Tricolor(SH:603516)2021-03-04 16:00Financial Performance - The company achieved operating revenue of CNY 482.60 million in 2020, a year-on-year increase of 29.99%, driven by product line expansion and improved marketing network coverage[28]. - Net profit attributable to shareholders reached CNY 128.29 million, up 12.32% from the previous year, while the net profit excluding non-recurring gains and losses increased by 15.88% to CNY 118.94 million[28]. - The net cash flow from operating activities surged to CNY 144.60 million, reflecting a significant improvement of 1,052.10% year-on-year, primarily due to a substantial increase in sales collections[29]. - By the end of 2020, total assets amounted to CNY 1,387.62 million, representing a 47.46% increase compared to the end of 2019[28]. - The company reported a basic earnings per share of CNY 0.96, a 10.34% increase from CNY 0.87 in 2019[26]. - The weighted average return on equity was 13.97%, slightly down by 0.48 percentage points from the previous year[26]. - The company incurred share-based payment expenses of CNY 29.90 million in 2020, which increased by CNY 28.58 million compared to the previous year[28]. - The company’s gross profit margin decreased from 68.30% to 58.77% due to the inclusion of lower-margin purchased components in some projects, despite the gross margin for display control products remaining stable at 67.38%[63]. Strategic Goals and Market Position - The company plans to steadily advance its strategic goals, focusing on increasing revenue scale and improving operational quality as external market demand stabilizes[29]. - The company continues to expand its market presence and customer base, leveraging its expertise in audio and video solutions[37]. - The company aims to provide reliable and advanced solutions tailored to customer needs, continuously refining its technology[37]. - The company is committed to becoming a globally influential provider of professional audio-visual products and solutions, focusing on technological innovation and service enhancement[94]. - The company is positioned to benefit from the "4K first, 8K in consideration" strategy outlined in the national action plan for the ultra-high-definition video industry, enhancing its role in key sectors like security monitoring and intelligent transportation[78]. - The company plans to strengthen product research and market development, maintaining market leadership in existing products while improving user experience and product value[96]. Research and Development - Research and development expenses amounted to CNY 61.60 million, up 22.89% year-on-year, accounting for 12.76% of operating revenue, with 23 new patent applications filed during the year[58]. - The company issued CNY 300 million in convertible bonds in August 2020, primarily for the research and development of professional audio and video processing chips, with progress on chip design proceeding smoothly[58]. - The company has developed innovative products such as the Hades splicing processor and Titan hybrid matrix to address market needs for signal processing[90]. Operational Efficiency and Challenges - The company reported no significant risks affecting its operations during the reporting period, ensuring a stable operational environment[9]. - The company faces challenges in the display control system industry, including a lack of standardized technology and reliance on foreign core chip technologies[79]. - The management team is composed of experienced professionals, and the company has established a scientific management and incentive system to ensure high efficiency and stability[54]. - The company will adjust its management structure and processes to enhance operational efficiency and core competitiveness in response to market developments[103]. Shareholder Actions and Corporate Governance - The company plans to repurchase shares within 90 days at a price not exceeding the latest audited net asset value per share[123]. - The controlling shareholder will also increase their holdings within 90 days at a price not exceeding the latest audited net asset value per share[124]. - The company commits to disclose information regarding the repurchase and shareholding changes in accordance with relevant laws and regulations[123][124]. - The company has established measures to ensure that its controlling shareholders do not engage in any business that competes with its products or services[141]. - The company has committed to ensuring that its public offering documents do not contain false records, misleading statements, or significant omissions, and will compensate investors for any losses caused by such issues[135]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants, confirming the accuracy and completeness of the financial statements[5]. - The company has not encountered any significant accounting errors or issues requiring correction during the reporting period[149]. - The company has committed to adhering to the latest regulations from the China Securities Regulatory Commission regarding compensation measures[146]. Market Outlook - The global professional audio-visual and system services market is projected to reach $230 billion by 2023, growing at an annual compound growth rate of approximately 4.3% from $186 billion in 2018[88]. - The ultra-high-definition industry in China is expected to exceed 4 trillion yuan by 2022, with user numbers reaching 200 million and a well-established 4K industry ecosystem[92]. - The company is positioned to benefit from the growing demand for digital and intelligent control in the audio-visual industry, particularly in sectors like government, defense, and healthcare[91].