TC(SH:603421)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥2.10 billion, representing a 16.10% increase compared to ¥1.81 billion in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥181 million, an increase of 11.80% from ¥162 million in 2019[22]. - The basic earnings per share for 2020 was ¥0.28, up 12.00% from ¥0.25 in 2019[23]. - The total assets at the end of 2020 were approximately ¥4.38 billion, reflecting a 16.71% increase from ¥3.75 billion at the end of 2019[22]. - The net cash flow from operating activities for 2020 was approximately ¥134 million, a significant increase of 46.03% compared to ¥92 million in 2019[22]. - In 2020, the company achieved total revenue of 2.102 billion yuan, representing a year-on-year growth of 16.10%[73]. - The net profit for the year was 181 million yuan, an increase of 11.80% compared to the previous year[73]. - The total equity attributable to shareholders reached approximately 3.156 billion yuan, up by 4.64% year-on-year[73]. Dividend Policy - The board proposed a cash dividend of RMB 0.84 per 10 shares, totaling approximately RMB 54.87 million (including tax) based on a total share capital of 653,192,211 shares as of April 10, 2021[5]. - The company has implemented a cash dividend policy, proposing a cash dividend of 0.84 RMB per 10 shares for 2020, which accounts for 30.30% of the net profit attributable to ordinary shareholders[152]. - The company has maintained a consistent cash dividend distribution, with previous years showing 1.04 RMB (30.12%) in 2019 and 1.31 RMB (30.14%) in 2018[154]. - The company plans to maintain a minimum cash dividend of 20% of the distributable profit each year, ensuring shareholder returns while supporting future growth[152]. - The company has set a cash dividend ratio of at least 80% for mature stages without major investment plans, ensuring substantial returns to shareholders[152]. Audit and Compliance - The company has received a standard unqualified audit report from Ernst & Young Hua Ming[4]. - The company is committed to maintaining transparency and accuracy in its financial reporting and disclosures[4]. - The company emphasizes the importance of transparency and compliance with regulatory requirements in its financial disclosures[163]. - The company has established long-term commitments to prevent related party transactions that could harm shareholder interests[166]. - The company has appointed Ernst & Young Hua Ming as the auditor for the 2021 financial year, with an audit fee of RMB 740,000[176]. - There are no significant litigation or arbitration matters reported for the year[177]. - The company has committed to fair and transparent related party transactions, ensuring compliance with legal and regulatory requirements[168]. Risk Management - The company has detailed potential risks in the report, particularly in the section discussing future developments[8]. - The company emphasizes the importance of investment risk awareness for investors regarding forward-looking statements[6]. - The company has identified accounts receivable risk as a critical concern and has implemented strategies to ensure the safety of cash collections from its primary customers, mainly power companies[144]. - The company recognizes the risks of market competition and is focusing on differentiation, cost control, and service advantages to maintain its market share[143]. Research and Development - The company has established a complete and unified R&D and operational platform to support its current and future business directions[30]. - The company has obtained 12 patents and 67 copyrights by the end of 2020, continuously expanding its product line in the fire safety sector[33]. - The number of R&D personnel increased to 1,058, representing 31.58% of the total workforce, indicating a strong focus on innovation[95]. - The company has a diversified new product research and development portfolio to mitigate risks associated with individual project failures[145]. - The company has made significant advancements in technology research, including the integration of automatic identification technology into standard carrier modules, leading to high integration and miniaturization[78]. Market Strategy - The company is focused on expanding its market presence and developing new technologies in the power line communication sector[12]. - The company’s focus is on domestic markets, establishing a customer-oriented sales service system tailored to various clients, including State Grid and Southern Grid[31]. - The company is actively participating in the development of the latest technical specifications for electric meters, ensuring its leading position in the market[50]. - The company is exploring diversification in its product lines, expanding from carrier products to include measurement, terminals, power quality, and safety solutions[143]. Manufacturing and Production - The company has established a robust integrated supply chain to improve quality, reduce costs, and enhance delivery speed[12]. - The manufacturing platform emphasizes lean, automated, and information-driven processes, achieving advanced levels in domestic automated production[42]. - The company has established five automated production lines for smart energy meters, capable of producing 50,000 meters per day, and has achieved full automation in its fire safety product line[76]. - The company has a production capacity of 12 million energy meters annually, with fully autonomous technology in hardware and software architecture[62]. Corporate Governance - The company has established a comprehensive governance structure to protect the rights of shareholders and ensure compliance with legal and regulatory requirements[192]. - The company has committed to upholding shareholder interests and avoiding unfair benefit transfers[171]. - The company has established measures to ensure the execution of compensation mechanisms linked to performance[172]. - The company has a strong talent pool with 16 PhDs and over 440 master's degree holders as of the end of 2020[69]. Social Responsibility - The company emphasizes social responsibility and innovation as part of its core values, aiming to contribute positively to society while achieving business growth[191]. - The company has developed over 40 safety production regulations, including safety education and training systems, to promote a culture of safety[199]. - In 2020, the company signed over 220 safety production responsibility agreements to ensure safety goals are communicated and managed at all levels[200].