ERA(SZ:002641)2021-04-26 16:00Financial Performance - Yonggao Co., Ltd. reported a total revenue of RMB 1,235 million for the year 2020, representing a year-on-year increase of 12%[18]. - The company achieved a net profit of RMB 150 million in 2020, which is a 15% increase compared to the previous year[18]. - The company's operating revenue for 2020 was ¥7,036,300,477.80, an increase of 11.85% compared to ¥6,290,606,343.70 in 2019[25]. - The net profit attributable to shareholders was ¥769,606,258.94, representing a growth of 49.81% from ¥513,720,532.02 in the previous year[25]. - The total profit amounted to 882 million yuan, with a year-on-year growth of 49.56%[65]. - The company reported a weighted average return on equity of 20.67% for 2020, compared to 16.36% in 2019[28]. - The basic earnings per share increased to ¥0.68, a rise of 47.83% compared to ¥0.46 in 2019[25]. - The diluted earnings per share also stood at ¥0.68, reflecting the same growth of 47.83% from ¥0.46 in the previous year[25]. Assets and Investments - As of December 31, 2020, the total assets of Yonggao Co., Ltd. amounted to RMB 3,500 million, reflecting a growth of 10% from the previous year[18]. - The total assets at the end of 2020 were ¥7,550,290,726.28, a 31.91% increase from ¥5,723,683,622.51 at the end of 2019[28]. - The net assets attributable to shareholders reached ¥4,700,479,319.14, up 38.97% from ¥3,382,470,945.39 at the end of 2019[28]. - The company reported a significant increase in investment, with a total of ¥989,020,964.00 in the reporting period, a 344.47% increase compared to ¥222,518,960.00 in the same period last year[144]. - The company completed a capital increase of ¥50,000,000.00 in Guangdong Yonggao Plastic Industry Development, holding a 100% stake[145]. Market Strategy and Expansion - Yonggao Co., Ltd. aims to expand its market presence in Southeast Asia, targeting a 20% increase in market share by 2022[18]. - The company has established a large distribution network covering provincial and municipal cities, enhancing its market presence in the plastic pipeline industry[42]. - The company has established a sales network with over 2,300 primary distributors, enhancing its market penetration[59]. - The company is actively seeking to expand its market presence in rural pipelines, sewage networks, gas, seawater desalination, and industrial pipelines[196]. Research and Development - The company holds 612 valid domestic patents, including 115 invention patents, showcasing its strong R&D capabilities[60]. - Research and development expenses amounted to ¥239,150,690.87, an increase of 17.12% compared to the previous year[125]. - The number of R&D personnel increased by 31.71% to 868, representing 12.87% of the total workforce[128]. - The company developed nearly 200 new products and expanded existing product specifications, enhancing product quality while reducing costs[71]. Production and Efficiency - The company has a production capacity exceeding 800,000 tons, ranking second among comparable listed companies in the domestic plastic pipe industry[56]. - The company's production output growth rate of 16.61% in 2020 significantly outpaced the industry growth rate of approximately 2.00%[79]. - The gross profit margin for plastic pipes improved to 27.48%, up from 24.84% in 2019, attributed to increased production and sales volumes[101]. - The company's production efficiency improved significantly through automation and digital management, leading to a notable reduction in costs[70]. Challenges and Risks - The company faces challenges in enhancing its competitiveness in regions outside of East China, where approximately 60% of its sales are concentrated[92]. - Fluctuations in the procurement prices of specialized resins, influenced by oil price volatility, significantly impact the company's profitability[197]. - Increased competition is anticipated as industry players expand production capacity and establish a nationwide market presence, leading to intensified competition in the coming years[198]. Future Outlook - Future outlook suggests a projected revenue growth of 15% for 2021, driven by increased demand in the construction and infrastructure sectors[18]. - The company aims for a main business revenue target of 7.895 billion CNY in 2021, representing a year-on-year increase of 1.192 billion CNY, or 17.78%[189]. - The net profit is expected to grow by no less than 15%, based on the average net profit from 2018 to 2020 after deducting non-recurring gains and losses[189]. - The overall trend for the plastic pipe industry is expected to remain stable and upward, with increasing applications in various sectors[178].