Yanmade(SH:688312)2021-04-22 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, pending approval from the shareholders' meeting[6]. - The company has committed to a cash dividend policy that requires independent directors to review and approve any proposals for stock dividends[158]. - The company plans to maintain a cash dividend ratio of at least 80% for mature stages without significant capital expenditure, and at least 40% with significant capital expenditure[159]. - In 2020, the company distributed cash dividends totaling approximately RMB 43.04 million, representing 42.08% of the net profit attributable to ordinary shareholders[162]. - For the first half of 2020, cash dividends amounted to approximately RMB 28.70 million, accounting for 87.98% of the net profit attributable to ordinary shareholders[162]. 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's operating revenue for 2020 was CNY 350,363,861.94, representing a year-on-year increase of 29.36%[23]. - Net profit attributable to shareholders for 2020 was CNY 102,281,552.96, an increase of 12.08% compared to 2019[23]. - The gross margin for 2020 was reported at 35%, a slight increase from 32% in 2019, indicating improved operational efficiency[22]. - 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-over-year[107]. Research and Development - Research and development expenses increased by 18% in 2020, totaling RMB 150 million, to support innovation in smart wearable devices[22]. - The total R&D investment for the year was approximately ¥55.6 million, representing a 27.3% increase from the previous year's ¥43.7 million[70]. - The R&D investment as a percentage of operating revenue was 15.87%, a slight decrease from 16.13% in 2019[24]. - The company has a workforce of 236 R&D personnel, accounting for 36.53% of total employees, emphasizing the importance of high-quality talent[153]. - The company aims to apply for over 20 new utility model and invention patents annually to protect its core technological achievements[152]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of 2021[22]. - A strategic acquisition of a local competitor is anticipated to be finalized in Q2 2021, which is expected to increase market penetration by 15%[22]. - The company plans to continue enhancing product layout and market expansion efforts to drive future growth[24]. - The company plans to expand into automotive and telecommunications sectors, but faces risks related to market competition and the ability to meet customer demands effectively[104]. Risks and Challenges - The company faces various risks as outlined in the report, which investors should pay attention to[4]. - The company is exposed to risks from high customer concentration, particularly in the FPC industry, which could adversely affect performance if major clients reduce orders[100]. - The accounts receivable balance at the end of the reporting period was CNY 166.80 million, representing 47.61% of revenue, highlighting potential risks in cash flow management[101]. - The company faces risks related to the inability to mass-produce its AI visual inspection equipment, which is critical for its operations, as the more complex FPCA surface defect detection equipment is still under development[97]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The board of directors and senior management confirm the accuracy and completeness of the annual report[4]. - The company has not disclosed any special arrangements for corporate governance[9]. - The company has confirmed that more than half of the directors can guarantee the authenticity of the annual report[9]. Technology and Innovation - The company specializes in R&D and production of testing equipment for high-end electronic products, focusing on precision machinery and various testing technologies[35]. - 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 has successfully developed a 100um probe needle mold technology, suitable for connector spacing of 0.175mm, achieving a first-pass yield of 98.5%[56]. Financial Management - The company reported a significant increase in cash from financing activities, up 3521.56% to CNY 602,498,301.51, due to funds raised from stock issuance[130]. - The company's cash and cash equivalents increased by 46.55% to CNY 414,167,507.59, largely due to funds raised from stock issuance[133]. - The company has established a fundraising management system to ensure compliance and mitigate risks associated with fund usage[179]. Compliance and Legal Matters - The company has committed to ensuring that the public offering of shares and listing on the Sci-Tech Innovation Board does not involve any fraudulent issuance[186]. - The company guarantees strict adherence to the commitments disclosed in the prospectus, with measures in place for any failure to fulfill these commitments[188]. - The company has disclosed all related parties and transactions, ensuring no undisclosed related parties exist[191].