LZJT(SZ:300428)2021-04-27 16:00Financial Performance - The company reported a total revenue of 599,753,858 RMB for the year 2020, with a cash dividend of 0.84 RMB per 10 shares distributed to shareholders[5]. - The company's operating revenue for 2020 was ¥13,391,595,979.21, a decrease of 2.00% compared to the adjusted revenue of ¥13,664,501,693.57 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥432,572,332.67, representing a decline of 27.59% from the adjusted net profit of ¥597,370,821.50 in 2019[24]. - The net cash flow from operating activities decreased by 45.89% to ¥362,572,860.91 in 2020, down from ¥670,084,975.71 in 2019[24]. - The basic earnings per share for 2020 was ¥0.75, a decrease of 29.25% compared to ¥1.06 in 2019[24]. - The total profit for 2020 was CNY 575,002,952.00, down 27.97% year-on-year, while net profit attributable to shareholders was CNY 432,572,332.67, a decline of 27.59%[66]. - The gross profit margin for the company was 10.65%, down by 2.79% compared to the previous year[85]. - The company reported a significant increase in other product categories, with a 52.00% increase in other revenues[84]. Market Expansion and Product Development - The company plans to expand its market presence and enhance its product offerings, focusing on new alloy materials and recycling technologies[5]. - The company is positioned as a global supplier of lightweight alloy new materials and automotive lightweight components, with three main business segments: functional intermediate alloy new materials, cast aluminum alloy materials, and aluminum alloy wheels[36]. - The company is actively expanding into the lightweight market for new energy vehicles, having established stable partnerships with numerous leading new energy vehicle manufacturers[39]. - The company is developing high-strength, lightweight aluminum alloy wheels for commercial vehicles, successfully overcoming technical challenges in producing large-sized lightweight wheels[39]. - The company is enhancing its product variety and upgrading its product structure to achieve a full manufacturing goal for aluminum alloy cast and forged components for automotive lightweighting[40]. - The company is focusing on the development of lightweight automotive components and plans to enhance production capabilities in Thailand and Mexico[153]. Research and Development - The company has a research and development team of over 50 members, including doctors and experts, and has established multiple research platforms, enhancing its R&D capabilities[59]. - R&D investment in 2020 was ¥339,792,466.69, representing 2.54% of operating revenue, with a total of 461 new product designs developed[100][103]. - The company holds 17 invention patents and 58 utility model patents in the field of functional intermediate alloy new materials, and 213 patents in casting aluminum alloy materials, including 44 invention patents[59][60]. - The company is developing a high-end aluminum grain refining agent with a gross margin of approximately 40%, which is expected to enhance profitability[67]. - A new production line for high-end grain refining agents, with a capacity of 25,000 tons, is expected to be operational in 2021, aiming to meet the growing demand in the high-end aluminum market[149]. Production and Capacity - The company produced 74.54 million tons of casting aluminum alloy in 2020, with recycled aluminum alloy production reaching 46.16 million tons, marking a year-on-year increase of 6.8%[49]. - The company has a production capacity of 18 million aluminum alloy wheels, with a mold production capacity of 12,000 sets and assembly capacity of 3 million sets[56]. - The company plans to achieve the production capacity of 2.6 million lightweight aluminum alloy wheels by December 31, 2021[128]. - The actual investment in the project for producing 400,000 lightweight aluminum alloy wheels and 1 million high-strength aluminum suspension components was RMB 43.1198 million, representing 25.86% of the planned investment[136]. Strategic Partnerships and Acquisitions - The company completed the acquisition of the controlling stake in Lichong Alloy, enhancing its capabilities in the functional intermediate alloy, casting aluminum alloy, and aluminum alloy wheel sectors, forming a complete industrial chain[66]. - The company has formed long-term stable strategic partnerships with numerous well-known automotive manufacturers, improving its competitive edge[61]. - The company reported a cash acquisition of Tianjin New Lichun Alloy Group, contributing a net profit of 69.5981 million yuan[147]. Risk Management - The company faces risks from raw material price fluctuations and plans to improve pricing mechanisms and inventory management to mitigate these risks[154]. - The company is also addressing foreign exchange risks due to its international operations and will utilize forward foreign exchange contracts to manage these risks[154]. - The company is closely monitoring international trade environment changes, particularly the uncertainties in US-China trade relations, to mitigate potential risks[155]. Shareholder Returns and Corporate Governance - The board of directors has approved a profit distribution plan, indicating a commitment to returning value to shareholders while maintaining growth strategies[5]. - The company reported a cash dividend of RMB 50,379,324.07 for the year 2020, which represents 11.65% of the net profit attributable to shareholders[161]. - The cash dividend per 10 shares is RMB 0.84 (including tax), with no bonus shares or capital reserve conversion planned[161]. - The management is committed to improving corporate governance and talent acquisition to address risks associated with business expansion[155].