[年报]深纺织Ｂ:2020年年度报告（英文版）
原标题:深纺织Ｂ:2020年年度报告（英文版） ShenzhenTextile(Holdings)Co.,Ltd. 2020AnnualReportMarch2020 Chapter1:ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors,SupervisoryCommittee,AllDirectors,SupervisorsandSeniorexecutivesoftheCompanyherebyguaranteesthattherearenomisstatement,misleadingrepresentationorimportantomissionsinthisreportandshallassumejointandseveralliabilityfortheauthenticity,accuracyandcompletenessofthecontentshereof. Ms.ZhangJian,TheCompanyleader,Mr.HeFei,Personinchargeofaccountingworks,Ms.ZhuJingjing,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccountingherebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisannualreport. AllthedirectorsattendedtheboardmeetingforthereviewofthisReport. Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:basedon507,772,279shares,acashdividendof0.3yuan(taxincluded)willbedistributedtoallshareholdersforevery10shares,and0shares(taxincluded)willbegivenasbonusshares.Thecapitalreservewillnotbeconvertedintosharecapital. TableofContentsI.ImportantNotice,TableofcontentsandDefinitionsII.BasicInformationoftheCompanyandFinancialindexIII.OutlineofCompanyBusinessIV.Management’sDiscussionandAnalysisV.ImportantEventsVI.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVII.SituationofthePreferredSharesVIII.InformationaboutconvertiblecorporatebondsIX.InformationaboutDirectors,SupervisorsandSeniorExecutivesX.AdministrativestructureXI.CorporateBondXII.FinancialReportXIII.Documentsavailableforinspection Definition Terms to be defined Definition Company/The Company/ Shen Textile Shenzhen Textile (Holdings) Co., Ltd Articles ofAssociation Articles ofAssociation of Shenzhen Textile (Holdings) Co., Ltd Actual controller / National Assets Regulatory Commission of Shenzhen Municipal People's Government National Assets Regulatory Commission of Shenzhen Municipal People's Government The Controlling shareholder/ Shenzhen Investment Holding Co., Ltd. Shenzhen Investment Holding Co., Ltd. Shenchao Technology Shenzhen Shenchao Technology Investment Co., Ltd. SAPO Photoelectric Shenzhen SAPO Photoelectric Co., Ltd. Jinjiang Group Hangzhou Jinjiang Group Co., Ltd. Jinhang Investment Hangzhou Jinhang Equity Investment Fund Partnership (LP) Nitto Denko Nitto Denko Corporation Kunshan Zhiqimei Kunshan Zhiqimei Material Technology Co., Ltd. Guanhua Company Shenzhen Guanhua Printing & Dyeing Co., Ltd. Shenzhen Xieli Shenzhen XieliAutomobile Enterprise Co., Ltd. Covid-19 Novel Coronavirus Pneumonia Outbreak Line 6 TFT-LCD polarizer II phase Line 6 project Line 7 Industrialization project of polaroid for super large size TV Company Law Company Law of the People’s Republic of China Securities Law Securities Law of the People’s Republic of China The Report 2020Annual Report Chapter 2: Basic Information of the Company and Financial index I.CompanyInformation Stock abbreviation Shen TextileA,Shen Textile B Stock code 000045,200045 Stock exchange for listing Shenzhen Stock Exchange Name in Chinese深圳市纺织 (集团 )股份有限公司 Chinese abbreviation (If any)深纺织 English name (If any) SHENZHEN TEXTILE（HOLDINGS） CO.,LTD English abbreviation (If any) STHC Legal Representative Zhang Jian Registered address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen Postal code of the Registered Address 518031 OfficeAddress 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen Postal code of the office address 518031 Internet Web Site http://www.chinasthc.com [email protected] Ⅱ.Contactpersonandcontactmanner Board secretary Securities affairs Representative Name Jiang Peng Li Zhenyu Contact address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen Tel 0755-83776043 0755-83776043 Fax 0755-83776139 0755-83776139 [email protected] [email protected] Ⅲ.Informationdisclosureand placed Newspapers selected by the Company for information disclosure Securities Times, China Securities, Shanghai Securities Daily ,Securities Daily and Hongkong Commercial Daily. Internet website designated by CSRC for publishing theAnnual report of the Company http://www.cninfo.com.cn The place where the Annual report is prepared Secretarial office of the Board and placed Ⅳ.ChangesinRegistration Organization Code 19217374-9 Changes in principal business activities since listing (if any) In July 2012, The business scope of the company is changed to "production, textiles processing, knitwear, clothing, upholstery fabrics, belts, trademark bands, handicrafts (without restrictions); general merchandise, the special equipment of the textile industry, textile equipment and accessories, instruments, standard parts, raw textile materials, dyes, electronic products, chemical products, mechanical and electrical equipment, light industrial products, office supplies and domestic trade (excluding the franchise, the control and the monopoly of goods) ; operation of import and export business." In December 2018, approved by Shenzhen Market Supervisory Authority, the company's business scope was changed to: production and operation of polarizers and other optical film products; hotel and property leasing and management; production and processing of textiles, knitwear, clothing, and decorative fabrics , Belts, trademark belts, handicrafts (excluding restricted items); department stores, special equipment for the textile industry, textile equipment and accessories, meters, standard parts, textile raw materials, dyes, electronic products, chemical products, electromechanical equipment, textile products, office Supplies and domestic trade (excluding franchise, control, and monopoly commodities); import and export business. Changes is the controlling shareholder in the past (is any) In October 2004,In accordance with the Decision on Establishing Shenzhen Investment Holdings Co., Ltd. issued by State-owned Assets Administration Committee of Shenzhen Municipal People's Government (Shen Guo Zi Wei (2004) No. 223 Document), Shenzhen Investment Management Co., Ltd., the controlling shareholder of the Company, and Shenzhen Construction Holding Company and Shenzhen Commerce and Trade Holding Company merged into Shenzhen Investment Holdings Co., Ltd. Ⅴ.OtherRelevantInformation CPAsengaged Name of the CPAs Grant Thornton International Ltd（Special Geneaal Partnership） Office address： 5/F, Scitech Plaza, 22 Jianguomenwai Street, Chaoyang District, Beijing Names of the Certified Public Accountants as the signatories Cheng Zhiyao, LiYao The sponsorperforming persist ant supervision duties engaged by the Company in thereporting period. □Applicable √ Not applicable The sponsorperforming persist ant supervision duties engaged by the Company in thereporting period. □Applicable √ Not applicable VI.Summary ofAccountingdata andFinancialindex May theCompanymake retroactive adjustment orrestatement of the accounting dataof the previous years □Yes√ No 2020 2019 Changed over last year（％） 2018 Operating income（RMB） 2,108,964,687.80 2,158,184,855.71 -2.28% 1,272,356,771.34 Net profit attributable to the shareholders of the listed company（RMB） 37,267,995.74 19,679,910.43 89.37% -22,980,624.93 Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company(RMB) 18,084,607.04 -41,179,849.56 143.92% -65,404,429.81 Cash flow generated by business operation, net（RMB） 1,930,932.76 383,145,788.50 -99.50% -460,494,321.15 Basic earning per share(RMB/Share) 0.07 0.04 75.00% -0.04 Diluted gains per share(RMB/Share)(RMB/Share) 0.07 0.04 75.00% -0.04 Weighted average ROE(%) 1.36% 0.75% 0.61% -0.96% 2020 2019 Changed over last year（％） 2018 Gross assets（RMB） 4,969,547,552.23 4,531,399,885.99 9.67% 4,619,203,416.79 Net assets attributable to shareholders of the listed company（RMB） 2,766,234,174.39 2,727,764,144.36 1.41% 2,373,329,991.86 VII.The differences between domestic and international accounting standards 1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differencesin net income andnet assets. □Applicable √ Not applicable 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards. □Applicable √ Not applicable Nil VIII.Main FinancialIndex byQuarters In RMB First quarter Second quarter Third quarter Fourth quarter Operating income 384,038,897.58 472,274,451.16 616,632,602.23 636,018,736.83 Net profit attributable to the shareholders of the listed company -5,827,092.54 6,546,827.28 24,726,413.83 11,821,847.17 Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company -9,495,160.00 2,377,214.57 20,780,909.95 4,421,642.52 Net Cash flow generated by business operation -84,585,231.55 -51,034,243.68 85,768,341.55 51,782,066.44 Whether significant variances exist betweenthe above financial indexor the indexwith its sumand the financial index ofthe quarterly reportas well assemi-annual report indexdisclosed bythe Company. □ Yes √No IX.Items andamountofnon-currentgainsandlosses √Applicable □ Not applicable In RMB Items Amount (2020) Amount (2019) Amount (2018) Notes Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) 273,229.58 54,895,878.65 -97,477.14 Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) 29,506,252.69 27,547,902.92 17,228,202.21 Mainly due to recognize other income from government subsidies related to the main business. Gain/loss on entrusting others with investment or asset management 1,037,735.85 52,271,862.25 Switch back of provision for depreciation of account receivable which was singly taken depreciation test. 469,470.61 Other non-recurring Gains/loss items 1,310,556.26 4,582,973.27 1,143,552.02 Less :Influenced amount of income tax 53,313.37 13,886,055.96 48,007.18 Influencedamountofminorshareholders’equity(aftertax) 11,853,336.4612,750,409.5028,074,327.28Total19,183,388.7060,859,759.9942,423,804.88-- FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason. □Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod. 11,853,336.4612,750,409.5028,074,327.28Total19,183,388.7060,859,759.9942,423,804.88-- FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason. □Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod. Chapter3:BusinessProfileI.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod1.MainBusinesstheCompanyThecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment. Duringthereportingperiod,thecompany'smainbusinessdidnothavebigchange.Firstly,Thecompanyadjusteditsmarketingstrategy,optimizeditscustomerandproductstructure,andsuccessfullycompletedtheintroductionandmassproductionofmultipleprojectsforpanelcustomerssuchasLGD,HuaxingOptoelectronics, Huike,andSharptofurtherenhanceitsanti-riskandprofitabilitycapabilities.Secondly,Activelypromotecostreductionandqualityimprovement,reducecoststhroughvariousmeasuressuchasincreasingmachinespeed, equipmentandtechnologicaltransformation,upgradingthelevelofautomationintheback-end,andbroadeningprocurementchannels,whiletakingintoaccounttheimprovementofproductquality.Thirdly,activelyrespondtotheCOVID-19,overcometheadverseeffects,andmakeeveryefforttopromotetheconstructionoftheultra-large-sizeTVpolarizerindustrializationproject(line7).Theline7projectwasaffectedbytheepidemicandresumedworkinmid-March2020.ThecompanyadoptedstrictcontroloftheepidemicMeasuressuchaspreventionandcontrol,activelycoordinatingtheentryofJapanesetechnicalpersonnelintothefactory,andformulatingaspecialassessmentplanfortheconstructionofLine7projectstoacceleratetheprogressoftheprojecttothegreatestextent..Fourthly,inordertojointlyrespondtothenovelcoronaviruspneumoniaepidemicandactivelyfulfillsocialresponsibilities,thecompanyanditswholly-ownedenterprisesrespondedtothecalloftheShenzhenMunicipalPartyCommitteeandtheState-ownedAssetsSupervisionandAdministrationCommissiontoreduceorexemptsometenantsofself-ownedproperties(exceptresidentialproperties)for3months.Fifthly,thetextileindustrymakesfulluseofmycountry'sadvantagesofeffectiveepidemicpreventionandcontrolandearlyresumptionofworkandproductin,activelyseizingmarketshare,andachievingbothgrowthinoperatingincomeandnetprofit.Sixthly,inordertoimprovethecompany'soverallassetoperationcapabilityandrevitalizethestockassets,thecompanyimplementstransferandliquidationworkforthepoorlymanagedshareholdingcompanies,andconcentratesonthedevelopmentofthepolarizerbusiness.Seventhly, implementtheepidemicpreventionandcontrolwork,payattentiontosafeandgreenproduction,thecompanyhassetupaspecialclassforepidemicpreventionandcontrol,andformedanefficientepidemicpreventionworkmechanismwithdivisionofresponsibility,layer-by-layertransmission,andcoordinationtoensuretheimplementationofvariousdeploymentmeasures,centralizedrectification,andfocusInvestigatesafetyandenvironmentalissues,promotethesafeandstabledevelopmentofenterprises,andactivelyfulfillsocialresponsibilities. 2.Thecompany'smainproductsandusesPolarizersaretheupstreamrawmaterialofLCDpanelsandoneofthekeybasicmaterialsintheflatpaneldisplayidustry.Theyarewidelyusedinsmartphones,tabletcomputers,TVsandotherLCDpanels,OLEDdisplaypanels,aswellasfiltersforinstruments,sunglasses,andphotographicequipment.Manyfieldssuchaslightmicroscopy.Thecompanycurrentlyhas6mass-producedpolarizerproductionlines.TheproductscoverTN, STN,TFT,OLED,3D,dyefilms,opticalfilmsfortouchscreensandotherfields.TheyaremainlyusedinTV,NB, navigator,Monitor,automotive,industrialcontrol,Instruments,smartphones,wearabledevices,3Dglasses, sunglassesandotherproducts,thecompanyhasbecomeamainstreampanelcompanysuchasHuaxingOptoelectronics,BOE,Sharp,LGD,ShenzhenTianma,Huike,etc.bycontinuouslystrengtheningsaleschannelexpansionandbuildingitsownbrand.Qualifiedsuppliers. TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows: LinePlaceProductbreadthPlannedcapacityMainproductsLine1Pingshan500mm600,000m2TN/STN/dyefilmLine2Pingshan500mm1.2millionm2TN/STN/CSTNLine3Pingshan650mm1millionm2TFTLine4Pingshan1490mm6millionm2TFTLine5Pingshan650mm2millionm2TFTLine6Pingshan1490mm10millionmTFT/OLEDLine7Pingshan2500mm32millionm2TFT/OLED3.Company'sbusinessmodelThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win. 4.MajorfactorsfordrivingtheCompany'sperformanceReferto"III.Analysisoncorecompetitiveness"inthissectionfordetails. 5.DevelopmentstageandperiodiccharacteristicsoftheindustrywheretheCompanyisinvolvedandtheCompany'spositionintheindustryReferto"IX.Company'soutlookforfuturedevelopment"inSectionIVfordetails. Inthefuture,thecompanywillrelyonmorethan20yearsofindustrialoperationexperienceandlocationadvantagestocontinuetodeepenthereformofmixedownersipandstrengthenstrategiccooperation.Throughtheintegrationofindustrialresources,improveproductiontechnologyandmanagementlevel;atthesametime, seizemarketopportunities,makeeveryefforttopromotetheconstructionofultra-widepolarizerproductionline, andseizethehigh-marginultra-large-sizeLCDTVpolarizerproductmarket;makepolarizerswellTheindustryalsoextendstootherflat-paneldisplay-relatedopticalfilmindustries,andthenbecomesstronger,biggerandbetter. II.MajorChangesinMainAssets1.MajorChangesinMainAssetsMainassetsMajorchangesEquityassetsNomajorchangesFixedassetsNomajorchanges LinePlaceProductbreadthPlannedcapacityMainproductsLine1Pingshan500mm600,000m2TN/STN/dyefilmLine2Pingshan500mm1.2millionm2TN/STN/CSTNLine3Pingshan650mm1millionm2TFTLine4Pingshan1490mm6millionm2TFTLine5Pingshan650mm2millionm2TFTLine6Pingshan1490mm10millionmTFT/OLEDLine7Pingshan2500mm32millionm2TFT/OLED3.Company'sbusinessmodelThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win. 4.MajorfactorsfordrivingtheCompany'sperformanceReferto"III.Analysisoncorecompetitiveness"inthissectionfordetails. 5.DevelopmentstageandperiodiccharacteristicsoftheindustrywheretheCompanyisinvolvedandtheCompany'spositionintheindustryReferto"IX.Company'soutlookforfuturedevelopment"inSectionIVfordetails. Inthefuture,thecompanywillrelyonmorethan20yearsofindustrialoperationexperienceandlocationadvantagestocontinuetodeepenthereformofmixedownersipandstrengthenstrategiccooperation.Throughtheintegrationofindustrialresources,improveproductiontechnologyandmanagementlevel;atthesametime, seizemarketopportunities,makeeveryefforttopromotetheconstructionofultra-widepolarizerproductionline, andseizethehigh-marginultra-large-sizeLCDTVpolarizerproductmarket;makepolarizerswellTheindustryalsoextendstootherflat-paneldisplay-relatedopticalfilmindustries,andthenbecomesstronger,biggerandbetter. II.MajorChangesinMainAssets1.MajorChangesinMainAssetsMainassetsMajorchangesEquityassetsNomajorchangesFixedassetsNomajorchanges Intangible assets No major changes Construction in process Construction in progress increased by 46,188.39 million yuan year on year, with an increase of 54.99%, mainly due to the increase in construction investment in progress of the polarizer industrialization project for ultra-large television (Line 7). Monetary funds Monetary funds decreased by 6,041.32 million yuan year on year,with a decrease of 14.75%, mainly due to: firstly, the investment in the construction of Line 7 of the polarizer industrialization project for ultra-large TV; Secondly, the purchase of financial products. Trading financial assets decreased by 14,538.27 million yuan year on year, with an decrease of 17.52%, mainly due to the decrease in investing the purchase of financial products. Trading financial assets Notes receivable Notes receivable decreased by 2,361.09 million yuan year on year ,with an decrease of 58.41%, mainly due to the Banker's acceptance according to the management needs of reclassification adjustment for receivables financing. Account receivable repayments Increased by 18,198.52 million yuan year on year, with a Increase of 49.81%, mainly due to the Increase in sales of polarizer. Receivables financing Receivables financing increased by 8,411.77 million yuan year on year, with an increase of 460.05%, mainly due to the significantly increase in customer of acceptance and settlement this year. Interest receivable Interest receivable decreased by 761 million yuan year on year, with an decrease of 100%,mainly due to the reclassification of Interest receivable to Trading financial assets under the new financial instrument standards for the first time. Other current assets Other current assets decreased by 6,338.29 million yuan year on year, with a decrease of 45.01%, mainly due to the reduction of uncertified VATto be deducted. Inventory Inventory increased by 8,912.9 million yuan, with a Increase of 22.75%, mainly due to the need for the preparation of polarizer. 2. MainConditionsofOverseasAssets □Applicable √Notapplicable III. AnalysisOncoreCompetitiveness (1) Technology advantages. SAPO Photoelectric is the first domestic national high-tech company which entered into the R&D and production of the polarizer，We are one of the largest, most technical and professional polarizer R&D teams in the country and has more than 20 years of operating experience in the polarizer industry. Products include TN-type, STN-type, IPS-TFT-type, VA-TFT-type,OLED, vehicle-mounted industrial display, flexible display, 3D stereo and polarizer for sunglasses, and optical film for touch screens, etc., We have proprietary technology for polarizers and new intellectual property rights for various new products. By the end of thereportingperiod,thecompanyappliedfor107inventionpatentsandwasauthorizedwith79items,amongwhich:32domesticinventionpatents(14patentsgotauthorized);68domesticutilitymodelpatents(61patentsgotauthorized);1overseasinventionpatent(0patentsgotauthorized);6overseasutilitymodelpatents(4patentsgotauthorized).Therewere4nationalstandardsand2industrialstandardsthatweredevelopedbythecompanyareapprovedandthenwillbeimplemented.Thecompany,possessingthetwotechnologyplatforms“Shenzhenpolarizingmaterialsandengineeringlaboratory"and"Municipalresearchanddevelopmentcenter",focusedontheR&DandtheindustrializationofthecoreproductiontechnologyofLCDpolarizer,thedevelopingandindustrializationofthenewproductsofOLEDpolarizerandthe“domestication”researchontheproductionmaterialsofpolarizer.Throughtheintroductionofvarioustypesofsophisticatedtestingequipmentstoperfectthetestmeansofsmall-scaletestandmedium-scaletest,furtherbyimprovingtheincentivesystemofresearchanddevelopmentandbuildingthecollaborativeinnovationplatformof“Industry-Study-Research-Utilization”andsoforthmeans,thecompanycomprehensivelyenhancedthelevelofresearchanddevelopment. (2)Talentsadvantages.TheCompanyhasapolarizermanagementteamandateamofseniortechnicianswithstrongtechnicalability,long-termcooperation,richexperienceandinternationalvision.Throughopenmarketselection,theCompanyhashiredprofessionalseniormanagementpersonnel,builtateamofprofessionalmanagers,cultivatedaprofessionalmanagercultureandenhancedthecorecompetitivenessoftheenterprise.TheCompanyhasestablishedatechnicalcooperationrelationshipwithNittoDenkoCorporation,aworld-classpolarizermanufacturer,tolearnadvancedpolarizerproductionmanagementconcepts.Meanwhile,theCompanyhasaccumulatedtechnicalexperiencethroughindependentinnovation,improveditscorecompetitiveness,andgraduallyaccumulateditsownadvantagesinbrand,technology,operationandmanagement.Throughimprovingthesalaryassessmentmanagementsystem,enrichingtheconnotationoflearning-basedorganizations,andimplementinginstitutionalandculturalconstructionsuchasmedium-termandlong-termincentiveandrestraintmechanisms,theCompanyhasdeeplyboundtheinterestsofemployeeswiththeCompany,andfullystimulatedthesubjectiveinitiativeoftalents. In2019,inordertoimprovetheoperatingconditionsofSSAPOPhotoelectric,asubsidiaryoftheCompany, furtherpromotetheimplementationofspecialization,professionalizationandmarketizationofmanagementpersonnelandoptimizethemanagementteam,SAPOPhotoelectricopenlyorganizedmarket-orientedselectionofmanagementteamsfortalentsofthewholesocietyinaccordancewiththerelevantspiritofShenzhenMunicipalState-ownedAssetsSupervisionandAdministrationCommissionregardingthepromotionofprofessionalmanagerteamconstructionandincombinationwithhemanagementsituationofSAPOPhotoelectric.Asoftheendofthisreportingperiod,SAPOPhotoelectrichascompletedtheorganizationregistration,qualificationexaminationandinterviewselectionofthemarketingselectionmanagementteam.The3professionalmanagersselectedinthemarkethavebeendeployedforpostinJanuary2020. (3)Marketadvantages.Thecompanyhasgoodcustomergroupsnotonlyindomesticmarketbutinforeignmarket,comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinthelocalizationforsupporting, closetothepanelmarket,aswellasthestrongsupportofthenationalpolicy.Intermsofmarketdemand,withthemassproductionofthe10.5/11-generationTFT-LCDpanelproductionlinesunderconstructionandplannedforthenextfewyears,theproductioncapacityofhigh-generationTFT-LCDpanelsinmainlandChinawillincreasesignificantlyinthenextfewyears,thecorrespondingdomesticpolaroidfilmmarketdemandhasalsoincreased, andthedomesticmarketisthemostimportantmarketforpolaroidmanufacturers,especiallyinthelarge-sizepolarizermarket.Mainlandpolarizermanufacturerswillusherinimportantindustryopportunities;intermsofmarketdevelopment,thecompanytakesproductionmaterialcontrolasthecore,technologyservicesastheguide, customerneedsasthefocus,organicallycombinesproductionandsales,establishesarapidresponsemechanism, fullyexploitslocalizationadvantages,andusesitsownaccumulatedtechnologyandtalents,doesagoodjobofpeer-to-peerprofessionalservices,formsastablesupplychainandincreasesmarketshare. (4)Qualityadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency. (5)Managementadvantages.SAPOPhotoelectrichasaccumulatedrichmanagementexperiencesinmorethan20yearsinthemanufacturingofpolarizer,possessingthehomemostadvancedcontroltechnologyoftheproductionmanagementprocessofthepolarizerandqualitymanagementtechnologyandthstablerawmaterialprocurementchannelsoforthmanagementsystems.Thecompanyhadcarriedoutcomprehensivebenchmarkingwork,organizedthemanagementpersonneltolearnadvancedexperiencesfromcustomersandpeerstoforcetheelevationofmanagementability,anddrewontheforeigncompany’smanagementexperiencesofpolarizer, optimizedthecompany'sorganizationalstructure,reducedthemanagerialhierarchyandfurtherenhancedthecompany'smanagementefficiency.Aftertheintroductionofthestrategicinvestor,ThroughclosecooperationwithJinjiangGroup,wecomplementeachother'sstrengths,absorbthevitalityofprivateenterprises,continuetoimplementadvancedmanagementsystems,reasonableincentivemechanisms,etc.,improvetheefficiencyofdecision-making,enhancethespeedofmarketresponse,improvetheresearchanddevelopmentincentivesystem, andalsorealizethedeepintegrationofthevalueofthecompanyanditsemployeesandstimulatesthenewvitalityofthebusiness. (6)Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnatinalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry, whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholendustrychainofthepaneldisplayindustryclusterinShenzhen. Recognizedasanationalhigh-techenterprise,theCompanyisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational, provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,theCompanytightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherloweritsproductioncostandimproveitsproductcompetitiveness. Chapter4:Management’sDiscussionandAnalysisI.GeneralIn2020,inthefaceoftheadverseimpactoftheCOVID-19epidemic,thecompanydiditsbesttopreventandcontroltheepidemicandresumeworkandproduction,strivetoreducelossesandincreaseprofitsinthemainworkofpolarizer,speeduptheconstructionofLine7project,respondtothecallofthemunicipalpartycommitteeandgovernment,themunicipalState-ownedAssetsSupervisionandAdministrationCommissionandShenzhenInvestmentControl,andreducerentandfeestosupporttherealeconomytoovercomedifficulties. In2020,thecompanyachievedoperatingincomeof2.109billionyuan,2.28%lessthanthesameperiodlastyear;Thetotalprofitwas51,218,900yuan,anincreaseof437.31%overthesameperiodlastyear;Netprofitattributabletoshareholdersofthelistedcompanywas36.93338millionyuan,anincreaseof87.67%overthesameperiodlastyear.Revenuesfallmodestlyfromlastyear,themainreasonistojointlycopewithCOVID-19outbreak,activelyfulfillthesocialresponsibility,thecompanyanditswhollyownedenterprisesresponsetothecallofshenzhenmunicipalpartycommitteemunicipalgovernmentandthestate-ownedassetssupervisionandadministration,breaksitsownproperty(inadditiontoresidentialproperty)ofapartofthetenant:3monthsthisyear,therentalincomefellduringthereportingperiod;Second,duringthisreportingperiod,thesubsidiarySAPOPhotoelectrididnotcarryouttradebusiness,andtheincomefromtradebusinessdecreasedcomparedwiththesameperiodlastyear.themainreasonofthenetprofityear-on-yeargrowthofAttributabletoshareholdersoflistedcompaniesisbenefitfromimprovingoftwotofourquarterpolaroid2020marketconditions,adjustmenteffectofSAPOPhotoelectriordersforproductsstructureisremarkable,capacityhasimproved,theaveragegrossmarginlevelhasimproved,mainbusinessofpolarizerturnedalossintoaprofitthisyear. Reviewofthecompany'skeyworkscarriedoutin2020asfollows: 1.mainbusinessofpolarizerturnedalossintoaprofitIn2020,first,thecompanywilladjustitsmarketingstrategy,optimizeitscustomerandproductstructure, andsuccessfullycompletetheintroductionandmassproductionofmultipleprojectsforpanelcustomerssuchasLGD,HuaxingOptoelectronics,Huike,andSharp,tofurtherimproveanti-riskandprofitability;Second,thecompanyactivelypromotescostreductionandqualityimprovement,reducingcostsandimprovingproductqualitythroughanumberofmeasuressuchasincreasingmachinespeed,equipmentandtechnologicaltransformation,upgradingthelevelofautomationintheback-end,andbroadeningprocurementchannels,whilealsoimprovingproductquality;third,increasingtalentRecruitmentefforts,reformingthesalarystructure,andstimulatingthevitalityofemployees.. Meanwhile,theCompanycontinuedtoexploreR&Dinnovationandintensifythedevelopmentofindependentintellectualpropertyrights.Itsresearchanddevelopmentwerecombinedwiththeactualmarketconditionstocarryoutproductdevelopmentandmarketpromotionandimport,soastoimproveproductperformance.In2020,,wecarriedoutR&Dandimportofavarietyofcoatingadhesivematerials,keytechnologyprocesses,andnewproducts,totaling13items.weappliedfor8patents,including2inventionpatentsand6utilitymodelpatents,obtained4authorizedpatents,including3inventionpatentsand1utilitymodelpatent. 2.Theprofitabilityofthetextilebusinessrosesteadily,propertycompaniesrespondedtothecallforrentreductionandexemption. Atthebeginningof2020,duetotheimpactofthenovelcoronaviruspneumoniaepidemic,mycountry'stextileandgarmentindustryexportswereblocked.Thecompanytooktheinitiativetoovercomelaborshortagesandotherdifficulties,andtookfulladvantageofmycountry'seffectiveepidemicpreventionandcontrolandearlyresumptionofproductiontoactivelyseizemarketshareadachievebothgrowthinoperatingincomeandnetprofit. In2020,thecompanyactivelyrespondedtothecalloftheMunicipalPartyCommitteeandtheMunicipalGovernment,fulfilleditssocialresponsibilities,implementedpropertyrentreductionmeasures,andreducedorexemptedeligibletenantsfromrentforthreemonths. 3.Activelypromotetheconstructionoftheindustrializationprojectofultra-large-sizeTVpolarizerAtthebeginningof2020,thenovelcoronaviruspneumoniaepidemichadacertainimpactonthecompany’sconstructionofthecompany’sultra-large-sizeTVpolarizerindustrializationproject(hereinafterreferredtoas"Line7").Thecompanyactivelyrespondedtoit.Whiledoingagoodjobinepidemicprevention,thecompanyactivelycooperatedwiththegovernment.Departmentalcommunication,oneistopromotethefullresumptionofworkoftheLine7projectonMarch12,2020,theotheristoovercomedifficultiesandtopromotetwogroupsofJapanesetechnicianstoarriveatthefactory,andthethirdisthatthecompanyhasformulatedaspecialassessmentplanfortheline7projecttofullymobilizetheenthusiasmofprojectpersonnelAdinitiative.Throughtheimplementationofvariousmeasures,theprojectconstructionprogresswillbeacceleratedtothegreatestextent. AsofDecember31,2020,thecivilengineeringoftheLine7projecthasbasicallybeencompleted,andthepreliminaryacceptanceofthecleanareaofthemainproductionworkshophasbeencompleted;intermsofprocessequipment,themainequipmentsuchastheextensionmachine,thecoatingmachine,andtheanti-checkingmachinehasbeeninstalledandcommissionedInthestage,theoverallcommissioningwillbecompletedinlateMarch2021andentertrialproduction. 4.Effectivelyorganizeepidemicpreventionandcontrol,productionsafety,stableandorderlyDuringthereportingperiod,thecompanyfirststrengthenedorganizationandleadershiptoeffectivelypreventandcontroltheepidemic.Aspecialclassforepidemicpreventionandcontrolhasbeensetuptorefinethedivisionofresponsibilities,formanefficientepidemicpreventionworkmechanismwithdivisionofresponsibility, layer-by-layertransmission,andcoordination,andweaveanetworkofepidemicpreventionresponsibilitytoensurethatvariousdeploymentmeasuresareimplementedtoeffectivelyprotectthelivsofemployees.Thesecondistoincreaseinvestmentinenvironmentalprotection,andproductionissafety,stableandorderly.Thecompanypaysattentiontoenvironmentalprotectionandsafety,continuouslyincreasessafetyinvestment,andatthesametimefullyimplementstheregulationsonthemainresponsibilityofproductionsafetyforproductionandbusinessunits. 5.StrengthenedsafetyawarenessandearnestlywellensuredsafetyandenvironmentalprotectionIn2020,thecompany’spartycommittee,underthecorrectleadershipofthemunicipalSASACpartycommitteeandtheinvestmentcontrolcompany’spartycommittee,willthoroughlystudyandimplementXiJinping’sthoughtsonsocialismwithChinesecharacteristicsinthenewera.GeneralSecretaryXiJinpingwillattendthe40thanniversarycelebrationoftheestablishmentoftheShenzhenSpecialEconomicZoneandinspect Guangdong and Shenzhen. The spirit of the speech and important instructions and the spirit of the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, resolutely implement the feedback from the inspections of the superior party committee, and carry out the party member education "five one" project activities and the "one enterprise, one brand" party building innovation activities, and actively give full play to all levels The role of party organizations and party members in epidemic prevention and control and resumption of work andproduction provides a strong guarantee for thereform, development andstability of enterprises.. II. Mainbusinessanalysis 1. General Refer to relevant contentsof “1.Summarization” in “Discussion andAnalysis ofManagement”. 2. Revenue andcost (1) Componentof Business Income In RMB 2020 2019 Increase /decrease Amount Proportion Amount Proportion Total （未完）  |