SY Science&Technology(SH:603703)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥747.63 million, a decrease of 10.40% compared to ¥834.45 million in 2019[20]. - The net profit attributable to shareholders of the listed company increased by 35.73% to ¥5.25 million from ¥3.87 million in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥22.45 million, slightly improved from a loss of ¥23.11 million in 2019, showing a 2.89% increase[20]. - The net cash flow from operating activities was approximately ¥55.06 million, an increase of 5.38% compared to ¥52.25 million in 2019[20]. - The basic earnings per share remained stable at ¥0.02, unchanged from 2019[22]. - The weighted average return on net assets increased to 1.19%, up from 0.88% in the previous year, reflecting improved profitability[22]. - The decline in operating revenue was attributed to the impact of the pandemic on high-end consumer communication products and adjustments in the product mix of RF cable products[22]. - The introduction of new pandemic-related business contributed positively to the company's net profit[22]. - The company recognized non-operating income of ¥8,522,490.91 from government subsidies in 2020, compared to ¥31,680,954.71 in 2019[27]. - The total amount of non-recurring gains and losses for 2020 was ¥27,694,485.28, with a significant portion attributed to government subsidies and fair value changes[28]. Assets and Liabilities - The net assets attributable to shareholders of the listed company increased by 145.86% to ¥1.08 billion at the end of 2020, primarily due to the completion of a non-public offering of A-shares[23]. - The company's cash and cash equivalents increased by 497.01% from CNY 141,571,784.38 to CNY 845,193,751.87, primarily due to the proceeds from a non-public offering of A-shares[47]. - The company's trading financial assets rose by 228.28% from CNY 5,445,720.00 to CNY 17,876,943.84, mainly due to the addition of performance compensation funds[47]. - The company's long-term borrowings amounted to ¥150,191,208.34, primarily due to new bank loan contracts established during the reporting period[78]. - The company's other receivables increased by 109.89% to ¥9,986,489.91, primarily due to an increase in the balance of export tax refunds[77]. - The company's other payables increased by 83.05% to ¥19,727,995.92, mainly due to an increase in unsettled freight charges[78]. Production and Operations - The company operates in the communication equipment sector, focusing on the research, production, and sales of RF cables and related products[32]. - The company has established a complete industrial chain for RF cable manufacturing, ensuring product quality that exceeds domestic industry standards[45]. - The company has a strong production and quality management capability, having passed multiple international quality certifications including ISO9001:2008[48]. - The company reported a significant increase in construction in progress, rising by 3,177.29% to CNY 13,159,645.56, attributed to new 5G communication tower infrastructure projects[47]. - The production volume of RF cable products increased by 14.27%, while sales volume rose by 7.02%, and inventory increased by 14.83% compared to the previous year[69]. - The production volume of high-frequency heads increased by 7.95%, sales volume increased by 10.78%, and inventory decreased by 35.10% compared to the previous year[70]. - The production volume of display devices decreased by 4.02%, while sales volume increased by 8.46%, and inventory decreased by 17.20% compared to the previous year[70]. Market and Strategic Initiatives - The market for RF coaxial cables is expected to maintain rapid and stable growth, driven by the demand from 5G communication and other high-tech applications[84]. - The company aims to enhance production scale and market share of high-tech coaxial cables, data cables, high-frequency heads, and display devices in 2021[91]. - The company plans to integrate domestic and international resources to expand market presence and become a leading supplier in both wired and wireless sectors[91]. - The company is actively expanding into the communication tower infrastructure construction business to create new growth points[55]. - The company has established deep cooperation with major international operators in Europe and the United States, leading to an increase in order volume[56]. Financial Management and Governance - The company has appointed Zhonghui Certified Public Accountants as its auditor for the 2020 fiscal year, with an audit fee of 700,000 RMB and an internal control audit fee of 250,000 RMB[119]. - The company has established a compensation and assessment committee to evaluate senior management based on performance metrics[191]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies in internal controls[188]. - The company has implemented necessary internal controls to prevent material misstatements due to fraud or error[200]. - The company has maintained a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[120]. Risks and Challenges - The company faces competition risks in the RF cable market, with many domestic players and varying product quality[93]. - Fluctuations in raw material prices, particularly for metals like copper and steel, pose a risk to the company's cost control and profitability[95]. - The ongoing global pandemic presents macroeconomic uncertainties that could affect the company's financial condition and operational results, although no significant adverse impacts have been identified as of the report date[101]. - The company plans to further develop various wired and wireless communication products, but faces risks if new product development fails or does not penetrate the market effectively[99]. Shareholder and Equity Information - The company completed a non-public offering of A-shares, issuing 68.91 million shares at a price of 9.61 RMB per share, raising a total of 662.23 million RMB, with a net amount of 642.96 million RMB after deducting issuance costs of 19.27 million RMB[125]. - The company issued 68,910,000 new shares, increasing total shares from 229,700,000 to 298,610,000, which diluted earnings per share and net asset value during the reporting period[139]. - The total number of ordinary shareholders increased from 23,149 to 25,172 during the reporting period[147]. - The largest shareholder, Shaoxing Shengyang Electric Co., Ltd., holds 56,632,598 shares, accounting for 18.97% of total shares[149]. - The second-largest shareholder, Ye Liming, holds 37,095,000 shares, representing 12.42% of total shares[149]. Social Responsibility and Community Engagement - The company has actively engaged in targeted poverty alleviation efforts, signing an agreement with a village in June 2020 to support local development[126][127]. - The company has made a financial contribution of 1 million RMB towards social poverty alleviation initiatives[129]. - The company actively participated in social responsibility initiatives, including community support programs, which received positive recognition from various sectors[132].