Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB 35,858,000, representing a decrease of approximately RMB 30,700,000 (about 46%) compared to RMB 66,558,000 in 2019[17]. - The decline in revenue was primarily due to the impact of the COVID-19 outbreak, the obsolescence of 3G electronic modules, and a challenging economic environment[17]. - The gross profit margin decreased to 1.3% in 2020 from 3.2% in 2019, attributed to increased product costs and decreased selling prices[35]. - Loss attributable to shareholders for the year was approximately RMB 8,496,000, representing an increase of loss of approximately RMB 1,652,000 over the previous year[41]. - Current assets decreased to approximately RMB 15,472,000 in 2020 from RMB 23,403,000 in 2019, a decrease of approximately RMB 7,931,000[42]. - Current liabilities decreased to approximately RMB 29,649,000 in 2020 from RMB 72,280,000 in 2019, a decrease of approximately RMB 42,631,000[43]. - The Group had net liabilities of approximately RMB 39,967,000 as of December 31, 2020, down from RMB 48,684,000 in 2019[44]. Business Operations - The Group's major business includes sales of controller systems for electronic equipment and electronic components for electronic appliances[16]. - The Group's principal activities include the sales of intelligent controller systems for electronic equipment and electronic components for electronic appliances[108]. - The Group's performance analysis by geographical segments is detailed in Note 6 of the consolidated financial statements[115]. - The Group's business review includes discussions on future business development and principal risks and uncertainties[109]. Market Outlook - The market for 2021 remains uncertain, but there are trends that present both challenges and opportunities for the Group[19]. - The Chairman expressed confidence in the future market of intelligent control systems for industrial uses, backed by over 13 years of experience in industrial automation[19]. Cost Control and Employee Management - The Group will continue to implement stringent cost control measures in 2021 due to increased competition in the controllers systems market[51]. - As of December 31, 2020, the Group had 10 employees, down from 18 employees in 2019[54]. - The employee headcount in sales and marketing decreased from 7 in 2019 to 3 in 2020, a reduction of approximately 57.1%[63]. - The group plans to continue strict cost control measures in 2021 due to increasing competition in the controller systems market[57]. Financial Position and Risks - The Group faced liquidity risk as of December 31, 2020, with net current liabilities of approximately RMB 14,177,000[122]. - The Group's financial assets due within one year were less than its financial liabilities due within one year, indicating potential liquidity challenges[126]. - The Group reported no exposure to foreign currency risk as most transactions are denominated in RMB[123]. - The Group's credit risk has significantly decreased due to adequate impairment losses recognized on trade and other receivables[118]. Shareholder Information - The board of Directors does not recommend the payment of a final dividend for the year under review, consistent with 2019[74]. - The Group has no reserves available for distribution to shareholders as of December 31, 2020[138]. - The total number of shares held by substantial shareholders indicates a concentrated ownership structure[177]. - As of December 31, 2020, Mr. He Keng held 370,000,000 Domestic Shares, representing approximately 74% of the entire issued share capital of the Company[167]. Compliance and Governance - The Group complied with all applicable laws and regulations during the year ended December 31, 2020[72]. - No significant transactions or contracts involving directors or their associates were reported during the year ended December 31, 2020[155]. - No directors or their associates engaged in any competing business during the year ended December 31, 2020[156].
瑞远智控(08249) - 2020 - 年度财报