VEKEN TECHNOLOGY(SH:600152)2021-04-12 16:00Financial Performance - The company's net profit attributable to shareholders for 2020 was ¥49,142,739.18, a significant recovery from a loss of ¥64,080,936.68 in 2019[5]. - Total operating revenue for 2020 reached ¥1,744,979,518.01, representing a year-on-year increase of 6.08% compared to ¥1,645,001,121.19 in 2019[22]. - The cash flow from operating activities for 2020 was ¥29,606,382.59, a recovery from a negative cash flow of ¥60,375,774.88 in 2019[22]. - The company reported a net profit of ¥202,124,653.70 based on the parent company’s financials, with undistributed profits of ¥242,128,979.95 as of December 31, 2020[5]. - Basic earnings per share for 2020 was CNY 0.1206, a significant improvement from a loss of CNY 0.1520 in 2019[23]. - The weighted average return on equity increased by 8.18 percentage points to 3.53% in 2020, compared to -4.65% in 2019[23]. - The gross profit margin increased by 4.05 percentage points due to revenue growth and cost management[61]. - The company achieved a net cash flow from operating activities of CNY 29.61 million, a significant recovery from a negative cash flow in the previous year[61]. Assets and Liabilities - The company's total assets as of December 31, 2020, were ¥3,171,313,866.46, reflecting a 16.55% increase from ¥2,720,942,353.36 at the end of 2019[22]. - The net asset attributable to shareholders increased by 4.67% to ¥1,423,075,857.02 at the end of 2020, compared to ¥1,359,578,504.02 in 2019[22]. - The total assets measured at fair value decreased by CNY 245,175,653.41 from the previous year, indicating a significant adjustment in asset valuation[32]. - The company has significant foreign assets amounting to ¥29,428,718.50, representing 0.93% of total assets[46]. - Total guarantees during the reporting period (excluding guarantees to subsidiaries) amounted to CNY 1,470,000,000[157]. - Total guarantees at the end of the reporting period (excluding guarantees to subsidiaries) reached CNY 830,000,000[157]. Investment and Expansion - The company plans not to distribute profits for 2020 to ensure the smooth implementation of investment projects due to significant capital expenditures in 2020 and 2021[5]. - The company is expanding its production capacity with a new project for 60 million polymer lithium batteries, which began construction in May 2020[55]. - The company plans to continue investing in lithium-ion battery research and development, as indicated by its capital contributions to subsidiaries[90]. - The company has established an industrial investment fund to expand funding sources and achieve complementary benefits with its main business[112]. - The company plans to issue up to 126,276,026 A-shares as part of a non-public offering approved by the 2019 annual general meeting[164]. Market and Product Development - The company plans to continue focusing on market expansion and new product development to drive future growth[30]. - The company's main business focuses on consumer batteries (including polymer batteries and aluminum shell batteries) and small power batteries (including two-wheeled vehicle batteries, electric tool batteries, and energy storage batteries)[34]. - The performance drivers for consumer batteries include the rapid iteration of smartphones and the arrival of 5G, leading to increased demand and sales from partnerships with brands like TCL and ZTE[35]. - The small power battery segment includes lithium iron phosphate and ternary batteries, with growth driven by regulatory support for electric two-wheeled vehicles and partnerships with companies like Zhangfei and Hello[39]. - The company aims to solidify its leading position in the 3C digital battery market and capitalize on growth opportunities in niche markets such as shared power banks and drones[107]. Research and Development - The company has a total of 575 R&D personnel, with 27 core R&D staff, ensuring strong technical support for product development[54]. - The company emphasizes continuous R&D investment to enhance product performance and maintain competitiveness against international manufacturers[50]. - The company is committed to increasing its R&D efforts to meet the evolving demands for higher energy density and safety in lithium-ion batteries[110]. - The company has a comprehensive production process and core technology for polymer lithium-ion batteries, enhancing its product development capabilities[109]. Compliance and Governance - The company has received a warning letter from the China Securities Regulatory Commission regarding compliance issues, and has submitted a rectification report[135]. - The company has confirmed that all commitments made by major shareholders and related parties have been fulfilled in a timely manner[121]. - The company has implemented measures to strengthen team building and optimize workforce structure through party and labor union work[169]. - The company emphasizes the protection of shareholder and creditor rights by adhering to disclosure regulations and treating all shareholders equally[169]. Environmental and Social Responsibility - The company is not classified as a key pollutant discharge unit and actively engages in energy conservation and emission reduction efforts, aligning with national goals[172]. - The company has increased investment in environmental protection equipment and technology upgrades to support the development of the renewable energy industry[172]. - The company has established a good social image by adhering to various management systems, including ISO9001 and ISO14001, to control pollutants[172]. - The company emphasizes its social responsibility and contributes to local economic and social development[171].