NCGF(SZ:300198)2021-04-27 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% growth compared to the previous year[19]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth rate of 25%[19]. - The company reported a net profit attributable to shareholders for 2020 was ¥48,220,610.69, a significant decrease of 79.67% from ¥237,198,119.22 in 2019[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥32,356,704.61, down 86.23% from ¥234,944,304.42 in the previous year[28]. - The net cash flow from operating activities decreased by 13.25% to ¥47,114,926.79 in 2020 from ¥54,308,929.12 in 2019[28]. - Basic earnings per share for 2020 were ¥0.0467, a decline of 79.69% compared to ¥0.2299 in 2019[28]. - The company reported a weighted average return on equity of 3.38% for 2020, down 15.14% from 18.52% in 2019[28]. - The company achieved operating revenue of 894,755,112.43 CNY, a year-on-year increase of 10.70%[76]. - The net profit attributable to shareholders was 48,220,610.69 CNY, a year-on-year decrease of 79.67%, primarily due to the loss of control over the investment in Xingheng Power[76]. Market Strategy and Expansion - The company is focusing on enhancing product quality and performance while reducing costs to maintain market expansion and competitiveness amid increasing market competition and policy changes[8]. - The company is expanding its market presence in the new energy vehicle sector, which is experiencing rapid growth due to supportive national policies, despite facing increased competition[10]. - The company plans to expand its market presence by entering three new provinces in the upcoming year, aiming for a 10% increase in market share[19]. - The company plans to increase R&D investment in smart pipe technology, large-diameter pipes, and pipe network operation and repair, establishing a new growth area in the pipe network operation market[150]. - The company plans to leverage new market opportunities arising from national policies promoting infrastructure development, particularly in water and sewage treatment[144]. - The company aims to strengthen its pipe business by optimizing product performance and quality, covering various sectors including urban infrastructure and nuclear power, with production bases across key regions in China[149]. Research and Development - The company is committed to improving its research and development capabilities to enhance product performance and increase product value, aiming to escape low-price competition[10]. - The company is investing in R&D for advanced polymer materials, with a budget allocation of 100 million RMB for the next two years[19]. - The company has established a provincial-level academician expert workstation in collaboration with South China University of Technology, enhancing its R&D capabilities[71]. - The company applied for 4 utility model patents and 1 invention patent in 2020, reflecting its commitment to innovation[79]. - The company completed the development and testing of a new plastic structure wall leak-proof joint, which is expected to increase sales and reduce maintenance costs[82]. - The company successfully produced and deployed ultra-large diameter DN3300 pipes for marine engineering, with plans to develop even larger DN4000 pipes[82]. Risk Management - The company emphasizes the importance of risk assessment and management in its PPP projects to ensure the selection of high-quality, low-risk projects for stable advancement[12]. - The company is actively monitoring macroeconomic conditions and adjusting its investment and marketing strategies to adapt to customer needs and policy changes[8]. - The company is aware of risks related to raw material price fluctuations, particularly due to its reliance on petrochemical products, and plans to implement hedging strategies to stabilize costs[156]. - The company acknowledges ongoing risks from the COVID-19 pandemic and is committed to enhancing its core competitiveness to ensure stable growth[158]. - The company faces intensified competition in the plastic processing industry due to the entry of international brands and the need to maintain a competitive edge[159]. Corporate Governance and Financial Management - The company will not distribute cash dividends, issue bonus shares, or increase capital through reserves, indicating a focus on reinvestment[13]. - The company has not reported any uncertainty regarding its ability to continue as a going concern[28]. - The company has not proposed any cash dividend distribution plan for ordinary shares despite the positive profit[169]. - The company has committed to avoiding any competition with its own products or business operations from other controlled enterprises[171]. - The company has established a commitment to ensure that any related party transactions adhere to market standards and do not harm the interests of the company and its shareholders[174]. Infrastructure and PPP Projects - The company has made significant progress in developing its PPP business model, which is influenced by national infrastructure investment policies, but it faces risks due to the complexity and long cycles of PPP projects[12]. - The company is exploring new financing models, including PPP, to support infrastructure projects, which could potentially unlock an additional 200 million RMB in funding[19]. - The total investment for the PPP project in Quangang District is approximately 687.69 million yuan, with a cumulative completion amount of 311.27 million yuan as of December 31, 2020[100]. - The total investment for the water environment governance project in Dali, Yunnan, has been adjusted to approximately 1.55 billion yuan, with the company's share reduced from 79.98% to 1%[101]. Talent Development - The company emphasizes talent development, with a technical team that includes members with over 10 years of experience in the powertrain development field[70]. - The company is focused on enhancing its brand and quality to adapt to diverse market demands for plastic pipeline products[145]. - The company will strengthen internal management and talent development to support business growth and maintain a competitive edge in technology and innovation[152].