TGC(SZ:300265)2021-04-18 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]. - Net profit attributable to shareholders increased by 118.72% to CNY 59,270,032.90 from CNY 27,098,966.84 in the previous year[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 rose to CNY 0.17, reflecting a 112.50% increase from CNY 0.08 in 2019[15]. - 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 in 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 the previous year[15]. - The weighted average return on equity for 2020 was 5.28%, an increase from 2.70% in 2019[15]. - The company reported a total of 14 million yuan in non-recurring gains for the year, with significant contributions from government subsidies and asset disposals[22]. 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 million yuan in Q4, indicating a significant increase in Q2[18]. - Domestic revenue accounted for 91.32% of total revenue, while international revenue increased by 47.64% to CNY 127.41 million[47]. Cost and Expenses - The total operating costs for 2020 amounted to RMB 1,098,268,748, with direct materials accounting for 87.09% and direct labor for 2.87%[57][58]. - The company reported a significant reduction in sales expenses by 29.30% to CNY 95.46 million, and management expenses decreased by 6.00% to CNY 72.90 million[43]. - The company experienced a 53.95% increase in manufacturing costs, which reached RMB 110,277,798, reflecting a shift in operational focus[58]. 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 maintained a focus on R&D for new products and technologies to meet the evolving demands of the telecommunications and power industries[25]. - The number of R&D personnel increased to 148, accounting for 12.06% of the total workforce[64]. Market Position and Products - The company’s main products include optical fiber cables, power cables, and equipment cables, which are widely used in telecommunications, power transmission, and aerospace applications[25]. - The company is recognized as one of the top ten competitive enterprises in China's optical fiber and cable industry, highlighting its strong market position[31]. - The company’s special optical cable products have a market share that has consistently ranked among the top in the industry[35]. Investment and Financing - The company raised a total of CNY 297,000,000.00 through a public offering of convertible bonds, with a net amount of CNY 286,971,981.13 after deducting issuance costs[82]. - The company has invested CNY 7,416,702.34 in a new project to produce 7,000 kilometers of fire-resistant cables, with a cumulative investment of CNY 49,248,302.34[77]. - The investment amount for the reporting period is CNY 11,416,702.34, a significant decrease of 87.22% compared to the previous year[75]. Corporate Governance - The company completed a board and supervisory committee reshuffle on December 18, 2020, with relevant shareholding adjustments made according to regulations[170]. - The company has established a commitment to ensure fair and reasonable transactions with related parties, adhering to market prices[122]. - The company has appointed Lixin Certified Public Accountants as its auditing firm, with an audit fee of 960,000 RMB, and has been with the firm for 8 years[130]. Risk Management - The company faces risks from intensified industry competition and fluctuations in raw material prices, particularly for aluminum and optical fibers[105][106]. - The company plans to strengthen credit management and collection efforts to mitigate the risk of bad debts, especially as accounts receivable levels remain high[107]. - The company has implemented measures to manage operational risks associated with rapid asset expansion, including improving management systems and internal controls[110]. Social Responsibility and Compliance - The company has established ISO9000 quality management system and ISO14001 environmental management system to control social impacts[160]. - The company has identified five key areas for public welfare support: local economic development, education and culture, healthcare, environmental construction, and charity[162]. - The company emphasizes compliance with legal regulations and has set performance indicators that exceed legal requirements in areas such as product design and safety[164]. Future Outlook - The company plans to enhance R&D capabilities and maintain a leading position in technology and product development[103]. - The 2021 operational plan includes addressing challenges from the pandemic and global economic fluctuations while focusing on market marketing, R&D, and human resources[102]. - Future outlook includes continued focus on expanding market presence and enhancing product offerings through innovation[160].