Lettall Electronic(SH:603629)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,647,616,189.74, representing a 1.69% increase from CNY 1,620,250,982.39 in 2019[27]. - Net profit attributable to shareholders for 2020 was CNY 46,358,842.82, a decrease of 26.94% compared to CNY 63,452,864.86 in 2019[27]. - The net cash flow from operating activities for 2020 was negative CNY 43,577,677.59, a significant decline from CNY 61,670,560.65 in 2019, marking a 170.66% decrease[27]. - The total assets at the end of 2020 were CNY 2,195,912,776.70, which is a 9.91% increase from CNY 1,997,929,473.83 at the end of 2019[27]. - Basic earnings per share for 2020 were CNY 0.46, down 26.98% from CNY 0.63 in 2019[28]. - The weighted average return on equity for 2020 was 4.66%, a decrease of 1.82 percentage points from 6.48% in 2019[31]. - The comprehensive gross margin for 2020 was 15.66%, down 3.22 percentage points from 2019, primarily due to accounting policy adjustments[56]. - The sales volume of precision metal structural parts was 20.01 million units, a year-on-year decrease of 12.81%, while the average selling price increased by 11.11% to CNY 59.34[55]. Audit and Compliance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm for the fiscal year 2020, confirming the accuracy and completeness of the financial report[6]. - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[8]. - The company’s financial report is guaranteed to be true, accurate, and complete by the responsible persons, including the CEO and accounting head[6]. - The company has no major litigation or arbitration matters during the reporting period[182]. - The company emphasizes compliance with laws and regulations, ensuring accurate and timely information disclosure to stakeholders[192]. Risk Management - There are no significant risks that materially affect the company's operations during the reporting period, as detailed in the risk section of the report[10]. - The company has not faced any significant operational risks that could impact its production and business activities[10]. - The company faces risks from seasonal sales fluctuations, with higher sales typically occurring in the second half of the year, particularly in Q4[109]. - Raw material costs, particularly for electro-galvanized sheets and aluminum profiles, account for approximately 70% of direct material costs, making the company vulnerable to price fluctuations in these commodities[108]. - As of the end of 2020, the company's accounts receivable amounted to 430.44 million yuan, representing 19.60% of total assets, indicating potential risks if major clients face financial difficulties[112]. Corporate Governance - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring full participation in decision-making[5]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties during the reporting period[8]. - The company has established measures to ensure that its compensation policies are linked to the execution of return measures[164]. - The company’s major shareholders have committed to avoiding any business activities that compete with the company’s operations[165]. - The company has implemented stricter regulations for related party transactions, including pricing, approval authority, and decision-making procedures[170]. Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[36]. - The company signed strategic cooperation agreements with Hisense and TCL to establish factories in Mexico, enhancing collaboration with leading enterprises in the television industry[47]. - The company aims to transition from a supplier of metal backplates to a provider of comprehensive solutions for metal structural kits, enhancing its design and service capabilities[103]. - The company plans to establish a factory in Mexico by Q4 2021 to support Hisense, with another factory for TCL to begin construction in 2021 and start production in H1 2022[105]. - The company is exploring opportunities in military and semiconductor sectors as part of its strategic development plan[107]. Research and Development - R&D expenses for the year amounted to CNY 67.14 million, a year-on-year increase of 7.47%, representing 4.07% of operating revenue[58]. - The company has obtained 77 authorized patents, including 6 invention patents and 69 utility model patents, indicating a strong focus on innovation[50]. - The number of R&D personnel was 148, accounting for 4.06% of the total workforce[79]. - The company invested CNY 50.07 million in new production equipment, with 90% allocated to specialized production equipment[58]. Social Responsibility - The company engaged in social responsibility initiatives, including a donation of CNY 800,000, with CNY 500,000 allocated to support pandemic relief efforts in Hubei[60]. - The company maintains a focus on social responsibility, actively participating in community service and ensuring employee welfare[192]. Shareholder Matters - The company plans not to distribute cash dividends or increase capital reserves for the year 2020 due to ongoing non-public stock issuance, ensuring smooth implementation of the issuance process[7]. - The company’s profit distribution plan for 2020 has been approved by the board and awaits approval from the shareholders' meeting[7]. - The company commits to addressing profit distribution matters promptly after the completion of the non-public A-share stock issuance[124]. - The company’s profit distribution plan for 2020 is pending approval at the annual shareholders' meeting[119]. - The company has a history of cash dividends, with 2.00 RMB per 10 shares in 2019 and 2.80 RMB per 10 shares in 2018[120].