CHISON MEDICAL(SH:688358)2021-04-23 16:00Financial Performance - The company's operating revenue for 2020 was ¥333,092,749.95, a decrease of 9.92% compared to ¥369,755,664.61 in 2019 [24]. - The net profit attributable to shareholders for 2020 was ¥99,636,077.03, down 5.23% from ¥105,132,379.73 in 2019 [24]. - The net cash flow from operating activities increased by 3.28% to ¥82,448,047.94 in 2020, compared to ¥79,827,109.35 in 2019 [24]. - The company's total assets at the end of 2020 were ¥1,349,604,046.26, reflecting a 4.58% increase from ¥1,290,503,728.38 at the end of 2019 [24]. - The basic earnings per share for 2020 decreased by 26.47% to ¥1.25, down from ¥1.70 in 2019 [25]. - The net assets attributable to shareholders at the end of 2020 were ¥1,192,905,095.43, an increase of 1.89% from ¥1,170,797,639.54 at the end of 2019 [24]. - The company reported a net profit of ¥33,815,289.80 in Q4 2020, showing a positive trend in the latter part of the year [29]. - The company reported a non-recurring profit of 8,753,489.21 in 2020, an increase from 7,628,390.21 in 2019, and 3,823,731.98 in 2018 [32]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 16.70% in 2020, up from 14.07% in 2019 [26]. - The company's R&D expenditure reached CNY 55.64 million, a year-on-year increase of 6.95%, accounting for 16.70% of total revenue, marking the highest level in history [80]. - During the reporting period, the company obtained 39 new patent authorizations, including 17 invention patents, and filed 90 new patent applications, with 69 being invention patents [80]. - The company applied for 23 new domestic and international patents in ultrasound artificial intelligence technology during the reporting period, with a total of 4 software copyrights obtained [56]. - The company has developed core technologies in ultrasound medical imaging, covering 2D, 3D, and 4D ultrasound, as well as AI cloud platform solutions [35]. - The company has established a strict supplier evaluation mechanism to ensure quality in its procurement process [42]. - The company has committed to continuous R&D investment to accumulate core technologies for future development and product innovation [79]. Market Position and Strategy - The company aims to become a leading global provider of high-end ultrasound imaging equipment and services, leveraging its expertise in ultrasound technology and clinical applications [63]. - The company has established a nationwide sales network covering over 30 provinces and regions in China, enhancing its market presence [53]. - The company has developed a diverse range of products tailored to different countries' economic levels and clinical needs, selling in over 100 countries and regions globally [53]. - The company operates a research and development model with centers in the US and China, enhancing its innovation capabilities [40]. - The company has strategic partnerships with international medical device firms, expanding its market reach to over 100 countries [36]. - The company is actively localizing its overseas marketing efforts in countries like Mexico and India, enhancing support for local distributors to improve market competitiveness [118]. Product Development and Innovation - The company has made breakthroughs in high-end ultrasound diagnostic systems, portable ultrasound systems, and AI technology, breaking the foreign monopoly in mid-to-high-end ultrasound technology [53]. - The company launched the XBit 90 high-end trolley ultrasound, integrating advanced technologies such as pulse compression and adaptive spatiotemporal technology, enhancing diagnostic capabilities across various applications [54]. - The SonoEye series of portable ultrasound devices, weighing only one-thousandth of conventional trolley machines, won the highest award at the China International Design Expo and received a third-class science and technology award from the Jiangsu Provincial Government [55]. - The company has developed a portable ultrasound system with optimized power management, significantly improving battery life and storage time [72]. - The company is focusing on the integration of ultrasound imaging devices with other medical equipment, fostering innovative product development through strategic partnerships [59]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of 8 RMB per 10 shares, totaling approximately 64 million RMB, based on an estimated total share capital of 80 million shares [6]. - The profit distribution plan has been approved by the board and will be submitted for shareholder approval at the annual meeting [6]. - The company has maintained a consistent dividend policy, with cash dividends in 2020 accounting for 80.29% of the net profit attributable to shareholders, compared to 76.09% in 2019 and 66.27% in 2018 [182]. - The company emphasizes a stable cash dividend policy, prioritizing cash dividends when conditions are met, with a minimum distribution of 15% of the annual distributable profit [176]. - The company has established criteria for cash dividends, including positive distributable profits and no major investment plans exceeding 10% of the latest audited net assets [177]. Risk Management - The company has detailed potential risk factors in its operations, which are discussed in the report's section on operational analysis [4]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors [7]. - The company faces risks related to product development failures and potential technology leaks, which could impact its competitive advantage and market position [122][124]. - The company has confirmed that all directors can guarantee the authenticity and completeness of the annual report [11]. - There are no violations of decision-making procedures regarding external guarantees [10]. Compliance and Governance - The company does not have any non-operating fund occupation by controlling shareholders or related parties [9]. - The company has not disclosed any special arrangements for corporate governance [9]. - The company will ensure that any related party transactions are conducted fairly and at market prices to avoid harming the interests of the company and its subsidiaries [191]. - The company has committed to not transferring or entrusting others to manage shares held before the IPO for 36 months from the listing date [186]. - The company will comply with all relevant laws and regulations regarding stock reduction methods, including centralized bidding and block trading [193].