电工合金(300697) - 2020 Q4 - 年度财报

Dividend Distribution - The company plans to distribute a cash dividend of 4 RMB per 10 shares to all shareholders, based on a total of 208 million shares[5]. - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 83,200,000 for the year 2020[113]. - The company distributed cash dividends of RMB 49,920,000 in the first half of 2020, at a rate of RMB 2.4 per 10 shares[115]. - In 2019, the cash dividend distributed was RMB 12,480,000, at a rate of RMB 0.6 per 10 shares[114]. - The cash dividend payout ratio for 2020 is 115.21% of the net profit attributable to the parent company[116]. - The company has not proposed a stock dividend for the year 2020, opting instead for a capital reserve increase of 6 shares for every 10 shares held[113]. - The total undistributed profits as of December 31, 2020, amount to RMB 103,730,635.36[113]. - The company has maintained a consistent cash dividend policy over the past three years, with varying amounts distributed each year[114]. - The cash dividends for 2018 and 2019 were RMB 49,920,000 and RMB 12,480,000, respectively, reflecting a commitment to shareholder returns[116]. - The company’s profit distribution policy emphasizes reasonable returns to public shareholders while ensuring sustainable development[117]. - The company adopts a fixed ratio policy for cash dividends, distributing at least 10% of the distributable profits each year[118]. - In mature stages without significant capital expenditures, cash dividends should constitute at least 80% of the profit distribution; if there are significant expenditures, this minimum drops to 40%[120]. - The company can issue stock dividends if operating conditions are good, with continuous growth in revenue and net profit[119]. - The company must conduct profit distribution at least once a year, within two months after the annual shareholders' meeting approval[120]. - Any adjustments to the profit distribution policy must prioritize shareholder interests and comply with regulations from the China Securities Regulatory Commission[120]. - The company’s cash dividend policy requires a special resolution from the shareholders' meeting if it cannot adhere to the established minimum cash dividend ratio[120]. - The board of directors must provide a detailed explanation if the cash dividend ratio does not meet the stipulated requirements[120]. - Shareholders who illegally occupy company funds will have their cash dividends deducted to repay the occupied funds[120]. Financial Performance - The company's operating revenue for 2020 was ¥1,606,486,263.39, a decrease of 14.45% compared to ¥1,877,878,188.62 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥115,544,471.04, down 10.42% from ¥128,989,700.36 in 2019[18]. - The net cash flow from operating activities was negative at -¥21,401,996.75, a decline of 113.33% compared to ¥160,599,058.76 in 2019[18]. - The total assets at the end of 2020 were ¥1,279,618,193.23, an increase of 3.64% from ¥1,234,722,913.81 at the end of 2019[18]. - The net assets attributable to shareholders increased by 6.63% to ¥897,843,728.13 at the end of 2020 from ¥842,024,737.53 at the end of 2019[18]. - The company reported a basic earnings per share of ¥0.556 for 2020, a decrease of 10.32% from ¥0.620 in 2019[18]. - The weighted average return on net assets was 13.23% in 2020, down from 16.27% in 2019, indicating a decline in profitability[18]. - The company’s non-recurring gains and losses included government subsidies amounting to ¥2,448,752.00 in 2020, compared to ¥3,027,781.41 in 2019[23]. - The company achieved a net profit of CNY 115,544,471.04 for the year 2020, with a cash dividend of CNY 83,200,000, representing 100% of the distributable profit[111]. Operational Highlights - The company maintained strategic partnerships with major clients such as China Railway Group and Siemens, enhancing its market position in the copper alloy sector[27]. - The company’s main products include electrified railway contact line series and copper busbar series, with no significant changes in the main business during the reporting period[27]. - The company primarily adopts a direct sales model, with some sales through "bidding agents" and "traders"[32]. - The procurement of raw materials, mainly electrolytic copper, accounted for over 90% of the production costs during the reporting period[36]. - The company has increased its construction in progress by 4.6456 million yuan, mainly due to the purchase of new production equipment[44]. - The company has seen an increase in derivative financial assets by 7.9363 million yuan, primarily due to the increase in held copper futures contracts[44]. - The company’s accounts receivable financing decreased by 14.7262 million yuan, mainly due to a reduction in bank acceptance bills held at the end of the period[45]. - The company’s contract liabilities increased by 6.1261 million yuan, primarily due to an increase in advance payments received[45]. - The demand for copper busbars is expected to grow steadily due to the rapid advancement of industrialization and urbanization in China[43]. - The company utilizes a "sales-driven production" model, ensuring timely delivery while minimizing inventory[35]. - The company engages in futures hedging to mitigate the risk of raw material price fluctuations, specifically through purchasing copper futures[39]. - The electric railway construction in China has significantly increased the demand for contact network products, with high-speed rail mileage reaching approximately 30,000 kilometers[41]. - The company has established long-term stable partnerships with major railway construction units, becoming a designated supplier for China Railway Electrification Bureau Group[46]. - The company’s products are widely used in several major electrified railway projects, enhancing its industry reputation and brand recognition[47]. - The company has obtained key certifications, including the Railway Transport Infrastructure Production Enterprise License from the National Railway Administration[48]. - The company has invested in upgrading production facilities and implementing real-time monitoring systems to improve production efficiency and reduce energy consumption[55]. - The company’s quality management system exceeds national standards, ensuring high product quality that meets international clients' stringent requirements[51]. - The company offers a diverse range of products, including over 40 specifications in the electrified railway contact network sector, enhancing customer reliance[52]. - The company has been recognized as an excellent supplier by major clients such as Schneider and ABB for several consecutive years[47]. - The company achieved a production capacity increase of 4,500 tons for electrified railway contact line series products through efficient use of raised funds[59]. - The copper component revenue increased by 33.67% to approximately ¥271.34 million, contributing 16.89% to total revenue[63]. - The company has a total of 37 valid patent certificates, including 8 invention patents, reflecting its commitment to technological innovation[59]. - The company plans to expand into the new energy vehicle market, leveraging its integrated production capabilities and brand advantages[60]. - The overseas revenue increased by 13.46% to approximately ¥62.31 million, while domestic revenue decreased by 15.29%[64]. - The total sales amount from the top five customers reached ¥798,976,978.37, accounting for 49.73% of the annual total sales[74]. - The largest customer contributed ¥300,616,060.16, representing 18.71% of the annual sales total[74]. - The total procurement amount from the top five suppliers was ¥1,268,280,143.03, which accounted for 94.58% of the annual total procurement[75]. - The largest supplier's procurement amount was ¥846,373,804.22, making up 63.12% of the total procurement[75]. - The company's direct material costs for the copper rolling industry were ¥1,226,543,980.93, representing 88.62% of the total operating costs[72]. - Direct labor costs amounted to ¥39,323,452.24, which is 2.84% of the total operating costs[73]. - Energy costs were ¥19,877,639.27, accounting for 1.44% of the total operating costs[73]. - The company has not experienced any significant changes or adjustments in its business, products, or services during the reporting period[74]. - The completion rates of major sales contracts varied, with the highest at 93% and the lowest at 16%[70]. - The company reported a 15.71% decrease in direct material costs compared to the previous year[73]. - Sales expenses decreased by 53.04% to ¥9,217,488.17 in 2020 from ¥19,628,957.73 in 2019[76]. - R&D investment totaled ¥31,392,791.69, accounting for 1.95% of total revenue, with 66 R&D personnel representing 11.07% of total staff[77]. - Operating cash inflow decreased by 16.42% to ¥1,707,167,822.13, while operating cash outflow decreased by 8.15% to ¥1,728,569,818.88[78]. - Net cash flow from operating activities turned negative at -¥21,401,996.75, a decline of 113.33% compared to the previous year[78]. - Investment cash inflow increased by 75.33% to ¥1,995,000,536.56, while investment cash outflow increased by 67.49% to ¥1,979,082,495.14[78]. - Net cash flow from investment activities improved significantly to ¥15,918,041.42, compared to -¥43,760,274.49 in 2019, marking a 136.38% increase[78]. - Total accounts receivable increased to ¥410,663,174.02, representing 32.09% of total assets, up from 25.77% in the previous year[82]. - Inventory increased to ¥258,990,116.01, accounting for 20.24% of total assets, up from 17.13% in 2019[82]. - Short-term borrowings rose to ¥288,414,359.52, representing 22.54% of total assets, an increase from 21.35% in the previous year[82]. Corporate Governance - The company has a strong market position in the copper processing industry, particularly in the electrified railway contact network and copper busbar segments, with a stable customer base over the past three years[100]. - The company is focusing on high-performance and high-value-added copper materials for high-speed trains and railway electrification, with plans to increase production capacity of new copper busbars[99]. - The company faces risks from market competition, particularly from potential entrants into the electrified railway contact network market, which could impact its market share[103]. - The company’s main raw material, electrolytic copper, accounts for over 90% of its costs, making it vulnerable to price fluctuations[104]. - The company has implemented a pricing model that allows it to pass on short-term price fluctuations to customers, while using futures contracts to hedge against long-term price risks[104]. - The company emphasizes talent development and recruitment to enhance its human resources and overall competitiveness[102]. - The company maintains a high reputation for product quality among major clients, and any significant quality issues could negatively impact its market position[106]. - The company has not experienced any penalties or rectification situations during the reporting period[133]. - The company has established a comprehensive welfare system to attract and retain talent, supporting its strategic goals[195]. - The company has a total of 12 key personnel whose remuneration is based on a defined salary scheme[190]. - The company has established a remuneration committee to review and determine the compensation for directors and senior management[189]. - The company has been compliant with regulatory requirements, with no penalties reported for board members in the last three years[189]. - The company’s management team includes individuals with diverse backgrounds in finance, law, and engineering, enhancing its operational capabilities[186]. - The company has a total remuneration of 4.7674 million yuan for 12 directors, supervisors, and senior management in 2020[191]. - The remuneration structure for directors and senior management includes basic salary and performance bonuses, with the total remuneration subject to approval by the shareholders' meeting[190]. - The current board of directors and management team has been in place since August 1, 2018, with terms ending on July 31, 2021[185]. - The company has three supervisors, with the chairperson of the supervisory board also serving as the chief accountant[184]. - The independent directors have a term from August 1, 2018, to July 31, 2021, and their remuneration is determined by the board and approved by the shareholders[189]. - The company has a total of three independent directors, each with extensive experience in finance and law[188]. - The company has not engaged in any related party transactions that would harm the interests of shareholders[200]. - The company has not reported any changes in the shareholding of its directors, supervisors, and senior management during the reporting period[181]. - The company has not engaged in any shareholding reduction commitments by its controlling shareholders or actual controllers[173]. - The company has not disclosed any equity stakes in other domestic or foreign listed companies held by its controlling shareholder during the reporting period[171]. - The company has not engaged in entrusted financial management or loans during the reporting period[152][153]. - The company actively participates in social responsibility initiatives, including annual donations of 175,000 yuan to local charities[156]. Shareholder Information - The company had a total of 208,000,000 shares, with 75% being restricted shares prior to the recent changes[163]. - After the release of 156,000,000 restricted shares, the proportion of restricted shares decreased to 56.25%[163]. - Domestic legal entities held 43.75% of the shares before the change, which dropped to 32.81% after the release[163]. - The number of unrestricted shares increased from 52,000,000 to 91,000,000, representing a rise from 25% to 43.75% of total shares[163]. - The company’s major shareholders include Chengdu Jinkangsheng Enterprise Management Co., Ltd. with 36.25% and Chen Lijiao with 31.25%[169]. - The total number of shareholders at the end of the reporting period was 11,498[168]. - The company has committed to limiting share transfers by directors and senior management to no more than 25% of their total holdings annually[164]. - The release of restricted shares is scheduled for September 7, 2020, as per the initial public offering commitments[166]. - The company reported no significant changes in its subsidiaries or other major matters during the reporting period[160]. - There were no new securities issued during the reporting period, indicating stability in capital structure[167]. - The company reported a total of 567,350 shares held by its top shareholders, with no repurchase agreements during the reporting period[170]. - The controlling shareholder, Cheng Li Jiao, holds 100% of Chengdu Jinkangsheng Enterprise Management Co., Ltd., which is involved in business management consulting[171]. - The actual controllers of the company are Cheng Li Jiao and Feng Yuejun, with no changes in control during the reporting period[173]. - The company has no preferred shares or convertible bonds outstanding during the reporting period[175][178]. Legal and Compliance - The company faced litigation involving a total amount of 1,610.62 million CNY, with ongoing cases and some settled[132]. - The company did not experience any penalties or rectification situations during the reporting period[133]. - There were no stock incentive plans or employee stock ownership plans implemented during the reporting period[135]. - The company maintained a stable financial position with no significant changes in accounting estimates during the reporting period[128]. - The company did not engage in any related party transactions during the reporting period[136]. - The company paid a total of 10.17 million yuan for leasing a car from a related party and 4.40 million yuan for office equipment from another company[144]. - The total leasing payments by 孚力甲电气 amounted to 118.03 million yuan, including 114.43 million yuan for factory and production equipment and 3.6 million yuan for employee housing[144]. - The total amount of guarantees approved during the reporting period was 15.3 million yuan, with an actual occurrence of the same amount[147]. - The total approved guarantee amount at the end of the reporting period was 37 million yuan, with an actual guarantee balance of 31.1 million yuan[147]. - The actual total guarantee amount accounted for 34.64% of the company's net assets[147]. - There were no violations regarding external guarantees during the reporting period[148]. Investment and Projects - The total amount raised from the initial public offering (IPO) was RMB 265.96 million, with a net amount of RMB 278.26 million after deducting fees[87]. - The company allocated RMB 13.48 million from the surplus of the "New Copper Busbar and Component Technical Renovation and Expansion Project" to permanently supplement working capital[87]. - The "High-Strength and High-Conductivity Copper Alloy Contact Network Material Production Project" had a total investment of RMB 158.04 million, with RMB 74.64 million being transferred to the company's regular account as surplus[88]. - As of December 31, 2020, the cumulative investment in the "High-Strength and High-Conductivity Copper Alloy Contact Network Material Production Project" reached RMB 95.13 million, representing 60.20% of the total investment[90]. - The "New Copper Busbar and Component Technical Renovation and Expansion Project" achieved a cumulative investment of RMB 96.77 million, which is 89.66% of the total investment[90]. - The company has not made any changes to the investment projects or their feasibility[90]. - There are no excess funds or changes in the use of raised funds reported[90]. - The company has permanently supplemented working capital with surplus funds from completed projects[88]. - The total amount of raised funds used by the company is RMB 191.90 million, which is 72.14% of the total raised[87]. - The company has successfully completed the projects funded by the raised capital without significant changes in feasibility[90]. - The company completed the "New Copper Busbar and Component Technological Transformation and Expansion Project" and transferred surplus funds of RMB 13,