Neoway(SH:688159)2021-04-26 16:00Financial Performance - The company's revenue decreased significantly due to the impact of the COVID-19 pandemic, particularly in overseas vehicle networking terminals and domestic smart grid revenue[4]. - The net profit for the year was negative, reflecting the overall decline in revenue and increased expenses[4]. - The company's operating revenue for 2020 was approximately ¥573.62 million, a decrease of 26.66% compared to ¥782.17 million in 2019[22]. - The net profit attributable to shareholders was a loss of approximately ¥75.06 million, representing a decline of 237.58% from a profit of ¥54.56 million in 2019[22]. - The basic earnings per share for 2020 was -¥0.8362, down 204.61% from ¥0.7993 in 2019[24]. - The net cash flow from operating activities decreased by 4,413.44% to approximately -¥91.94 million, primarily due to increased personnel and testing costs[25]. - The company reported a significant decrease in cash flow from investment activities, down 370.17% to RMB -268,086,083.64, due to the purchase of financial products[99]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 20% year-over-year growth[137]. Research and Development - The company increased its investment in R&D and sales during the reporting period, leading to higher R&D and sales expenses[4]. - Research and development expenses accounted for 15.24% of operating revenue, an increase of 7.31 percentage points from 7.93% in 2019[24]. - The company's total R&D investment for 2020 was CNY 87,402,457.56, representing a 40.85% increase from the previous year, and accounting for 15.24% of total revenue[49]. - The average number of R&D personnel increased by 112, contributing to higher R&D and sales expenses[25]. - The company applied for 83 patents during the reporting period, doubling the number from the previous year, with a total of 224 patents applied for to date[48]. - The company is committed to developing more models of 5G wireless communication modules and terminals in response to the 5G network and application trends[121]. Market Expansion and Strategy - The company is expanding its overseas market presence, particularly in the vehicle networking and smart energy sectors, through partnerships and its own sales teams[37]. - The company is actively expanding its market presence in smart cities and financial payment sectors, achieving notable progress in product development and market outreach[64]. - The company plans to expand its market presence in smart gas, smart water, vehicle networking, shared mobility, industrial IoT, commercial retail, and smart city sectors in China[118]. - The company aims to significantly increase its overseas market sales, focusing on Europe, North America, and Southeast Asia over the next three years[119]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the technology sector[163]. Risks and Challenges - The company has disclosed risks related to significant performance declines or losses in its risk factors section[4]. - The company faced challenges in revenue due to the impact of the pandemic on overseas vehicle networking terminals and domestic smart grid collection[25]. - The company is actively addressing risks related to chip shortages, which have impacted deliveries and resulted in losses in Q1 2021[73]. - The company is at risk of being unable to provide products to major clients, especially in North America, if extreme circumstances lead to a comprehensive ban on chips from the U.S.[74]. Shareholder and Dividend Policies - The company plans not to distribute cash dividends or conduct capital reserve transfers to increase share capital for the 2020 fiscal year[7]. - The company did not distribute cash dividends for the year 2020 due to a decline in revenue caused by the COVID-19 pandemic and material shortages, with a net loss of RMB 7,506.48 million[123]. - The company plans to maintain a cash dividend ratio of no less than 10% of the distributable profits for the year, with an increase in cash dividend levels expected following the completion of the current issuance[166]. - The company has committed to ensuring that the cash dividend per share will not be lower than the level of the previous fiscal year, with adjustments made for any stock splits or bonus shares[168]. Compliance and Governance - The company has not violated decision-making procedures for external guarantees[10]. - The company will ensure compliance with relevant laws and regulations when executing the stock repurchase plan[158]. - The company has established a long-term commitment to transparency and accountability in its financial reporting[175]. - The company will publicly disclose any failure to fulfill commitments and apologize to shareholders and investors[176]. Product Development and Innovation - The company is focused on developing new products and technologies, although specific details were not provided in the report[4]. - The company launched multiple Cat.1 modules and vehicle networking terminals, including the world's first Cat.1 bis communication module, N58, and the smallest Cat.1 module, N716, which achieved commercial use in the vehicle networking pre-installation market[47]. - The company is developing various wireless communication modules, including LTE and 5G solutions, with a focus on integration and compatibility with existing technologies[54]. - The company has developed multiple communication modules, including 5G wireless communication modules and high-speed LTE-V2X modules, with significant advancements in smart energy and automotive IoT applications[66].