Ellington(SH:603328)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥2.45 billion, a decrease of 18.59% compared to ¥3.01 billion in 2019[26]. - Net profit attributable to shareholders was approximately ¥224.49 million, down 56.70% from ¥518.49 million in the previous year[26]. - The basic earnings per share for 2020 was ¥0.22, a decline of 57.69% from ¥0.52 in 2019[27]. - The weighted average return on equity decreased to 6.39%, down 5.78 percentage points from 12.17% in 2019[27]. - The net cash flow from operating activities was approximately ¥509.86 million, a decrease of 35.40% compared to ¥789.28 million in 2019[26]. - The company's total assets at the end of 2020 were approximately ¥4.26 billion, down 3.08% from ¥4.39 billion at the end of 2019[26]. - The company's total revenue for the reporting period was CNY 2,451,037,194.63, a year-on-year decrease of 18.59%[68]. - The net profit for the period was CNY 22,449,370, a decrease of 56.70% compared to the previous year[70]. - The company's R&D investment amounted to CNY 98,701,842.54, accounting for 4.03% of the total annual revenue[68]. - The company achieved a gross margin of 21.54% in the printed circuit board industry, a decrease of 6.48 percentage points year-on-year[73]. Dividend Policy - The company proposed a cash dividend of 1.00 RMB per 10 shares for the 2020 fiscal year, totaling approximately 119.81 million RMB distributed in the first half of 2020[7]. - The cash dividend policy stipulates that the company will distribute no less than 20% of the distributable profits as cash dividends annually, barring special circumstances[134]. - In 2020, the company distributed a cash dividend of 3.50 yuan per 10 shares for the 2019 fiscal year, totaling approximately 349.45 million yuan[136]. - For the first half of 2020, the company distributed a cash dividend of 1.20 yuan per 10 shares, amounting to approximately 119.81 million yuan[136]. - The proposed cash dividend for the 2020 fiscal year is set at 1.00 yuan per 10 shares, with no capital reserve conversion planned[140]. - In 2020, the cash dividends distributed represented 97.85% of the net profit attributable to ordinary shareholders[140]. - The company has completed the profit distribution plan for both the 2019 and 2020 semi-annual periods as per the established guidelines[135]. Operational Challenges - The company faced a significant impact from the COVID-19 pandemic, leading to delayed or reduced customer orders[27]. - The company reported a decrease in production volume and capacity utilization, contributing to a decline in gross profit margin[42]. - The company’s net profit for the reporting period was significantly affected by increased fixed costs per unit due to lower production levels[42]. - In the reporting period, the company's sales volume decreased by 18.59% year-on-year due to the impact of COVID-19, and the average selling price of products in RMB fell by 3.07%[44]. - The company incurred a foreign exchange loss of 64.92 million RMB during the reporting period, compared to a foreign exchange gain of 17.95 million RMB in the same period last year[44]. Market Position and Strategy - The company continues to focus on high-precision, high-density printed circuit board manufacturing, serving various industries including automotive electronics and consumer electronics[38]. - The global PCB market value reached 65.219 billion USD in 2020, accounting for over 20% of the total electronic components market, indicating significant growth potential in high-growth areas such as 5G and automotive electronics[46]. - The company has established itself as a leading brand in the PCB industry, recognized by major clients and industry associations, and has been included in the top PCB manufacturers globally[49]. - The company has developed several core technologies, including ultra-thin board technology and 5G high-frequency board applications, enhancing its product quality and competitiveness[54]. - The company maintains a diverse and stable customer base, including major clients like Huawei and Continental, which strengthens its market position[55]. - The company plans to strengthen its research and development investments to maintain a leading position in technology and product quality, focusing on high-end PCB products[118]. Corporate Governance and Compliance - The company’s board of directors and supervisory board members confirmed the accuracy and completeness of the annual report[5]. - The company has a clear and compliant profit distribution policy, ensuring transparency and protection for minority investors[135]. - The company has established a comprehensive corporate governance structure and internal control system to ensure fair and transparent treatment of all shareholders, holding two shareholder meetings during the reporting period[194]. - The company implemented a full labor contract system, strictly adhering to labor laws and regulations to protect employee rights and benefits[195]. - The company has a performance evaluation system for senior management, linking their compensation to the achievement of annual operational targets[196]. Social Responsibility - The company allocated 51.10 million to support 245 students from impoverished families through its education fund, demonstrating commitment to social responsibility[189]. - The total funding for poverty alleviation efforts amounted to 51.60 million, with no recorded cases of poverty alleviation through direct assistance[190]. - The company plans to continue its education poverty alleviation initiatives, leveraging its resource advantages to enhance support for underprivileged students[191]. - The company is committed to enhancing its social responsibility initiatives, focusing on education and community support[192]. Risk Management - The company reported no significant risks affecting its operations during the reporting period, including global economic fluctuations and raw material price volatility[11]. - The company has strong cost management capabilities to mitigate the impact of raw material price fluctuations on its profitability[128]. - The company is sensitive to exchange rate fluctuations, particularly the USD/RMB exchange rate, which affects its profit margins[129]. - The company emphasizes environmental protection and has established measures to ensure compliance with environmental regulations[130]. - The company's environmental investment amounted to 81.799 million yuan during the reporting period[132]. Future Outlook - The company aims for a revenue growth of 10%-30% year-on-year in 2021, while controlling operating costs and expenses at reasonable levels[117]. - The PCB industry is expected to benefit from the growth of downstream electronic information industries and the acceleration of new technologies such as 5G and AI[94]. - The PCB industry is anticipated to experience significant market expansion and demand growth due to technological advancements and the ongoing shift towards smart, electric, connected, and shared vehicles[95]. - The global PCB industry is projected to achieve a compound annual growth rate (CAGR) of 5.8% from 2020 to 2025, with Asia maintaining over 93% of the total global PCB production value[110].