JCET(SH:600584)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was CNY 26.46 billion, an increase of 12.49% compared to CNY 23.53 billion in 2019 [18]. - The net profit attributable to shareholders for 2020 reached CNY 1.30 billion, a significant increase of 1,371.17% from CNY 88.66 million in 2019 [18]. - The net cash flow from operating activities increased by 71.09% to CNY 5.43 billion in 2020, up from CNY 3.18 billion in 2019 [18]. - Basic earnings per share rose to CNY 0.81 in 2020, compared to CNY 0.06 in 2019, reflecting a growth of 1,250% [21]. - The company's net assets attributable to shareholders increased by 6.12% to CNY 13.40 billion at the end of 2020, compared to CNY 12.63 billion at the end of 2019 [18]. - The company reported a quarterly revenue of CNY 7.70 billion in Q4 2020, marking a continuous growth trend throughout the year [24]. - The net profit attributable to shareholders in Q4 2020 was CNY 540.20 million, showing a strong performance in the last quarter [24]. - The company achieved a net profit of CNY 9.52 billion after deducting non-recurring gains and losses, indicating a substantial improvement in operational profitability [22]. - The total assets at the end of 2020 were CNY 32.33 billion, a decrease of 3.73% from CNY 33.58 billion at the end of 2019 [18]. - The company achieved an operating revenue of 26.464 billion RMB, representing a year-on-year growth of 28.21% [39]. - The net profit attributable to shareholders reached 1.304 billion RMB, a significant increase of 1,371.17% compared to the previous year [39]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares, totaling 88,977,650 CNY, based on a total share capital of 1,779,553,000 shares [4]. - The company does not plan to increase capital reserves or issue bonus shares for the 2020 fiscal year [4]. - The company’s profit distribution plan for 2020 was approved at the annual shareholders' meeting [73]. - The company’s retained earnings will be carried forward to the next fiscal year after the 2020 dividend distribution [73]. - The company did not adjust its profit distribution policy during the reporting period [73]. - In 2019, the company did not distribute any cash dividends due to a negative available profit balance of -1,723,950,038.43 RMB [73]. Audit and Compliance - The company has received a standard unqualified audit report from Ernst & Young Hua Ming [3]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy [3]. - The company has stated that there are no significant omissions or misleading statements in the annual report [2]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible personnel [3]. - The company has not violated decision-making procedures regarding external guarantees [5]. - The company has committed to strict compliance with legal and regulatory requirements regarding related party transactions [78]. - The company has not faced any risks of suspension or termination of its listing during the reporting period [85]. - There were no significant deficiencies in internal controls reported during the year [177]. Research and Development - The company reported a total R&D expenditure of ¥1,019,477,425.08, representing 3.85% of total revenue [50]. - The company is focusing on advanced packaging technologies such as SiP, WL-CSP, and eWLB, with plans for large-scale production in the next 3-5 years [37]. - The company maintained a strong focus on R&D in emerging markets such as 5G RF, antenna packaging, and automotive applications [51]. - The company is investing heavily in R&D, with a budget increase of 30% for new technology development [156]. - The company emphasizes employee training, offering over 2,000 online courses to enhance skills and competencies [167]. Market Position and Strategy - Jiangsu Changjiang Electronics Technology Co., Ltd. ranked third among the top ten OSAT manufacturers globally with an estimated revenue of 25.563 billion RMB in 2020, making it the leading company in mainland China [30]. - The global semiconductor market reached a total sales of 440.4 billion USD in 2020, with integrated circuit sales accounting for 361.2 billion USD, representing a year-on-year growth of 8.4% [29]. - The company is actively expanding into markets such as 5G communications, artificial intelligence, and automotive electronics, positioning itself for future growth opportunities [36]. - The company aims to become a leading global integrated circuit manufacturing and technology service enterprise, leveraging its advanced manufacturing and technology resources [65]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies [156]. Environmental and Social Responsibility - The company invested approximately CNY 54.525 million in environmental protection measures, including the operation of environmental facilities and waste disposal [106]. - The company achieved an annual electricity savings of approximately 1.4142 million kWh and natural gas savings of 53,900 cubic meters through energy-saving projects [106]. - The company actively participated in social welfare activities, donating CNY 5 million to support COVID-19 relief efforts [107]. - The company is committed to sustainable development, implementing various innovative measures for energy conservation and emission reduction [106]. - The company has established a comprehensive safety management system, investing over CNY 4.5 million in safety production measures in 2020 [106]. Legal Matters - The company reported a significant lawsuit involving a claim for $25 million due to quality issues in chip packaging, currently under court review [87]. - The company is involved in another lawsuit seeking $13.25 million in processing fees and late payment interest from multiple defendants, with the case accepted by the court [87]. - The company’s subsidiary is pursuing a claim against Ruizhang Technology for approximately RMB 16.12 million in processing fees, with a court ruling in favor of the subsidiary for part of the claim [87]. Shareholder Information - The company has no controlling shareholder and operates independently from major shareholders [169]. - The company has a significant presence of institutional investors, with the top ten shareholders holding a combined total of 66.04% of the shares [139]. - The number of shareholders decreased from 319,016 to 306,423 during the reporting period [137]. - The top shareholder, the state integrated circuit industry investment fund, reduced its holdings by 16,028,662 shares, now holding 288,517,503 shares, which is 18.00% of the total [139]. Compensation and Employee Information - Total compensation for all directors, supervisors, and senior management amounted to RMB 44.4862 million during the reporting period [160]. - The company employed a total of 23,359 staff, including 14,958 production personnel and 5,949 technical personnel [163][164]. - The educational background of employees shows that 4,070 hold a bachelor's degree or higher, while 13,215 have less than a college degree [165]. - The company has a performance-based compensation policy that aligns salaries with the completion of monthly operational plans [166].