HAERS(SZ:002615)2021-04-28 16:00Demand and Product Innovation - The company reported a significant increase in demand for new product categories such as lightweight cups, sports cups, and smart digital water bottles, reflecting a shift in consumer preferences towards personalized and health-oriented products [6]. - The company emphasizes the importance of continuous product innovation and high-end manufacturing capabilities to adapt to new competitive dynamics in the market [6]. - The company is committed to R&D innovation, focusing on lightweight, intelligent, healthy, and customized product development [111]. - The company launched the "Hars" brand smart thermal cup in collaboration with Huawei, enhancing competitiveness in the smart cup market [55]. - The company aims to enhance its core competitiveness by focusing on customer needs and expanding new channels, while maintaining a big customer strategy [109]. Financial Performance - The company's operating revenue for 2020 was ¥1,491,938,670.47, a decrease of 16.83% compared to ¥1,793,743,645.56 in 2019 [24]. - The net profit attributable to shareholders was -¥28,309,112.87 in 2020, representing a decline of 151.36% from ¥55,116,654.45 in 2019 [24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥49,364,004.29, down 187.72% from ¥56,271,787.62 in 2019 [24]. - The net cash flow from operating activities increased by 175.06% to ¥289,129,592.97 in 2020, compared to ¥105,116,415.58 in 2019 [24]. - The company's net assets attributable to shareholders decreased by 9.18% to ¥809,194,321.03 in 2020 from ¥890,940,686.68 in 2019 [25]. Market Strategy and Expansion - The company plans to enhance its international market revenue through its own brands like SIGG and SANTECO, while also addressing potential risks from fluctuating trade relations and commodity prices [9]. - The company has established a strong marketing strategy focusing on comprehensive consumer services and strategic partnerships with core distributors [48]. - The SANTECO brand successfully entered COSTCO's Taiwan store and expanded into Europe and Vietnam markets [56]. - The company is focusing on a product-driven strategy, emphasizing "series + explosive products" with key projects in "intelligent, infant, and high-end glass cups" to enhance business scale [112]. - The company is actively developing new channels such as community group buying and regional e-commerce to boost online sales growth [112]. Risk Management and Financial Controls - The company has implemented measures to manage raw material price volatility, particularly for stainless steel, which is crucial for its production [10]. - The company has a high proportion of foreign sales, making it susceptible to exchange rate fluctuations, but has taken steps to mitigate these risks through agreements and forward foreign exchange contracts [11]. - The company has established a financial derivative trading management system to mitigate risks associated with currency and interest rate fluctuations [94]. - The company has implemented a monthly and quarterly tracking and reporting mechanism for post-investment management of subsidiaries to enhance risk control [62]. - The company has committed to linking the compensation system to the execution of the company's replenishment measures [128]. Environmental and Social Responsibility - The company donated 2,000 sets of thermal flasks and cups to Wuhan University Central Hospital during the pandemic [163]. - The company donated CNY 200,000 to the China Population Welfare Foundation for purchasing medical supplies [163]. - The company has continuously donated to the local Red Cross for ten years and is a vice president unit of the Red Cross [165]. - The company has invested over 5 million RMB in 2020 to establish a zeolite rotary + RTO waste gas treatment system, operational 24/7 [173]. - The company achieved photovoltaic power generation of 260,000 kWh in 2020 by installing solar panels on the factory roof [179]. Corporate Governance and Compliance - The company has committed that all directors, supervisors, and senior management will not transfer more than 25% of their total shares held during their tenure [127]. - The controlling shareholder has promised not to engage in any business that directly or indirectly competes with the company [128]. - The company has not faced any penalties or rectification issues during the reporting period [137]. - The company has not reported any issues in the use and disclosure of raised funds [101]. - The company has not experienced any major accounting errors requiring retrospective restatement during the reporting period [133].