governance This chapter describes the company's governance structure and operations, confirming strict adherence to relevant laws and regulations, a sound corporate governance framework, and independence from the controlling shareholder in business, personnel, assets, organization, and finance, with all specialized committees under the Board of Directors fulfilling their duties as required Financial Report This chapter presents the audited 2020 annual financial report, which received a standard unqualified audit opinion from Rongcheng Certified Public Accountants (Special General Partnership), including consolidated and parent company balance sheets, income statements, cash flow statements, statements of changes in owners' equity, and detailed financial statement notes, with key audit matters identified as goodwill impairment provision and accounts receivable bad debt provision Audit Report Rongcheng Certified Public Accountants (Special General Partnership) audited the company's 2020 financial statements and issued a standard unqualified audit opinion, affirming that the financial statements fairly represent the company's financial position and operating results in all material respects, with key audit matters being goodwill impairment provision and accounts receivable bad debt provision - The audit opinion type is a standard unqualified opinion[258] - Key audit matters include goodwill impairment provision and accounts receivable bad debt provision[260] Main Financial Statements The financial statements show that as of year-end 2020, the company's total assets were CNY 6.26 billion, total liabilities CNY 2.14 billion, and total owners' equity attributable to the parent company CNY 4.04 billion, with 2020 operating revenue of CNY 10.74 billion, operating costs of CNY 9.68 billion, and net profit attributable to parent company shareholders of CNY 261.07 million Consolidated Balance Sheet Key Items | Consolidated Balance Sheet Key Item (CNY) | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 6,257,770,847.13 | 5,365,084,010.13 | | Total Liabilities | 2,138,825,967.66 | 1,411,616,861.73 | | Total Owners' Equity Attributable to Parent Company | 4,035,438,379.98 | 3,843,506,612.43 | Consolidated Income Statement Key Items | Consolidated Income Statement Key Item (CNY) | 2020 Annual | 2019 Annual | | :--- | :--- | :--- | | Total Operating Revenue | 10,741,254,224.33 | 9,925,260,476.31 | | Total Operating Costs | 10,316,933,690.31 | 9,593,761,706.23 | | Total Profit | 372,207,763.29 | 305,441,972.95 | | Net Profit Attributable to Parent Company Shareholders | 261,068,002.27 | 225,121,148.04 |