CWPC(SZ:002630)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,207,318,678.96, a decrease of 39.08% compared to ¥3,623,174,397.03 in 2019[18]. - The net profit attributable to shareholders was -¥465,749,056.28 in 2020, a decline of 1370.60% from ¥36,655,786.62 in 2019[18]. - The net cash flow from operating activities was ¥37,509,575.80, down 94.66% from ¥702,195,094.38 in the previous year[18]. - The total assets at the end of 2020 were ¥12,419,837,727.04, a decrease of 3.53% from ¥12,874,812,962.80 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 21.49% to ¥2,481,358,760.81 from ¥3,160,570,797.20 in 2019[18]. - The basic earnings per share for 2020 was -¥0.3944, compared to ¥0.0310 in 2019, reflecting a decline of 1372.26%[18]. - The weighted average return on equity was -15.91% in 2020, down from 1.16% in 2019[18]. - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a figure of -¥469,510,299.64 for 2020[18]. - The quarterly revenue peaked in Q3 at ¥920,365,643.54, but fell to ¥121,405,242.90 in Q4[23]. - The company achieved total operating revenue of ¥2,207,318,678.96, a decrease of 39.08% compared to the previous year[50]. - Operating profit was -¥602,727,677.54, down 32,521.68% year-on-year[50]. - The company reported a significant investment decrease of 191.91% year-on-year, with total investments amounting to ¥47,350,000.00[93]. Risks and Challenges - The company faces risks related to market demand decline and intensified competition, particularly in the power supply and municipal engineering sectors[5]. - The company acknowledges the risk of raw material price fluctuations impacting profit margins, particularly for steel used in production[5]. - The company has a substantial amount of accounts receivable, which poses a risk of bad debts, although the probability remains low due to the strong financial standing of its major clients[5]. - The company is exposed to raw material price fluctuations, with steel accounting for approximately 90% of production costs, which could impact profitability[121]. - The company is addressing operational funding shortages due to large EPC project orders, which require substantial working capital[122]. - The company is at risk of delays in executing large orders due to macroeconomic policy changes and other uncontrollable factors, which could affect project timelines[122]. - The company faced significant challenges in 2020 due to the COVID-19 pandemic, resulting in a slowdown of project execution and a decrease in new orders[50]. Strategic Initiatives - The company plans to expand its operations in the EPC (Engineering, Procurement, and Construction) sector, which requires increased working capital due to large contract amounts and long construction periods[6]. - The company aims to provide diversified energy system solutions, focusing on higher efficiency and cleaner energy technologies[29]. - The company’s strategy includes enhancing its capabilities in special boilers and expanding into new markets, supported by national initiatives like the Belt and Road[38]. - The company intends to leverage investment and mergers to explore quality projects in new energy, new materials, and intelligent manufacturing sectors[117]. - The company plans to improve its financing capabilities by utilizing various financing methods, including bank financing and equity financing, to support new growth[118]. - The company is committed to optimizing its long-term asset quality through effective risk management and control in investment projects[117]. Research and Development - The company has a professional team of about 300 personnel dedicated to R&D, design, manufacturing, and sales of power station and industrial boilers[42]. - The company has developed a biomass boiler that can adapt to 9 different types of fuel, showcasing its industry-leading position in biomass and renewable energy equipment[43]. - The company achieved significant progress in new product development, including the successful application of small-capacity high-parameter boilers and the first domestic special fuel boiler technology scheme[55]. - The company has established partnerships with several prestigious research institutions and universities to accelerate technology transfer and innovation[46]. - The company achieved 18 authorized patents in 2020, including 5 invention patents, reflecting ongoing innovation efforts[79]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, ensuring 100% compliance in hazardous waste disposal and strict adherence to national environmental standards[183]. - The company donated approximately 2 million yuan worth of medical supplies during the COVID-19 pandemic, supporting local communities and health organizations[183]. - The company has implemented an environmental monitoring plan and completed relevant monitoring for 2020, which has been reported and disclosed[195]. - The company has constructed a 800 m³ accident pool as part of its environmental risk prevention facilities, which is in normal standby[192]. - The company has established a real-time data sharing system with the Zhangye Ecological Environment Bureau for online monitoring of emissions[186]. Corporate Governance - The company’s financial report has been confirmed as true, accurate, and complete by its board of directors and management[4]. - The company has ensured that minority shareholders have opportunities to express their opinions and that their rights are protected[129]. - The company’s independent directors have fulfilled their responsibilities and played their roles effectively in the decision-making process[129]. - The company engaged Yongtuo Accounting Firm for internal control verification, with a total fee of 100,000 RMB for the year[139]. - The company has maintained its accounting firm for two consecutive years[139]. Subsidiaries and Investments - The company established four new subsidiaries in 2020, including Qingdao Huaxi Tai and Shaanxi Huaxi Lintai, with a total registered capital of 105 million CNY[71][72]. - The company plans to invest 3 million RMB to establish Qingdao Huarong Enterprise Development Co., holding a 30% stake with a registered capital of 10 million RMB[200]. - The company intends to increase its investment by 60 million RMB in Sichuan Jinruiqi Intelligent Technology Co., raising its stake to 12% as the registered capital increases from 12.5 million RMB to 14.2045 million RMB[200]. Legal Matters - The company is involved in a lawsuit with Tianfu South Thermal Power Co., with a claimed amount of 24.0776 million RMB, currently under trial[141]. - The company reached a settlement with Zigong First Construction Engineering Company, resolving a dispute over a contract worth 60 million RMB[142]. - The company is facing a lawsuit from China Machinery Construction for a total claim of 85.83 million RMB, which includes unpaid debts and contract termination losses[143].