TONGDA STOCK(SZ:300321)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was ¥408,878,937.52, a decrease of 10.40% compared to ¥456,344,329.86 in 2019[19]. - Net profit attributable to shareholders was ¥20,280,449.67, down 48.61% from ¥39,463,064.32 in the previous year[19]. - The net cash flow from operating activities plummeted by 96.02% to ¥4,329,259.30, compared to ¥108,778,691.10 in 2019[19]. - Basic earnings per share decreased by 48.60% to ¥0.2284 from ¥0.4444 in 2019[19]. - Total assets at the end of 2020 were ¥742,491,577.48, a decline of 2.23% from ¥759,432,289.49 at the end of 2019[19]. - The company reported a total of ¥3,986,844.62 in non-recurring gains and losses for 2020, down from ¥5,786,441.86 in 2019[25]. - The total operating cost was ¥303,000,000, with raw materials accounting for 66.16% of the total[50]. - The company's foreign revenue was ¥153,037,694.27, which is 37.43% of total revenue, down 3.27% from the previous year[45]. - The total operating revenue for 2020 was ¥408,878,937.52, a decrease of 10.40% compared to ¥456,344,329.86 in 2019[44]. - The revenue from the ultra-fiber base fabric was ¥130,592,105.30, accounting for 31.94% of total revenue, down 4.62% from the previous year[44]. - The revenue from the ultra-fiber suede leather decreased by 19.28% to ¥112,377,625.67, representing 27.48% of total revenue[44]. - The gross profit margin for ultra-fiber suede leather was 20.15%, down 1.90% year-on-year[47]. - The company’s major customers accounted for 30.92% of total sales, with the top five customers generating ¥126,444,387.40 in sales[51]. - The company’s capital reserve at the end of the reporting period was 238,063,314.26 RMB[79]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2020, representing a year-over-year increase of 15%[152]. - The company has maintained a strong cash position with cash reserves of 500 million RMB as of the end of 2020[152]. Dividend Policy - The board approved a profit distribution plan, proposing a cash dividend of 2 RMB per 10 shares, based on a total of 88,800,000 shares[7]. - For the 2020 fiscal year, the company proposed a cash dividend of 2 RMB per 10 shares, amounting to 17,760,000 RMB (including tax), which represents 87.57% of the net profit of 20,280,449.67 RMB[79][83]. - The total distributable profit for 2020 was 18,252,404.70 RMB, with the cash dividend accounting for 100% of the profit distribution[78]. - The company has maintained a consistent dividend payout ratio, with the 2020 cash dividend representing over 20% of the distributable profits, in compliance with relevant regulations[80]. - The company has a cumulative undistributed profit of 266,694,258.72 RMB at the end of the reporting period[79]. - The cash dividend for 2018 was 0.6 RMB per 10 shares, totaling 5,328,000 RMB, which was 18.50% of the net profit[80][83]. - The cash dividend for 2019 was 4 RMB per 10 shares, totaling 35,520,000 RMB, which was 90.01% of the net profit[80][83]. - The company’s cash dividend policy is aligned with its articles of association and has been executed transparently and effectively, ensuring the protection of shareholders' rights[76]. Environmental and Regulatory Compliance - The company has implemented strict environmental control measures, exceeding national standards, to mitigate risks associated with increased environmental costs and potential energy supply disruptions[6]. - The company is closely monitoring the impact of environmental policies on its operations to mitigate risks related to energy and environmental compliance[6]. - The company implemented strict environmental protection measures, resulting in all pollutants meeting discharge standards throughout the year[40]. - The company does not fall under the category of key pollutant discharge units as per environmental protection regulations[113]. - The company has actively fulfilled its corporate social responsibility, focusing on environmental protection and the development of eco-friendly products[111]. - There were no penalties or rectification measures taken against the company during the reporting period[95]. - The company has maintained a good integrity status, with no significant debts due that have not been settled[96]. Operational Efficiency and Management - The company emphasizes the importance of a stable and skilled workforce to maintain its competitive edge and has implemented measures to protect core technologies[4]. - The company has established a customer credit management mechanism to minimize the risk of bad debts, linking sales collection performance to management compensation[7]. - The company has adopted refined management practices across various processes to control costs and improve efficiency[35]. - The company has a strong management team with experience in strategic development, production operations, and financial management, contributing to improved operational efficiency[36]. - The company has established a comprehensive talent management system for skill development and training, enhancing workforce capabilities[157]. - The company has maintained a stable management team with no significant changes in shareholding among current directors[143]. - The management team is composed of individuals with extensive experience in their respective fields, ensuring continuity in leadership[144]. - The company has established an independent financial department with a complete accounting system, ensuring financial independence and compliance with tax obligations[165]. - The company has not identified any significant internal control deficiencies during the reporting period[176]. - The audit committee effectively communicated with the auditing firm to ensure the independence and timely completion of the annual report audit[172]. Research and Development - New product development and technology promotion are critical for maintaining market leadership, but the company faces risks related to the failure of new product launches and market acceptance[6]. - The company is actively developing new products to meet consumer demands and expand applications in other fields, which may involve significant investment and risk[6]. - The company invested ¥20,482,397.97 in R&D, which is 5.01% of total revenue, a decrease of 11.55% from the previous year[54]. - The company emphasizes innovation and has increased R&D investment to enhance its technological capabilities, ensuring a strong talent and technology reserve for future development[36]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product quality and sustainability[152]. Market and Competitive Landscape - The company operates in the ecological ultra-fiber synthetic leather industry, which is experiencing gradual expansion in application across various sectors[29]. - The synthetic leather industry is facing stricter environmental regulations and resource utilization requirements, prompting a shift towards transformation and upgrading[30]. - The company is positioned to benefit from the shift towards eco-friendly synthetic leather, which is expected to grow faster than the average rate of the synthetic leather industry[32]. - The company is considering strategic acquisitions to enhance its product portfolio and market presence[152]. - Market expansion plans include entering two new provinces, projected to increase market share by 10%[152]. Shareholder and Governance Structure - The largest shareholder, Shandong Tongda Group Co., Ltd., holds 32.86% of the shares, totaling 29,180,769 shares[124]. - The second largest shareholder, Huasheng Baili Investment Development (Beijing) Co., Ltd., holds 10.95% of the shares, totaling 9,726,923 shares[124]. - The company has a total of 10 major shareholders, with the top three holding a combined 59.01% of the shares[125]. - The actual controller of the company is Sun Jun, who is also the chairman[127]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[94]. - The company has not engaged in any repurchase transactions during the reporting period[125]. - The company has three independent directors on its board, ensuring compliance with governance standards[160]. - Independent directors attended all required board meetings and shareholder meetings, with no absences reported[168]. - The company has undergone a board member change with the departure of four independent directors due to term expiration on May 12, 2020[140]. Future Outlook - Future outlook includes a focus on expanding product lines and enhancing operational efficiency to recover from revenue declines[199]. - The company has set a revenue guidance of 1.5 billion RMB for the next fiscal year, indicating an expected growth of 25%[152]. - New product launches are expected to contribute an additional 200 million RMB in revenue in the upcoming year[152].