L&K(603929)2021-03-30 16:00Financial Performance - In 2020, the company's operating revenue was CNY 929.37 million, a decrease of 50.84% compared to CNY 1,890.64 million in 2019[22]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 32.94 million, a decline of 80.00% from CNY 163.52 million in 2019[22]. - The basic earnings per share for 2020 was -CNY 0.15, a decrease of 130.00% compared to CNY 0.50 in 2019[23]. - The total assets at the end of 2020 were CNY 1,977.56 million, down 13.28% from CNY 2,280.39 million at the end of 2019[22]. - The cash flow from operating activities for 2020 was CNY 82.63 million, a decrease from CNY 236.65 million in 2019[22]. - The overall gross profit margin for 2020 was 8.28%, a decline of 2.99 percentage points from 11.27% in 2019[58]. - The net profit attributable to shareholders was -32.94 million yuan, representing a year-on-year decline of 131.06% due to decreased revenue and increased asset impairment losses[59]. - The asset-liability ratio at the end of the period was 46.90%, an increase of 3.93 percentage points compared to the previous year, indicating manageable financial risk[59]. Dividend Policy - The board proposed a cash dividend of RMB 1.00 per 10 shares, totaling RMB 21,336,000.00, based on the total share capital of 21,336,000 shares at the end of 2020[5]. - The cash dividend per share for 2020 was 1.00 RMB, down from 2.50 RMB in 2019, reflecting a significant reduction in shareholder returns[132]. - The total number of shares distributed as dividends in 2020 was 21,336,000, compared to 53,340,000 in 2019, indicating a decrease in dividend distribution[130]. - The company has established a cash dividend policy, ensuring that at least 20% of the distributable profits will be distributed to shareholders in cash during its growth phase[127]. - The company emphasizes a stable profit distribution policy, with a minimum cash dividend ratio of 80% during mature phases without major capital expenditures[126]. Audit and Compliance - The company received a standard unqualified audit report from Dahua Certified Public Accountants[4]. - The company maintains a commitment to the accuracy and completeness of its financial reports, with all board members present at the meeting[8]. - The company has established commitments to ensure compliance with shareholder interests and corporate governance standards[138]. - The company has not faced any risks of suspension or termination of listing during the reporting period[155]. Market and Industry Insights - The cleanroom engineering industry is expected to grow rapidly due to increased government investment in healthcare and stricter GMP standards[55]. - The electronic industry, particularly in IC semiconductors and optoelectronics, remains a key growth area supported by national policies and technological advancements[58]. - The semiconductor industry is expected to see growth driven by emerging technologies such as 5G, AI, and IoT, which will increase demand for chip products[107]. - The company is actively pursuing new technologies and processes to meet the evolving demands of the cleanroom engineering market[93]. Project and Operational Updates - The company completed the acquisition of 100% equity in Ronggong Construction Engineering (Chongqing) Co., Ltd. in July 2020, which is treated as a merger under common control[24]. - The company has 35 unfinished projects with a total contract amount of 132,560.13 million RMB, indicating a strong project pipeline[35]. - The company has constructed over 3.31 million square meters of cleanroom projects, establishing a strong reputation and market influence in the high-end cleanroom engineering sector[47]. - The company has successfully expanded into the Vietnamese market, securing infrastructure orders from two companies[56]. Risk Management - The company faces risks related to engineering costs and scope changes, which could impact profit margins if not managed effectively[36]. - The company acknowledges various financial risks, including credit, liquidity, and market risks, and has established measures to mitigate these risks[122]. - The company faces macroeconomic risks that could impact its performance, particularly in the construction sector, which is influenced by national and regional economic policies[119]. Governance and Management - The company has a well-structured governance system and a strong team of 381 engineering technical personnel, ensuring reliable human resources for project quality and innovation[51]. - The total remuneration for the chairman, Yao Zu Xiang, during the reporting period was 1.075 million yuan[198]. - The total remuneration for the general manager, Mao Zhi Hui, during the reporting period was 347,200 yuan[198]. - The total remuneration for the vice general manager, Li Fan Jun, during the reporting period was 293,500 yuan[198]. Financial Adjustments and Standards - The company implemented the new revenue recognition standard effective January 1, 2020, which resulted in adjustments to retained earnings and other financial statement items[142]. - The total assets as of January 1, 2020, were adjusted to 2,206,988,320.48 CNY, reflecting a decrease of 55,601,268.97 CNY[145]. - The company's total liabilities were adjusted to 924,315,273.75 CNY, reflecting a decrease of 55,601,268.97 CNY[145]. Legal Matters - There are significant litigation matters, including a claim against Zhongxin Semiconductor for ¥128,389,718.39 due to contract disputes[156]. - The company is involved in a lawsuit with Century Jinguang for unpaid project fees totaling ¥7,887,393.90[159]. - The company has a pending case regarding a construction contract dispute with Taiwan Fertilizer Co., with a claim amount of ¥22,169,196.43[159].