Yanmade(SH:688312)2021-04-12 16:00Dividend Policy - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling approximately RMB 43,043,608.8 (including tax) based on a total share capital of 143,478,696 shares as of December 31, 2020[6]. - The company does not plan to increase capital from reserves or issue bonus shares[6]. - The company has implemented a cash dividend policy, ensuring at least 10% of distributable profits are allocated for cash dividends when conditions are met[151]. - The company will maintain a profit distribution policy that prioritizes cash dividends, with minimum ratios of 80%, 40%, and 20% for different development stages[152]. - In 2020, the company distributed cash dividends amounting to ¥43,043,608.80, representing 42.08% of the net profit attributable to ordinary shareholders[156]. - For the first half of 2020, the cash dividends distributed were ¥28,695,739.20, which accounted for 87.98% of the net profit attributable to ordinary shareholders[156]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[156]. - The cash dividend policy requires detailed disclosure in the annual report, including compliance with regulations and protection of minority shareholders' rights[156]. - The company has a commitment to adjust its profit distribution policy based on operational needs and shareholder interests, requiring a two-thirds majority approval from shareholders[156]. Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-over-year growth of 15%[22]. - The company reported a net profit of RMB 150 million, a 20% increase from the previous year, reflecting strong operational performance[22]. - The company's operating revenue for 2020 was approximately ¥350.36 million, representing a year-on-year increase of 29.36% compared to ¥270.84 million in 2019[23]. - Net profit attributable to shareholders for 2020 was approximately ¥102.28 million, an increase of 12.08% from ¥91.25 million in 2019[23]. - The company achieved a main business revenue of 350.36 million RMB, an increase of 29.36% compared to the same period in 2019[107]. - The net profit attributable to shareholders was 102.28 million RMB, reflecting a growth of 12.08% year-on-year[107]. - The gross profit margin for the main business was 59.73%, a decrease of 0.31 percentage points compared to the previous year[110]. - The net cash flow from operating activities decreased by 84.45% to approximately ¥20.99 million, down from ¥135.07 million in 2019, primarily due to increased material procurement and labor costs[25]. Audit and Governance - The board of directors and management confirm the accuracy and completeness of the annual report, assuming legal responsibility for any misstatements[4]. - The company received a standard unqualified audit report from Tianjian Accounting Firm[5]. - There are no special arrangements for corporate governance that apply to the company[9]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures regarding external guarantees[9]. Research and Development - Investment in R&D for new technologies increased by 30%, totaling RMB 300 million, focusing on smart wearable devices and machine vision technology[22]. - Research and development expenses accounted for 15.87% of operating revenue in 2020, a slight decrease from 16.13% in 2019[24]. - The company increased R&D investment to ¥55,597,101.80, a 27.30% increase from ¥43,674,087.19 in the previous year[70]. - The company has a total of 236 R&D personnel, making up 36.53% of the total workforce, with 91.95% holding a bachelor's degree or higher[94]. - The company has developed several core technologies for FPC automation testing, including line needle mold technology and machine vision-based alignment technology, all of which are in batch use[54]. - The company is focusing on upgrading testing technology from automation to intelligence, integrating AI to enhance production automation capabilities[51]. - The company aims to apply for over 20 new utility model and invention patents annually, currently holding 59 authorized patents[146]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[22]. - The company provided a future outlook projecting a revenue growth of 20% for 2021, driven by new product launches and market expansion strategies[22]. - The company is actively engaged in R&D to address the technical challenges in FPC automation testing, ensuring it remains at the forefront of industry advancements[54]. - The company plans to enhance its R&D capabilities and expand its product offerings into chip-level and module-level testing areas[143]. - The company is targeting the wearable device market and expanding into the 5G RF product market, while also providing testing services for SiP chips[144]. Risks and Challenges - The company has outlined potential risks in its operations, which investors should be aware of[4]. - The company faces risks related to the inability to mass-produce AI visual inspection equipment, which is critical for its operations, with ongoing development for more complex products[97]. - Revenue from Apple-related sales remains high, posing a dependency risk, as the company’s income is significantly tied to the Apple supply chain[98]. - The company’s customer concentration is high, which could adversely affect performance if major clients reduce orders or face operational changes[100]. - The company must enhance its after-sales service capabilities to support new client needs as it expands into new markets, which is critical for successful market penetration[105]. Shareholder and Stock Management - The company will ensure that any income obtained from not fulfilling these commitments will be returned to the company within five days[163]. - The company will undertake compensation responsibilities if any losses are caused to the company or other investors due to the failure to fulfill commitments[163]. - The company has established conditions for initiating stock price stabilization measures, which will be triggered if the stock price falls below the audited net asset value per share for 20 consecutive trading days within 36 months of listing[163]. - The company will take measures to stabilize its stock price in accordance with legal and regulatory requirements once the conditions are met[163]. - The controlling shareholder and actual controller are required to increase their holdings if the stock price remains below the audited net asset value per share for 20 consecutive trading days after the buyback[168]. Operational Efficiency - The company is committed to reducing operational costs by 10% through efficiency improvements and process optimizations[184]. - The company has implemented a comprehensive quality control system, achieving ISO9001 certification and ensuring high product quality[85]. - The company has successfully reduced the development cycle for electrical design to one week by unifying the development environment and interface[76]. - The company has implemented various incentive policies to motivate employees and enhance overall cohesion and competitiveness[148].