Der(SZ:002631)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.57 billion, a decrease of 12.76% compared to ¥1.80 billion in 2019[16]. - The net profit attributable to shareholders was a loss of approximately ¥26.98 million, representing a decline of 133.85% from a profit of ¥79.69 million in 2019[16]. - The net cash flow from operating activities was approximately ¥29.23 million, down 57.28% from ¥68.43 million in the previous year[16]. - The basic earnings per share for 2020 was -¥0.04, a decrease of 133.33% compared to ¥0.12 in 2019[16]. - The weighted average return on equity was -1.49%, down from 4.52% in 2019, indicating a significant decline in profitability[16]. - Total assets at the end of 2020 were CNY 3,408,861,177.83, an increase of 0.73% compared to the end of 2019[18]. - Net assets attributable to shareholders decreased by 3.51% to CNY 1,778,008,257.20 at the end of 2020[18]. - Operating revenue for 2020 was CNY 1,568,231,197.98, down from CNY 1,797,629,581.61 in 2019, representing a decline of approximately 12.74%[18]. - The company reported a net profit attributable to shareholders of CNY -60,956,666.10 in Q4 2020, following a profit of CNY 29,701,084.81 in Q3 2020[22]. - Operating profit was CNY -3,763.85 million, down 132.36% year-on-year[42]. - Net profit attributable to shareholders was CNY -2,697.57 million, a decline of 133.85% compared to the previous year[42]. Business Expansion and Product Development - The company has expanded its business scope to include the research, production, and sales of customized home furnishings and graphene-related products[16]. - The company launched several new product series in 2020, including "Starry Sky," "1863," and "Crystal Color," to enhance brand competitiveness in the flooring sector[28]. - The company established new subsidiaries, including Del Cloud New Materials (Suzhou) Co., Ltd. and Nest Control Holdings, to expand its home furnishing business[27]. - The company introduced a graphene eye massager as part of its new product offerings in the graphene materials sector[31]. - The company has accumulated multiple patents in the graphene new materials field and launched a graphene eye massager during the reporting period[41]. - The company is leveraging smart technology for flexible and scalable production in its custom home solutions[91]. - The company aims to focus resources on home and new materials businesses to enhance asset liquidity and operational efficiency[86]. Market Performance and Customer Engagement - The home furnishing sector accounted for 99.42% of total revenue, with a revenue of approximately ¥1.56 billion, down 12.13% from ¥1.77 billion in 2019[45]. - The custom home furnishing category saw a revenue decline of 15.09%, generating approximately ¥775 million in 2020 compared to ¥913 million in 2019[45]. - The density board segment experienced a revenue increase of 10.41%, reaching approximately ¥35.49 million in 2020, up from ¥32.14 million in 2019[45]. - The Southwest region showed significant growth with a revenue increase of 75.16%, totaling approximately ¥233 million in 2020 compared to ¥133 million in 2019[45]. - The company connected with over 300 brand suppliers in its Nest代 business, establishing sales channels with over 400 property developers, designers, and property management companies[41]. - The flooring industry in China has approximately 3,000 companies, with a total industry output value of around 60 billion yuan, indicating a competitive market landscape[90]. - The custom furniture market is gaining acceptance among consumers, with increasing recognition of products like custom cabinets and wardrobes[91]. Financial Management and Investments - The company raised a total of RMB 63,000 million through the issuance of 6.3 million convertible bonds, with a net amount of RMB 61,896.70 million after deducting issuance costs of RMB 1,103.30 million[77]. - The remaining balance of the raised funds was RMB 43,074.73 million, which included RMB 2,005.01 million in bank interest and investment income, and RMB 34,000 million was allocated to short-term wealth management products[79]. - The company has committed to investing RMB 61,896 million in various projects, with a cumulative investment of RMB 20,826 million reported[81]. - The company is actively seeking quality project resources for investment and mergers in the home and new materials sectors, enhancing its management capabilities[98]. - The company reported a total of ¥288,592,630.00 in financial assets, with a significant increase in receivables amounting to ¥6,269,563.70[66]. - The company has not engaged in any securities or derivative investments during the reporting period[73][74]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of ¥0.30 per 10 shares to all shareholders based on the total share capital as of the dividend announcement date[5]. - The cash dividend for 2020 represents 100% of the total distributable profit of approximately 451.86 million RMB[107]. - In 2019, the company distributed a cash dividend of 0.60 RMB per 10 shares, totaling approximately 39.12 million RMB, which accounted for 49.09% of the net profit attributable to shareholders[106]. - The company has established a three-year shareholder return plan (2018-2020) approved by the board and shareholders[104]. Governance and Compliance - The company has established a comprehensive governance structure to protect the rights of shareholders, particularly minority shareholders, ensuring compliance with relevant laws and regulations[177]. - The company has implemented a robust internal control system to enhance overall governance and ensure accurate and timely information disclosure[177]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[116]. - The company’s controlling shareholder and related parties committed to avoid any actions that could harm the interests of the company and its shareholders[113]. Research and Development - Research and development expenses for 2020 were ¥37,576,043.51, a decrease of 23.82% compared to ¥49,322,292.85 in 2019[58]. - The proportion of research and development expenses to operating income was 2.40%, down from 2.74% in 2019[58]. - The company aims to enhance its research capabilities and transform graphene technology into consumer products, expanding future development opportunities[96]. - Research and development expenditures increased by 15% year-on-year, emphasizing the commitment to innovation[154]. Operational Efficiency and Cost Management - The company actively implemented cost reduction and efficiency enhancement measures to stabilize overall business development amid the pandemic[38]. - The company is committed to improving operational efficiency through strategic investments in technology[161]. - The company has successfully reduced operational costs by 5% through various efficiency initiatives[161]. Strategic Focus and Future Outlook - The company plans to proceed with investment projects based on market conditions, considering the economic slowdown and fluctuations in furniture market prices[81]. - The company plans to expand its market presence by launching new products and enhancing technology development in the upcoming year[167]. - Future guidance suggests continued revenue growth, with expectations of maintaining a growth rate above 30% in the coming year[159]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[157].