BL(SZ:002592)2022-09-20 16:00Financial Performance - The company reported a significant increase in revenue for 2020, achieving a total of RMB 1.2 billion, representing a year-on-year growth of 15%[15]. - The company's operating revenue for 2020 was ¥601,754,121.17, a decrease of 19.86% compared to ¥750,904,447.30 in 2019[21]. - The net profit attributable to shareholders for 2020 was -¥685,193,404.89, representing a decline of 68.57% from -¥406,482,396.56 in 2019[21]. - The net cash flow from operating activities was -¥204,806,576.48 in 2020, a significant decrease of 294.69% compared to ¥401,198,542.48 in 2019[21]. - The basic earnings per share for 2020 was -¥2.57, down 67.97% from -¥1.53 in 2019[21]. - The total assets at the end of 2020 were ¥1,468,131,594.46, a decrease of 45.82% from ¥2,709,736,577.85 at the end of 2019[22]. - The company's net assets attributable to shareholders decreased by 51.59% to ¥704,092,422.38 in 2020 from ¥1,454,434,370.40 in 2019[22]. - The company reported a total of ¥515,816,464.50 in operating revenue after deducting unrelated business income for 2020[23]. - The company incurred significant losses due to credit impairment, asset impairment, and goodwill impairment, totaling 685.19 million RMB[126]. - The company recognized goodwill impairment of 400.74 million RMB due to underperformance of the acquired subsidiary Hongrun Tianyuan[126]. Market Outlook and Strategy - The company has outlined its future outlook, projecting a revenue growth of 20% for 2021, driven by new product launches and market expansion strategies[15]. - The company is planning to expand its market presence in Southeast Asia, targeting a market share increase of 10% within the next two years[15]. - The company is positioned to benefit from the ongoing recovery in the automotive market, driven by strong consumer demand and supportive government policies[38]. - The Chinese automotive market is expected to continue expanding, particularly in second and third-tier cities, due to rising purchasing power and low vehicle ownership rates[43]. - The company is focusing on developing new technologies and products in the automotive sector, aligning with national strategies for electric and intelligent vehicles[44]. - The company is actively pursuing market expansion by implementing a "one customer, one strategy" approach to attract new clients while maintaining stable cooperation with existing customers[105]. Research and Development - Research and development efforts have led to the introduction of two new products in 2020, which are expected to contribute an additional RMB 200 million in revenue[15]. - The company is focused on the research and development of automotive thermal management systems, providing components for major automotive manufacturers[34]. - The company invested CNY 16.97 million in R&D during the reporting period, completing 124 new product developments and 183 technology verification projects[104]. - The company has established strategic partnerships with universities and research institutions to enhance its R&D capabilities in heat exchanger technology[87]. - The company has developed a comprehensive design system for heat exchanger units, improving R&D efficiency and reducing product development cycles[89]. Operational Challenges - The company has faced significant operational challenges due to the impact of the "920" incident and the COVID-19 pandemic, leading to a substantial decline in revenue and operational stagnation for its subsidiary Hongrun Tianyuan[110]. - The company is planning to dispose of its equity in Hongrun Tianyuan to mitigate operational risks and prevent further losses[111]. - The overall production and sales volumes in domestic regions fell by 38.51% and 38.70% respectively, while international volumes decreased by 62.74% and 52.35%, largely due to delays caused by the COVID-19 pandemic[123]. Government Policies and Industry Trends - The Chinese government has implemented various policies in 2020 to stabilize the automotive market, including financial support and tax reductions to boost consumption[51]. - The extension of subsidies for new energy vehicles and tax exemptions for purchases has been confirmed to last for an additional two years[53]. - The government aims to enhance the infrastructure for charging and battery swapping, supporting the development of a comprehensive charging network[65]. - The automotive industry is expected to focus on electric, intelligent, connected, and shared vehicles, creating new growth opportunities amid the ongoing global changes[197]. - The "14th Five-Year Plan" emphasizes expanding investment in strategic emerging industries, particularly in new energy vehicles, which aligns with the government's carbon neutrality goals[198]. Subsidiary Performance - Hongrun Tianyuan's net profit for 2020 was -447.22 million RMB, achieving only 76.42% of the cumulative performance commitment[127]. - The subsidiary Qingdao Baling Technology Co., Ltd. had total assets of 83.69 million yuan and a net loss of 412,559.58 yuan[182]. - The subsidiary Liuzhou Bailing Technology Co., Ltd. reported total assets of 223.94 million yuan with a net loss of 7,536,743.19 yuan[182]. - The company reported a significant loss in its subsidiary operations, with a net profit of -2.13 million CNY from its smart toilet and sewage treatment projects[185]. Financial Health and Investments - The company has decided not to distribute cash dividends for the year, opting to reinvest profits into growth initiatives[7]. - The company maintains a strong financial position with total assets reported at RMB 3 billion, reflecting a 12% increase from the previous year[15]. - The company has established a framework for procurement contracts with qualified suppliers, ensuring optimal pricing based on market conditions and production costs[116]. - The company is focusing on enhancing its financial health and operational efficiency in the upcoming fiscal year[180].