SHENGYI ELECTRONICS CO.(SH:688183)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.63 billion, an increase of 17.35% compared to CNY 3.10 billion in 2019[25]. - The net profit attributable to shareholders for 2020 was approximately CNY 439.23 million, a slight decrease of 0.44% from CNY 441.18 million in 2019[25]. - The net cash flow from operating activities reached approximately CNY 838.34 million, representing a significant increase of 219.25% compared to CNY 262.60 million in 2019[25]. - Basic earnings per share for 2020 remained stable at CNY 0.66, unchanged from 2019[28]. - The weighted average return on net assets decreased to 24.72% in 2020, down by 3.90 percentage points from 28.62% in 2019[28]. - Operating revenue for the fourth quarter of 2020 was CNY 822,918,709.06, with a net profit attributable to shareholders of CNY 46,299,882.28[29]. - The company reported a total of CNY 19,787,651.57 in non-recurring gains and losses for 2020, compared to CNY 449,136.87 in 2019[33]. - The total operating revenue reached CNY 3,633,501,932.99, representing a year-on-year growth of 17.35%[102]. - Operating costs amounted to CNY 2,641,721,847.76, reflecting a year-on-year increase of 21.47%[102]. - The gross margin for the electronic components segment was 26.02%, down by 2.87 percentage points year-on-year[108]. Assets and Liabilities - The net assets attributable to shareholders of the listed company at the end of 2020 were CNY 1,941,769,208.16, an increase of 12.76% compared to CNY 1,722,107,078.75 at the end of 2019[28]. - Total assets at the end of 2020 reached CNY 4,571,383,737.15, reflecting a 21.86% increase from CNY 3,751,451,931.12 at the end of 2019[28]. - The company's cash and cash equivalents at the end of the reporting period were 157.91 million RMB, which is 3.45% of total assets, down 22.07% from the previous period[128]. - The company's short-term borrowings increased to 1,165.30 million RMB, representing 25.49% of total assets, an increase of 81.53% compared to the previous period[128]. - The company's total assets at the end of the reporting period were 4,580.00 million RMB, with a significant increase in construction in progress, which reached 747.01 million RMB, accounting for 16.34% of total assets[128]. - The company's retained earnings at the end of the reporting period were 698.94 million RMB, representing 15.29% of total assets, an increase of 32.44% from the previous period[131]. Research and Development - Research and development expenses accounted for 4.30% of operating income in 2020, a decrease of 0.30 percentage points from 4.60% in 2019[28]. - The company invested approximately ¥156.20 million in R&D in the current year, representing a 9.70% increase from the previous year[64]. - The R&D personnel count increased to 596, representing 12.14% of the total workforce, up from 10.45% in the previous period[77]. - The company has developed 13 core technologies in PCB manufacturing, maintaining a strong competitive edge, and has obtained 150 invention patents as of the end of 2020[56]. - The company is focusing on expanding its capabilities in 5G technology, with multiple projects aimed at enhancing product standards and testing databases[70]. - The company has initiated projects related to "5G multi-module heterogeneous high-frequency PCB key technologies" and "high-speed large-size PCBs for 5G baseband processing units," achieving international advanced levels[57]. - The company has completed several key R&D projects, including the "Data Center Computing Node PCB Development" and "Rigid-Flex PCB Development," both of which are now in the market application stage[68]. Market Position and Strategy - The company ranks 20th among the top 100 PCB companies in China and 7th among domestic PCB companies based on total revenue[48]. - The company aims to expand its market presence by enhancing its sales network and technical support services for both domestic and international clients[41]. - The company has successfully passed certifications from well-known domestic and international enterprises, establishing itself as an important PCB supplier in the communications sector[48]. - The demand for high-frequency and high-speed PCBs is expected to increase with the deployment of 5G base stations, which will drive the development of the PCB industry[51]. - The company is expanding its product portfolio and market presence, which is expected to enhance its market ranking and share[48]. - The company has maintained a direct sales model, focusing on customized PCB products to meet client needs[38]. - The company is collaborating with major institutions on significant R&D projects, including a key project supported by the national key R&D plan for broadband communication and new networks[59]. Corporate Governance and Compliance - The company has a standard unqualified audit report issued by Huaxing Accounting Firm[6]. - The company does not have any special arrangements for corporate governance[8]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures for external guarantees[9]. - The company’s financial report has been confirmed as true, accurate, and complete by its management[4]. - The company has implemented a strict compliance framework to ensure sustainable and healthy development in accordance with relevant laws and regulations[143]. - The company will strictly adhere to the requirements of the Company Law of the People's Republic of China regarding related party transactions, ensuring fair treatment and disclosure[164]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 3.30 per 10 shares to shareholders, pending approval at the annual general meeting[7]. - In 2020, the company distributed a total of 274,500,987.75 RMB in cash dividends, representing 62.50% of the net profit attributable to ordinary shareholders[148]. - The company has established a return mechanism for investors, ensuring compliance with regulations regarding profit distribution policies[145]. - The company has a cash dividend policy where the minimum cash dividend ratio is set at 80% for mature companies without significant capital expenditure, 40% for mature companies with significant capital expenditure, and 20% for growth-stage companies with significant capital expenditure[170]. Risks and Challenges - The company has outlined potential risks in its future development in the report[5]. - The company faces risks related to technological innovation, including potential loss of core technology and key personnel, which could impact its R&D capabilities[93]. - The company has committed to ensuring independent operation and decision-making for Shengyi Electronics[164]. - The company guarantees that any reduction in shares will not exceed 1% of the total shares through centralized bidding within any continuous 90-day period[158].