TGC(SZ:300265)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,467,452,342.74, a decrease of 0.57% compared to CNY 1,475,903,362.50 in 2019[15] - The net profit attributable to shareholders in 2020 was CNY 59,270,032.90, representing an increase of 118.72% from CNY 27,098,966.84 in 2019[15] - The net profit after deducting non-recurring gains and losses was CNY 45,265,907.55, up 136.89% from CNY 19,108,511.38 in 2019[15] - The basic earnings per share for 2020 was CNY 0.17, an increase of 112.50% compared to CNY 0.08 in 2019[15] - The total assets at the end of 2020 were CNY 2,511,019,466.45, a slight decrease of 0.46% from CNY 2,522,618,732.01 at the end of 2019[15] - The net assets attributable to shareholders increased by 22.38% to CNY 1,301,603,908.30 from CNY 1,063,616,824.58 in 2019[15] - The net cash flow from operating activities was CNY 58,588,949.04, down 64.05% from CNY 162,994,921.71 in 2019[15] - The weighted average return on equity for 2020 was 5.28%, an increase from 2.70% in 2019[15] Revenue Breakdown - The company's total revenue for the year was approximately 1.47 billion yuan, with a quarterly breakdown of 213.21 million yuan in Q1, 423.83 million yuan in Q2, 412.95 million yuan in Q3, and 417.46 million yuan in Q4[18] - The net profit attributable to shareholders was 1.45 million yuan in Q1, 31.69 million yuan in Q2, 16.12 million yuan in Q3, and 10.00 million yuan in Q4, indicating a significant increase in Q2[18] - The net cash flow from operating activities showed fluctuations, with a negative cash flow of 60.04 million yuan in Q1, a positive flow of 62.01 million yuan in Q2, a negative flow of 17.27 million yuan in Q3, and a positive flow of 73.88 million yuan in Q4[18] Government Support - The company received government subsidies amounting to 15.11 million yuan in 2020, which is a significant increase from 10.17 million yuan in 2019[21] Market Position and Industry - The company operates primarily in the fiber optic cable, power cable, and equipment cable sectors, serving industries such as telecommunications, power, and military[25] - The total investment in the power sector reached 994.4 billion yuan in 2020, with a year-on-year growth of 9.6%[26] - The average price of ordinary optical cables decreased by approximately 30% during the concentrated procurement by telecom operators in the second half of 2020[27] - The company is positioned to benefit from the accelerated approval of ultra-high voltage projects, which are expected to enhance the construction of power transmission channels[27] - The company’s main customers include major power grid companies and telecom operators, indicating a strong market presence in the cable supply chain[26] Research and Development - Research and development expenses amounted to CNY 61.30 million, representing 4.18% of operating revenue, with 31 projects and 27 new patents authorized[40] - The company has ongoing R&D projects, including the development of low-loss OPGW cables and various underwater cable technologies[61] - The company aims to enhance its R&D capabilities by increasing the recruitment of skilled personnel and expanding its R&D team[109] Operational Efficiency - The company reduced sales expenses by 29.30% to CNY 95.46 million, and management expenses decreased by 6.00% to CNY 72.90 million[43] - The gross profit margin for the cable manufacturing industry was 25.16%, with a slight decrease of 0.52% year-on-year[50] - The company has established a structured management system to support its growing scale and ensure effective operations[110] Customer and Supplier Relations - The top five customers contributed RMB 328,583,718, accounting for 22.39% of total annual sales, with no related party sales[59] - The top five suppliers accounted for RMB 412,784,422, representing 43.43% of total annual purchases[60] - The company has established stable cooperative relationships with major clients such as State Grid and China Southern Power Grid, ensuring a solid customer base for revenue growth[36] Financial Management - The company has not reported any significant discrepancies between financial data disclosed under international and Chinese accounting standards[18][19] - The company has not experienced any significant changes in its business, products, or services during the reporting period[58] - The company has not sold any significant assets during the reporting period[96] - The company has not sold any significant equity during the reporting period[97] Shareholder Commitments - The performance commitment for the years 2017, 2018, and 2019 was to achieve net profits of no less than 6.304 million, 7.9092 million, and 11.8638 million yuan respectively, totaling at least 26.077 million yuan[121] - The commitment from shareholders states that during their tenure, they will not transfer more than 25% of their total shares held each year, and within six months after leaving, they will not transfer any shares[121] - The company has made commitments to protect the interests of minority shareholders and ensure compliance with relevant laws and regulations[124] Legal and Compliance - The company has faced several lawsuits, with amounts involved including 2,996.3 million RMB and 885.64 million RMB, all of which have been resolved or settled[132] - The company has not issued any non-standard audit reports during the reporting period[127] - The company has not made any significant changes in its financial forecasts for assets or projects during the reporting period[125] Future Outlook - The company plans to enhance R&D investment and develop new products to maintain a competitive edge in the market[103] - The company expects a revenue growth of 12% for the upcoming fiscal year, projecting a total revenue of approximately 1.68 billion RMB[199] - The management team emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[199]