未来机器有限公司(01401) - 2020 - 年度财报

Corporate Information This section provides basic company information, including board members, committee composition, main office addresses, compliance advisors, auditors, and principal bankers - This section provides the company's basic information, including board members, committee composition, main office addresses, compliance advisors, auditors, and principal bankers[2][3][4] Five-Year Financial Summary This section presents a five-year overview of the company's financial performance, assets, and liabilities Five-Year Financial Performance Summary (As of December 31) | Indicator (RMB thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,182,038 | 3,117,648 | 2,943,724 | 2,889,658 | 2,171,867 | | Gross Profit | 193,423 | 227,153 | 263,197 | 240,663 | 165,637 | | Profit for the Year | 30,684 | 37,763 | 43,951 | 32,079 | 42,695 | Five-Year Assets and Liabilities Summary (As of December 31) | Indicator (RMB thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,207,484 | 1,625,965 | 1,190,417 | 942,502 | 676,988 | | Total Liabilities | (872,337) | (1,322,972) | (1,026,555) | (829,559) | (610,347) | | Total Equity | 335,147 | 302,993 | 163,862 | 112,943 | 66,641 | Chairman's Statement The Chairman's statement reviews the company's performance in 2020, highlighting challenges from the COVID-19 pandemic and outlining future strategies focused on 5G, IoT, and market expansion Business Review In 2020, the global smartphone market faced challenges due to the COVID-19 pandemic, significantly impacting the company's production and delivery; despite this, the company, as a leading Chinese ODM mobile phone supplier, focused on emerging markets, with total revenue decreasing by 30.0% year-on-year and net profit by 18.8% - The COVID-19 pandemic caused production halts at the company's Shenzhen and Luzhou factories for several weeks and delayed raw material supplies, severely impacting production plans and capacity, leading to product delivery delays in the first half of 2020[12][15] 2020 Fiscal Year Performance Summary Comparison | Indicator | 2020 (Audited) | 2019 (Audited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (RMB thousands) | 2,182,038 | 3,117,648 | -30.0% | | Net Profit for the Year (RMB thousands) | 30,684 | 37,763 | -18.8% | | Basic Earnings Per Share (RMB cents) | 3.09 | 4.98 | -38.0% | Outlook and Strategy Looking ahead, the company anticipates market opportunities from 5G networks and the Internet of Things (IoT), planning to deepen cooperation with Ant Financial, which has significantly driven IoT-related product revenue growth, and focusing on enhancing R&D capabilities, expanding production capacity, enriching product portfolios, and diversifying geographical markets - The company believes the rapid rollout of 5G telecommunication networks will drive demand for smartphones and IoT products, presenting development opportunities[17][20] - Cooperation with Ant Financial on facial recognition POS machines significantly boosted the company's IoT-related product revenue, which surged 2.8 times from RMB 127.7 million in 2019 to RMB 481 million in 2020[18][20] - The company will continue to strengthen its collaboration with Ant Financial and adopt a prudent business development strategy, gradually expanding production capacity, enhancing R&D, enriching product portfolios, and expanding markets[19][20] Management Discussion and Analysis This section provides a detailed analysis of the company's operational performance, financial position, and future outlook, covering revenue, profitability, liquidity, and strategic initiatives Business Overview As a Chinese ODM mobile phone supplier, the Group focuses on emerging markets, primarily engaging in R&D, design, manufacturing, and sales of mobile phones, PCBAs, and IoT-related products; in 2020, total revenue decreased by 30.0% to RMB 2.182 billion due to declining mobile phone sales, but IoT product revenue surged 2.8 times to RMB 481 million thanks to cooperation with Ant Financial, while net profit fell 18.8% to RMB 30.7 million - The company's strategic focus is on populous emerging markets with growing mobile phone demand, with revenue from China and other emerging markets accounting for 98.9% of total revenue in 2020[25][27] - Despite declining mobile phone sales, IoT-related product revenue achieved a significant 2.8-fold growth due to cooperation with Ant Financial, partially offsetting the overall revenue decline[26][28] Financial Review In FY2020, total revenue decreased by 30.0% to RMB 2.182 billion, primarily due to reduced mobile phone sales, partially offset by strong growth in IoT product sales; gross profit decreased by 14.9% to RMB 193 million, but gross margin improved from 7.3% to 8.9% mainly due to a higher proportion of high-margin IoT product sales; expenses were effectively controlled, resulting in a net profit of RMB 30.7 million, down 18.8% year-on-year, with net margin slightly increasing to 1.4% Revenue Total revenue decreased by 30.0% in 2020, primarily dragged by declines in mobile phone and PCBA businesses, which saw revenues drop by 38.5% and 78.1% respectively; however, IoT-related products performed strongly with a 2.8-fold increase in revenue; geographically, India and China remained major markets but experienced revenue declines, Algeria's revenue sharply decreased by 91.7%, while Bangladesh's market grew by 52.8% Revenue by Product Category (RMB thousands) | Product Category | 2020 | % of Total Revenue | 2019 | % of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Smartphones | 1,186,640 | 54.4% | 2,053,460 | 65.9% | -42.2% | | Feature Phones | 296,746 | 13.6% | 357,123 | 11.4% | -16.9% | | Mobile Phones Subtotal | 1,483,386 | 68.0% | 2,410,583 | 77.3% | -38.5% | | Printed Circuit Board Assembly (PCBA) | 103,532 | 4.7% | 471,862 | 15.1% | -78.1% | | IoT-related Products | 480,950 | 22.0% | 127,697 | 4.1% | +276.6% | | Others | 114,170 | 5.3% | 107,506 | 3.5% | +6.2% | | Total | 2,182,038 | 100.0% | 3,117,648 | 100.0% | -30.0% | Revenue by Geographical Region (RMB thousands) | Region | 2020 | % of Total Revenue | 2019 | % of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | India | 1,011,279 | 46.3% | 1,392,492 | 44.7% | -27.4% | | China | 919,927 | 42.2% | 1,167,572 | 37.4% | -21.2% | | Bangladesh | 170,764 | 7.8% | 111,789 | 3.6% | +52.8% | | Algeria | 22,935 | 1.0% | 275,305 | 8.8% | -91.7% | | Other Regions Total | 57,133 | 2.7% | 170,490 | 5.5% | -66.5% | | Total | 2,182,038 | 100.0% | 3,117,648 | 100.0% | -30.0% | Gross profit and gross profit margin In 2020, gross profit was RMB 193.4 million, a 14.9% year-on-year decrease; however, gross margin improved from 7.3% in 2019 to 8.9%, primarily due to an increased proportion of higher-margin IoT-related product sales - The improvement in gross margin is primarily attributed to product mix optimization, with an increased proportion of high-margin IoT product sales[40][42] Expenses and Costs In 2020, the company's various expenses decreased; selling expenses decreased by 8.9% due to an increased proportion of sales to China; administrative expenses significantly decreased by 18.1% due to the absence of one-off listing expenses from 2019; finance costs decreased by 54.2% due to reduced bill financing costs from lower overseas sales; R&D expenses remained stable - Selling expenses: Decreased by 8.9% to RMB 38.1 million, due to a higher proportion of sales to China, reducing transportation and customs clearance fees[44] - Administrative and other expenses: Decreased by 18.1% to RMB 62.4 million, primarily due to RMB 18.1 million in one-off listing expenses in 2019[45] - Research and development expenses: Remained stable at RMB 112.8 million - Finance costs: Significantly decreased by 54.2% to RMB 5.5 million, due to reduced sales outside China, leading to lower bill discounting and factoring loan finance costs[49] Net profit and Dividend Due to the combined impact of the aforementioned factors, the company's net profit in 2020 was RMB 30.7 million, a 18.8% year-on-year decrease; net margin slightly increased from 1.2% to 1.4%; the Board did not recommend a dividend for the year ended December 31, 2020 - The Board did not recommend a dividend for the year 2020 (2019: nil)[49] Liquidity, financial resources and gearing As of the end of 2020, the company's financial position was robust; trade receivables and payables both decreased due to lower sales and purchases, but turnover days extended; the company's net current assets were RMB 232 million, with cash and cash equivalents of RMB 26.3 million; the gearing ratio significantly decreased from 0.7 to 0.2, indicating lower financial leverage; the company had unutilized borrowing facilities of RMB 148.7 million, indicating ample liquidity - Trade receivables and bills receivable: Average turnover days extended from 60.8 days to 80.4 days[52] - Trade payables and bills payable: Average turnover days extended from 96.2 days to 134.8 days[54] Key Financial Ratios and Resources (As of December 31) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Net Current Assets (RMB millions) | 232.1 | 211.4 | | Cash and Cash Equivalents (RMB millions) | 26.3 | 126.7 | | Borrowings (RMB millions) | 53.5 | 206.3 | | Current Ratio | 1.3 times | 1.2 times | | Gearing Ratio (Total Debt/Total Equity) | 0.2 | 0.7 | | Unutilized Borrowing Facilities (RMB millions) | 148.7 | 0 | - As of the end of 2020, the company had no significant investments (financial assets at fair value through profit or loss), and all structured deposits were fully redeemed upon maturity[66][68] Future plans for material investments The company plans to purchase new SMT production lines to expand capacity and increase R&D investment to enrich its mobile phone and IoT product portfolios; in November 2020, the company signed an investment agreement with Shanghai Lingang Special Area Administration Committee, planning to invest no less than RMB 120 million to establish a smart device R&D headquarters, which is still in the preliminary planning stage - The company plans to establish a smart device R&D headquarters in Shanghai Lingang Special Area, with a fixed asset investment of no less than RMB 120 million, to enhance R&D capabilities[74][75] Use of proceeds from initial public offering The company listed in November 2019, with net proceeds from the IPO of approximately HKD 84.4 million; as of December 31, 2020, HKD 68 million had been utilized, primarily for enhancing SMT capacity, strengthening R&D capabilities, and increasing sales and marketing efforts; HKD 16.4 million remains unutilized and is expected to be fully used by the end of 2021 IPO Proceeds and Utilization (As of December 31, 2020) | Planned Use | Planned Amount (HKD millions) | Amount Utilized (HKD millions) | Unutilized Amount (HKD millions) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Enhance Surface Mount Technology (SMT) Capacity | 38.8 | 33.8 | 5.0 | By December 31, 2021 | | Strengthen R&D Capabilities | 14.2 | 9.5 | 4.7 | By December 31, 2021 | | Increase Sales and Marketing Efforts | 8.6 | 6.6 | 2.0 | By December 31, 2021 | | Upgrade Enterprise Resource Planning System | 5.7 | 3.2 | 2.5 | By June 30, 2021 | | Repay Bank Loans | 8.8 | 6.6 | 2.2 | By June 30, 2021 | | General Working Capital | 8.3 | 8.3 | 0 | Not applicable | | Total | 84.4 | 68.0 | 16.4 | | Biographical Details of Directors and Senior Management This section provides biographical details of the company's directors and senior management, highlighting their extensive experience and expertise in the mobile communications industry and various professional fields Executive Directors This section details the backgrounds of the company's four executive directors, including Chairman and CEO Mr. Li Chengjun, Vice Chairman Mr. Xiong Bin, Mr. Li Hongxing responsible for R&D, and Mr. Guo Qinglin responsible for supply chain; all possess over 10 years of extensive experience in the mobile communications industry - Mr. Li Chengjun: Company founder, Chairman, and CEO, with over 20 years of industry experience, previously worked at Huawei and Suncore Technology[87] - Mr. Xiong Bin: Company founder, Vice Chairman, responsible for sales and marketing, with over 15 years of industry experience, previously worked at Amoi Electronics and Suncore Technology[92] - Mr. Li Hongxing: Responsible for product R&D, with over 10 years of industry experience[96] - Mr. Guo Qinglin: Responsible for supply chain operations and sales, with approximately 13 years of industry experience, previously worked at Amoi Electronics Independent Non-Executive Directors This section introduces the backgrounds of four independent non-executive directors, who bring deep professional knowledge and experience in information technology, accounting and finance, corporate management, and media finance, providing independent judgment and oversight to the Board - Independent non-executive directors include Mr. Hung Wai Man, Mr. Wong Kwun Kit, Mr. Lui Wing Sum, and Ms. Zeng Jingyi, bringing diverse professional perspectives to corporate governance[105][113][115] Senior Management This section introduces the company's senior management team, including Chief Financial Officer Mr. Lau Sheung Hang and Vice President and General Manager of Production Center Mr. Wen Chuanchuan, who possess extensive professional experience in their respective fields - Senior management possesses professional capabilities in financial management and production operations, supporting the company's daily operations[122][124] Corporate Governance Report This report details the company's commitment to maintaining high standards of corporate governance, outlining its compliance with the Corporate Governance Code, board structure, committee functions, and internal control systems Compliance and Board Structure The company is committed to maintaining high standards of corporate governance; during the reporting period, except for the Chairman and CEO being the same person (Mr. Li Chengjun), which deviates from code provision A.2.1, the company complied with all code provisions of the Corporate Governance Code; the Board comprises four executive directors and four independent non-executive directors, ensuring a balanced structure; this section also elaborates on the Board Diversity Policy, Nomination Policy, and meeting attendance - The company's Chairman and Chief Executive Officer are the same person, which the Board believes helps ensure leadership continuity and efficient strategic planning[132] 2020 Board and Committee Meeting Attendance | Director Name | Board Meetings | Audit Committee | Nomination Committee | Remuneration Committee | General Meetings | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Chengjun | 5/5 | – | 1/1 | – | 1/1 | | Xiong Bin | 5/5 | – | – | – | 1/1 | | Li Hongxing | 5/5 | – | – | – | 1/1 | | Guo Qinglin | 5/5 | – | – | – | 1/1 | | Hung Wai Man | 5/5 | 2/2 | – | 2/2 | 0/1 | | Wong Kwun Kit | 5/5 | 2/2 | 1/1 | 2/2 | 1/1 | | Lui Wing Sum | 5/5 | 2/2 | 1/1 | 2/2 | 1/1 | | Zeng Jingyi | 5/5 | – | 1/1 | 2/2 | 1/1 | Board Committees The company has established three committees: Audit, Remuneration, and Nomination, all chaired by or with a majority of independent non-executive directors to ensure their independence and effectiveness; the Audit Committee oversees financial reporting and internal controls, the Remuneration Committee determines remuneration policies, and the Nomination Committee handles director nominations and board structure evaluation - Audit Committee: Composed of three independent non-executive directors, chaired by Mr. Wong Kwun Kit[172] - Remuneration Committee: Composed of four independent non-executive directors, chaired by Mr. Hung Wai Man[179] - Nomination Committee: Composed of one executive director and three independent non-executive directors, chaired by Mr. Li Chengjun[186] Internal Control and Risk Management The Board bears overall responsibility for the Group's risk management and internal control systems; the company has established processes for risk identification, assessment, response, and monitoring; considering the company's size, no internal audit function is currently established; in 2020, the company engaged an independent internal control reviewer for assessment, and the Board and Audit Committee deemed the Group's risk management and internal control systems effective and adequate - The company has engaged an independent internal control reviewer to assess the effectiveness of its risk management and internal control systems and will further strengthen the systems based on their recommendations[213][214] Environmental, Social and Governance (ESG) Report This report outlines the company's commitment and performance in environmental protection, social responsibility, and corporate governance, detailing initiatives related to emissions, resource efficiency, employee welfare, supply chain management, and community engagement Environment The company is committed to environmental protection, having implemented policies to reduce emissions and improve resource efficiency, and obtained ISO 14001 environmental management system certification; during the reporting period, the company complied with all relevant environmental laws and regulations; total greenhouse gas emissions in 2020 were 5,067.68 tonnes, largely consistent with 2019; the company adopted various energy and water saving measures and set a target for 2021 that resource consumption will not exceed 2020 levels 2020 Greenhouse Gas Emissions Overview (tonnes of CO2 equivalent) | Emission Scope | 2020 | 2019 | | :--- | :--- | :--- | | Scope 1 (Direct Emissions) | 126.88 | 136.96 | | Scope 2 (Indirect Emissions - Purchased Electricity) | 4,707.32 | 4,652.76 | | Scope 3 (Other Indirect Emissions) | 233.48 | 433.17 | | Total | 5,067.68 | 5,222.89 | - The company has obtained ISO 14001 environmental management system certification and maintains an internal compliance manual to ensure adherence to the latest environmental laws and regulations[258][259] Social Regarding social responsibility, the company focuses on employee well-being, health and safety, supply chain management, product responsibility, and community investment; as of the end of 2020, the company had 1,836 full-time employees; the company provides equal opportunities, prohibits child and forced labor, and offers comprehensive training to employees; during the pandemic, the company implemented various measures to ensure employee health and safety; supply chain management is strict, product quality control is in place, and intellectual property and data privacy protection are emphasized - As of December 31, 2020, the company had 1,836 full-time employees, with males accounting for 58.6% and females 41.4%; employees aged 30 and below accounted for 61.7%[287][288] - In 2020, the company provided a total of 338,119 hours of training to employees, with senior management accounting for 0.1%, middle management 6.9%, and other employees 93.0%[303] - The company implements strict supplier screening and monitoring standards, considering environmental awareness as one of the key criteria for supplier evaluation; in 2020, the company had 570 suppliers, of which 545 were located in China[306][307] - The company's quality management system complies with ISO9001:2015 standards; during the reporting period, there were no product safety or health-related recalls, nor any significant consumer complaints received[311][312] Directors' Report This report provides an overview of the company's operations, financial performance, and key developments during the year, including principal risks, share option schemes, and compliance with relevant regulations Principal Risks and Uncertainties The Directors' Report identifies the company's principal risks, including rapid technological change, thin net profit margins, high customer concentration, and raw material price fluctuations, all of which could adversely affect the company's financial performance and business operations - Technological change: The mobile phone industry experiences rapid technological iteration and short product lifecycles, where any delay in new product launches could impact financial performance[341] - Thin net profit margin: The company is highly sensitive to changes in cost of sales, prices, and sales volume[342] - Customer concentration: In 2020, the largest customer accounted for 23.4% of total revenue, and the top five customers accounted for 49.2%[343] - Raw material price fluctuations: May affect cost of sales and profitability Share Option Scheme The company adopted a share option scheme in October 2019; on April 14, 2020, the company granted 69,100,000 share options to certain directors and employees with an exercise price of HKD 0.51; as of year-end, due to 3,300,000 options lapsing, the total number of unexercised options was 65,800,000; no share-based payment expenses were recognized in 2020 as performance conditions were not met 2020 Share Option Movement | Category of Participant | Unexercised at Beginning of Year | Granted During Year | Lapsed During Year | Unexercised at End of Year | | :--- | :--- | :--- | :--- | :--- | | Directors | 0 | 12,500,000 | 0 | 12,500,000 | | Employees | 0 | 56,600,000 | (3,300,000) | 53,300,000 | | Total | 0 | 69,100,000 | (3,300,000) | 65,800,000 | - As the performance conditions for the share options were not met, no share-based payment expenses related to share options were recognized for the year ended December 31, 2020[443] Independent Auditor's Report This report presents the independent auditor's opinion on the company's consolidated financial statements and highlights key audit matters, providing assurance on the fairness and accuracy of the financial reporting Auditor's Opinion and Key Audit Matters ShineWing (HK) CPA Limited, the auditor, issued an unmodified opinion on the company's 2020 consolidated financial statements, deeming them to present fairly the Group's financial position and performance; the report identified two key audit matters: the assessment of expected credit losses for trade and bills receivables, and inventory valuation - The auditor issued a standard unmodified opinion[459] - Key audit matters include: 1. Expected Credit Losses (ECL) for Trade and Bills Receivables: Significant management estimates are involved in impairment assessment, posing a risk of management bias[464] 2. Inventory Valuation: Management judgment is involved in identifying obsolete and slow-moving inventory and determining its net realizable value[466] Consolidated Financial Statements This section presents the company's consolidated financial statements, including the statement of profit or loss, statement of financial position, and statement of cash flows, providing a comprehensive overview of its financial performance and position Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2020, the company achieved revenue of RMB 2.182 billion, a 30.0% year-on-year decrease; gross profit was RMB 193 million, down 14.9%; profit for the year was RMB 30.68 million, down 18.8%; basic earnings per share were RMB 3.09 cents Consolidated Statement of Profit or Loss Summary | Indicator (RMB thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 2,182,038 | 3,117,648 | | Gross Profit | 193,423 | 227,153 | | Profit Before Tax | 33,651 | 44,414 | | Profit for the Year | 30,684 | 37,763 | | Profit Attributable to Owners of the Company | 30,879 | 38,998 | | Basic Earnings Per Share (RMB cents) | 3.09 | 4.98 | Consolidated Statement of Financial Position As of the end of 2020, the company's total assets were RMB 1.207 billion, a 25.7% year-on-year decrease; total liabilities were RMB 872 million, down 34.1%; total equity was RMB 335 million, up 10.6%; net current assets increased from RMB 211 million to RMB 232 million Consolidated Statement of Financial Position Summary (As of December 31) | Indicator (RMB thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Non-current Assets | 153,599 | 152,356 | | Current Assets | 1,053,885 | 1,473,609 | | Total Assets | 1,207,484 | 1,625,965 | | Current Liabilities | 821,740 | 1,262,173 | | Non-current Liabilities | 50,597 | 60,799 | | Total Liabilities | 872,337 | 1,322,972 | | Total Equity | 335,147 | 302,993 | Consolidated Statements of Cash Flows In 2020, the company had a net cash outflow from operating activities of RMB 40.15 million, a net cash inflow from investing activities of RMB 79.32 million, and a net cash outflow from financing activities of RMB 138 million; the net decrease in cash and cash equivalents for the year was RMB 98.85 million, with an ending balance of RMB 26.33 million Consolidated Statements of Cash Flows Summary | Indicator (RMB thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (40,146) | (80,845) | | Net Cash From/(Used in) Investing Activities | 79,323 | (43,992) | | Net Cash (Used in)/From Financing Activities | (138,030) | 193,961 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (98,853) | 69,124 | | Cash and Cash Equivalents at Beginning of Year | 126,682 | 56,118 | | Cash and Cash Equivalents at End of Year | 26,327 | 126,682 | Notes to the Consolidated Financial Statements This section provides detailed explanatory notes to the consolidated financial statements, offering further insights into specific line items, accounting policies, and significant transactions Note 5: Revenue This note details revenue breakdown by major product type; in 2020, mobile phone business revenue was RMB 1.483 billion, remaining the largest revenue source but with a decreased proportion compared to 2019; IoT-related product revenue grew rapidly, becoming the second largest revenue source Revenue by Product Category (RMB thousands) | Product Category | 2020 | 2019 | | :--- | :--- | :--- | | Mobile Phones | 1,483,386 | 2,410,583 | | Printed Circuit Board Assembly (PCBA) | 103,532 | 471,862 | | IoT-related Products | 480,950 | 127,697 | | Others | 114,170 | 107,506 | | Total | 2,182,038 | 3,117,648 | Note 6: Segment Information The company operates in a single business segment, namely the design, manufacturing, and sale of mobile phones, PCBAs, and IoT products, thus no operating segment information is presented; this note provides revenue breakdown by customer geographical location and key customer information; in 2020, revenue from customer A accounted for 23.4% of total revenue - The company manages all its businesses as a single unit for resource allocation and performance assessment, hence no separate operating segments are reported[580] - In 2020, Customer A contributed RMB 512 million in revenue, accounting for 23.4% of total revenue[585] Note 19: Trade and Bills Receivables As of the end of 2020, net trade and bills receivables were RMB 339 million, a significant decrease from RMB 622 million in 2019; aging analysis shows an increased proportion of receivables over 90 days; the company recognized a loss allowance of RMB 5 million based on the expected credit loss model Aging Analysis of Trade and Bills Receivables (Net, RMB thousands) | Aging | 2020 | 2019 | | :--- | :--- | :--- | | Within 30 days | 261,873 | 459,100 | | 31 to 60 days | 34,177 | 91,441 | | 61 to 90 days | 24,672 | 25,784 | | Over 90 days | 18,496 | 45,836 | | Total | 339,218 | 622,161 | Note 41: Litigations During the reporting period, the company was involved in a legal dispute related to a factoring agreement; the plaintiff sought repayment of approximately RMB 29.2 million in receivables and interest; the first-instance judgment ordered the company to repay approximately RMB 26.81 million plus interest; the company has appealed; as of the end of 2020, the company had recognized a litigation provision of approximately RMB 2.09 million, and approximately RMB 16.21 million in bank deposits were frozen due to this case - The company was sued over a factoring agreement dispute involving its subsidiary Shenzhen Miaomu, with an unfavorable first-instance judgment that the company has appealed; this lawsuit led to a RMB 2.09 million provision and RMB 16.21 million in frozen deposits[775][779] - The company's controlling shareholder signed an indemnity deed in October 2019, committing to indemnify all potential amounts or differences arising from this litigation[780]