WG Tech(SH:603773)2021-03-14 16:00Financial Performance - The company's operating revenue for 2020 was ¥604,157,536.52, representing a 15.23% increase compared to ¥524,324,061.46 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥14,110,621.93, a decrease of 72.28% from ¥50,904,512.75 in 2019[22]. - The basic earnings per share for 2020 was ¥0.1492, down 72.27% from ¥0.5381 in 2019[23]. - The total assets at the end of 2020 were ¥2,012,544,176.06, an increase of 11.23% from ¥1,809,304,220.46 at the end of 2019[22]. - The net cash flow from operating activities for 2020 was ¥108,632,381.38, a 39.17% increase from ¥78,056,509.16 in 2019[22]. - The weighted average return on equity for 2020 was 0.87%, a decrease of 2.28 percentage points from 3.15% in 2019[23]. - The company reported a diluted earnings per share of ¥0.1492 for 2020, consistent with the basic earnings per share[23]. - The total net profit attributable to shareholders for Q4 2020 was a loss of ¥785,648.27, indicating volatility in quarterly performance[25]. - Non-recurring gains and losses for 2020 totaled ¥8,771,126.45, compared to ¥12,062,913.77 in 2019[27]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 0.52 per 10 shares, totaling RMB 4,868,809.71, which represents 34.50% of the net profit attributable to shareholders for 2020[5]. - The company intends to increase its share capital by 3 shares for every 10 shares held, resulting in a total share capital of 122,684,843 shares after the increase[6]. Audit and Compliance - The company has received a standard unqualified audit opinion from Zhongqin Wanxin Certified Public Accountants[4]. - The company has not faced any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company's financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[7]. - The company emphasizes strict compliance with legal regulations to ensure transparent management and protect shareholder interests[97]. Risk Management - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company has a comprehensive risk management strategy in place to address potential risks outlined in the report[8]. - The company faces risks from intense market competition and potential price fluctuations in the consumer electronics sector, which could impact profitability and market share[98]. - The company is exposed to talent retention risks, particularly for core technical personnel, which could impact product quality and innovation capabilities[99]. - The company faces risks related to high accounts receivable, which may increase due to rapid business growth and could lead to financial risks if not managed properly[100]. Business Segments and Market Trends - The company operates in two main business segments: optoelectronics and optical devices, focusing on processing FPD optoelectronic glass substrates for mobile smart terminal products such as smartphones and tablets[31]. - In 2020, global smartphone shipments reached 1.292 billion units, a year-on-year decline of 5.86%, while 5G smartphone shipments are projected to grow significantly, reaching 750 million units by 2022[35]. - The domestic smartphone market saw shipments of 296 million units in 2020, a decrease of 20.4%, with 5G smartphones accounting for 55.1% of total shipments[35]. - The company is focusing on the development of new products and technologies to adapt to the increasing demand for thinner glass substrates and larger sizes in the display industry[37]. - The company aims to enhance its core competitive advantages through collaboration with end customers and accelerate the commercialization of its core technologies[39]. Research and Development - The company has established a strong R&D team with multiple national and provincial technology centers, enhancing its innovation capabilities[42]. - The company holds 157 domestic patents, including 60 invention patents, and has 67 invention patents pending[44]. - The company has developed advanced etching and coating technologies, maintaining a leading position in the TFT-LCD and OLED glass sectors[44]. - The company plans to build a new R&D center and improve its R&D conditions, with an emphasis on developing new technologies and processes for optical glass coating, including 3D glass cover and back panel products[123]. Financial Management - Cash and cash equivalents decreased by 33.44% to ¥475,343,240.19 due to the acquisition of Dongguan Shangyu Company, which cost approximately ¥260 million[40]. - Accounts receivable decreased by 95.42% to ¥100,000.00, primarily due to a reduction in endorsed notes receivable[40]. - Prepayments increased significantly by 833.40% to ¥25,350,055.39, mainly due to increased prepayments for OLED display screen purchases[40]. - The company has committed to measures to fill the dilution of immediate returns as per relevant laws and regulations[121]. - The company will implement a profit distribution policy that emphasizes stable returns for investors, with plans for shareholder dividends post-IPO[124]. Shareholder Commitments - The company’s controlling shareholder, Yi Weihua, committed not to transfer or entrust the management of shares held directly or indirectly for 36 months post-IPO[110]. - The company’s management and shareholders are bound by commitments to ensure no misleading statements or omissions in financial reporting[109]. - The company has established a plan to stabilize share prices as part of its commitments[109]. - The company will publicly disclose reasons for any failure to meet commitments and apologize to shareholders and investors[138]. Environmental Management - The company has not experienced any environmental pollution incidents during the reporting period and has not been penalized by regulatory authorities[175]. - The company has implemented an online monitoring system for wastewater, which has been operating normally during the reporting period[175]. - The company has established an emergency response plan for environmental incidents, which was rehearsed on May 22, 2020[178]. - The company has actively invested in pollution prevention and control measures, enhancing its environmental management practices[175]. Legal Matters - The company is involved in a significant lawsuit regarding a payment dispute, with a claim amounting to USD 8,474,476.84[157]. - The company has received partial payment of USD 1,260.06 related to the lawsuit, with further distributions expected[157]. - The company is awaiting further developments in the legal proceedings and will disclose updates as necessary[158].