JINGU(SZ:002488)2021-04-28 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15%[22]. - The net profit attributable to shareholders was RMB 150 million, which is a 10% increase compared to the previous year[22]. - The company's operating revenue for 2020 was CNY 2,620,073,619.50, representing a 23.96% increase compared to CNY 2,113,712,552.15 in 2019[30]. - The net profit attributable to shareholders for 2020 was a loss of CNY 163,170,926.52, a decrease of 806.46% from a profit of CNY 23,097,059.92 in 2019[30]. - The net cash flow from operating activities improved by 70.97%, reaching a negative CNY 73,739,054.57 in 2020 compared to negative CNY 253,976,261.76 in 2019[30]. - The total assets at the end of 2020 were CNY 6,354,117,748.53, down 5.26% from CNY 6,706,828,647.36 at the end of 2019[30]. - The net assets attributable to shareholders decreased by 5.38% to CNY 3,782,046,214.17 at the end of 2020 from CNY 3,997,114,993.14 at the end of 2019[30]. - The company reported a basic earnings per share of -CNY 0.16 for 2020, a decline of 900.00% from CNY 0.02 in 2019[30]. - The company experienced a significant loss in net profit due to non-recurring losses, with a net profit of -CNY 169,007,337.45 after deducting non-recurring gains and losses[30]. - The quarterly operating revenue for Q4 2020 was CNY 670,946,893.72, with a net profit loss of -CNY 168,301,671.86[36]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[22]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency and expand its product offerings[22]. - The future outlook remains positive, with a projected revenue growth of 20% for 2021, driven by increased demand in the automotive parts sector[22]. - The company has established strategic partnerships with three major automotive manufacturers to enhance its market competitiveness[22]. - The company aims to leverage Avatar technology to expand into the lightweight product market, focusing on reducing vehicle weight to improve fuel efficiency and reduce emissions[50]. - The company plans to promote AVATAR passenger car wheels to new energy vehicle manufacturers, targeting a market that is increasingly shifting towards electric and lightweight vehicles[66]. - The company aims to penetrate the new energy vehicle market, having already secured contracts with Wuling Hongguang MINI EV and GAC Toyota for wheel supply[147]. - The company projects that by 2025, new energy vehicles will account for about 20% of total new car sales in China, aligning with national policies promoting electric vehicles[141]. Product Development and Innovation - New product development includes the launch of a smart tire monitoring system, expected to generate an additional RMB 100 million in revenue in 2021[22]. - The company launched the Avatar wheel production line at the end of 2020, introducing a revolutionary lightweight product that competes with aluminum wheels, aiming to capture market share previously held by aluminum wheels[45]. - The company has developed the "AVATAR" steel wheel product, which is lighter than aluminum wheels and costs about half as much, with a strength three times that of ordinary steel wheels and six times that of aluminum wheels[53]. - The average weight of the AVATAR commercial vehicle wheel is 28kg, compared to 40kg for similar products in the market, providing significant weight reduction and fuel efficiency benefits[63]. - The company expects a substantial increase in gross margin for the AVATAR product line, positively impacting overall performance as sales increase[53]. - The company's EPS technology for metal surface treatment, developed by the company, is recognized as a key environmental protection technology and has been affected by the pandemic, impacting sales[46]. - The company’s EPS technology is environmentally friendly and aligns with national industrial policies, replacing traditional processes with a method that uses only water and refined steel sand[54]. Automotive Aftermarket and Services - The automotive aftermarket business experienced a slight impact on overall revenue in 2020 due to delayed operations caused by the pandemic, but normalized in the second quarter[49]. - The company’s subsidiary "Automobile Superman" has established a strong market presence in the automotive aftermarket, with over 1,000 front warehouses and more than 300 new repair franchise stores opened in 2020[55]. - The company has a competitive edge in the automotive aftermarket with its subsidiary "Auto Superman," leveraging supply chain resources and IT systems for a new retail model[76]. - The automotive aftermarket in China is expanding, with approximately 281 million vehicles in 2020, creating a large potential market for automotive services[55]. Financial Management and Investments - No cash dividends will be distributed to shareholders for the fiscal year 2020, as the company aims to reinvest profits into growth initiatives[22]. - The company has committed to avoiding any competition with its own subsidiaries and ensuring normal operations, as stated in commitments made by major shareholders[169]. - The company has established multiple subsidiaries in the automotive service sector, with 100% ownership in all newly established companies since 2020[184]. - The company reported a significant decrease in investment amounting to ¥11,100,000.00, a 97.62% drop from ¥465,998,449.44 in the previous year[126]. - The company did not propose a cash dividend distribution plan despite reporting profits for the reporting period[162]. - The company did not distribute cash dividends or issue bonus shares for the fiscal years 2019 and 2020, and no capital reserve conversion to share capital was planned for these years[164]. Challenges and Risks - The ongoing COVID-19 pandemic presents uncertainties that could impact the company's overall performance in 2021[153]. - The company faces risks from raw material price fluctuations, particularly steel, which significantly affects production costs and overall performance[153]. - The company has established long-term partnerships with major steel manufacturers to mitigate raw material cost risks, but significant price increases could still adversely affect operations[155]. - The company has seen a 44.21% increase in construction projects and a 47.08% decrease in cash funds due to repayments of long-term loans[56]. - Accounts receivable increased by 63.86% and accounts receivable financing rose by 43.16%, indicating a growing business volume[59]. Research and Development - The company has allocated RMB 200 million for research and development in new technologies for the automotive sector in 2021[22]. - Research and development expenses decreased by 8.65% to 42,716,717.13 CNY in 2020 compared to 2019[113]. - R&D investment decreased by 12.34% to ¥55,509,785.48 in 2020 from ¥63,325,434.00 in 2019, with R&D personnel down by 12%[114]. - The company has established a provincial-level high-tech enterprise R&D center and continuously recruits engineers to strengthen its technological foundation[74]. Accounting and Compliance - The company has undergone a change in accounting policy regarding revenue recognition, effective January 1, 2020, aligning with the revised accounting standards[181]. - The new revenue recognition policy consolidates existing standards into a unified model, focusing on the transfer of control rather than risks and rewards[181]. - The accounting policy change is not expected to have a significant impact on the company's financial position or results of operations[181]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[179]. - The company has not faced any major accounting errors requiring retrospective restatement during the reporting period[183]. - There were no significant lawsuits or arbitration matters during the reporting period[192]. - The company has not undergone any bankruptcy reorganization during the reporting period[189].