Crown Advanced Material (SH:688560)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 918.63 million, a decrease of 2.87% compared to CNY 945.75 million in 2019[24]. - The net profit attributable to shareholders for 2020 was CNY 105.49 million, representing a slight increase of 0.56% from CNY 104.91 million in 2019[24]. - The net cash flow from operating activities decreased by 75.92% to CNY 33.62 million, primarily due to increased accounts receivable and reduced cash inflow[26]. - The total assets increased by 64.75% to CNY 1.74 billion, mainly due to funds raised from the initial public offering[26]. - The net assets attributable to shareholders rose by 104.83% to CNY 1.33 billion, also driven by the initial public offering[26]. - Basic earnings per share for 2020 were CNY 0.86, a 1.18% increase from CNY 0.85 in 2019[25]. - The R&D expenditure as a percentage of operating revenue was 4.04%, up from 3.95% in 2019[25]. - The company experienced a 12.04% decline in net profit after deducting non-recurring gains and losses, attributed to decreased sales prices and increased raw material costs[26]. - The weighted average return on equity decreased to 15.07%, down 2.57 percentage points from 17.64% in 2019[25]. - The company reported a significant increase in government subsidies recognized in profit, amounting to CNY 38.78 million in 2020, compared to CNY 29.40 million in 2019[30]. Dividend and Share Capital - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares, totaling approximately 32.82 million yuan, representing a cash dividend payout ratio of 31.11% for the year 2020[6]. - The total share capital as of December 31, 2020, is 164,087,736 shares[6]. - The company does not plan to issue bonus shares or increase capital reserves for the year 2020[6]. Risk Management - The company has outlined various risks in its operations, detailed in the section on "Risk Factors" in the report[5]. - The company emphasizes the importance of risk management and compliance with laws and regulations among management personnel to ensure healthy development[138]. Audit and Compliance - The company has received a standard unqualified audit opinion from Tianjian Accounting Firm[8]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has no violations of decision-making procedures for providing guarantees[8]. - The report includes forward-looking statements regarding future plans and strategies, which do not constitute a commitment to investors[7]. - The company has committed to fulfilling all promises made during the IPO process and will accept social supervision[192]. Research and Development - The company focuses on producing solar cell packaging films, including POE and EVA films, which enhance the reliability of N-type battery components and bifacial modules[14]. - The company has established two major R&D platforms focusing on material processing technology and advanced production processes, contributing to its core competitiveness[35]. - The company has invested over 10 years in R&D, resulting in a robust technology system for functional polymer films and special adhesives[35]. - The total R&D investment for the year was approximately ¥37.07 million, representing 4.04% of operating revenue, a slight increase from 3.95% the previous year[65]. - The company has developed key raw materials for its composite membrane products, enhancing its competitive advantage in the market[35]. Market Position and Strategy - Longi Green Energy completed the acquisition of 100% equity in Vina Solar Technology Co., Ltd. on June 30, 2020, making it a subsidiary[14]. - The company has established a strong customer base, including major players like JA Solar and GCL-Poly Energy Holdings[14]. - The company anticipates a further increase in the market share of bifacial modules, projected to reach 39% in 2021[40]. - The company achieved a global market share of approximately 15.57% in solar cell backplanes, ranking third in the industry for three consecutive years[53]. - The company aims to maintain its market share in solar cell backplanes while increasing the contribution of solar cell encapsulation films and lithium battery aluminum-plastic films to its revenue[137]. Production and Capacity - The company plans to increase its production capacity of solar cell encapsulation film by 120 million square meters in 2021 to capture market share in the bifacial module segment[41]. - The existing production capacity for solar cell backsheets is 84 million square meters per year, which will increase to 114 million square meters per year with the new project coming online in 2021[139]. - The company is expanding its production capacity for solar cell packaging materials to quickly capture market share, with a target of 120 million square meters annually[93]. Intellectual Property - The company holds a total of 115 patents, including 28 invention patents and 74 utility model patents, reflecting its strong R&D capabilities[80]. - The company has obtained 19 invention patents related to solar cell backplanes and 9 invention patents for lithium battery aluminum-plastic films by 2020[54]. Financial Management - The company’s cash and cash equivalents increased by 512.99% to approximately 649.93 million RMB as of December 31, 2020, compared to 106.03 million RMB in the previous year[78]. - The company reported a significant increase in financial expenses, up 160.57% to ¥4,523,997.04[105]. - The company’s total liabilities decreased significantly, with long-term borrowings reduced to zero due to repayment[122]. Shareholder Commitments - The controlling shareholder Yan Hongjia and actual controllers Yan Hongjia and Yan Yong committed not to transfer or entrust the management of their shares for 36 months from the date of the company's stock listing[151]. - The company guarantees that undistributed profits before the IPO will be shared among new and old shareholders based on their shareholding ratios[176]. - The company has pledged to compensate investors for any losses incurred due to false statements or omissions in the prospectus[177]. Future Outlook - The company aims to enhance existing business development to increase revenue and net profit levels[172]. - The company plans to enhance its main business profitability by expanding existing product capacity through the implementation of fundraising projects[174]. - The company is actively expanding its customer base in high-end digital markets, targeting clients such as ATL, Guanyu, and BYD for aluminum-plastic films[140].