Financial Performance - The company's operating revenue for 2020 was CNY 600,653,195.43, a decrease of 13.33% compared to CNY 693,024,754.83 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 107,929,889.94, down 25.69% from CNY 145,240,006.67 in 2019[21]. - The net cash flow from operating activities decreased by 54.88% to CNY 39,651,366.91 in 2020, compared to CNY 87,874,126.69 in 2019[21]. - The total assets at the end of 2020 were CNY 1,237,921,281.58, an increase of 18.27% from CNY 1,046,689,412.12 at the end of 2019[21]. - The net assets attributable to shareholders increased by 19.32% to CNY 659,608,721.98 at the end of 2020, compared to CNY 552,793,606.36 at the end of 2019[21]. - The basic earnings per share for 2020 were CNY 1.66, a decrease of 25.56% from CNY 2.23 in 2019[22]. - The weighted average return on net assets decreased by 12.49 percentage points to 17.79% in 2020, down from 30.28% in 2019[23]. - The total non-recurring gains for 2020 amounted to 3,149,471.75 CNY, contributing positively to the overall profit[28]. - The company reported a significant increase in contract assets to ¥336,717,776.46, which accounted for 27.20% of total assets[62]. - The total operating revenue for 2020 was CNY 600,653,195.43, a decrease of 13.3% from CNY 693,024,754.83 in 2019[172]. Market and Industry Insights - The company operates in the landscape lighting industry, which has seen over 90% penetration of LED lighting products since 2014, reflecting a growing market[35]. - The landscape lighting market is expected to continue expanding, driven by the increasing demand for energy-efficient and smart lighting solutions[35]. - The landscape lighting engineering industry showed growth rates of 38.04%, 21.43%, and 37.59% from 2017 to 2019, indicating a rapid growth trend[36]. - The landscape lighting industry reached a scale of 110.8 billion yuan in 2019, representing a 10% increase year-on-year and accounting for 17.34% of the semiconductor lighting application market[36]. - The urbanization rate in China increased from 45.68% in 2008 to 60.60% in 2019, indicating significant market potential for landscape lighting driven by urban development[70]. Strategic Initiatives and Future Plans - The company plans to enhance its remote wireless lighting control system and expand service coverage to increase revenue from landscape lighting centralized management[73]. - The company aims to enhance market expansion and product development strategies in the upcoming fiscal year[176]. - The company plans to continue investing in new product development and market expansion strategies to drive future growth[192]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[192]. - The company is focused on developing products and technologies based on smart city lighting to improve centralized management and value enhancement of landscape lighting[74]. Risk Management - The company has highlighted potential risks in its future development, which are detailed in the report[6]. - The company has identified risks including high accounts receivable leading to potential bad debt, with a significant portion of clients being government entities[76]. - The company faces management and funding risks due to the complexity of operations as it expands its business scale[77]. Shareholder and Governance Matters - The company plans to use undistributed profits primarily to meet daily operational needs and support business development[82]. - The company did not propose a cash profit distribution plan despite having positive profits available for distribution to ordinary shareholders, citing significant investment needs for future development[82]. - The company has committed to not transferring or entrusting the management of shares held prior to the IPO for 36 months, with an automatic extension of the lock-up period if stock prices fall below the IPO price[84]. - The company guarantees the authenticity and completeness of its IPO application documents, committing to a buyback plan if any false statements or omissions are identified[87]. - The company has not reported any cash dividends or stock bonuses for the years 2018 to 2020, reflecting a strategy focused on growth rather than immediate returns to shareholders[81]. Research and Development - Research and development expenses amounted to ¥20,736,243.75, representing 3.45% of operating revenue[56]. - The company has established an "Academician Expert Workstation" in collaboration with universities to advance landscape lighting technology research[41]. - The company is investing in R&D, allocating 5% of revenue towards developing new technologies and products[125]. - Research and development investments increased by 18%, totaling 150 million RMB, focusing on smart lighting technologies[129]. Operational Efficiency - The company has a strong technical team and has been recognized as a high-tech enterprise, which supports its ability to undertake various landscape lighting projects[41]. - The company has developed a "three-in-one" service model that includes planning design, construction installation, and maintenance management, enhancing customer service capabilities[41]. - The company achieved operating revenue of ¥600,653,195.43, a year-on-year decrease of 13.33%[46]. - The gross margin for the lighting engineering sector was 40.26%, with a slight increase of 0.54 percentage points compared to the previous year[51]. Audit and Compliance - The company has appointed Shanghai Shuhua Accounting Firm (Special General Partnership) as the auditor for the fiscal year 2020, with an audit fee of CNY 600,000[101]. - The internal control audit report issued by the accounting firm confirmed that the company maintained effective internal controls over financial reporting as of December 31, 2020[148]. - The audit opinion provided by the accounting firm was a standard unqualified opinion, indicating no significant issues were found[145]. - The company has not reported any significant deficiencies or material weaknesses in its internal controls during the reporting period[148].