Kersen(SH:603626)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.47 billion, representing a year-on-year increase of 62.98% compared to CNY 2.13 billion in 2019[23]. - The net profit attributable to shareholders was a loss of CNY 47.62 million, an improvement from a loss of CNY 184.93 million in 2019[23]. - The basic earnings per share for 2020 was -CNY 0.10, compared to -CNY 0.45 in 2019, indicating a narrowing of losses[24]. - The net cash flow from operating activities was CNY 107.83 million, down 68.65% from CNY 343.97 million in 2019[23]. - Total assets increased by 31.09% to CNY 6.03 billion at the end of 2020, up from CNY 4.60 billion at the end of 2019[23]. - The weighted average return on equity was -2.39% for 2020, an improvement from -10.75% in 2019[24]. - The company reported a quarterly operating revenue of CNY 974.56 million in Q4 2020, with a net profit loss of CNY 122.76 million for the same quarter[26]. - Non-recurring gains and losses totaled CNY 12.65 million for 2020, compared to CNY 17.44 million in 2019[28]. - The company's net assets attributable to shareholders increased by 26.09% to CNY 2.09 billion at the end of 2020[23]. - The company faced challenges with certain product sales significantly below expectations, contributing to ongoing losses, albeit at a reduced rate[25]. Corporate Governance - The company received a standard unqualified audit report from its accounting firm[6]. - The company guarantees the authenticity, accuracy, and completeness of the annual report content[10]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has a total of 203 pages in its annual report, indicating comprehensive disclosures[11]. - The company has commitments related to share repurchase and compensation for investors in case of false statements in the IPO prospectus[126]. - The company has a lock-up period of 36 months for major shareholders, during which they cannot transfer or manage their shares[122]. - The company is committed to repurchasing shares at the higher of the issuance price or the average trading price over the last 30 trading days if any false statements are identified[126]. - The company has outlined plans for investor compensation in case of losses due to false disclosures, ensuring timely and fair compensation[126]. - The controlling shareholders must notify the board of their plans to increase their holdings within 10 working days if stock price stabilization measures are triggered, with a minimum investment of RMB 5 million and a maximum of 2% of the total share capital[130]. - The company has a cash dividend policy that prioritizes cash distributions, aiming for a minimum of 30% of the average distributable profit over the last three years[115]. Research and Development - The company has over 200 authorized patents, including more than 50 invention patents, reflecting its strong R&D capabilities[38]. - The company has implemented a "machine replacement" strategy to improve automation levels, resulting in increased production efficiency and product yield[43]. - The company’s R&D expenses increased by 12.34% to 203.36 million RMB, reflecting ongoing investment in new product development[54]. - The company has over 790 R&D personnel, representing 11.24% of total employees[65]. - The company is focusing on the development of minimally invasive surgical instruments, which are becoming a key research and development direction in surgery[78]. - The company recognizes the need for continuous investment in R&D to maintain competitiveness in the precision manufacturing sector[99]. Market and Industry Trends - The company is expanding its product applications into various sectors, including consumer electronics, medical devices, and automotive, which helps mitigate operational risks[46]. - The smartphone market saw a 5.9% decline in total shipments, with the top five manufacturers holding 71.1% market share[74]. - The global tablet market grew by 13.6% in shipments, with the top five brands capturing 78.5% of the market[75]. - The global minimally invasive surgical instruments market is projected to grow from $20.1 billion in 2019 to $32.7 billion by 2025, with a compound annual growth rate (CAGR) of 8.5%[78]. - The demand for medical devices is expected to rise significantly due to increasing health awareness and economic development globally[78]. Environmental Compliance - The company has established a wastewater treatment station using advanced technologies such as Fenton + A/O and MBR membrane processes to ensure compliance with discharge standards[160]. - The company has implemented air pollution control measures, including electrostatic oil mist adsorption and bag dust removal methods, with annual third-party monitoring confirming compliance with national regulations[160]. - The company has been conducting regular third-party testing for wastewater, noise, and waste gas, with all monitoring results meeting compliance standards[167]. - The company has established an emergency response plan for environmental incidents in compliance with national regulations[164]. - The company has implemented strict management processes for hazardous waste, ensuring proper storage and disposal through qualified vendors[161]. Shareholder Information - The total number of ordinary shares increased from 423,809,606 to 490,885,460, reflecting a change of 67,075,854 shares[181]. - The company’s stock structure saw a significant shift with the increase in unrestricted shares, now representing 98.21% of the total[179]. - The largest shareholder, Xu Jingen, holds 139,932,561 shares, representing 28.51% of the total shares, with 53,560,000 shares pledged[194]. - Wang Dongmei, the second-largest shareholder, holds 57,330,000 shares, accounting for 11.68% of the total shares, with 29,700,000 shares pledged[194]. - The company does not have any preferred shareholders with restored voting rights[199].