Morn(SZ:002451)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was ¥454,271,984.60, representing a 23.77% increase compared to ¥367,023,233.67 in 2019[18]. - The net profit attributable to shareholders decreased by 79.57% to ¥7,461,324.32 from ¥36,524,168.40 in the previous year[18]. - The net cash flow from operating activities was negative at ¥30,911,346.90, a decline of 109.36% compared to a positive cash flow of ¥330,262,333.44 in 2019[18]. - The basic earnings per share dropped by 75.00% to ¥0.02 from ¥0.08 in 2019[18]. - Total assets at the end of 2020 were ¥1,227,443,543.13, an increase of 1.84% from ¥1,205,288,818.38 at the end of 2019[18]. - The net assets attributable to shareholders increased by 1.07% to ¥704,862,961.03 from ¥697,401,636.71 in 2019[18]. - The company reported a significant increase in the net profit excluding non-recurring gains and losses, improving by 64.05% to -¥9,578,004.31 from -¥26,639,226.28 in 2019[18]. - The company’s weighted average return on equity decreased to 1.08% from 5.38% in the previous year[18]. - Operating profit decreased by 77.57% to ¥11,026,291.06, while total profit fell by 78.65% to ¥10,474,583.01, and net profit attributable to shareholders dropped by 79.57% to ¥7,461,324.32[59]. Revenue and Sales - The revenue from the main business after deducting waste sales was ¥440,842,987.65, up from ¥367,023,233.67 in 2019[19]. - In Q1 2020, the company reported a revenue of ¥61,929,415.15, which increased to ¥179,062,263.78 by Q4 2020, showing a significant growth trend[23]. - The company reported a significant increase in sales volume of electric cables, reaching 12,227,119 meters, a 27.18% increase from the previous year[66]. - The industrial revenue accounted for 87.84% of total revenue, increasing by 37.64% year-on-year to ¥399,017,529.97[63]. - The company’s operating income in the East China region increased by 42.95% to ¥252,133,262.66, representing 55.50% of total revenue[63]. Market Strategy and Development - The company plans to expand its market presence by focusing on high-quality markets such as power grids, rail transit, and new energy, while reducing low-end market exposure[31]. - New product development includes flexible fire-resistant cables and mineral insulated cables, aimed at enhancing profitability and market competitiveness[31]. - The company aims to strengthen its position in the special cable market, targeting sectors like high-speed rail, new energy, and aerospace[32]. - The establishment of Jiangsu Xunda Electric Materials Co., Ltd. in December 2020 is expected to create new profit growth points for the company[28]. - The company entered the electromagnetic wire market by establishing Jiangsu Xunda Electric Material Co., Ltd., aiming to enhance competitive capabilities and explore new growth opportunities[58]. Financial Services and Investments - Moen Leasing's operating income was CNY 10,807,988.18, a decrease of 61.88% compared to the previous year, with net profit down 55.7% to CNY 3,703,712.56 due to reduced customer volume and declining rental income[40]. - Moen Factoring's operating income was CNY 29,696,714.78, a decrease of 20.6%, while net profit increased by 43% to CNY 15,594,218.57, attributed to reduced sales and management expenses during the pandemic[40]. - The company is committed to providing diversified financial products tailored to customer needs across various industries, including healthcare, education, and energy[33]. - Moen Investment focuses on non-performing asset recovery services, with the expected scale of non-performing loan disposal in China projected to reach CNY 4.8 trillion in 2021[41]. - The financing leasing industry is facing challenges such as a slowdown in growth and increased competition, prompting the company to shift focus towards factoring services[40]. Research and Development - The company completed the development of 4 new products in 2020, including small-sized cables for rail transit vehicles and high-temperature resistant cables for wind turbines[44]. - The company applied for 9 patents in 2020, including 2 invention patents and 7 utility model patents, enhancing its technological innovation capabilities[44]. - R&D expenses increased by 20.79% to ¥11,755,518.85, reflecting higher investment in research projects[76]. - The company has a total of 28 R&D personnel, representing 18.42% of the workforce, an increase from 15.38% in the previous year[76]. - In 2021, the company plans to complete five utility model patents and one invention patent application to improve its qualification level[111]. Risk Management - The company emphasizes a risk-first approach in its operations, aiming to manage and mitigate risks effectively in the current economic climate[40]. - The company will adapt its development pace and optimize its product structure to mitigate risks associated with macroeconomic volatility[119]. - The company is actively managing risks associated with financing leasing and commercial factoring, focusing on maintaining strong relationships with lessees and monitoring their creditworthiness[124]. - The company aims to leverage hedging tools to minimize the impact of raw material price fluctuations on its profitability[123]. - The company has implemented risk control measures for its derivative investments, including market risk and liquidity risk assessments[92]. Corporate Governance and Compliance - The company has not distributed cash dividends in the past three years, with the profit distribution policy clearly defined in its articles of association[132]. - The company will not distribute profits or convert capital reserves into share capital for the year 2020, nor will it issue bonus shares[137]. - The company has committed to fulfilling all promises made by its actual controllers and shareholders during the reporting period[138]. - The company emphasizes compliance with legal regulations and has established a legal due diligence system to enhance asset recovery efficiency[126]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[140]. Shareholder Information - The company reported a total share count of 439,200,000, with 96.36% being unrestricted shares[183]. - The total number of shareholders at the end of the reporting period is 32,310[187]. - The company has a total of 15,966,332 restricted shares at the beginning of the period, with 15,796,958 shares released during the period[185]. - The largest shareholder, Wen Zehong, has reduced his holdings by 8,784,000 shares during the reporting period[187]. - The company has not engaged in any agreed repurchase transactions during the reporting period[189].