Routon(SH:600355)2021-04-14 16:00Financial Performance - The company reported a net profit attributable to shareholders of -35,482,770.90 RMB for 2020, a decrease from -67,644,101.22 RMB in 2019, indicating an improvement in losses[4]. - Total revenue for 2020 was 196,600,847.38 RMB, down 35.02% from 302,553,923.70 RMB in 2019[20]. - The company's cash flow from operating activities was -42,809,384.26 RMB, a significant decline compared to a positive cash flow of 3,210,615.57 RMB in 2019[20]. - The basic earnings per share for 2020 was -0.07 RMB, compared to -0.14 RMB in 2019, showing a reduction in losses per share[21]. - The weighted average return on equity improved to -12.80% in 2020 from -20.57% in 2019, an increase of 7.77 percentage points[21]. - The company reported a significant reduction in R&D expenses, down 53.82% to ¥31,391,742.26, reflecting cost-cutting measures amid declining revenues[40]. - The company reported a net loss of approximately RMB 35.48 million for the year 2020, with no cash dividends distributed to shareholders[73]. - The company reported a net loss of CNY 425,181,335.08 in 2020, compared to a net loss of CNY 389,698,564.18 in 2019[143]. - The total comprehensive loss for 2020 was approximately ¥33.42 million, an improvement from a loss of ¥66.89 million in 2019, indicating progress in financial recovery[153]. Revenue and Costs - Operating revenue decreased by 35.02% to ¥196,600,847.38, primarily due to the impact of the pandemic on sales[49]. - Total operating costs for 2020 were CNY 238.4 million, down from CNY 358.9 million in 2019, representing a 33.6% reduction[149]. - The smart manufacturing segment generated revenue of ¥118,543,967.14, a decrease of 46.74% year-on-year, with a gross margin of 19.79%[43]. - The commercial terminal segment saw a slight revenue increase of 1.74% to ¥68,252,175.93, with a gross margin of 11.11%[43]. - The smart interconnection segment's revenue fell by 31.82% to ¥3,022,783.26, with a gross margin of 11.19%[43]. Assets and Liabilities - Total assets decreased by 8.33% to 442,334,697.06 RMB at the end of 2020, down from 482,541,554.10 RMB at the end of 2019[20]. - The company’s net assets attributable to shareholders decreased by 12.03% to 259,567,139.44 RMB at the end of 2020[20]. - Total current assets decreased to CNY 267,647,542.92 in 2020 from CNY 299,507,919.97 in 2019, a decline of approximately 10.6%[141]. - Total liabilities decreased to CNY 183,953,590.11 in 2020 from CNY 188,677,676.25 in 2019, a reduction of about 2.4%[142]. - Short-term borrowings increased significantly to CNY 51,000,000.00 in 2020 from CNY 2,000,000.00 in 2019, marking a substantial increase of 2450%[142]. Research and Development - The company holds a total of 185 patents, including 33 invention patents and 88 utility model patents, reflecting its strong R&D capabilities[31]. - The number of R&D personnel is 126, accounting for 31.98% of the total workforce[50]. - Research and development expenses decreased to CNY 31.4 million in 2020 from CNY 68.0 million in 2019, a reduction of 53.8%[149]. - Research and development expenses for 2020 were approximately ¥20.04 million, a decrease of about 56% from ¥45.52 million in 2019, indicating a potential shift in focus or cost-cutting measures[153]. Market and Product Development - The company has developed a comprehensive range of smart manufacturing products, including servo systems for industrial sewing equipment, which are exported to over 20 countries[28]. - The company aims to expand its market presence in identity verification and trusted certification devices, focusing on sectors such as public security, hotels, and healthcare[59]. - The company is exploring new market promotion and business cooperation models in the fields of industrial IoT and smart campus solutions[60]. - The company plans to enhance its smart terminal products by integrating AI technology and expanding its competitive product series in the smart identification and AIoT fields[62]. Corporate Governance and Compliance - The company adheres to a strict corporate governance structure, ensuring compliance with laws and regulations, and maintaining independence from its controlling shareholder[118]. - The board of directors and supervisory board operate independently, with no significant differences from the requirements set by the China Securities Regulatory Commission[119]. - The company has implemented a transparent information disclosure system, ensuring all shareholders have equal access to information[119]. - The company has not engaged in any major related party transactions during the reporting period[80]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 36,366, an increase from 35,454 at the end of the previous month[90]. - The largest shareholder, Zhang Xueyang, holds 60,000,000 shares, accounting for 12.19% of the total shares[94]. - The company has established a cash dividend policy and plans to actively implement it in the future, depending on its financial situation[71]. Risk Management - The company has identified various risks including management, market, talent, technology, and policy risks in its future outlook[5]. - The top five customers accounted for 44.38% of total sales, with no sales to related parties, indicating a reliance on a concentrated customer base[48]. - The top five suppliers represented 52.85% of total purchases, also with no purchases from related parties, highlighting supplier concentration risks[48]. Employee Information - The total number of employees in the parent company and major subsidiaries is 394, with 26 in the parent company and 368 in subsidiaries[112]. - The professional composition includes 159 production personnel, 40 sales personnel, 126 technical personnel, 9 financial personnel, and 60 administrative personnel[112]. - The company has established a competitive compensation mechanism based on market conditions and talent value, with components including monthly salary, special allowances, year-end bonuses, and performance-based rewards[113]. Future Outlook - The company plans to enhance its smart manufacturing products and leverage its technology accumulation in the garment industry to optimize and iterate its offerings in 2021[58]. - The overall business goal for 2021 is to "maintain stability while achieving new breakthroughs," focusing on the "smart clothing factory" initiative to enhance efficiency and reduce inventory[65]. - The company aims to improve its R&D capabilities and optimize its product offerings in response to the evolving market demands and technological advancements[67].