HENGDA(SZ:002591)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was ¥317,861,532.36, a decrease of 15.95% compared to ¥378,175,054.00 in 2019[18]. - The net profit attributable to shareholders in 2020 was -¥508,501,842.60, representing a decline of 701.38% from ¥84,556,117.75 in 2019[18]. - The total assets at the end of 2020 were ¥989,025,633.36, down 35.37% from ¥1,530,232,526.68 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 40.61% to ¥758,297,113.03 from ¥1,276,794,532.84 in 2019[18]. - The basic earnings per share for 2020 was -¥1.6631, a decline of 686.84% from ¥0.2834 in 2019[18]. - The weighted average return on net assets was -49.97%, a decrease of 56.89% compared to 6.92% in 2019[18]. - The company reported a significant increase in non-operating income deductions, with ¥22,300,595.64 in 2020 compared to ¥33,321,032.50 in 2019[19]. - In 2020, the company achieved a total operating revenue of 29,556.09 million yuan, a year-on-year decrease of 14.29%[48]. - The energy-saving and environmental protection business revenue was 18,959.47 million yuan, an increase of 11.15%, accounting for 64.15% of total revenue[48]. - The internet marketing business revenue was 10,546.19 million yuan, a decrease of 39.25%, accounting for 35.68% of total revenue[48]. Cash Flow and Investments - The net cash flow from operating activities was ¥77,435,788.03, a slight decrease of 0.52% compared to ¥77,837,527.05 in the previous year[18]. - The net cash flow from operating activities showed volatility, with a peak of ¥65,368,368.46 in Q2 2020, followed by a negative cash flow of ¥42,109,999.95 in Q3 2020[23]. - The company received government subsidies amounting to ¥4,697,558.00 in 2020, an increase from ¥2,715,575.00 in 2019[25]. - Operating cash inflow totaled 716,647,636.93 yuan, reflecting a 12.73% increase compared to 2019, while cash outflow rose by 14.57% to 639,211,848.90 yuan[63]. - The company reported a significant increase in investment activity cash inflow, which rose by 27.96% to 398,539,578.39 yuan, leading to a net cash inflow from investment activities of 21,603,294.89 yuan[63]. Business Operations and Strategy - The company has expanded its business scope to include waste heat power generation in addition to its existing services[17]. - The company is a leading provider of industrial equipment protection services, focusing on anti-wear and anti-corrosion solutions across key industries such as power, steel, and cement[28]. - The company has developed several new protective materials, including HDS, KM, MC, MT, and MHC series products, aimed at enhancing the durability of industrial systems[29]. - The company is also engaged in acoustic noise reduction services, utilizing new materials and technologies to control noise in various sectors[31]. - The company has maintained a focus on both organic growth and external expansion strategies to enhance its market position in the energy-saving and environmental protection sectors[28]. - The company launched 16 R&D projects throughout the year, focusing on efficiency, cost, and quality improvements[49]. - The company implemented a dual-driven strategy of "energy conservation and environmental protection + internet marketing" to ensure long-term development goals[49]. Shareholder and Dividend Policies - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has not distributed dividends in the past three years, focusing instead on reinvestment for future growth[94]. - The cash dividends over the past three years have been consistently zero, indicating a focus on retaining earnings for operational and investment needs[95]. - The company has committed to fulfilling various promises made during previous capital restructuring and acquisition processes, ensuring compliance with regulatory requirements[99]. Research and Development - Research and development expenses increased by 14.64% year-on-year, amounting to 21,923,356.95 yuan, representing 6.90% of total revenue[62]. - The number of R&D personnel increased by 12.36% to 100, with R&D personnel accounting for 15.02% of the total workforce[62]. - The company achieved significant breakthroughs in technologies such as in-furnace melting, 360-degree cladding, and intelligent online spraying, resulting in substantial cost reductions[49]. Corporate Governance and Compliance - The company has committed to avoiding or reducing related party transactions post the completion of the major asset restructuring, ensuring transactions are conducted at fair market prices[108]. - The company will ensure that any unavoidable related party transactions are conducted in accordance with national laws and the company's articles of association[103]. - The company has established a strict procedure for any unavoidable related transactions post-major asset restructuring, ensuring compliance with national laws and regulations[110]. - The company has confirmed that all commitments made to minority shareholders were fulfilled on time[117]. Market Outlook and Future Plans - The company aims to leverage technological innovation to upgrade products and improve competitiveness, focusing on energy-saving and environmental protection business modules[89]. - The company plans to enhance its core business in energy conservation and environmental protection while exploring new opportunities in the internet sector over the next three years[90]. - The company has set a future outlook with a revenue target of 12 billion RMB for the next fiscal year, indicating a projected growth of 20%[197]. - The management team emphasized the importance of enhancing operational efficiency, targeting a 5% reduction in operational costs over the next year[198].