TKD(SH:603738)2021-03-25 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 total net assets attributable to shareholders at the end of 2020 were CNY 813,632,909.77, a 9.29% increase from the previous year[25]. - The comprehensive gross margin for the main business was 21.25%, up from 19.41% in the previous year, reflecting improved profitability due to rising product prices and increased market demand[74]. - The gross profit margin for SMD chip products increased by 6.43 percentage points compared to the previous year[88]. - The company's cash dividends as a percentage of net profit for 2020 was 31.42%, while for 2019 it was 119.62% and for 2018 it was 39.29%[152]. Dividend Policy - The proposed cash dividend distribution 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 must complete the distribution of dividends within two months after approval from the shareholders' meeting[146]. - The board of directors must consider the company's ongoing operational capacity and funding needs before proposing profit distribution plans[145]. - Any changes to the profit distribution policy must comply with regulations and require approval from the shareholders' meeting with at least 66.67% of voting rights[147]. - The company is required to disclose reasons for not proposing a cash profit distribution plan if it is profitable[153]. - The company has established clear standards and procedures for profit distribution, ensuring the protection of minority investors' rights[150]. Operational Strategy - The company operates several wholly-owned and controlling subsidiaries, enhancing its market presence in the quartz crystal component industry[15]. - The company specializes in the research, production, and sales of crystal oscillators and frequency control devices, including KHz and MHz crystal resonators[35]. - The company adopts an order-driven production model, aligning production with customer demand and specifications[38]. - The company primarily utilizes a direct sales model, maintaining long-term strategic partnerships with clients and expanding market share through OEM and ODM services[39]. - The company has established a stable supply chain management system, ensuring sufficient raw material supply for daily production and future R&D reserves[37]. Market Position and Trends - 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]. - Domestic manufacturers in mainland China are enhancing their competitive strength, achieving breakthroughs in high-end product technology and production capabilities[45]. - The company is positioned to benefit from national policies promoting the development of the new generation of information technology and the acceleration of 5G commercialization[46]. - The market share of domestic mainland manufacturers is expected to continue rising in the coming years due to improved competitiveness[46]. - The company’s products are essential for the normal operation of electronic systems, making them irreplaceable basic components in the industry[41]. Research and Development - The company emphasizes innovation and has established a robust R&D team, focusing on breakthroughs in key technologies and the development of core equipment and products[59]. - 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 achieved significant advancements in semiconductor photolithography technology, becoming the first in China to scale this technology for industrial application[57]. - The company has developed and partially mass-produced 80MHz and 96MHz crystal oscillators in 2020, continuing to advance its quartz wafer technology[60]. - The company holds 97 patents, including 11 invention patents, and has made significant advancements in semiconductor photolithography technology and MEMS-based micro KHz crystal oscillators[75][80]. Risk Management - The company has outlined various risks faced in its production and operations, urging investors to be cautious[10]. - The company faces risks related to new customer development as it seeks to expand production capacity and optimize customer structure to capture market opportunities[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 must adapt to the trend of miniaturization in the industry, which may require significant R&D investment to avoid being outpaced by competitors[121]. - The company’s profitability may be affected by changes in tax incentives and subsidies, particularly if it loses its high-tech enterprise status[127]. Corporate Governance - The company maintains a robust corporate governance structure to protect shareholder rights and ensure fair information disclosure[196]. - The company’s board and senior management have pledged to uphold shareholder rights and ensure compliance with regulatory requirements regarding profit compensation measures[158]. - The company has established a long-term incentive plan for its employees, which is linked to the execution of profit compensation measures[158]. - The company’s controlling shareholders have committed to minimizing related party transactions with the company[159]. - The company has outlined measures to ensure that no unfair benefits are provided to other entities or individuals[158]. 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]. - The company actively participates in social welfare activities, increasing support in terms of human, material, and financial resources for public welfare[199]. Environmental Compliance - The company has implemented an environmental protection system in compliance with national laws, conducting annual audits of its ISO 9001:2015 and ISO 14001:2015 management systems[198]. - The company has not faced any penalties for violating environmental regulations since its establishment[200]. - The company has registered its production bases for pollutant discharge management in accordance with the latest regulations[200]. - The company has a low emission rate of waste gases during production, meeting the national air pollution discharge standards[199]. - The company is not classified as a key pollutant discharge unit and does not require environmental inspections by provincial or national authorities[200].