BAOSE(SZ:300402)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.09 billion, representing a 19.08% increase compared to ¥917 million in 2019[27]. - The net profit attributable to shareholders for 2020 was approximately ¥40.45 million, up 17.24% from ¥34.51 million in 2019[27]. - The net cash flow from operating activities increased significantly to approximately ¥54.96 million, a 326.44% increase from ¥12.89 million in 2019[27]. - The basic earnings per share for 2020 was ¥0.20, reflecting a 17.65% increase from ¥0.17 in 2019[27]. - The total assets at the end of 2020 were approximately ¥1.73 billion, a slight increase of 0.42% from ¥1.72 billion at the end of 2019[27]. - The net assets attributable to shareholders increased by 5.28% to approximately ¥681.77 million at the end of 2020, compared to ¥647.58 million at the end of 2019[27]. - The company reported a weighted average return on equity of 6.06% for 2020, up from 5.43% in 2019[27]. - The operating profit for the year was 35.54 million yuan, reflecting a growth of 29.58% compared to the previous year[64]. - The total profit reached 37.35 million yuan, marking a 24.15% increase year-on-year[64]. - The company reported a total non-operating income of CNY 9,268,815.60 in 2020, an increase of 22.5% from CNY 7,569,567.08 in 2019[33]. Market Strategy and Expansion - The company aims to expand into strategic emerging markets such as military, environmental protection, new energy, and marine engineering, while enhancing its R&D capabilities to improve product value and maintain competitive advantages[8]. - The company is focused on retaining core technical personnel through improved compensation and career development opportunities to combat talent loss in a competitive market[14]. - The company aims to expand into emerging markets such as renewable energy, environmental protection, and military industries while maintaining its traditional chemical equipment market[45]. - The company is positioned to benefit from the ongoing structural reforms and increasing quality demands in the downstream chemical and power industries[48]. - The company plans to continue integrating party activities with core business operations to drive production and operational efficiency[78]. - The company aims to maintain stable order growth by leveraging market opportunities and enhancing customer relationships, ensuring a solid foundation for high-quality development[133]. Risk Management - The company has a high concentration of accounts receivable due to large project contracts, which poses a risk of bad debts if clients face financial difficulties[11]. - The company will implement measures to strengthen project management and enhance the collection of accounts receivable to mitigate risks associated with long payment terms[12]. - The company has established a sound internal management and control system, enhancing corporate governance structure and risk prevention capabilities[199]. - The company enhanced internal controls and risk management practices to ensure compliance and operational efficiency[75]. Research and Development - The company invested over 40 million yuan in R&D during the reporting period, obtaining 6 invention patents and applying for 4 utility model patents[56]. - The company has advanced manufacturing equipment and capabilities, with over 70 lifting devices and a maximum lifting capacity of 1,000 tons[57]. - The company is developing a digital welding system platform based on industrial internet and artificial intelligence to enhance automation and intelligence in production[98]. - The company has accumulated over 40 advanced technologies in the manufacturing of large and heavy special equipment, achieving multiple breakthroughs in the field[55]. Production and Operations - The company operates on an "order-based production" model, customizing products according to specific customer requirements, with a production cycle generally ranging from 6 to 12 months[37][42]. - The company maintained strong order volumes despite production challenges due to the pandemic, focusing on resource coordination and management to meet annual operational goals[69]. - The company implemented a production scheduling strategy to mitigate pandemic-related delays, ensuring efficient resource allocation and supply chain coordination[70]. - The company has established a strong market presence, with sales contracts typically settled through a combination of advance payments, progress payments, and final payments[38]. Financial Management and Dividends - The profit distribution plan approved by the board includes a cash dividend of 5.00 yuan per 10 shares, based on a total of 202,000,000 shares[15]. - The cash dividend represents 100% of the distributable profit, with a net profit of RMB 40,453,427.47 for the year 2020[149]. - The cash dividend payout ratio for 2020 was 249.67% of the net profit attributable to the parent company[154]. - The company will not issue new shares or increase capital reserves this year, focusing instead on cash dividends[150]. Compliance and Governance - The company has committed to avoiding competition with its controlling group and ensuring compliance with relevant laws and regulations[155][156]. - The company guarantees compliance with laws and regulations, ensuring no misuse of shareholder rights that could harm the company or other shareholders[159]. - The company has established strict adherence to the Shenzhen Stock Exchange's regulations and will cooperate fully with regulatory requirements[159]. - The company has committed to maintaining transparency and accountability in its operations, including timely disclosures to the Shenzhen Stock Exchange[163]. Industry Outlook - The market for pressure vessels in China is projected to reach 402.8 billion yuan by 2026, indicating substantial future growth potential[120]. - The ongoing supply-side structural reforms are expected to accelerate the elimination of outdated production capacity, further increasing market concentration and providing opportunities for leading enterprises[122]. - The promotion of clean energy sectors such as nuclear power and solar energy is anticipated to significantly boost the pressure vessel industry, with non-standard pressure vessels being crucial in the production processes[124]. - The defense modernization strategy during the 14th Five-Year Plan is expected to enhance the demand for marine engineering equipment, creating substantial market opportunities[126].