CHANGHAI(SZ:300196)2021-05-14 16:00Financial 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 profit after deducting non-recurring gains and losses was ¥253,093,483.14, a decrease of 6.72% compared to ¥271,330,239.05 in 2019[22]. - The net cash flow from operating activities increased by 14.31% to ¥433,361,680.37 from ¥379,119,771.77 in 2019[22]. - The total assets at the end of 2020 were ¥3,878,174,862.74, representing a 21.74% increase 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 from ¥2,678,556,330.94 at the end of 2019[22]. - The basic earnings per share for 2020 was ¥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% from 11.27% in 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]. Production Capacity and Expansion - The company plans to increase its production capacity by 50%, adding to the existing 200,000 tons/year capacity for glass fiber and products[8]. - The company is currently constructing a 100,000-ton glass fiber pool kiln, which will increase its existing capacity of 200,000 tons by 50% upon completion[38]. - The company is constructing a new production line with an annual capacity of 100,000 tons of alkali-free glass fiber, which will increase total capacity by 50% upon completion[98]. - The company plans to expand its subsidiary Tianma Group's production capacity of unsaturated polyester resin from 25,000 tons to 100,000 tons annually, with the project commenced in November 2020[64]. - 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]. Market and Competition - The company emphasizes the importance of market expansion and aims to enhance its market share by actively seeking new customers while consolidating existing ones[8]. - The company recognizes the risk of market competition and the potential impact on its market share and gross margin[8]. - The company aims to maintain a market share of over 50% in the domestic short-cut felt market, which is primarily used in automotive applications, benefiting from the trend towards automotive lightweighting[151]. - The wet felt market, where the company is a leader, currently accounts for only about 3% of the total glass fiber industry in China, indicating significant growth potential[151]. - The company is focusing on enhancing its competitive edge in the market by improving the automation and mechanization of thermosetting composite material production technology[42]. Technological Innovation and R&D - The company is committed to improving its technological innovation and R&D capabilities to maintain competitiveness in a challenging market environment[8]. - The company has established a complete industrial chain from glass fiber production to deep processing and manufacturing of glass fiber composite materials, enhancing its competitive edge[55]. - The company aims to enhance its R&D capabilities by leveraging synergies from its subsidiaries and focusing on patent technology accumulation[159]. - The company has developed new products such as electronic non-woven fabrics and coated mats, indicating progress in its R&D efforts[159]. - 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]. Impact of COVID-19 - The company acknowledges the impact of macroeconomic risks, particularly due to the COVID-19 pandemic, which has affected demand and production[6]. - The COVID-19 pandemic has significantly impacted the company's performance, leading to a decline in demand and production, particularly in North America and Europe, where the pandemic remains uncontrolled[41]. Cash Dividends and Shareholder Returns - The company reported a total cash dividend distribution of RMB 40,870,037.90, which translates to RMB 1.00 per 10 shares for all shareholders[10]. - A cash dividend of RMB 1.00 per 10 shares (including tax) was proposed, totaling RMB 40,870,037.90, which represents 15.10% of the net profit attributable to shareholders[171]. - The total cash dividend for 2020 was 100% of the profit distribution amount[168]. - The company distributed cash dividends of RMB 1.50 per 10 shares, totaling RMB 61.31 million, following the approval of its profit distribution plan[165]. Compliance and Governance - The company's financial report has been confirmed as true, accurate, and complete by its board of directors and management[4]. - The company has established a robust internal control system to ensure compliance and protect shareholder interests[70]. - The company has committed to avoiding competition and conflicts of interest as per its commitments made during the IPO and refinancing[172]. - The company has taken steps to ensure compliance with regulations protecting the rights of small and medium investors in the capital market[174]. Industry Trends and Future Outlook - The glass fiber industry is expected to benefit from the growing demand in wind power, environmental protection, and infrastructure sectors, following the recovery from the pandemic[150]. - The company plans to achieve a 50% growth in 2021, contingent on market conditions and operational efforts, as the glass fiber industry has shown strong recovery since Q4 2020[154]. - The company is focusing on developing thermoplastic continuous fiber composite materials, which are expected to become a new core product due to their advantages in lightweighting and performance[153]. - The "14th Five-Year Plan" anticipates the addition of 5,000 kilometers of urban rail transit, which will drive demand for glass fiber in the transportation sector[152].