生益科技(600183) - 2020 Q4 - 年度财报

Definitions This section provides definitions of key terms used throughout the report Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and a summary of its key financial performance over the past three years Company Information and Contact Details This chapter provides the company's basic business registration information, including its Chinese and English names, legal representative, registered and office addresses, website, and contact details for the Board Secretary - The company's full name is Guangdong Shengyi Technology Co., Ltd. (SHENGYI TECHNOLOGY CO.,LTD.), stock code is 600183, listed on the Shanghai Stock Exchange[9][14] Key Accounting Data and Financial Indicators for the Past Three Years The company achieved steady growth in 2020, with operating revenue increasing by 10.92% and net profit attributable to shareholders by 16.00%, while total assets expanded to 18.36 billion yuan Key Accounting Data for the Past Three Years (Unit: Yuan) | Indicator | 2020 | 2019 | YoY Change (%) | 2018 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 14,687,341,460.15 | 13,241,085,241.08 | 10.92 | 11,981,081,734.45 | | Net Profit Attributable to Parent Company Shareholders | 1,680,510,160.48 | 1,448,767,198.85 | 16.00 | 1,000,468,630.58 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | 1,605,771,350.27 | 1,393,661,498.51 | 15.22 | 924,798,068.77 | | Net Cash Flow from Operating Activities | 1,757,967,491.81 | 1,692,374,380.93 | 3.88 | 1,337,205,019.46 | | Net Assets Attributable to Parent Company Shareholders (Year-end) | 9,889,074,607.01 | 8,833,910,412.23 | 11.94 | 6,402,503,408.72 | | Total Assets (Year-end) | 18,357,445,724.02 | 15,534,907,870.03 | 18.17 | 12,885,924,860.59 | Key Financial Indicators for the Past Three Years | Indicator | 2020 | 2019 | YoY Change (%) | 2018 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.74 | 0.66 | 12.12 | 0.47 | | Diluted Earnings Per Share (Yuan/Share) | 0.72 | 0.66 | 9.09 | 0.47 | | Weighted Average Return on Net Assets (%) | 18.28 | 19.67 | Decrease by 1.39 percentage points | 16.39 | Key Quarterly Financial Data for 2020 The company's operations showed a quarter-over-quarter improvement in 2020, with operating revenue increasing from 3.07 billion yuan in Q1 to 3.99 billion yuan in Q4 2020 Quarterly Financial Data (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,071,837,888.45 | 3,806,893,561.83 | 3,811,269,742.04 | 3,997,340,267.83 | | Net Profit Attributable to Parent Company Shareholders | 339,269,165.27 | 486,582,007.33 | 476,969,946.76 | 377,689,041.12 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | 342,748,701.29 | 481,980,089.53 | 405,704,037.59 | 375,338,521.86 | | Net Cash Flow from Operating Activities | 572,569,553.19 | 333,118,633.84 | 232,890,254.85 | 619,389,049.93 | Non-recurring Gains and Losses In 2020, the company's non-recurring gains and losses totaled 74.74 million yuan, primarily from government subsidies and gains from subsidiary acquisitions 2020 Key Non-recurring Gains and Losses (Unit: Yuan) | Item | 2020 Amount | | :--- | :--- | | Government Subsidies Included in Current Profit and Loss | 61,119,243.01 | | Gains from Business Combinations | 40,646,900.71 | | Gains and Losses from Disposal of Non-current Assets | -16,839,382.47 | | Net Other Non-operating Income and Expenses | -11,133,907.54 | | Total | 74,738,810.21 | Business Overview This section outlines the company's core business, operating model, and competitive advantages in the industry Main Business and Operating Model The company's main business involves designing, producing, and selling copper clad laminates (CCL), prepregs, and printed circuit boards (PCB), widely used in various electronic products - The company's core products are copper clad laminates and printed circuit boards, applied in high-growth areas such as 5G antennas, communication base stations, servers, automotive electronics, and mobile terminals, gaining high recognition from leading manufacturers in various industries[23] - The company emphasizes establishing 'win-win' strategic partnerships with upstream and downstream partners, fostering collaborative growth and value transfer across the supply chain through technical exchange and joint development[23][24] Core Competitiveness Analysis The company's core competitiveness stems from its strong brand, experienced management, and continuous technological innovation, particularly in high-value-added products - Brand Advantage: The company has obtained multiple international safety certifications, including US UL, UK BSI, and German VDE, and holds industry influence as a convener of the IEC working group and a core member of several domestic industry associations[26] - Technological Advantage: The company's 'National Engineering Research Center for Electronic Circuit Substrates' has passed acceptance, focusing on engineering research and development of key common technologies in the industry, continuously launching high-value-added new products[26] Management Discussion and Analysis This section provides a detailed review of the company's operational performance, financial position, and future outlook Operational Review In 2020, the company successfully navigated the pandemic and trade disputes, capitalizing on 5G, consumer electronics, and automotive electronics demand, while achieving technological breakthroughs and strengthening group synergy - The company successfully navigated the impact of the pandemic and trade disputes, seizing market opportunities in 5G base stations, consumer electronics, and automotive electronics, achieving both order and price increases[28] - Significant technological breakthroughs were achieved: high-speed materials gained recognition from renowned end customers, and automotive millimeter-wave 77GHz radar-related technologies made breakthroughs, expanding future market reserve space[28] - 2020 marked the 'first year' of group-wide operations, with the effective functioning of seven major business management centers, including marketing, operations, quality control, and R&D, preparing the group for leapfrog development[29] Key Operating Data In 2020, the company's main products saw increased production and sales, with operating revenue growing by 10.92% to 14.69 billion yuan, driven by strong performance from subsidiaries 2020 Key Product Production and Sales | Main Product | Unit | Production Volume | Sales Volume | Production Volume YoY Change (%) | Sales Volume YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Copper Clad Laminate | 10,000 sq. meters | 10,382.84 | 10,253.58 | 12.99 | 10.01 | | Prepreg | 10,000 meters | 14,010.31 | 13,829.70 | 13.12 | 11.72 | | Printed Circuit Board | 10,000 sq. meters | 82.20 | 81.12 | 1.88 | 4.01 | - Selling expenses decreased by 37.68% year-on-year, primarily due to the adoption of new revenue recognition standards, reclassifying transportation costs as contract fulfillment costs to operating costs[31] - Investment income increased by 199.68% year-on-year, mainly due to the acquisition of Guangdong Lusheng Environmental Protection Co., Ltd. and its inclusion in the consolidated scope, with the difference between the fair value and book value of the originally held equity recognized as investment income[31] Revenue and Cost Analysis In 2020, main business revenue grew by 10.45% to 14.41 billion yuan, with CCL and prepreg showing improved gross margin, while PCB gross margin declined despite higher revenue growth Main Business by Industry Segment | Industry Segment | Operating Revenue (Yuan) | Gross Margin (%) | Operating Revenue YoY Change (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Copper Clad Laminate and Prepreg | 10,848,914,471.21 | 25.54 | 8.46 | Increase by 0.78 percentage points | | Printed Circuit Board | 3,558,356,290.28 | 26.05 | 16.99 | Decrease by 2.87 percentage points | Main Business by Region | Region | Operating Revenue (Yuan) | Gross Margin (%) | Operating Revenue YoY Change (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 12,591,214,302.87 | 26.34 | 16.98 | Increase by 0.35 percentage points | | Export Sales | 1,816,056,458.62 | 21.00 | -20.37 | Decrease by 3.51 percentage points | R&D Investment In 2020, R&D investment totaled 710.77 million yuan, accounting for 4.84% of revenue, with a focus on next-generation high-speed communication materials and automotive radar technologies 2020 R&D Investment Overview | Indicator | Value | | :--- | :--- | | Total R&D Investment (Yuan) | 710,765,835.44 | | R&D Investment as % of Operating Revenue (%) | 4.84 | | Number of R&D Personnel (Persons) | 1,394 | | R&D Personnel as % of Total Employees (%) | 12.89 | - R&D direction closely follows market trends, primarily investing in key technological areas such as next-generation high-speed communication, smart mobile terminals, high-density packaging, data centers, and intelligent automotive radar, to translate technological accumulation into market competitive advantages[42] Analysis of Assets and Liabilities As of year-end 2020, total assets reached 18.36 billion yuan, with significant increases in accounts receivable financing (+63.76%) and short-term borrowings (+41.97%), while accounts payable surged by 2246.47% due to subsidiary operations Key Balance Sheet Changes (Unit: Yuan) | Item Name | Current Period End Balance | Prior Period End Balance | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 1,117,900,970.17 | 682,643,071.88 | 63.76 | Bank acceptance bills received exceeded endorsements and matured amounts | | Goodwill | 97,430,929.04 | 0.00 | N/A | Acquisition of Guangdong Lusheng Environmental Protection and inclusion in consolidated scope | | Short-term Borrowings | 2,157,170,932.62 | 1,519,481,480.54 | 41.97 | Increased due to daily operating needs | | Notes Payable | 136,780,774.18 | 5,829,207.16 | 2,246.47 | Increase in notes issued by subsidiary Shengyi Electronics for goods payment | | Other Payables | 224,049,176.94 | 92,034,483.39 | 143.44 | Consolidation of Guangdong Lusheng acquisition and payment of remaining equity transaction balance | | Minority Interests | 754,245,938.12 | 519,706,646.60 | 45.13 | Consolidation of Guangdong Lusheng acquisition, recognizing minority interests | Industry Operating Information Analysis The company's core business, copper clad laminate manufacturing, accounts for 73.87% of total revenue, with the company ranking second globally in rigid CCL sales in 2019 - The company holds a strong market position in its core business, ranking second globally in rigid copper clad laminate sales in 2019[48] Investment Status Analysis During the reporting period, the company's most significant equity investment was the acquisition of a 27% stake in Guangdong Lusheng Environmental Protection, making it the largest shareholder and consolidating it - The company, through its subsidiary Shengyi Capital, acquired a 27% equity stake in Guangdong Lusheng Environmental Protection for 143 million yuan in cash, achieving control and consolidation, reflecting the company's strategy to seek stable income outside its main business[50] Analysis of Major Holding and Participating Companies The company's key subsidiaries, including Suzhou Shengyi, Shaanxi Shengyi, and Shengyi Electronics, are major contributors to production and revenue, while new bases are in investment phase 2020 Key Subsidiary Financial Data (Unit: Yuan) | Company Name | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Suzhou Shengyi | 2,004,445,077.29 | 1,366,498,926.67 | 2,444,611,288.84 | 191,907,635.92 | | Shaanxi Shengyi | 2,455,090,193.14 | 1,660,733,880.20 | 1,996,602,891.39 | 130,906,809.19 | | Shengyi Electronics | 4,546,351,529.85 | 1,916,737,000.86 | 3,633,501,932.99 | 442,319,120.75 | | Jiangsu Shengyi | 692,055,914.99 | 428,031,442.08 | 154,671,546.43 | -34,816,605.36 | | Jiangxi Shengyi | 1,352,711,254.07 | 981,413,651.63 | 802,692,199.88 | -13,913,374.26 | Company's Future Development, Strategy, and Risks The company anticipates future PCB market growth from 5G and automotive electronics, maintaining a strategy focused on core CCL business while diversifying income through investments, but faces raw material price and competition risks - Future Growth Drivers: 5G and its resulting IoT, AI applications, and the increased technical requirements and PCB usage driven by new energy vehicles[56] - Company Development Strategy: Focus on the core copper clad laminate business to become the global manufacturer with the most comprehensive competitive advantages; avoid vertical integration of the industrial chain; diversify income through investments[57] - Key Risk Warnings: Price fluctuations and supply-demand imbalances of raw materials (copper, resin, glass fiber cloth); intensified industry competition, especially in technology, scale, and cost[60] Significant Matters This section details the company's profit distribution plan, equity incentive schemes, related party transactions, and social responsibility initiatives Profit Distribution Plan The company has a consistent cash dividend policy, with the 2020 plan proposing a cash dividend of 4.00 yuan per 10 shares, totaling approximately 916.33 million yuan Dividend Distribution Plans for the Past Three Years | Dividend Year | Dividend Per 10 Shares (Yuan) (Tax Incl.) | Cash Dividend Amount (Yuan) (Tax Incl.) | Ratio to Net Profit Attributable to Parent Company Shareholders (%) | | :--- | :--- | :--- | :--- | | 2020 | 4.0 | 916,328,036.00 | 54.53 | | 2019 | 4.0 | 910,476,536.00 | 62.84 | | 2018 | 3.5 | 742,293,190.80 | 74.19 | Equity Incentive Plan During the reporting period, the company continued to implement its 2019 stock option incentive plan, completing the grant registration of reserved options and the first exercise period of initially granted options - In 2020, the company implemented the first exercise period of the 2019 stock option incentive plan's initial grant and completed the grant registration of reserved stock options[75] Significant Related Party Transactions The company's significant related party transactions in the reporting period primarily involved raw material procurement from Jiangsu Lianrui New Material and the acquisition of Guangdong Lusheng Environmental Protection shares - Routine Related Party Transactions: Primarily the procurement of raw materials from associate company Jiangsu Lianrui New Material Co., Ltd., amounting to 68.89 million yuan[77] - Significant Equity Acquisition Related Party Transaction: The company acquired a portion of Guangdong Lusheng Environmental Protection Co., Ltd.'s equity, which constituted a related party transaction and has been disclosed in announcements[80] Social Responsibility and Environmental Information The company actively fulfills social responsibilities, participating in public welfare, and transparently discloses detailed environmental information, including pollutant discharge, prevention facilities, and emergency plans for its key production bases - The company disclosed detailed environmental information for multiple key pollutant-discharging units, including types, standards, concentrations, and total amounts of wastewater, exhaust gas, and hazardous waste emissions, as well as investment and operation of pollution prevention facilities, demonstrating a high level of environmental management[90][112][121] - The company and its major subsidiaries have all prepared and filed emergency response plans for environmental incidents and formulated self-monitoring environmental plans, regularly disclosing monitoring information[124][125] Changes in Ordinary Shares and Shareholder Information This section details changes in the company's ordinary share capital and provides an overview of its shareholder structure and top shareholders Changes in Ordinary Share Capital During the reporting period, the company's total share capital increased by 14,628,750 shares due to the exercise of stock options under the 2019 incentive plan - In 2020, the company's total share capital increased by 14,628,750 shares due to the exercise of stock options under the incentive plan[149][150] Shareholders and Actual Controller Information As of year-end 2020, the company had 133,419 shareholders, with the top three being Guangdong Guangxin Holdings (22.11%), Dongguan Guohong Investment (15.02%), and Weihua Electronics (14.24%), and no single controlling shareholder or actual controller Top Three Shareholders' Shareholding | Shareholder Name | Shareholding Ratio (%) | | :--- | :--- | | Guangdong Guangxin Holdings Group Co., Ltd. | 22.11 | | Dongguan Guohong Investment Co., Ltd. | 15.02 | | Weihua Electronics Co., Ltd. | 14.24 | - The company's equity structure is dispersed, with no single shareholder holding 30% or more, thus there is no controlling shareholder or actual controller[157][159][161] Preferred Shares Information This section confirms that the company has no preferred shares during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares - The company has no preferred shares[163] Directors, Supervisors, Senior Management, and Employees This section provides details on the shareholding changes and compensation of directors, supervisors, and senior management, as well as an overview of the company's employee structure and training Changes in Shareholding and Remuneration of Directors, Supervisors, and Senior Management During the reporting period, several directors, supervisors, and senior management increased their shareholdings due to stock option exercises, with total pre-tax remuneration for the group reaching 50.47 million yuan Shareholding Changes and Remuneration of Selected Directors, Supervisors, and Senior Management | Name | Position | Year-end Shareholding | Change in Shares | Total Remuneration (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Liu Shufeng | Chairman | 3,690,740 | 504,204 | 1,297.45 | | Chen Renxi | Director, General Manager | 1,521,250 | 375,000 | 1,301.29 | | Dong Xiaojun | Deputy General Manager | 801,539 | 140,000 | 452.31 | | Tang Fuyun | Board Secretary | 120,000 | 120,000 | 406.68 | | He Ziqiang | Chief Accountant | 1,447,165 | 300,000 | 464.20 | | Zeng Yaode | Chief Engineer | 624,858 | 300,000 | 494.61 | Employee Information As of the reporting period end, the company had 10,818 employees, with production personnel at 64.4% and technical personnel at 22.3%, and 46.96% holding college degrees or higher, supported by performance-linked compensation and training Employee Professional Composition | Professional Category | Number of Persons | Proportion (%) | | :--- | :--- | :--- | | Production Personnel | 6,966 | 64.4 | | Technical Personnel | 2,411 | 22.3 | | Sales Personnel | 171 | 1.6 | | Administrative Personnel | 504 | 4.7 | | Other | 766 | 7.0 | | Total | 10,818 | 100.0 | - The company's compensation policy reflects 'first-class talent, first-class performance, first-class remuneration,' tilting compensation resources towards 'value contributors' and 'strugglers'[180] Corporate Governance This section describes the company's corporate governance structure, including the roles of its various bodies and the results of its internal control audit Overview of Corporate Governance During the reporting period, the company continuously improved its corporate governance structure in strict compliance with laws and regulations, ensuring standardized operations of its shareholder general meeting, board of directors, supervisory board, and management - The company's corporate governance structure is sound, with the shareholder general meeting, board of directors, supervisory board, and management operating in a standardized manner, complying with relevant laws and regulations[184][185] Internal Control Audit Report The company disclosed its internal control self-assessment report and internal control audit report, with the accounting firm issuing a standard unqualified opinion on the company's 2020 internal controls - The company's internal control audit report received a standard unqualified opinion, indicating that the company's internal controls were effective in all material respects[194] Corporate Bonds Information This section confirms that the company has no corporate bonds during the reporting period Corporate Bonds Information During the reporting period, the company had no corporate bonds - The company has no outstanding corporate bonds[194] Financial Report This section presents the company's audited financial statements, including the auditor's opinion, key financial data, and significant accounting policy changes Audit Report Huaxing Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, affirming their fair presentation - The audit opinion is a standard unqualified opinion, indicating that the financial statements are true and fair[196] - Key Audit Matters (KAMs) include impairment provisions for accounts receivable and inventory, reflecting the significance and complexity of these accounting estimates on the financial statements[198][199][200] Financial Statement Summary The financial statements show strong performance in 2020, with total assets growing to 18.36 billion yuan, operating revenue increasing by 10.92% to 14.69 billion yuan, and net profit attributable to parent company shareholders rising by 16.00% to 1.68 billion yuan Consolidated Income Statement Summary (Unit: Yuan) | Item | 2020 Annual | 2019 Annual | | :--- | :--- | :--- | | Total Operating Revenue | 14,687,341,460.15 | 13,241,085,241.08 | | Operating Profit | 2,090,078,816.81 | 1,804,902,923.07 | | Total Profit | 2,082,831,709.27 | 1,805,073,237.46 | | Net Profit | 1,800,202,825.79 | 1,563,393,933.92 | | Net Profit Attributable to Parent Company Shareholders | 1,680,510,160.48 | 1,448,767,198.85 | Consolidated Cash Flow Statement Summary (Unit: Yuan) | Item | 2020 Annual | 2019 Annual | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,757,967,491.81 | 1,692,374,380.93 | | Net Cash Flow from Investing Activities | -1,832,894,439.73 | -1,566,424,225.68 | | Net Cash Flow from Financing Activities | -215,433,625.61 | -173,114,952.42 | | Net Increase in Cash and Cash Equivalents | -232,422,621.58 | -50,289,327.74 | Significant Accounting Policy Changes Effective January 1, 2020, the company adopted the revised 'Revenue' accounting standard, primarily impacting financial statement presentation through reclassification of certain items without significant effect on financial position or operating results - The company adopted the new revenue standard effective January 1, 2020, adjusting relevant items in the opening financial statements, primarily for reclassification of accounts[313] Impact of New Revenue Standard on Opening Consolidated Balance Sheet (Unit: Yuan) | Item | Before Adjustment (2019-12-31) | After Adjustment (2020-01-01) | Change Amount | | :--- | :--- | :--- | :--- | | Advances from Customers | 5,448,063.35 | 0.00 | -5,448,063.35 | | Contract Liabilities | 0.00 | 4,821,295.00 | 4,821,295.00 | | Other Current Liabilities | 0.00 | 626,768.35 | 626,768.35 | Changes in Consolidation Scope During the reporting period, the company's consolidation scope changed due to the acquisition of a 43.65% stake in Guangdong Lusheng Environmental Protection, gaining control and recognizing 97.43 million yuan in goodwill, and the establishment of a new wholly-owned subsidiary - The company acquired a 27% equity stake in Guangdong Lusheng Environmental Protection for 143 million yuan in cash, achieving control and consolidation when combined with its original equity holding, with a total consolidation cost of 231 million yuan, resulting in goodwill of 97.43 million yuan[489][490][491] - The company established a new wholly-owned subsidiary, Jiujiang Hongjie Real Estate Development Co., Ltd., with a registered capital of 60 million yuan, included in the consolidated scope from its establishment[495] Reference Documents This section lists the documents available for reference, supporting the information presented in the report