YongLi(SZ:300230)2021-04-27 16:00Financial Performance - The company reported a net profit attributable to the parent company of -544,777,190.65 CNY for the year, with a net profit of 193,015,082.88 CNY after excluding goodwill impairment[4]. - Goodwill impairment provision of 737,792,273.53 CNY was made due to the impact of the COVID-19 pandemic and market conditions on subsidiaries[4]. - The company's operating revenue for 2020 was CNY 3,208,881,015.95, a decrease of 1.67% compared to CNY 3,263,291,435.97 in 2019[27]. - The net profit attributable to shareholders was a loss of CNY 544,777,190.65, representing a decline of 306.65% from a profit of CNY 263,628,568.10 in the previous year[27]. - The net cash flow from operating activities was CNY 508,389,894.23, showing a slight increase of 0.96% from CNY 503,569,200.53 in 2019[27]. - The total assets at the end of 2020 were CNY 4,033,435,031.33, down 12.44% from CNY 4,606,278,418.76 at the end of 2019[27]. - The net assets attributable to shareholders decreased by 31.56% to CNY 2,179,520,299.41 from CNY 3,184,462,018.77 in 2019[27]. - The basic earnings per share for 2020 was -CNY 0.6675, a decrease of 306.66% compared to CNY 0.3230 in 2019[27]. - The company reported a quarterly revenue of CNY 939,936,455.49 in Q4 2020, which was the highest among the four quarters[30]. - The company experienced a significant loss in Q4 2020, with a net profit attributable to shareholders of -CNY 711,682,227.98[30]. - The company’s weighted average return on equity was -20.06% in 2020, down from 8.47% in 2019[27]. - The revenue after deducting non-recurring gains and losses was CNY 3,113,294,943.14 for 2020, compared to CNY 3,156,909,677.64 in 2019[27]. - In 2020, the company reported a non-operating income of CNY 15,120,892.96, a significant decrease from CNY 139,431,795.79 in 2019, primarily due to losses from non-current asset disposals[33]. - The company received government subsidies amounting to CNY 40,408,706.32 in 2020, an increase of 40.7% compared to CNY 28,722,342.59 in 2019[33]. Business Segments and Operations - The main business segments include lightweight conveyor belts and high-end precision molded products, with applications across various industries such as food processing, logistics, and automotive[35]. - The lightweight conveyor belts are produced using various materials, including PVC and thermoplastic elastomers, and are utilized in sectors like food, logistics, and construction[37]. - The precision molded products are primarily used in automotive and home appliance industries, with significant demand for components like dashboards and appliance casings[39]. - The company has expanded its precision molding capabilities, producing components for consumer electronics and medical devices, indicating a diversification of its product offerings[39]. - The production process for lightweight conveyor belts involves multiple stages, including mixing, calendering, and coating, ensuring high-quality output[42]. - The precision molding process includes design, mold manufacturing, and assembly, highlighting the company's focus on advanced manufacturing techniques[44]. - The company aims to enhance its market presence through continuous innovation in product development and technology[35]. - Future outlook includes potential market expansion and strategic initiatives to improve operational efficiency and product offerings[35]. - The company adopts a direct sales model in the domestic market and a distributor-based model in overseas markets to enhance market share and leverage local distributors' strengths[46]. - The lightweight conveyor belt industry is experiencing a shift towards higher precision products and energy-saving standards, leading to increased market demand[54]. - The company has established multiple overseas subsidiaries through joint ventures and acquisitions in countries such as the Netherlands, Poland, and the United States to expand its international brand presence[57]. - The precision molding business targets high-end brands in the automotive and home appliance sectors, providing integrated services from design to just-in-time delivery[58]. - The company aims to achieve significant growth in the plastic processing industry, with a goal to meet high-end market demands by 2025[58]. - The lightweight conveyor belt market is gradually replacing rubber conveyor belts due to lower weight, higher efficiency, and reduced environmental impact[54]. - The company focuses on R&D and technology accumulation to compete with international leaders in the lightweight conveyor belt sector[57]. - The precision molding segment has diversified into industries such as consumer electronics and medical devices, serving well-known domestic and international clients[59]. - The company is positioned to benefit from the transition of the plastic processing industry from high-speed growth to stable mid-speed growth[58]. - The lightweight conveyor belt industry is characterized by a large number of small-scale enterprises, with the company striving to enhance its competitive edge through technological advancements[56]. - The automotive molding business experienced a 42.4% decline in sales in Q1 2020 due to the pandemic, but saw a recovery in Q2, narrowing the annual cumulative decline[60]. Market and Economic Conditions - The retail market for white goods and kitchen appliances in China reached RMB 448.7 billion in 2020, a year-on-year decrease of 11.9%, with specific categories like refrigerators and air conditioners seeing declines of 3.3% and 22% respectively[61]. - The company’s fixed assets decreased due to accumulated depreciation, while intangible assets increased due to the acquisition of 100% equity in Shanghai Gongchan[64]. - Cash and cash equivalents slightly increased, primarily due to cash inflows from daily operations[64]. - The company established subsidiaries in various locations, including Qingdao and Guangdong, to enhance service networks and market reach[71]. - The company has developed a comprehensive research system for lightweight conveyor belts, combining independent and collaborative R&D efforts[66]. - The management team possesses extensive industry experience, enabling the company to adapt quickly to market dynamics and customer needs[67]. - The company’s products have passed ISO9001:2015 certification, ensuring high quality and competitive pricing compared to both domestic and imported products[69]. - The company reported a decrease in goodwill due to impairment provisions for certain subsidiaries[64]. - The overseas asset R.F. Clarke Ltd. reported a net loss of RMB 73,400, representing 0.13% of the company's net assets[65]. - The company achieved operating revenue of CNY 320,888.10 million, a year-on-year decrease of 1.67% due to the impact of the pandemic[84]. - The company reported a net profit attributable to shareholders of CNY -54,477.72 million, a year-on-year decrease of 306.65%, primarily due to goodwill impairment of CNY 73,779.23 million[84]. - The precision molding business segment, Yingdong Molding, generated operating revenue of CNY 133,977.07 million, a year-on-year decrease of 0.64%, accounting for 41.75% of total revenue[89]. - The precision molding business segment, Wei Feng International, reported operating revenue of CNY 108,392.06 million, a year-on-year decrease of 10.67%, representing 33.78% of total revenue[90]. - The lightweight conveyor belt business achieved operating revenue of CNY 78,518.97 million, a year-on-year increase of 11.94%, accounting for 24.47% of total revenue[86]. - The company’s net cash flow from operating activities was CNY 50,838.99 million, a year-on-year increase of 0.96%[84]. - Yingdong Molding's net profit attributable to shareholders was CNY 3,318.34 million, a year-on-year decrease of 36.14% due to increased asset impairment provisions[89]. - Wei Feng International's net profit attributable to shareholders was CNY 11,575.34 million, a year-on-year decrease of 37.86% due to declining sales and changes in product structure[90]. - The company established a subsidiary in Chengdu to enhance its marketing network and expand market share[91]. - The company is focusing on strengthening cash flow management to enhance its risk resistance capabilities amid challenging economic conditions[91]. Research and Development - The company received 50 utility model patents and 6 invention patents during the reporting period, further strengthening its R&D capabilities[93]. - The company plans to build a lightweight conveyor belt R&D center and headquarters, enhancing its R&D capabilities and brand value[96]. - The company invested a total of ¥121,827,909.58 in R&D, accounting for 3.80% of the operating revenue[119]. - A total of 45 patent applications were submitted, including inventions related to conveyor belts and injection molding technology[119]. - The company obtained 56 patents, including significant innovations in conveyor belt technology and processing methods[121]. - The company has developed 47 new utility model patents in 2020, focusing on various automotive components and manufacturing equipment[122]. - Key innovations include an automatic metal buckle installation device and ultrasonic welding fixtures, enhancing production efficiency[122]. - The company aims to strengthen its market position through continuous R&D and the introduction of new technologies[122]. - The patents cover a range of applications, including battery assembly, injection molding, and automotive parts, indicating a broad scope of innovation[122]. - The company is committed to maintaining a 10-year protection period for its newly developed patents, ensuring long-term competitive advantage[122]. - The focus on self-developed technologies reflects the company's strategy to reduce reliance on external suppliers and enhance product quality[122]. - The introduction of new products is expected to drive revenue growth and expand market share in the automotive sector[122]. - Continuous investment in R&D is anticipated to yield further advancements and improvements in manufacturing processes[122]. - The strategic emphasis on innovation aligns with the company's long-term vision of becoming a leader in the automotive supply chain[122]. - In 2020, the company's R&D investment amounted to ¥121,827,909.58, representing 3.80% of total revenue, an increase from 3.26% in 2019[124]. - The number of R&D personnel in 2020 was 708, accounting for 13.15% of the total workforce, up from 12.33% in 2019[124]. Corporate Governance and Compliance - The company has no related party transactions with its top customers and suppliers, ensuring independence in its business operations[116]. - The company has made a long-term commitment to avoid any competitive business activities with its related parties following the acquisition of 100% equity in Qingdao Yingdong Molding Technology Group Co., Ltd[177]. - The controlling shareholders have pledged to maintain the independence of the listed company in terms of personnel, assets, finance, and operations[177]. - The company’s management has committed to measures to mitigate the dilution of immediate returns from non-public offerings, including restrictions on personal benefits and consumption behaviors[177]. - The company has ensured that any related party transactions will be conducted at fair market prices to protect the interests of all shareholders[176]. - The company has established a commitment to avoid any conflicts of interest during the acquisition process, ensuring no preferential treatment in business dealings[176]. - The company’s controlling shareholders have agreed to take necessary actions to prevent any competitive business operations that may arise post-acquisition[177]. - The company has committed to linking the compensation system of its board and senior management to the execution of return measures[177]. - The company has ensured that any necessary competitive business activities will be ceased or transferred to third parties to maintain compliance with its commitments[177]. - The company has reported no violations of the aforementioned commitments during the reporting period[176]. - The company reported a significant adjustment in its financial statements due to the implementation of the new revenue recognition standards, impacting the balance sheet with a reclassification of prepayments amounting to CNY 39,792,632.23 and an increase in contract liabilities by CNY 37,409,194.09[183]. - The total operating costs for the year were reported at CNY 2,409,495,438.92, which reflects an increase of CNY 68,629,630.76 compared to the previous accounting standards[186]. - The company expanded its consolidated financial reporting scope by adding 6 new entities, including Shanghai Gongchan Nonferrous Metals Co., Ltd. and R.F. Clarke Ltd., due to non-same control mergers and new establishments[187]. - The company has appointed Da Hua Certified Public Accountants (Special General Partnership) for 10 years, with an audit fee of RMB 2 million[188]. - The company reported no bankruptcy reorganization matters during the reporting period[189]. - There is an ongoing lawsuit involving a rental dispute in Thailand, with a claimed amount of RMB 3.95 million, and the first appeal was lost[190]. - The company had no penalties or rectification issues during the reporting period[191]. - The integrity status of the company and its controlling shareholders is good, with no significant debts unpaid[192]. - The company did not implement any employee stock ownership plans or other incentive measures during the reporting period[193]. - The actual amount of related party transactions with Xinba Technology was RMB 11.51 million, which is 1.47% of similar transactions and did not exceed the approved limit of RMB 20 million[195]. - The company entered into a lease agreement for 113,031.45 square meters of property with a monthly rent of RMB 2.94 million, effective from January 1, 2020, to December 31, 2022[199]. - The total related lease amount with Baihui Manufacturing for the reporting period was RMB 33.92 million[199].