SNS(SZ:300470)2021-04-27 16:00Financial Performance - The company reported a total revenue of RMB 208,186,352 for the year 2020, with a cash dividend distribution of RMB 2 per 10 shares [7]. - The company's operating revenue for 2020 was ¥924,306,456.52, representing a 4.05% increase from ¥888,344,185.09 in 2019 [26]. - The net profit attributable to shareholders for 2020 was ¥210,940,711.63, a decrease of 4.49% compared to ¥220,845,973.44 in 2019 [26]. - The net profit after deducting non-recurring gains and losses was ¥189,012,287.75, down 13.68% from ¥218,972,646.01 in 2019 [26]. - The net cash flow from operating activities increased by 53.46% to ¥187,838,909.88 from ¥122,402,802.05 in 2019 [26]. - The total assets at the end of 2020 were ¥2,295,070,264.62, a 31.57% increase from ¥1,744,409,654.07 at the end of 2019 [26]. - The basic earnings per share for 2020 was ¥1.0941, a decrease of 4.52% from ¥1.1459 in 2019 [26]. - The diluted earnings per share for 2020 was ¥1.0845, down 5.35% from ¥1.1458 in 2019 [26]. - The company achieved significant new product application performance, including successful operation of dry gas seals for various ethylene projects, contributing to breaking foreign monopolies [68]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in Q3 2020, representing a 25% year-over-year growth [184]. Market Expansion and Strategy - The company plans to expand its market presence by targeting both incremental and existing markets, focusing on sectors such as petrochemicals and power generation [16]. - The company is actively exploring opportunities for mergers and acquisitions to strengthen its market position and expand its product portfolio [16]. - The company aims to enhance its product offerings by developing new sealing technologies, particularly in the area of non-contact mechanical seals [16]. - The company is focused on increasing its production capacity to meet the growing demand in both domestic and international markets [16]. - The company plans to expand production capacity through new product lines and upgraded manufacturing equipment at subsidiaries like Youtaike and Xindipei [63]. - The company is actively pursuing industry consolidation by identifying target enterprises with high synergy effects and good development prospects [59]. - The company aims to increase its domestic market share to over 10% and significantly enhance its international market presence in the next three to five years [164]. - The company plans to maintain an annual R&D investment of approximately 5% of revenue to ensure technological leadership in the industry [168]. - The company is considering strategic acquisitions to bolster its market position, with a target of completing at least one acquisition by mid-2021 [184]. Research and Development - The company has committed to ongoing research and development of high-parameter mechanical seals, which are designed to operate under more stringent conditions than industry standards [16]. - The company’s R&D model focuses on product upgrades and extensive basic technology research, optimizing designs for various operating conditions [46]. - The company has completed 42 major scientific research projects and obtained 208 authorized patents, including 25 invention patents and 183 utility model patents [55]. - The company has maintained high R&D investment, ensuring its leading position in product innovation and technology output in the sealing industry [52]. - The company's R&D investment totaled 41.27 million yuan, a year-on-year increase of 9.84%, accounting for 4.46% of operating revenue, with 12 new R&D projects initiated [72]. - The company is committed to high R&D investment to mitigate risks associated with new product development, ensuring alignment with market demands [177]. Risk Management - The company has identified potential risks in its operations and has outlined strategies to mitigate these risks in its annual report [7]. - The company recognizes risks related to revenue and profit growth due to potential economic downturns affecting the petrochemical industry [172]. - Rising accounts receivable pose risks of bad debts and liquidity issues; the company is focusing on credit control and improving cash flow management [177]. - The company is taking measures to control goodwill impairment risks post-acquisition, including performance commitments and enhancing oversight of acquired entities [178]. Production and Operations - The company operates under a direct sales model, participating in tenders and signing technical agreements with clients [42]. - The company’s production mode is primarily order-based, allowing for customized manufacturing to meet specific client needs [43]. - The company has established long-term stable partnerships with major clients including Sinopec, PetroChina, and Siemens, among others [42]. - The company has established a strong relationship with major clients in the oil and gas sector, which is expected to drive future revenue growth [16]. - The company is collaborating on the development of a large-scale customized industrial internet platform to enhance production efficiency and service quality [108]. Financial Management and Investments - The company has emphasized the importance of maintaining accurate financial reporting and has ensured compliance with national accounting standards [6]. - The company raised a net amount of approximately ¥445.76 million by issuing 11,494,252 shares, with ¥248 million allocated for acquiring 100% equity of Xindipei and its capital increase [59]. - The company has a clear and complete decision-making process for profit distribution, ensuring the protection of minority shareholders' rights [194]. - The company has effectively utilized the raised funds, ensuring no violations in the management and disclosure of the funds [145]. - The company has not undergone any major asset or equity disposals during the reporting period, ensuring stability in its operations [156]. Product Development and Innovation - The company has developed a complete high-end product line in the sealing industry, with significant breakthroughs in sealing technology, allowing its products to replace foreign counterparts in many areas [56]. - The company successfully developed a dry gas seal for the ethylene unit at Sinopec Maoming, breaking the foreign monopoly and reducing investment and maintenance costs for domestic enterprises [52]. - The company is advancing the development of dry gas seals for high-speed applications, filling a domestic gap and enhancing international competitiveness [108]. - The company is focusing on continuous product development and market expansion, with notable achievements in the pharmaceutical and environmental sectors [68]. Dividend Policy - The company distributed a cash dividend of 1.80 CNY per 10 shares, totaling 35,414,478.00 CNY (including tax) for the 2019 fiscal year [192]. - For the 2020 fiscal year, the company plans to distribute a cash dividend of 2.00 CNY per 10 shares, totaling 41,637,270.40 CNY (including tax) based on a total share capital of 208,186,352 shares [200]. - The total cash dividend for the year, including other methods, amounts to 41,637,270.40 CNY, which represents 100% of the distributable profit [198]. - The cash dividend policy complies with the company's articles of association and has been approved by the shareholders' meeting [194].