TKD(SH:603738)2021-03-04 16:00Financial Performance - In 2020, the net profit attributable to the parent company was CNY 38,613,058.25, with retained earnings of CNY 140,788,474.41[5]. - The company's operating revenue for 2020 was CNY 630,925,077.55, an increase of 8.84% compared to 2019[25]. - Net profit attributable to shareholders increased by 239.24% to CNY 38,613,058.25 in 2020[27]. - The basic earnings per share rose to CNY 0.23, reflecting a growth of 228.57% year-on-year[26]. - The total assets at the end of 2020 reached CNY 1,378,222,891.78, a 16.59% increase from the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY 22,083,391.24, a year-on-year increase of 188.49%[27]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 813,632,909.77, reflecting a growth of 9.29% compared to 2019[25]. - The comprehensive gross margin for the main business was 21.25%, up from 19.41% in the previous year, reflecting a 1.84% increase[74]. - The net profit for the year was 39.83 million RMB, a significant increase of 282.29% compared to the previous year[81]. Dividend Policy - The proposed cash dividend is CNY 0.70 per 10 shares (including tax), with no bonus shares or capital reserve conversion[5]. - The company has a cash dividend policy that mandates a minimum cash distribution of 20% of the distributable profits if there are no major investment plans or cash expenditures[138]. - The company’s cash dividend distribution for 2020 represented 31.42% of the net profit attributable to ordinary shareholders[152]. - The company’s profit distribution policy prioritizes cash dividends, ensuring stable returns for investors while considering sustainable development[136]. - The company implemented a cash dividend of 0.08 CNY per share for the 2019 fiscal year, totaling 13,615,503.84 CNY distributed to shareholders[150]. Market Position and Industry Trends - The company operates in the piezoelectric crystal industry, producing essential components like quartz crystal resonators and oscillators[15]. - The global crystal oscillator market is dominated by competitors from Japan, the US, Taiwan, and mainland China, with increasing demand for quartz oscillators driven by the growth of smart devices and IoT[45]. - The company is positioned to benefit from national policies supporting the development of new-generation information technology and the acceleration of 5G commercialization[42]. - The company’s product offerings include temperature-compensated crystal oscillators (TCXO) and high-frequency crystal resonators, catering to emerging applications in 5G and IoT[36]. - The company anticipates an increase in market share among domestic manufacturers as competition strengthens and the trend of domestic substitution accelerates[46]. Research and Development - The company emphasizes independent research and development, having established a robust R&D team that has made key technological breakthroughs in quartz crystal resonator production[59]. - The company has achieved significant advancements in semiconductor photolithography technology, becoming the first in China to scale and industrialize this process[57]. - The company invested a total of 27,609,491.55 yuan in R&D, representing 4.38% of total revenue, with 168 R&D personnel making up 8.55% of the total workforce[97]. - The company has developed and partially mass-produced 80MHz and 96MHz crystal oscillators in 2020, enhancing its product offerings in the semiconductor sector[60]. - The company is committed to developing high-precision microchip products using advanced technologies to capture opportunities in emerging industries like IoT and 5G[118]. Operational Efficiency - The company has established a stable supply chain management system, ensuring sufficient raw material supply for production and future R&D reserves[37]. - The company adopts an order-driven production model, aligning production with customer demand and specifications[38]. - The company has successfully integrated various management systems, including MES and PLM, to enhance its operational efficiency and support smart manufacturing initiatives[68]. - The company has implemented advanced manufacturing processes, achieving a product yield rate of over 95% for its micro SMD high-frequency crystal products[62]. - The company plans to enhance internal cost control and diversify its product offerings to improve market penetration and customer retention[117]. Risk Management - The company has a comprehensive risk disclosure in the report, detailing various operational risks[10]. - The company faces risks related to new customer development as it seeks to expand production capacity and optimize customer structure[123]. - The company is exposed to exchange rate risks, with 18.48% of its revenue coming from overseas sales, primarily settled in yen and USD[129]. - The company faces risks from intensified industry competition, which could affect its ability to fully utilize new production capacity if market conditions worsen[130]. - The company emphasizes continuous R&D investment to adapt to the rapid technological advancements in downstream applications, which is crucial for maintaining competitive advantage[121]. Corporate Governance - The company maintains a robust corporate governance structure to protect shareholder rights and ensure fair information disclosure[196]. - The board of directors and management confirm the accuracy and completeness of the annual report, assuming legal responsibility for any misrepresentation[11]. - The company has established a stock incentive plan that ties executive compensation to the execution of profit compensation measures[159]. - The company has outlined measures to mitigate and regulate related party transactions to ensure compliance and transparency[158]. - The company’s controlling shareholders pledge not to interfere with management activities or infringe on company interests[172]. Social Responsibility - The company provided financial support of 986.43 million RMB for poverty alleviation initiatives, helping 356 registered impoverished individuals to escape poverty[193]. - The company prioritized employment for 356 individuals from impoverished areas, ensuring job opportunities in line with local government poverty alleviation efforts[191]. - The company plans to continue funding outstanding students from impoverished backgrounds and support local poverty alleviation projects in the future[194].