BEKEN(SH:603068)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was 80,869.97 million RMB, a decrease of 31.15% compared to 117,462.39 million RMB in 2019[21]. - Net profit attributable to shareholders was 3,322.24 million RMB, down 86.84% from 25,237.02 million RMB in the previous year[21]. - Basic and diluted earnings per share were both 0.24 RMB, representing a decline of 87.88% from 1.98 RMB in 2019[23]. - The average return on equity decreased to 2.67%, down 23.94 percentage points from 26.61% in the previous year, primarily due to reduced net profit amid new share issuance[23]. - The company reported a total revenue of approximately 65,342.47 million for the year ending December 2020, with a growth rate of 2.65% compared to the previous year[150]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.20 per share (including tax) for the fiscal year 2020[5]. - The company achieved a net profit of 33.22 million RMB for the year 2020, with a proposed cash dividend of 2.00 RMB per 10 shares, totaling 30,084,993.20 RMB[97]. - The company plans to distribute at least 80% of profits as cash dividends during mature stages without major capital expenditures, and at least 40% when there are significant expenditures[96]. Audit and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[8]. - The company has complied with all relevant accounting regulations without any significant impacts on its financial statements[118]. Risk Management - There are no significant risk events reported during the reporting period, and potential risks and countermeasures are detailed in the management discussion section[7]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company faces risks in product development due to long R&D cycles and potential misjudgments in market demand, which could delay product launches and affect cost recovery[91]. Research and Development - R&D expenses increased by 23.44% to 122.26 million RMB, reflecting the company's commitment to innovation[57]. - The company has accumulated 111 patents in the wireless RF field, showcasing its strong R&D capabilities[48]. - The company has formed a highly standardized R&D process and quality control system to ensure effective management of new product development[38]. Market Position and Strategy - The company plans to expand into the Internet of Things (IoT) market, focusing on smart transportation, smart home, and wearable technology[35]. - The company has established a comprehensive wireless communication product platform, supporting various wireless protocols and communication standards[35]. - The company aims to improve the technology and performance of Bluetooth, Wi-Fi, and ETC products, while actively expanding into international markets to capture more market share[89]. Shareholder Structure and Management - The total number of shares held by the chairman and general manager, Pengfei Zhang, remained unchanged at 14,211,153 shares, with a pre-tax compensation of 1,109,900 CNY for the reporting period[191]. - The total number of shares held by the board members at the end of the reporting period was 30,901,788 shares, with a total pre-tax compensation of 5,766,700 CNY[191]. - The company has maintained a stable management team with no significant changes in shareholding among key executives[191]. Corporate Governance - The company emphasizes the importance of independent directors, who receive a fixed allowance, while other directors do not[199]. - The board of directors includes independent directors with diverse backgrounds, enhancing corporate governance[192]. - The company adheres to legal requirements for corporate governance, ensuring accurate and timely information disclosure to protect shareholder and creditor rights[157]. Financial Assets and Investments - The total balance of trading financial assets increased to CNY 6,210,000.00 by the end of the reporting period, with a total change of CNY 6,276,128.64[32]. - The company entrusted a total of 808 million RMB in bank wealth management products, with no overdue amounts reported[127]. - The company has confirmed that all entrusted wealth management activities have followed legal procedures[128]. Competitive Landscape - The competitive landscape is intensifying, with significant competition from international firms like Qualcomm and MediaTek, as well as domestic chip design companies[92]. - The company has established long-term partnerships with major foundries and packaging/testing suppliers to mitigate supply chain risks, although capacity constraints remain a concern[94]. Employee and Social Responsibility - The company actively participated in social responsibility initiatives, including a donation of 400,000 to support pandemic relief efforts[160]. - The company maintains a competitive salary and incentive policy to protect employee rights and ensure comprehensive social security coverage[159]. - The company has implemented effective measures to ensure employee safety during the COVID-19 pandemic, resulting in no reported infections among staff[160].