Giantec Semiconductor(SH:688123)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 493.85 million, a decrease of 3.80% compared to CNY 513.37 million in 2019 [24]. - The net profit attributable to shareholders for 2020 was CNY 162.95 million, representing a significant increase of 71.33% from CNY 95.11 million in 2019 [24]. - The net profit after deducting non-recurring gains and losses was CNY 60.14 million, down 38.57% from CNY 97.91 million in 2019 [24]. - The cash flow from operating activities for 2020 was CNY 92.63 million, an increase of 25.56% compared to CNY 73.77 million in 2019 [24]. - The company's total assets at the end of 2020 were CNY 1.56 billion, a 9.93% increase from CNY 1.42 billion at the end of 2019 [24]. - The weighted average return on equity for 2020 was 11.71%, a decrease of 14.02 percentage points from 25.73% in 2019 [26]. - The company's net assets attributable to shareholders increased by 10.00% to CNY 1.46 billion at the end of 2020, compared to CNY 1.33 billion at the end of 2019 [24]. - The company's EEPROM product sales revenue for the year reached 408.72 million yuan, a year-on-year decline of 9.68% [94]. - The sales revenue from EEPROM products was CNY 408,722,529.03, with a gross margin of 36.42%, down by 6.16 percentage points [128]. - The sales revenue from overseas markets was CNY 188,146,705.06, representing a decrease of 18.03% year-on-year [129]. Dividend Policy - The company plans to distribute a cash dividend of RMB 4.10 per 10 shares, totaling approximately RMB 49.55 million, which represents 30.41% of the net profit attributable to shareholders for 2020 [8]. - The company has established a cash dividend policy, ensuring that at least 20% of the distributable profits are allocated as cash dividends each year [176]. - In mature stages without major investment plans, the company aims for cash dividends to constitute at least 80% of the profit distribution [176]. - The cash dividend policy aligns with the company's profitability, financial condition, and long-term development goals, as confirmed by the independent directors and supervisory board [181]. - The company has committed to maintaining reasonable returns for investors while ensuring sustainable development in its cash dividend proposals [182]. Risk Factors - The company has disclosed potential risks in its annual report, urging investors to review the "Discussion and Analysis of Operating Conditions" section for detailed risk factors [6]. - The company faces risks from intensified market competition, which may lead to price declines and reduced profit margins [110]. - The rapid pace of technology upgrades in the integrated circuit design industry poses risks if the company fails to keep up with market demands [111]. - The company is exposed to risks related to raw material supply and outsourcing, which could impact production and profitability [115]. - The ongoing COVID-19 pandemic has negatively impacted market demand, posing risks to the company's operational performance [120]. Research and Development - Research and development expenses accounted for 10.52% of operating revenue in 2020, down 0.72 percentage points from 11.24% in 2019 [26]. - The company plans to increase R&D spending significantly in 2021 as product development progresses and the R&D team expands [30]. - The R&D personnel count increased to 70, representing 43.75% of the total workforce, up from 42.67% in the previous year [82]. - The company has developed 25 core technologies related to its main business, including EEPROM chips, voice coil motor driver chips, and smart card chips, with 21 technologies reaching a mature and stable stage [66]. - The company has achieved a significant increase in reliability for its EEPROM chips, with a data retention time of 100 years at room temperature and a write/erase cycle endurance of 400,000 times at 125°C [67]. Market Position - The company is the third largest global supplier of EEPROM products, holding the first position among domestic EEPROM companies, and has established a leading position in the smartphone camera EEPROM segment since 2016 [40]. - The global smartphone shipment volume, excluding Apple, declined by 8%-12% year-on-year, impacting the company's revenue [26]. - The company has established long-term stable partnerships with leading smartphone camera module manufacturers, including Samsung, Huawei, and Xiaomi, positioning itself as a leading brand in the smartphone camera EEPROM chip market [86]. - The company has established competitive advantages in the open-loop voice coil motor driver chip market, collaborating with leading smartphone manufacturers for closed-loop and optical image stabilization products [61]. Compliance and Governance - The board of directors and management have confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements [7]. - The company guarantees that its registration documents do not contain false records or misleading statements, and will repurchase shares if any such issues are identified [189]. - The company has established a commitment to transparency and accuracy in its financial disclosures, holding individuals accountable for any discrepancies [189]. - The company has committed to compensating investors for any losses incurred due to non-compliance with its public commitments [27]. - The company has confirmed that there are no instances of fund occupation by its controlling shareholders or related parties, ensuring the protection of shareholder interests [29].