Ningbo Solartron Technology (SH:688299)2021-04-08 16:00Financial Performance - In 2020, the company's total revenue increased by 14.81% year-on-year, while net profit grew by 23.69%[4]. - The company's operating revenue for 2020 was CNY 1,045,044,542.99, representing a year-on-year increase of 14.81% compared to CNY 910,261,053.81 in 2019[26]. - Net profit attributable to shareholders increased by 23.69% to CNY 176,977,360.24 in 2020, up from CNY 143,077,038.17 in 2019[26]. - The net cash flow from operating activities surged by 103.41% to CNY 265,886,171.38, compared to CNY 130,713,158.20 in the previous year[26]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 1,749,697,836.91, an increase of 8.54% from CNY 1,612,093,472.22 in 2019[26]. - The gross profit margin for optical base films improved from 9.29% in 2019 to 20.19% in 2020, contributing to the increase in net profit[27]. - Basic earnings per share for 2020 were CNY 0.63, a slight decrease of 1.56% from CNY 0.64 in 2019[27]. - The weighted average return on equity decreased to 10.57% in 2020, down from 17.31% in 2019, indicating a decline in profitability[27]. - The company reported a decrease in trading financial assets from CNY 605 million to CNY 400 million, a reduction of CNY 205 million[34]. - The company reported a significant government subsidy of CNY 21,072,338.38 in 2020, up from CNY 17,044,466.45 in 2019[32]. Research and Development - Research and development expenses accounted for 5.05% of operating revenue in 2020, up from 4.19% in 2019, indicating a focus on innovation[27]. - The company is prepared for the commercialization of Mini LED technology, which is expected to be a significant market opportunity in 2021[6]. - The company aims to transition from being a technology follower to a technology leader, focusing on innovative and superior products through its research institute[5]. - The company has established long-term partnerships with research institutions to enhance its R&D capabilities[44]. - The company has developed over 30 models of reflective films for LCD displays, which are currently its leading products[39]. - The company has achieved international leading levels in core technologies related to reflective films and optical base films through years of independent research and development[62]. - The R&D focus includes enhancing optical base films through upstream raw material control and process optimization, leading to improved product quality[66]. - The company has invested a total of CNY 4,553.27 million in various R&D projects, with a cumulative investment of CNY 13,274 million[74]. - The R&D team has increased to 109 members, with a total salary of CNY 1,605.96 million, reflecting a commitment to enhancing technical capabilities[80]. - Eight new patents were granted during the reporting period, bringing the total to 107 granted patents[67]. Market and Product Development - The company recognizes the potential of the optical base film market, which is valued at several hundred billion yuan, and is committed to expanding its presence in this sector[4]. - The company aims to achieve its "Ten Years, Ten Films" development goal, focusing on new display, semiconductor, and 5G applications[42]. - The company is actively developing new products such as Mini LED reflective films and has achieved small batch sales for some of these products[54]. - The company is focusing on the industrialization of high-value functional films, with a total investment of CNY 314.75 million in the pilot operation phase[73]. - The company is focused on optimizing production processes for optical base films, improving key performance indicators such as haze and transmittance through continuous equipment upgrades[55]. - The company is implementing business process reengineering and organizational changes to enhance operational efficiency and support strategic goals[100]. - The company plans to transition from providing a limited range of products to offering comprehensive solutions, enhancing product performance and variety to meet diverse customer needs[158]. - The company is actively exploring new technologies and business models in the display sector, particularly in the context of the growing demand for large-size LCDs driven by consumer upgrades[57]. Dividend and Shareholder Policies - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling approximately 28.26 million yuan (including tax) based on the total share capital of 282,568,577 shares as of December 31, 2020[9]. - The cash dividend policy prioritizes cash distributions, with a minimum of 10% of distributable profits allocated for dividends, depending on the company's financial conditions[165]. - The company will implement differentiated cash dividend policies based on its development stage and capital expenditure needs, with minimum cash dividend ratios ranging from 20% to 80%[165]. - The company has maintained a clear and compliant dividend policy, ensuring the protection of minority shareholders' rights[167]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[169]. Legal and Compliance Matters - The company has been involved in significant litigation matters during the reporting period, with ongoing cases that have not been disclosed in temporary announcements[190]. - The company faced a lawsuit regarding intellectual property rights, with the Beijing Intellectual Property Court ruling in favor of the company[191]. - The company has not faced any situations that would lead to delisting or bankruptcy restructuring[190]. - The company continues to comply with all regulatory requirements and has no pending issues with its auditors[189]. - The company has established a two-year compliance period for shareholders after the lock-up period ends[177]. Strategic Initiatives - The company is implementing an equity incentive plan to attract and retain talent, aligning interests among shareholders, the company, and core team members[102]. - The company announced a strategic acquisition of a competitor for $200 million, expected to close in Q4 2023[175]. - The management emphasized a focus on sustainability initiatives, allocating $10 million for eco-friendly practices in the upcoming fiscal year[175]. - The company plans to enter two new international markets by the end of 2024, aiming for a 15% increase in global sales[175]. - The company is committed to fulfilling the dilution compensation measures related to its initial public offering, as detailed in the prospectus on the Shanghai Stock Exchange[181].