ETS(SZ:002545)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,651,387,450.76, representing a 1.74% increase from ¥2,605,923,048.90 in 2019[27]. - The net profit attributable to shareholders for 2020 was ¥308,901,919.78, a 1.37% increase compared to ¥304,730,042.44 in 2019[27]. - The net profit after deducting non-recurring gains and losses for 2020 was ¥222,948,898.13, showing a significant increase of 38.12% from ¥161,420,353.77 in 2019[27]. - The total assets at the end of 2020 were ¥11,769,319,568.01, a slight decrease of 0.33% from ¥11,808,806,332.11 at the end of 2019[30]. - The net assets attributable to shareholders at the end of 2020 were ¥7,821,889,017.39, reflecting a 1.53% increase from ¥7,703,745,338.75 at the end of 2019[30]. - The company's total revenue for 2020 was CNY 2,651.39 million, a year-on-year increase of 1.74%[63]. - Operating profit decreased by 11.10% to CNY 337.09 million, while total profit fell by 2.82% to CNY 358.42 million[63]. - Net profit attributable to shareholders increased by 1.37% to CNY 308.90 million[63]. - The company's total revenue for the manufacturing sector reached approximately ¥1.68 billion, representing a year-over-year increase of 17.44%[76]. - The fertilizer segment generated revenue of approximately ¥717.80 million, with a growth rate of 24.89% compared to the previous year[76]. Cash Flow and Dividends - The company reported a profit distribution plan, proposing a cash dividend of 1 RMB per 10 shares, based on a total of 1,244,062,083 shares[7]. - The cash dividend for 2020 represents 40.27% of the net profit attributable to the company's ordinary shareholders, while the 2019 and 2018 dividends were 32.66% and 33.93%, respectively[157]. - The total distributable profit for the year 2020 was RMB 945,707,203.19, with the cash dividend amounting to 100% of the total profit distribution[157]. - The company did not propose any stock dividends or capital reserve transfers during the reporting period[158]. - The company has not made any changes to its cash dividend policy during the reporting period[153]. Business Operations and Strategy - The company has transitioned its main business from steel structure manufacturing to a dual main business model, incorporating both steel structures and potassium fertilizer industries since 2016[25]. - The company expanded its market presence by venturing into photovoltaic energy steel structures and industrial storage steel structures[45]. - The company maintained its leading position in the steel structure market, particularly in power plant and communication tower sectors[44]. - The company aims to expand its potassium fertilizer business, with ongoing construction of the second-phase expansion project expected to enhance profitability[46]. - The company is focusing on international expansion, particularly in Southeast Asia and Africa, where there is a growing demand for its tower products[120]. Risks and Challenges - The company faces risks including market demand decline due to macroeconomic conditions, raw material price fluctuations, and increased operational costs due to intensified industry competition[7]. - The company faces risks from fluctuating raw material prices, particularly steel and potassium fertilizer, and plans to improve material utilization and supply chain management to mitigate these risks[145]. - Labor costs are expected to rise due to a shortage of skilled workers, prompting the company to enhance its talent development and management systems[146]. Research and Development - The company invested CNY 56.84 million in R&D, accounting for 2.14% of total revenue, focusing on technological upgrades in steel structure production[65]. - The company has established a strong technical team with nearly 100 patents, maintaining a leading position in product technology and quality in the steel structure industry[55]. - The company will continue to improve its research and development capabilities, aiming to enhance product quality and innovation through talent acquisition and collaboration with research institutions[143]. Compliance and Governance - The independent directors have fulfilled their responsibilities effectively, ensuring the protection of minority shareholders' rights[153]. - The company has established internal control systems to ensure compliance with disclosure obligations and related party transaction pricing[167]. - The company committed to strict adherence to all promises made during the reporting period[165]. Subsidiaries and Investments - The company has fully consolidated subsidiaries including Suzhou Dongfang Tower and Qingdao Dongfang Tower Engineering, enhancing its operational capabilities[25]. - The company established Shanghai Guohang Company in June 2020 with a registered capital of ¥200 million, holding a 60% stake, which is now included in the consolidated scope[185]. - The company disposed of 100% equity in Suzhou Shilite and Enyang Kaiyuan, which are no longer included in the consolidated financial statements[82]. Market Trends and Future Outlook - The steel structure industry is projected to benefit from the "New Infrastructure" initiative, with significant investments in ultra-high voltage projects expected to drive demand[112]. - The offshore wind power industry in China is projected to grow at a compound annual growth rate of approximately 26.02% from 2019 to 2023, with installed capacity expected to exceed 10.67 million kW by 2023[128]. - The potassium chloride consumption in China is approximately 80% used for fertilizers, with a significant gap in potassium fertilizer application compared to global averages, indicating strong future demand[130].