LSKJ(SZ:300680)2021-04-25 16:00Financial Performance - The company's operating revenue for 2020 was CNY 578,056,435.44, representing a 42.19% increase compared to CNY 406,552,174.51 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 53,669,453.56, which is an increase of 78.67% from CNY 30,039,092.35 in 2019[25]. - The net profit after deducting non-recurring gains and losses was CNY 49,611,261.73, up 102.65% from CNY 24,480,873.08 in 2019[25]. - The basic earnings per share for 2020 was CNY 0.40, an increase of 81.82% compared to CNY 0.22 in 2019[25]. - The total assets at the end of 2020 were CNY 1,390,877,871.77, a 39.49% increase from CNY 997,099,270.05 at the end of 2019[25]. - The net assets attributable to shareholders at the end of 2020 were CNY 816,416,718.35, which is a 49.20% increase from CNY 547,186,288.63 at the end of 2019[25]. - The net cash flow from operating activities for 2020 was CNY 44,072,277.96, a decrease of 32.31% from CNY 65,111,180.53 in 2019[25]. - The company reported a quarterly revenue of CNY 208,502,725.36 in Q4 2020, which was the highest among the four quarters[27]. - The net profit attributable to shareholders in Q4 2020 was CNY 23,724,048.15, showing strong performance in the last quarter[27]. Research and Development - The company emphasizes the importance of R&D in maintaining its industry-leading position, with a focus on developing EGR systems and related components[9]. - The company is committed to continuous improvement in its R&D capabilities to meet market demands and maintain competitiveness[10]. - The company acknowledges the potential technology gap compared to international leaders, which could impact future operations[10]. - The company has a strong focus on R&D, with a total of 550 patent applications, indicating a robust pipeline for future innovations in automotive technology[49]. - In 2020, the company applied for 30 patents, including 12 inventions, demonstrating its commitment to innovation and technology development in the automotive parts industry[49]. - The company has completed the development of several new products, including high-pressure EGR systems for light-duty diesel engines and various components for hydrogen fuel cell systems[78]. Market and Industry Trends - The demand for EGR products is expected to surge due to the implementation of the National VI emission standards starting July 1, 2020, for light vehicles and July 1, 2021, for heavy vehicles[40]. - The automotive market in 2020 saw a total production and sales volume of 25.23 million and 25.31 million vehicles, respectively, maintaining its position as the largest market globally[40]. - The strategic focus on domestic sourcing of automotive components is expected to enhance supply security and reduce costs, driven by the pandemic's impact on global supply chains[40]. - The company is focusing on the EGR system for both gasoline and diesel engines, capitalizing on the implementation of the National VI emission standards, which is expected to significantly increase the market size for EGR systems[42]. - The natural gas heavy-duty truck market is projected to account for 25% of the entire commercial vehicle market, driven by environmental policies and the increasing penetration of natural gas stations[41]. Subsidiaries and Acquisitions - The company has a full acquisition of Weiyan Precision, which may pose goodwill impairment risks if the subsidiary's performance deteriorates[11]. - The subsidiary, Weiyan Precision, has shown significant performance growth, successfully meeting its three-year performance commitments[57]. - The company aims to strengthen its management of subsidiaries to enhance profitability and ensure stable development[11]. Profit Distribution and Shareholder Information - The company reported a profit distribution plan, proposing a cash dividend of 1 RMB per 10 shares and a capital reserve increase of 4 shares per 10 shares[11]. - The proposed profit distribution plan for 2020 includes a cash dividend of RMB 1.00 per 10 shares, totaling RMB 14,417,956.30[113]. - The company plans to increase its share capital by 4 shares for every 10 shares held, resulting in a total increase of 57,671,825 shares[113]. - The cash dividend accounted for 100% of the total profit distribution amount[109]. - The company did not distribute any bonus shares in the current year[107]. - The net profit attributable to ordinary shareholders for 2020 was CNY 14,417,956.30, representing a 26.86% increase compared to CNY 7,431,272.10 in 2019[115]. Financial Management and Stability - The company has reported an increase in cash reserves due to the rise in bank acceptance bill guarantees, reflecting improved liquidity and financial stability[46]. - The company reported a significant increase in financing cash flow, with a net inflow of ¥218.46 million in 2020, compared to ¥19.02 million in 2019, representing a 1,048.44% increase[80]. - The total cash and cash equivalents increased by ¥11.43 million in 2020, reversing a decrease of ¥3.33 million in 2019, indicating improved cash inflow[80]. - The company has committed to ensuring the feasibility of projects and addressing any significant changes in project status[94]. Compliance and Governance - The company has established measures to avoid competition with its controlling subsidiaries, ensuring compliance with relevant laws and regulations[118]. - The company has committed to not transferring or managing its shares for a period of 30 months from the date of listing[116]. - The company will adhere to legal regulations and fulfill disclosure obligations to protect the interests of shareholders[120]. - The company has implemented an employee stock ownership plan approved in early 2019, managed by GF Securities Asset Management[144]. - The company maintains a good integrity status, with no significant debts or unfulfilled court judgments during the reporting period[143]. Future Outlook - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year, targeting 1.65 billion yuan[124]. - The company plans to expand its market presence in Southeast Asia, aiming for a 25% increase in market share within the next two years[123]. - The company has allocated 200 million yuan for research and development in the upcoming year to innovate new technologies[124]. - The company plans to implement a stock repurchase plan if its stock price falls below the audited net asset value per share for the previous fiscal year[131].