SUNNY OPTICAL(HK:02382)2021-04-12 03:54Financial Performance - In 2020, Sunny Optical Technology reported revenue of RMB 38,001.8 million, a slight increase of 0.4% from RMB 37,848.7 million in 2019[9] - The gross profit for 2020 was RMB 8,697.9 million, resulting in a gross profit margin of 22.9%, up from 20.5% in 2019[9] - Profit before tax increased to RMB 5,642.9 million, compared to RMB 4,550.4 million in the previous year, reflecting a growth of 24.1%[9] - The net profit for the year attributable to owners of the Company was RMB 4,871.8 million, representing a 22.0% increase from RMB 3,991.3 million in 2019[9] - For the year ended December 31, 2020, the Group's revenue increased by approximately 0.4% to approximately RMB 38,001.8 million[19] - Profit for the year attributable to owners of the Company increased by approximately 22.1% to approximately RMB 4,871.8 million[19] - Basic earnings per share increased by approximately 22.2% to approximately RMB 445.78 cents[19] Assets and Liabilities - Total assets grew to RMB 35,438.1 million, up from RMB 30,693.1 million in 2019, indicating a growth of 15.0%[9] - Non-current assets increased to RMB 9,808.6 million, compared to RMB 8,247.1 million in 2019, marking a rise of 18.9%[9] - The current ratio improved to 1.9 times, up from 1.8 times in 2019, indicating better short-term financial health[9] - The gearing ratio decreased to 16.8%, down from 17.2% in 2019, reflecting a reduction in financial leverage[9] Market and Business Development - The shipment volume of handset-related businesses continued to hit new heights, contributing to increased global market share and competitiveness[15] - Vehicle lens sets maintained the global No.1 market share despite a decline in global vehicle sales[15] - The infrared-related business achieved impressive growth during the pandemic, contributing to both business performance and pandemic response efforts[15] - The Group aims to become the world's leading manufacturer of integrated optical components and products, leveraging its competitive advantages in the optoelectronic industry[24] - The Group plans to enhance core competitiveness in R&D and production to achieve sustainable development and promote the integration of information technology and production technology[25] Research and Development - R&D expenditure increased by approximately RMB 289.8 million to approximately RMB 2,499.1 million, accounting for approximately 6.6% of the Group's revenue[69] - The Group has strengthened cooperation with top global high-tech companies to enhance its R&D capabilities and lay a solid foundation for future development in new fields[36] - The Group's TOF products and technical solutions are applicable in various fields, including robotic vision, facial recognition payment, smart retail, and smart logistics[36] Corporate Social Responsibility - The Company actively contributed to pandemic prevention by producing key components for anti-pandemic products during COVID-19, enhancing its corporate responsibility[12] - The Group implemented a comprehensive pandemic prevention plan, ensuring safe operations and timely product delivery[17] - The Environmental, Social and Governance Report for 2020 will be published before the end of June 2021, highlighting the Group's commitment to sustainable development[21] Taxation and Financial Strategy - The income tax expense for the year increased by approximately RMB 171.7 million to approximately RMB 702.6 million, with an effective tax rate of approximately 12.5%[75] - The applicable tax rates for subsidiaries in the PRC remained consistent at 15.0% for the years 2019 to 2022[77][79] - Future tax strategies may involve leveraging the existing tax rates to enhance profitability and support expansion initiatives[81] Human Resources and Leadership - The Group had 24,374 full-time employees as of December 31, 2020, and established a competitive salary and welfare system to attract and retain talent[134] - The Group has a strong leadership team with senior professional knowledge in the optical industry and substantial management experience[156] - The management team includes professionals with qualifications in economics, engineering, and business administration, supporting a diverse skill set within the company[163][164] Governance and Compliance - The Company complied with all code provisions of the Corporate Governance Code for the year ended December 31, 2020[182] - The Company has established systems for monitoring risk, financial control, and compliance with the law[186] - The Board is tasked with ensuring the integrity of the Company's accounting and financial reporting systems[186] Future Outlook - The global economic environment remains complex and severe, but the smartphone and vehicle industries are expected to regain growth in 2021[140] - The Group aims to leverage technological innovations and business transformation to achieve continuous and stable growth[140] - Investment in R&D and new technologies will be prioritized to enhance market competitiveness and product quality[141]