EASA(SZ:300215)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was ¥702,297,589.56, a decrease of 12.90% compared to ¥806,336,621.48 in 2019[19]. - The net profit attributable to shareholders for 2020 was ¥86,631,780.66, down 47.98% from ¥166,542,721.85 in 2019[19]. - The net profit after deducting non-recurring gains and losses was ¥62,695,054.95, a decline of 57.33% from ¥146,914,712.78 in 2019[19]. - The net cash flow from operating activities was ¥481,327,618.59, a decrease of 3.02% compared to ¥496,310,217.80 in 2019[19]. - The total assets at the end of 2020 were ¥4,102,525,083.90, an increase of 12.34% from ¥3,651,870,338.26 at the end of 2019[19]. - The net assets attributable to shareholders decreased by 13.84% to ¥1,817,508,430.77 from ¥2,109,355,371.08 at the end of 2019[19]. - The basic earnings per share for 2020 was ¥0.11, down 50.00% from ¥0.22 in 2019[19]. - The diluted earnings per share for 2020 was also ¥0.11, reflecting the same 50.00% decrease from ¥0.22 in 2019[19]. - The operating profit for the year was CNY 97.03 million, down 48.68% year-on-year[69]. - Total profit amounted to CNY 94.21 million, reflecting a decline of 50.10% compared to the previous year[69]. - The net profit for the year was CNY 87.27 million, a decrease of 47.85% year-on-year[69]. - The company faced significant revenue decline in the first half of 2020 due to the impact of the COVID-19 pandemic[69]. Investment and Assets - The total fixed assets and construction in progress reached CNY 2.933 billion by the end of the reporting period, indicating a significant investment in modern electrical testing facilities[5]. - Fixed assets decreased by 4.78% from CNY 2,452.67 million at the beginning of the period to CNY 2,335.50 million at the end of the period, primarily due to increased depreciation expenses[46]. - Construction in progress increased by 17.73% from CNY 480.42 million at the beginning of the period to CNY 565.61 million at the end of the period, driven by investments in new testing systems and projects[46]. - The company has ongoing significant non-equity investments, with a focus on technology and service sectors[120]. - The company’s investment in the R&D testing workshop reached ¥33,521,800, with a cumulative investment of ¥121,209,000[120]. - The total amount of funds raised by the company was RMB 529,999,995.21, with a net amount of RMB 515,661,672.72 after deducting underwriting and other fees[126]. - The company has not utilized any of the raised funds for purposes outside the originally stated projects, maintaining full compliance with the investment commitments[127]. Market and Industry Trends - The company faces risks of market contraction in electrical testing services due to potential downturns in the power and electrical equipment manufacturing industries, which are influenced by macroeconomic conditions[5]. - The electrical testing industry in China is experiencing rapid growth, driven by investments in smart grids and ultra-high voltage projects, with significant market potential expected in the future[34]. - The expected annual growth rate of national electricity demand during the 14th Five-Year Plan period is approximately 4.4%[34]. - The company is positioned to benefit from the increasing demand for testing services in various sectors, including new energy and smart manufacturing[38]. - The market size of China's electric power testing industry grew from RMB 21.25 billion in 2014 to RMB 54.85 billion in 2020, with a compound annual growth rate (CAGR) of 14.5%[39]. - The electric power testing industry in China is expected to continue growing at a rate of 12.8% annually, reaching approximately RMB 82.9 billion by 2023[39]. Research and Development - The company has maintained a leading position in the electric testing market, ranking among the top in total assets, revenue, and market share in high and low voltage electrical testing from 2018 to 2020[41]. - The company completed various testing tasks for domestic and international enterprises, including high and low voltage electrical equipment testing[30]. - The company actively participated in the development of national standards, completing drafts for three industry standards in 2020, including the "General Principles for Reliability Evaluation of Machine Tool Electrical Equipment"[55]. - The company added 31 new patents in 2020, including inventions related to "wire-wound non-inductive resistor detection devices" and "new types of impact large current non-inductive resistors"[59]. - The company is focused on protecting its intellectual property through ongoing patent applications, with 33 new patents filed as of the reporting period[59]. - The company has emphasized the importance of research and development in its strategy, with a significant number of patents aimed at improving electrical safety and efficiency[60]. Testing Capabilities and Services - The company is enhancing its testing capabilities through the construction of advanced high and low voltage electrical testing systems, which are expected to drive revenue growth in the testing business[5]. - The company has established a "one-stop" service model for electrical testing, providing comprehensive testing services for both high and low voltage electrical products[42]. - The company is recognized as the only independent third-party testing institution in China capable of conducting both high and low voltage electrical testing[42]. - The company completed the commissioning of its 1200kV synthetic circuit testing system and enhanced its testing capabilities for high-capacity transformers and generators during the reporting period[41]. - The company has obtained the qualification to provide services to the China National Nuclear Corporation, enhancing its capabilities in nuclear equipment testing[36]. - The company is preparing to contribute to national energy security by developing testing services for high-voltage and nuclear electrical equipment[36]. Financial Management and Strategy - The company plans to distribute a cash dividend of CNY 1.2 per 10 shares, based on a total of 749,094,187 shares, with no bonus shares issued[6]. - The company aims to enhance its quality management practices to create greater value for shareholders and customers[81]. - The company plans to continue expanding its market presence and improving investor relations through various communication channels[82]. - The company has a total debt balance of 2.042 billion RMB, accounting for 89.99% of its total liabilities, with short-term borrowings of 540 million RMB and long-term borrowings of 795 million RMB as of December 31, 2020[142]. - The company is actively seeking to optimize its debt structure and reduce financial pressure through various financing channels[144]. - The company plans to issue corporate bonds totaling up to RMB 700 million, with the first phase of issuance completed at RMB 300 million and a coupon rate of 5.00%[150]. Corporate Social Responsibility - The company donated 2 million yuan to support COVID-19 prevention efforts through the Wuzhong District Red Cross on February 20, 2020[189]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[199]. - The company continues to focus on maintaining shareholder value through strategic commitments and adherence to regulations[199].