NSIG(SH:688126)2021-04-27 16:00Financial Performance - The company reported no profit distribution for the fiscal year 2020, with a proposal to not allocate statutory surplus reserves or discretionary reserves[4]. - The company's operating revenue for 2020 was CNY 181,127.78 million, an increase of 21.36% compared to CNY 149,250.98 million in 2019[18]. - The net profit attributable to shareholders of the listed company was CNY 8,707.08 million, a significant turnaround from a loss of CNY 8,991.45 million in 2019[18]. - The company reported a basic earnings per share of CNY 0.038 for 2020, compared to a loss of CNY 0.050 per share in 2019[19]. - The net cash flow from operating activities was CNY 37,654.60 million, a decrease of 57.53% from CNY 88,670.19 million in 2019[18]. - The company reported a net profit of approximately 367.72 million RMB for the reporting period, indicating strong financial performance despite market challenges[24]. - The company reported a net loss of CNY -28,064.76 million after deducting non-recurring gains and losses, an increase in loss of CNY 4,327.31 million compared to the previous year[49]. - The company achieved operating revenue of 1,811.28 million RMB in 2020, representing a year-on-year growth of 21.36%[58]. - The net profit attributable to shareholders was 87.07 million RMB, marking a turnaround from a loss to profit[58]. Assets and Investments - The company's total assets increased by 45.52% to CNY 1,449,850.73 million at the end of 2020, compared to CNY 996,324.41 million at the end of 2019[20]. - The net assets attributable to shareholders of the listed company rose by 86.18% to CNY 944,304.00 million at the end of 2020, up from CNY 507,201.00 million in 2019[18]. - Cash and cash equivalents increased by CNY 58,123.54 million, an 81.8% increase, primarily due to funds raised from the initial public offering and other financial activities[43]. - The company’s long-term equity investments increased by CNY 3,432.15 million, a 100% increase, due to investments in research and innovation centers[43]. - The company has ongoing projects with a total expected investment of CNY 64,712.36 million, with CNY 12,424.46 million invested in the current period[39]. Research and Development - Research and development expenses accounted for 7.23% of operating revenue in 2020, an increase from 5.64% in 2019[19]. - The company achieved a significant increase in R&D investment, totaling CNY 13,096.56 million, representing a 55.62% increase compared to the previous year, with R&D investment accounting for 7.23% of total revenue[37]. - The number of R&D personnel increased to 488, representing 30.87% of the total workforce, with an average salary of CNY 23.75 million[40]. - The company has mastered key technologies in wafer production, including crystal growth and polishing, positioning itself as a leader in the domestic market[29]. - The company successfully developed 14nm logic product silicon wafers and achieved mass production capabilities, covering mainstream chip types including DRAM and 3D NAND[47]. Market Position and Strategy - The company achieved a revenue of approximately 1.81 billion RMB in 2020, with a global market share of 2.3%, up from 1.8% in 2019[30]. - The semiconductor wafer industry is experiencing a supply tightness expected to last 2-3 years, driven by demand from 5G and data centers[29]. - The company has established long-term partnerships with major clients including TSMC, GlobalFoundries, and SMIC, covering markets in North America, Europe, and Asia[26]. - The company aims to become a "one-stop" silicon material service provider, ensuring effective supply of silicon materials while integrating into international markets[89]. - The company plans to expand production capacity for 300mm semiconductor wafers to meet increasing market demand driven by mobile communication, IoT, and automotive electronics[91]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from PwC Zhong Tian Certified Public Accountants[3]. - The company has confirmed that all directors are able to ensure the authenticity, accuracy, and completeness of the annual report[5]. - The company has not disclosed any special arrangements for corporate governance[5]. - The company has not violated any decision-making procedures regarding external guarantees[5]. - The company has no significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[118]. Risks and Challenges - The company has outlined various operational risks and corresponding mitigation measures in the report[3]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute commitments to investors[5]. - The company faces risks related to potential future losses and the inability to distribute cash dividends to shareholders due to accumulated losses and the performance of its subsidiaries[49]. - The company is exposed to foreign exchange risks due to reliance on imported raw materials and equipment[54]. - The ongoing international trade tensions, particularly between the US and China, could adversely affect the company's production capacity expansion[57]. Shareholder and Equity Information - The company reported a total guarantee amount of 424,780.70 million RMB, which accounts for 44.53% of the company's net assets[130]. - The company has a cash dividend policy that stipulates a minimum cash dividend of 10% of the distributable profits if no major investment plans are in place[93]. - The company reported a commitment to ensure the accuracy and completeness of its prospectus, stating that there are no false records or misleading statements[107]. - The company has committed to not transferring or entrusting the management of shares held before the public offering for 36 months from the listing date[97]. - The company has no actual controller, as no single shareholder holds more than 50% of the voting rights[171]. Environmental Compliance - The company has invested in pollution control facilities, ensuring that wastewater, waste gas, and noise emissions comply with standards[147]. - All subsidiaries have obtained environmental impact assessment approvals and related environmental protection administrative licenses for their construction projects[148]. - Continuous online monitoring of wastewater pollutants is conducted, with data subject to supervision by environmental authorities[150]. - The company and its subsidiaries comply with environmental regulations, with no significant penalties for violations reported[151].