CHANGHAI(SZ:300196)2021-04-09 16:00Production Capacity and Expansion - The company plans to increase its production capacity of glass fiber and products by 50%, adding to the existing capacity of 200,000 tons per year[8]. - The company is currently constructing a 100,000-ton glass fiber pool kiln, which will increase its production capacity by 50% on top of the existing 200,000 tons once completed[38]. - The company has completed the expansion of one production line for thin felt and is currently building a second line to further increase its market share in this segment[38]. - The company plans to establish 5 new production lines for thin felt, aiming for an annual production capacity of 1 billion square meters[65]. - The company is investing in a new production line for 100,000 tons/year of alkali-free glass fiber yarn, with a focus on project management to mitigate implementation risks[155]. Financial Performance - The company's operating revenue for 2020 was ¥2,042,508,062.79, a decrease of 7.57% compared to ¥2,209,706,816.49 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥270,692,609.43, down 6.48% from ¥289,454,124.15 in 2019[22]. - The net cash flow from operating activities increased by 14.31% to ¥433,361,680.37 in 2020, compared to ¥379,119,771.77 in 2019[22]. - The total assets at the end of 2020 reached ¥3,878,174,862.74, reflecting a growth of 21.74% from ¥3,185,675,633.58 at the end of 2019[22]. - The net assets attributable to shareholders increased by 10.62% to ¥2,962,989,969.76 at the end of 2020, compared to ¥2,678,556,330.94 at the end of 2019[22]. Market and Industry Trends - The company emphasizes the importance of market expansion and intends to enhance its market share by actively seeking new customers while consolidating existing ones[8]. - The company acknowledges the impact of macroeconomic risks due to the COVID-19 pandemic, which has led to a significant decline in demand and production, affecting investment, consumption, and exports[6]. - The glass fiber industry in China has seen a total production of 5.41 million tons in 2020, with a year-on-year growth of 2.64% despite the pandemic's challenges[45]. - The total production of glass fiber reinforced composite materials in China reached approximately 5.1 million tons in 2020, with a year-on-year growth of 14.6%[48]. - The demand for glass fiber composite materials in the automotive lightweight sector is expected to grow rapidly in the next 10 years, as the current application ratio in vehicle parts is only 8%-12% compared to 20%-30% in foreign markets[52]. Risk Management - The company faces potential risks related to market competition, which could adversely affect its market share and gross profit margins[8]. - The company will closely monitor changes in the macroeconomic environment and adjust its business structure to enhance its ability to respond to uncertainties[6]. - The company is aware of the risks associated with exchange rate fluctuations, particularly with its export business primarily settled in USD, and is taking measures to mitigate these risks[156]. Research and Development - The company is committed to increasing its investment in technological innovation to improve overall technical capabilities and research and development[8]. - In 2020, the company's R&D investment amounted to ¥83,706,875.17, accounting for 4.10% of total revenue, a decrease of 8.31% compared to 2019[122]. - The company has held a total of 127 patents by the end of 2020, including 33 invention patents, 89 utility model patents, and 5 design patents[122]. Environmental and Safety Compliance - The company is focused on adhering to environmental regulations and has increased its investment in environmental protection measures to mitigate risks associated with safety and environmental protection[9]. - The company's subsidiary, Tianma Group, is involved in the production of glass fiber reinforced thermosetting resins and related chemical products, which are subject to strict environmental regulations[10]. - The investment in ecological protection and environmental governance in China increased by 8.6% year-on-year, contributing to the growth of related products such as winding pipes and desulfurization towers[49]. Profit Distribution - The profit distribution plan proposes a cash dividend of RMB 1.00 per 10 shares, totaling RMB 40,870,037.90, based on a total share capital of 408,700,379 shares as of December 31, 2020[10]. - The company declared a cash dividend of RMB 1.00 per 10 shares, totaling RMB 40,870,037.90 for the year 2020[165]. - The cash dividend for 2020 represented 15.10% of the net profit attributable to the company's ordinary shareholders[169]. Corporate Governance - The company has committed to not engaging in competitive business activities that may harm its interests or those of its shareholders[171]. - The company has adhered to all commitments made by its controlling shareholders, with no violations reported as of December 31, 2020[172]. - There were no non-operating fund occupations by the controlling shareholder or related parties during the reporting period[173].