On the evening of April 8, Cape testing (003008) disclosed the results of its 2020 annual report, which is also the company’s first annual report after its listing. However, according to the disclosed data, the revenue and net profit of the first annual report of Kaipu testing after its listing have both decreased, and the net profit of Kaipu testing in 2020 has decreased by more than 30%. Although the performance suck, but did not affect the Cape testing bonus plan. The company plans to distribute 48 million yuan of cash dividends in its 2020 annual report, which accounts for more than 60% of the company’s current net profit.
According to the financial report, the operating revenue of Kaipu testing in 2020 was about 165.4887 million yuan, a year-on-year decrease of 18.42%; the corresponding net profit of the current period was about 74.2597 million yuan, a year-on-year decrease of 31.38%. During the reporting period, the net profit after non deduction of Kaipu testing was about 68.3595 million yuan, a year-on-year decrease of 35.42%.
It is understood that Cape testing was listed on September 23, 2020. The company’s main business includes testing services for secondary equipment of power system, other technical services and sales of testing equipment. In 2017-2019, the operating revenue of Kaipu testing is 164.9948 million yuan, 189.6424 million yuan and 202.8439 million yuan respectively, and the corresponding attributable net profit is 99.0118 million yuan, 104.8447 million yuan and 108.2142 million yuan respectively. However, after the listing, the performance of Cape testing has changed.
The decline in the performance of Cape testing is mainly caused by the decline in the revenue of its core business under the impact of the epidemic. It is understood that the detection service of power system secondary equipment is the core business of Cape detection. Data show that in 2020, the operating revenue of the testing service of Cape testing will be 141.2424 million yuan, a year-on-year decrease of 27.27%. The testing service of Cape testing is divided by products, which is mainly composed of the testing of power system protection and control equipment and the testing of electric vehicle charging and changing system. The annual business income of power system protection and control equipment testing in 2020 is about 88.1317 million yuan, a year-on-year decrease of 45.79%. Cape test showed novel coronavirus pneumonia was the main reason for the delay. New customers were delayed in the research and development plan and new product delivery test was not expected. Some of the projects completed were delayed or stagnant, resulting in a decline in related business revenue.
Although the report card of the first annual report is not good-looking, the company still has to pay cash dividends to shareholders. According to the profit distribution plan for 2020 disclosed by Cape testing, the company plans to distribute cash dividends of 6 yuan (including tax) per 10 shares to all shareholders based on the company’s total share capital of 80 million shares, with a total cash dividend of 48 million yuan. According to the statistics of Beijing business daily, the cash dividend distributed in the annual report of Cape testing in 2020 accounts for about 64.64% of the company’s current net profit.
Cape testing believes that the profit distribution plan for 2020 formulated by the company is in line with the actual situation and long-term interests of the company’s business in the near future and in the future, and does not damage the legitimate rights and interests of the company, shareholders and small and medium-sized investors.
In the view of economist song Qinghui, continuous and stable cash dividends reflect the investment value of listed companies. Especially under the background of regulatory encouragement of cash dividends, listed companies want to boost investors’ confidence by increasing dividends. However, it is not worth encouraging to pay dividends when the performance declines. The company should act according to its actual situation.
Beijing Business News (reporter Liu Fengru)
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