Laimu Electronics(SH:603633)2021-04-29 16:00Financial Performance - Basic earnings per share decreased by 9.52% to CNY 0.19 in 2020 compared to CNY 0.21 in 2019[22]. - Net profit attributable to shareholders increased by 1.36% to CNY 42,883,094.47 in 2020 from CNY 42,306,043.65 in 2019[22]. - Total assets increased by 30.35% to CNY 1,799,045,800.03 at the end of 2020 compared to CNY 1,380,156,631.71 at the end of 2019[22]. - Net assets attributable to shareholders rose by 42.08% to CNY 1,080,586,009.10 at the end of 2020 from CNY 760,541,698.07 at the end of 2019[22]. - Operating income for 2020 was CNY 529,450,282.53, reflecting a 13.86% increase from CNY 465,004,694.74 in 2019[22]. - Cash flow from operating activities increased by 5.42% to CNY 113,676,892.43 in 2020 compared to CNY 107,829,616.22 in 2019[22]. - The company achieved a revenue of 52,945.03 million RMB in 2020, representing a year-on-year growth of 13.86%[41]. - The net profit attributable to shareholders was 4,288.31 million RMB, with a year-on-year increase of 1.36%[41]. - Sales revenue from automotive products reached 29,453.49 million RMB, marking an 8.97% increase compared to the previous year[41]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.97 per 10 shares, totaling RMB 25,559,616.40, which accounts for 59.60% of the net profit attributable to shareholders for the year 2020[4]. - The company commits to distributing at least 20% of the profit as cash dividends when it is profitable and meets cash dividend conditions[129]. - The company has a cash dividend policy that requires at least 20% of distributable profits to be allocated as cash dividends[124]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, and it must disclose the reasons and usage plans for undistributed profits[132]. - The profit distribution policy adjustments require a two-thirds majority approval from shareholders at the meeting[129]. Risk Management - The company has detailed potential risks in the "Discussion and Analysis of Operating Conditions" section of the report[9]. - The company has established a comprehensive risk statement regarding future plans and uncertainties[5]. - The company recognizes the risk of market demand fluctuations, particularly in the automotive and mobile sectors, which could adversely affect its operations[100]. - The company is exposed to raw material price volatility, particularly for precision electronic copper strips and plastic particles, which significantly impact production costs[107]. - The company faces intense competition in the precision electronic connector market, with over a thousand domestic competitors and significant foreign presence[101]. Corporate Governance - The company has confirmed that all board members attended the board meeting[10]. - The company has established a communication channel with minority shareholders to gather their opinions on profit distribution proposals[128]. - The company’s independent directors must provide independent opinions on any proposed adjustments to the profit distribution policy[129]. - The company has committed to avoiding any competition with its controlling shareholders and related parties, ensuring no conflicts in business operations[134]. - The company’s board and senior management must adhere to strict self-discipline and not engage in activities that harm the company’s interests[137]. Research and Development - The company focuses on continuous R&D investment to improve product quality and accelerate product upgrades in the automotive electronics sector[45]. - The company’s R&D expenses increased by 9.24% to 28.72 million RMB, indicating a focus on innovation[52]. - The company aims to enhance its R&D capabilities and expand the production capacity of automotive precision connectors to international first-class levels[93]. - The company plans to increase R&D investment in automotive products, focusing on high-end product mold and development to capture a larger market share in the automotive electronics sector[95]. Investment Activities - The company invested 7,000 million RMB in a fund as a limited partner, aiming to capitalize on opportunities in the domestic integrated circuit industry[46]. - The company invested 500 million RMB in New Micron (Suzhou) Semiconductor Technology Co., Ltd., acquiring a 1.92% stake to enhance its competitive capabilities[46]. - The company completed a public offering of 60,109,700 shares of ordinary shares, which were listed and traded on July 30, 2020, increasing the total share capital to 263,501,200 shares[168]. Compliance and Audit - The company has received a standard unqualified audit report from Tianjian Accounting Firm[10]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company has not reported any significant accounting errors or changes in accounting policies during the reporting period[148]. - There are no significant lawsuits or arbitration matters reported for the year[150]. Market Position and Strategy - The company operates in the "Computer, Communication and Other Electronic Equipment Manufacturing" industry as classified by the China Securities Regulatory Commission[33]. - The company aims to become a leading supplier of precision electronic components in the automotive and mobile phone sectors, focusing on innovation and high-end upgrades[160]. - The company has established production bases in Shanghai, Hunan, Shenzhen, and Jiangsu, with Shanghai being the main R&D and production center[110]. - The company operates in a competitive landscape with significant players like TE Connectivity and Molex, while also facing competition from numerous smaller firms[77].