三和管桩(003037) - 2020 Q4 - 年度财报

Important Notice, Table of Contents and Definitions This section presents important notices, the report's table of contents, and definitions of key terms for clarity Important Notice The Board and management affirm the report's accuracy and completeness, with all directors present, and the 2020 profit distribution plan proposes a cash dividend of 1.31 yuan per 10 shares (including tax) - The company's 2020 profit distribution plan proposes a cash dividend of 1.31 yuan per 10 shares (including tax) to all shareholders based on 503,836,583 shares, with no bonus shares or capital reserve conversions[8] Definitions This section defines key terms used in the report, including abbreviations for the company, its subsidiaries, and affiliates, financial terms, and core product names like PHC pipe piles, providing a foundational understanding of the content - The reporting period refers to January 1, 2020, to December 31, 2020[14] - The company's main product is pre-stressed high-strength concrete pipe piles (PHC pipe piles), with pile body concrete strength grade no lower than C80[18] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial performance and position indicators Company Basic Information Guangdong Sanhe Pipe Pile Co Ltd (stock code: 003037) is listed on the Shenzhen Stock Exchange, with Wei Zelin as its legal representative and its registered office in Zhongshan City, Guangdong Province | Item | Content | | :--- | :--- | | Stock Abbreviation | Sanhe Pipe Pile | | Stock Code | 003037 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Wei Zelin | Key Accounting Data and Financial Indicators In 2020, the company achieved significant performance growth, with revenue increasing by 17.44% to 7.15 billion yuan, net profit attributable to shareholders surging by 114.58% to 331 million yuan, and operating cash flow rising by 247.14%, alongside increases in total assets and net assets 2020 Annual Key Financial Indicators | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 7,151,520,839.70 | 6,089,281,797.82 | 17.44% | | Net Profit Attributable to Shareholders (yuan) | 330,625,408.05 | 154,083,429.04 | 114.58% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (yuan) | 313,873,727.95 | 141,340,944.57 | 122.07% | | Net Cash Flow from Operating Activities (yuan) | 771,048,129.17 | 222,112,070.89 | 247.14% | | Basic Earnings Per Share (yuan/share) | 0.76 | 0.35 | 117.14% | | Weighted Average Return on Net Assets | 28.81% | 14.52% | Increased by 14.29 percentage points | Key Balance Sheet Indicators as of End of 2020 | Indicator | End of 2020 | End of 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets (yuan) | 4,203,686,037.55 | 3,426,022,219.91 | 22.70% | | Net Assets Attributable to Shareholders (yuan) | 1,313,621,636.94 | 982,323,060.93 | 33.73% | Quarterly Key Financial Indicators The company's 2020 performance showed a clear quarterly recovery, with a negative net profit in Q1 due to the pandemic, followed by a strong rebound in Q2 with 2.03 billion yuan in revenue and 159 million yuan in net profit, and robust performance in the second half, especially in Q4 2020 Quarterly Financial Data (Unit: yuan) | Item | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 865,339,198.72 | 2,032,948,373.60 | 1,989,226,434.82 | 2,264,006,832.56 | | Net Profit Attributable to Parent | -10,298,899.62 | 158,967,715.46 | 91,691,932.98 | 90,264,659.23 | | Net Cash Flow from Operating Activities | -134,973,452.11 | 204,538,383.78 | 152,410,569.54 | 549,072,627.96 | Non-recurring Gains and Losses Items and Amounts In 2020, the company's non-recurring gains and losses totaled 16.75 million yuan, primarily from government subsidies (12.49 million yuan) and reversal of impairment provisions for receivables (16.59 million yuan), while non-current asset disposals resulted in a 7.03 million yuan loss, with net profit attributable to parent after non-recurring items at 314 million yuan 2020 Non-recurring Gains and Losses Items (Unit: yuan) | Item | 2020 Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -7,028,285.98 | | Government Grants Included in Current Profit/Loss | 12,491,296.36 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 16,588,051.65 | | Other Non-operating Income and Expenses | -2,712,249.42 | | Total | 16,751,680.10 | Business Overview This section outlines the company's core business, products, operating model, significant asset changes, and analysis of its core competitive advantages Main Business, Products, and Operating Model The company's core business involves the R&D, production, and sales of pre-stressed high-strength concrete pipe piles (PHC pipe piles) for construction foundations, operating on a 'purchase-to-production' and 'production-to-sales' model with direct sales as primary, and its industry development is cyclical and closely tied to national fixed asset investment - The company's main business is the R&D, production, and sales of pre-stressed concrete pipe piles (PHC pipe piles), a key building foundation material in China[44][46] - The core operating model is 'purchase based on production,' 'production based on sales,' and 'direct sales as primary, supplemented by distribution'[47] - The company operates 14 production bases across major economic regions in China, including East, Central, and South China, holding a leading market position[51][48] Significant Changes in Major Assets During the reporting period, the company's major assets changed significantly, with cash and equivalents increasing due to higher revenue and collection rates, construction in progress rising from increased investment in bases, and accounts receivable decreasing due to improved turnover, indicating enhanced operational efficiency - Cash and equivalents significantly increased, primarily due to revenue growth and improved accounts receivable collection rates[52] - Construction in progress increased, mainly due to increased investment in projects such as Hubei Base Phase III, Jiangmen Base, and Zhejiang Base Workshop II renovation[52] - Accounts receivable decreased, primarily due to improved accounts receivable turnover and favorable collection performance[52] Analysis of Core Competitiveness The company's core competitiveness stems from its strong brand, advanced technology, significant scale, robust quality management, R&D capabilities, and skilled management team, supported by 14 production bases and participation in national and industry standard setting - Brand Advantage: High brand recognition through collaborations with numerous renowned enterprises including China Railway, China Construction, Evergrande, Vanke, and Country Garden[55] - Technology and Standard Setting: Holds invention patents such as 'New Method for Recycling Excess Slurry in PHC Pipe Piles' and 'A Non-Autoclaved Pre-stressed High-Strength Concrete Pipe Pile,' and has led or participated in drafting multiple national and industry standards[56][57] - Scale Advantage: Operates 14 pipe pile production bases, ranking among the largest pipe pile manufacturers in China with leading production scale in the industry[58] - R&D Capability: Possesses provincial-level 'Engineering Technology Research and Development Centers' and 'Enterprise Technology Centers,' holding 95 patents as of the reporting period end, including 25 invention patents[61] Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, including main business, non-operating activities, asset and liability status, investment activities, and future outlook Operating Overview In 2020, despite the pandemic, the company capitalized on increased national infrastructure investment, achieving record operating performance with pile product sales growing by 13.99%, revenue by 17.44% to 7.15 billion yuan, and net profit attributable to parent by 114.58% to 331 million yuan, driven by production resumption, product optimization, and cost control 2020 Key Operating Data | Indicator | 2020 | YoY Growth | | :--- | :--- | :--- | | Pile Product Output (ten thousand meters) | 3,738.01 | 9.21% | | Pile Product Sales (ten thousand meters) | 4,106.10 | 13.99% | | Operating Revenue (billion yuan) | 7.152 | 17.44% | | Net Profit Attributable to Parent (billion yuan) | 0.331 | 114.58% | - The company has ranked second in industry output for seven consecutive years (as of 2019 data), positioning it in the top tier of China's precast concrete pile industry[66][73] - The company's capacity utilization rate reached 109.65%, indicating high production efficiency, with several new capacity projects expected to be completed and operational in 2021, further expanding capacity[82][83] Analysis of Main Business The company's main business is pile products, accounting for 98.80% of total revenue, with East China being the largest market at 59.16% of revenue and 38.73% growth, driving performance, while Central-South China saw a slight decline, and gross margin for pile products improved to 20.84%, though administrative expenses increased by 44.12% due to higher employee compensation Operating Revenue Composition (by Product) | Product | 2020 Revenue (yuan) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Pile Products | 7,065,610,913.52 | 98.80% | 17.53% | | Precast Concrete Components | 56,870,697.59 | 0.79% | 8.23% | Operating Revenue Composition (by Region) | Region | 2020 Revenue (yuan) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | East China | 4,230,935,989.36 | 59.16% | 38.73% | | Central-South China | 2,573,442,261.86 | 35.98% | -4.35% | Key Expense Changes | Item | 2020 (yuan) | 2019 (yuan) | YoY Change | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 745,833,196.77 | 598,053,770.53 | 24.71% | - | | Administrative Expenses | 234,545,686.37 | 162,741,317.32 | 44.12% | Mainly due to increased employee compensation | | R&D Expenses | 57,449,384.14 | 55,279,168.99 | 3.93% | - | - Sales to the top five customers accounted for 34.98% of total annual sales, with the largest customer, a joint venture of the company, contributing 20.09% of sales[97][99] Analysis of Non-Main Business In 2020, non-main business activities had a minor impact on total profit, primarily including 12.11 million yuan in other income from government grants and 17.82 million yuan from asset impairment reversals due to recovered receivables, alongside 10.23 million yuan in non-operating expenses from asset disposals Key Non-Main Business Profit and Loss Items | Item | Amount (yuan) | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Asset Impairment | 17,818,866.08 | 4.23% | Mainly due to recovery of accounts receivable for which separate bad debt provisions were made | | Other Income | 12,113,151.65 | 2.87% | Mainly due to receipt of government grants | | Non-operating Expenses | 10,231,702.50 | 2.43% | Mainly due to asset write-offs, etc | Analysis of Assets and Liabilities As of year-end 2020, total assets reached 4.20 billion yuan, up 22.70%, with cash and equivalents significantly increasing from 18.30% to 29.08% of total assets due to strong collections, while accounts receivable and inventory percentages decreased, reflecting improved operational efficiency, and both short-term and long-term borrowings increased to support business expansion Key Balance Sheet Item Changes | Item | Amount as of End of 2020 (yuan) | % of Total Assets | Change from Beginning of Year | | :--- | :--- | :--- | :--- | | Cash and Equivalents | 1,222,630,064.74 | 29.08% | +10.78% | | Accounts Receivable | 213,900,985.49 | 5.09% | -4.44% | | Inventories | 354,763,154.36 | 8.44% | -3.55% | | Fixed Assets | 983,309,611.04 | 23.39% | -3.54% | - As of the reporting period end, 178 million yuan of the company's assets were restricted, primarily comprising bank acceptance bill deposits and fixed and intangible assets pledged for borrowings[115] Analysis of Investment Status During the reporting period, the company's investment activities were active, with total investments of 984 million yuan, up 54.58%, including the establishment of four new subsidiaries for overseas business and supply chain management, and a significant 37.23 million yuan investment in the Jiangmen Base project, a key non-equity construction in progress - During the reporting period, four new subsidiaries were established, including Guangdong Sanhe (Indonesia) Trading Co Ltd and Sanhe (Jiangsu) Supply Chain Co Ltd, aimed at expanding overseas markets and improving supply chain efficiency[117][119] - A significant non-equity investment project is the Jiangmen Base engineering, with 37,232,554.56 yuan invested in the current reporting period, and the project is still under construction[120] Analysis of Major Holding and Participating Companies The company's main profit contributions came from its core subsidiaries, with Suzhou Sanhe Pipe Pile Co Ltd achieving a net profit of 119 million yuan in 2020, up 119.65% due to increased sales, while Zhangzhou New Sanhe Pipe Pile Co Ltd's net profit declined by 22.60% to 35.24 million yuan due to lower sales Operating Performance of Major Subsidiaries (2020) | Company Name | Net Profit (yuan) | YoY Change in Net Profit | | :--- | :--- | :--- | | Suzhou Sanhe Pipe Pile Co Ltd | 119,252,485.38 | 119.65% | | Zhangzhou New Sanhe Pipe Pile Co Ltd | 35,235,126.12 | -22.60% | Outlook on Company's Future Development The company anticipates future growth driven by '14th Five-Year Plan' initiatives in new infrastructure, urbanization, and transportation projects, strategically focusing on its core business while promoting green transformation in line with national carbon goals, targeting 10-25% revenue growth in 2021, and addressing risks such as economic cycles, raw material price volatility, and market competition - Industry Trends: Infrastructure investment is projected to grow by 3-5%, supporting pipe pile demand, with the industry evolving towards product diversification, green materials, and production automation[134] - Company Strategy: Committed to 'making buildings safer, more durable, and more low-carbon and environmentally friendly,' actively responding to the 'carbon peak and carbon neutrality' strategy by upgrading technology to enhance automation and energy efficiency[135] - 2021 Operating Plan: Target 10-25% year-on-year growth in operating revenue; continue to strengthen and expand the pile product industry; steadily advance the development of PC components[135] - Key Risks: The company faces various risks including macroeconomic cycles, raw material price fluctuations, intensified market competition, production safety, related-party sales, and environmental policy adjustments[138][139][140][143][148] Significant Matters This section details significant corporate events, including profit distribution, fulfillment of commitments, changes in accounting policies, major related-party transactions, and social responsibility initiatives Profit Distribution The company's 2020 profit distribution plan proposes a cash dividend of 1.31 yuan per 10 shares (including tax) to all shareholders based on 503,836,583 shares, totaling 66.00 million yuan, representing 19.96% of 2020 net profit attributable to parent, contrasting with no distribution in 2019 and 74.22% in 2018 Cash Dividends for the Past Three Years | Dividend Year | Cash Dividend Amount (incl. tax, yuan) | % of Net Profit Attributable to Parent | | :--- | :--- | :--- | | 2020 | 66,002,592.37 | 19.96% | | 2019 | 0.00 | 0.00% | | 2018 | 209,201,559.84 | 74.22% | Fulfillment of Commitments During and at the end of the reporting period, the company's controlling shareholder, actual controllers, and directors, supervisors, and senior management consistently fulfilled their commitments made during the initial public offering, including those related to share lock-ups, non-compete, related-party transactions, fund occupation, share price stability, and share reductions, with no breaches observed - The controlling shareholder, actual controllers, and certain shareholders committed not to transfer their pre-IPO shares for thirty-six months from the company's listing date[175] - The controlling shareholder and actual controllers have issued long-term commitments to avoid horizontal competition, regulate related-party transactions, and prevent fund occupation[177][179] Changes in Accounting Policies Effective January 1, 2020, the company adopted the Ministry of Finance's revised Accounting Standard for Business Enterprises No 14 — Revenue, adjusting opening financial statement items for the cumulative effect of uncompleted contracts, primarily reclassifying 'advances from customers' to 'contract liabilities' and 'other current liabilities,' without impacting retained earnings - The company adopted the new revenue standard effective January 1, 2020, adjusting relevant opening financial statement items based on the cumulative impact[192] Significant Related Party Transactions In 2020, the company's related-party transactions totaled 1.56 billion yuan, with the largest being 1.43 billion yuan in sales of pipe piles to Guangdong Hejian Xinjian Materials Co Ltd, representing 20.15% of similar transactions, all priced at market rates without harming the company or minority shareholders - Sales of pipe piles and other products to related party Guangdong Hejian Xinjian Materials Co Ltd amounted to 1.428 billion yuan, accounting for 20.15% of similar transactions[205] - Total purchases of goods/services from related parties amounted to approximately 34 million yuan, primarily for raw materials like sand and gravel, and engineering labor[204][205] Social Responsibility and Environmental Protection The company prioritizes social responsibility, safeguarding stakeholder interests, and adheres strictly to environmental regulations, with all production units holding pollution discharge permits or registrations; 23.36 million yuan was invested in environmental and energy-saving upgrades, ensuring compliant emissions, though Dezhou Sanhe received a 100,000 yuan fine for dust pollution, which has since been rectified - All 14 pipe pile companies, 3 new component companies, and Guohong Building Materials under the company have obtained pollution discharge permits or completed discharge registrations as required[236] - In 2020, the company invested 23.36 million yuan in technical upgrades for occupational health and safety, environmental protection, and energy conservation and emission reduction[262] - Subsidiary Dezhou Sanhe was fined 100,000 yuan for violating the 'Dezhou City Dust Pollution Prevention and Control Regulations,' and the company has completed rectification measures[262] Changes in Shares and Shareholder Information This section details the company's share capital changes, shareholder structure, and information on its actual controllers Changes in Shares As of year-end 2020, the company's total share capital was 435,836,583 shares, entirely composed of restricted shares, with no changes in total share count or structure during the reporting period Share Structure (as of End of 2020) | Share Type | Quantity (shares) | Percentage | | :--- | :--- | :--- | | Restricted Shares | 435,836,583 | 100.00% | | Unrestricted Shares | 0 | 0.00% | | Total Share Capital | 435,836,583 | 100.00% | Shareholders and Actual Controllers As of year-end 2020, the company had 10 shareholders, with Guangdong Sanhe Building Materials Group Co Ltd as the controlling shareholder at 68.24% ownership, and Wei Zelin and nine other individuals as actual controllers, collectively holding 90.90% of shares indirectly, with all top ten shareholders holding restricted shares - The controlling shareholder is Guangdong Sanhe Building Materials Group Co Ltd, with a 68.24% stake[273][282] - The actual controllers are Wei Zelin, Wei Qiwen, Wei Tingwen, Li Wei, Wei Runlin, Wei Hongwen, Wei Qianwen, Wei Zhilin, Wei Peiwen, and Wei Zhiwen, a group of 10 individuals acting in concert[276][283] Shareholding of Top Three Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares (shares) | | :--- | :--- | :--- | | Guangdong Sanhe Building Materials Group Co Ltd | 68.24% | 297,411,800 | | Zhongshan Nuorui Investment Co Ltd | 10.23% | 44,570,350 | | Zhongshan Linglan Technology Information Co Ltd | 6.90% | 30,067,750 | Directors, Supervisors, Senior Management, and Employees This section provides information on the shareholdings of directors, supervisors, and senior management, as well as the overall employee structure and compensation policies Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, with Ms Wu Yanhong, Director, Deputy General Manager, and Board Secretary, holding 7,000,000 shares - During the reporting period, only Ms Wu Yanhong, Director, Deputy General Manager, and Board Secretary, held company shares, with a stable holding of 7,000,000 shares[295][296] Company Employee Information As of the reporting period end, the company had 5,501 employees, with production personnel comprising the largest group at 4,176, and the majority, 4,567, holding vocational/high school or lower education, while the company implements performance-oriented compensation and continuous employee training Employee Composition | Category | Number of People | | :--- | :--- | | Total Employees | 5,501 | | Professional Composition | | | Production Personnel | 4,176 | | Sales Personnel | 547 | | Educational Background | | | Master's and PhD | 18 | | Bachelor's Degree | 385 | | Associate Degree | 531 | | Vocational/High School and Below | 4,567 | Corporate Governance This section describes the company's corporate governance structure, internal control framework, and compliance with relevant regulations Basic Status of Corporate Governance During the reporting period, the company continuously improved its corporate governance and internal control systems in strict compliance with laws like the Company Law and Securities Law, establishing a governance structure comprising the Shareholders' Meeting, Board of Directors, Supervisory Board, and management, with four specialized committees, ensuring independence from the controlling shareholder in all operational aspects - The company's corporate governance structure is sound, comprising the Shareholders' Meeting, Board of Directors, Supervisory Board, and management, with four specialized board committees established[322] - The company is independent of its controlling shareholder in terms of assets, personnel, finance, organization, and business, possessing an independent and complete business system and autonomous operating capabilities[324] Internal Control Evaluation Report Based on the internal control self-evaluation report, the Board believes the company maintained effective internal controls over financial reporting in all material aspects, in accordance with internal control standards, with no significant or material deficiencies identified in financial or non-financial reporting during the period - No significant or material deficiencies were identified in financial or non-financial reporting during the reporting period[343][344] Financial Report This section presents the company's audited financial statements, including the audit opinion, balance sheet, income statement, and cash flow statement, reflecting its financial performance and position Audit Report ShineWing Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, affirming their fair presentation in all material respects in accordance with enterprise accounting standards, with key audit matters being 'revenue recognition' and 'material procurement price confirmation' - The auditing firm, ShineWing Certified Public Accountants (Special General Partnership), issued a standard unqualified opinion[349] - Key audit matters included: revenue recognition and material procurement price confirmation[351] Financial Statements The financial statements indicate robust growth in 2020, with total assets increasing from 3.43 billion yuan to 4.20 billion yuan, and equity attributable to parent rising from 982 million yuan to 1.31 billion yuan; operating revenue grew 17.44% to 7.15 billion yuan, net profit attributable to parent surged 114.58% to 331 million yuan, and net cash flow from operating activities significantly increased from 222 million yuan to 771 million yuan Consolidated Balance Sheet Key Data (Unit: yuan) | Item | 2020-12-31 | 2019-12-31 | | :--- | :--- | :--- | | Total Assets | 4,203,686,037.55 | 3,426,022,219.91 | | Total Liabilities | 2,876,630,990.32 | 2,429,794,677.48 | | Total Equity Attributable to Parent Company Owners | 1,313,621,636.94 | 982,323,060.93 | Consolidated Income Statement Key Data (Unit: yuan) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Total Operating Revenue | 7,151,520,839.70 | 6,089,281,797.82 | | Total Operating Costs | 6,752,842,680.34 | 5,878,126,213.29 | | Total Profit | 421,336,703.40 | 218,363,650.57 | | Net Profit Attributable to Parent Company Shareholders | 330,625,408.05 | 154,083,429.04 | Consolidated Cash Flow Statement Key Data (Unit: yuan) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 771,048,129.17 | 222,112,070.89 | | Net Cash Flow from Investing Activities | -299,922,164.79 | -341,562,573.39 | | Net Cash Flow from Financing Activities | 142,335,077.36 | -14,945,030.23 | | Net Increase in Cash and Cash Equivalents | 613,387,447.86 | -134,358,836.65 | Reference Documents Catalog This section lists all documents available for reference, including signed financial statements, the original audit report, and publicly disclosed announcements Reference Documents Catalog This section lists documents available for review, including signed financial statements, the original audit report, original copies of all publicly disclosed documents and announcements from the reporting period, and the original 2020 annual report signed by the legal representative, all kept at the company's Securities Affairs Department - Reference documents include: - Signed financial statements - Original audit report - Original copies of all disclosed documents and announcements from the reporting period - Original signed annual report text[760]