CHANGHAI(SZ:300196)2021-04-11 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 market share and competitiveness in this segment[38]. - The company is constructing 5 new production lines for non-woven fabrics, aiming for an annual production capacity of 1 billion square meters, with one line already expanded and the second under construction[65]. - The company plans to expand production lines for wet felt, which is in high demand for applications in PCB and batteries, driven by the growth of the new energy vehicle sector[103]. - The company is investing in a new production line with a capacity of 100,000 tons/year for alkali-free glass fiber, which is crucial for its long-term development strategy[155]. Financial Performance - The company's operating revenue for 2020 was ¥2,042,508,062.79, a decrease of 7.57% compared to 2019[22]. - The net profit attributable to shareholders for 2020 was ¥270,692,609.43, down 6.48% from the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥253,093,483.14, reflecting a decline of 6.72% year-over-year[22]. - The net cash flow from operating activities increased by 14.31% to ¥433,361,680.37 in 2020[22]. - The total assets at the end of 2020 reached ¥3,878,174,862.74, representing a growth of 21.74% compared to 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[22]. - The company reported a basic earnings per share of ¥0.66, down 7.04% from ¥0.71 in 2019[22]. - The weighted average return on equity for 2020 was 9.68%, a decrease of 1.59 percentage points from 2019[22]. - The company achieved operating revenue of RMB 2,042.51 million, a decrease of 7.57% compared to the previous year[109]. - The net profit attributable to the parent company was RMB 270.69 million, down 6.48% year-on-year[109]. 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 may affect export orders and overall sales performance[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%, indicating a recovery in demand despite the pandemic[45]. - The total production of pool kiln yarn in mainland China reached 5.02 million tons in 2020, reflecting a year-on-year increase of 2.01% due to effective capacity control measures[46]. - The production of various industrial felt products in China grew by 11.82% in 2020, driven by increased investment in real estate and infrastructure post-pandemic[48]. - The total output of glass fiber reinforced composite products in China was approximately 5.1 million tons in 2020, with a year-on-year increase of 14.6%[48]. - The new installed wind power capacity in China reached 71,670 MW in 2020, with a year-on-year growth rate of 178.7%, significantly driving the demand for glass fiber products[49]. - The company is focusing on enhancing its market position through technological advancements and expanding its production capabilities in response to rising demand in the wind power sector[45]. Risk Management - The company faces potential risks related to market competition, which could negatively impact its market share and profit margins[8]. - The company will closely monitor changes in the macroeconomic environment and adjust its business strategies accordingly to mitigate risks[6]. - The company is focused on risk management, particularly regarding project implementation and currency exchange fluctuations, to ensure stable development[155][156]. - The company recognizes the risks associated with not keeping pace with technological advancements and customer demands, which could impact its market position[157]. Research and Development - The company is committed to increasing investment in technological innovation to improve its overall technical level and research capabilities[8]. - The company reported a significant reduction in inventory for fiberglass products, primarily due to increased sales and decreased production[114]. - The company has developed new products such as electronic nonwovens and decorative panels, indicating progress in its R&D efforts[157]. - The company aims to enhance its core competitiveness by enriching its product structure and expanding its market share[154]. - The company is committed to maintaining a high level of R&D capability and efficiency through collaboration with subsidiaries and universities[157]. Dividend 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 distributed cash dividends of RMB 1.50 per 10 shares, totaling RMB 61,305,056.85, following the approval of its profit distribution plan[163]. - The total distributable profit as of December 31, 2020, was RMB 1,072,775,774.04, with a capital reserve balance of RMB 863,864,628.00[166]. - The company’s total share capital for the dividend distribution was 408,700,379 shares[166]. Corporate Governance - The company has committed to avoiding competition and conflicts of interest as part of its corporate governance[170]. - The company has established a robust internal control system to ensure compliance and protect shareholder interests, enhancing governance and operational efficiency[70]. - The company has ensured that the remuneration system for directors and senior management is linked to the execution of measures to fill the immediate return gap[172]. - The company has maintained compliance with commitments made to small and medium-sized shareholders, with no overdue obligations reported[172].