LME(SH:688589)2021-03-21 16:00Financial Performance - In 2020, the company achieved operating revenue of CNY 215.63 million, a decrease of 22.09% compared to 2019[22]. - The net profit attributable to shareholders was CNY 27.82 million, down 35.98% from the previous year[22]. - The net profit after deducting non-recurring gains and losses decreased by 43.25% to CNY 20.97 million[22]. - The net cash flow from operating activities fell by 88.91% to CNY 2.71 million, primarily due to increased cash payments for goods and services[25]. - The company's total assets increased by 114.03% to CNY 805.23 million compared to 2019[23]. - The net assets attributable to shareholders rose by 172.51% to CNY 716.02 million[23]. - The basic earnings per share decreased by 45.00% to CNY 0.33[24]. - The company reported a total revenue of 6,853,492.45 RMB for the year, compared to 6,512,251.84 RMB in the previous year, indicating a growth of approximately 5.2%[36]. - The company achieved a sales revenue of 215.63 million yuan and a net profit of 27.82 million yuan in 2020, showing a decline compared to the previous year[151]. Research and Development - The R&D expenditure as a percentage of operating revenue increased by 5.88 percentage points to 21.32%[24]. - The company reported a total R&D expenditure of ¥45,976,662.90, representing a year-over-year increase of 7.62%[125]. - R&D expenditure accounted for 21.32% of total revenue, up from 15.44% in the previous year, indicating a significant increase of 5.88 percentage points[125]. - The company has a strong R&D team with 137 personnel, of which 36 hold master's degrees or above, accounting for 26.28%[50]. - The company has developed 30 integrated circuit layouts, 76 software copyrights, and holds 43 valid patents, including 37 invention patents, showcasing its robust chip design and innovation capabilities[50]. - The company is focusing on energy efficiency management systems, with ongoing R&D projects aimed at providing competitive energy management solutions across various industries[1]. - The company has successfully developed a voice-controlled elevator product as part of its IoT platform, showcasing innovation in smart home applications[1]. - The company is actively pursuing industrialization of its R&D projects to enhance its competitive edge in the market[129]. Market Position and Strategy - The company focuses on the Internet of Things (IoT) communication technology and specialized chip design, aiming to establish a leading position in the power line communication (PLC) chip sector[40]. - The company is expanding its market presence by providing chip-level solutions and systems for smart grid, smart appliances, and smart city applications[41]. - The company aims to leverage its proprietary technology to meet the growing demand for IoT devices and solutions in various industries[41]. - The company has established partnerships with major clients in various sectors, including state-owned enterprises and well-known listed companies, enhancing its market reputation[145]. - The company is actively expanding its IoT applications, collaborating with mainstream 5G base station manufacturers and engaging in projects related to new energy construction[146]. - The company aims to become a leading brand in IoT communication chips, leveraging its experience in the smart grid market to gain recognition in broader IoT applications[147]. Risks and Challenges - The company faces risks related to core technology leakage and talent loss, which could adversely affect its R&D capabilities[160]. - The cyclical nature of procurement demand in the power grid market may impact the company's performance if it fails to develop products that meet future procurement cycles[161]. - The company operates in a highly competitive market with significant risks from both domestic and international competitors, including major players like Huawei[164]. - The ongoing trade disputes between China and the U.S. pose risks to the company's operations, particularly in the semiconductor industry[166]. - The impact of the COVID-19 pandemic has created significant downward pressure on domestic economic conditions, potentially affecting future market demand[166]. Product Development and Innovation - The company has developed a new generation of Beidou multi-mode navigation core chips, which are currently in the research and development phase, with advanced algorithms and architectures, positioning the company at a leading level domestically[1]. - The company has launched a high-integration SoC dedicated chip for power line communication, leading the domestic narrowband power line communication into a new generation of development[141]. - The company has developed a high-voltage, high-power linear drive technology that supports both broadband and narrowband PLC frequencies, enhancing integration and performance while reducing overall system costs[116]. - The company has filed multiple patents for its core technologies, including the dMesh hybrid routing technology, which significantly improves communication reliability in challenging environments[116]. - The company has developed a low-power design technology that significantly reduces power consumption by optimizing power supply areas and implementing low-power design modules[112]. - The company has introduced a wireless dual-channel mixed network technology that allows for stable communication across power line and wireless channels, addressing complex IoT application scenarios[114]. Financial Management - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling 15,000,000 RMB, which accounts for 53.92% of the net profit attributable to shareholders[5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[4]. - The company has not violated any decision-making procedures in providing guarantees[7]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity of the annual report[7]. - The company has a significant increase in receivables financing, with a beginning balance of 21,240,201.62 RMB and an ending balance of 37,141,975.00 RMB, reflecting a change of 15,901,773.38 RMB[38]. Corporate Governance - The company has detailed risk factors outlined in the report, emphasizing the importance of investor awareness regarding investment risks[6]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors[6]. - The company has been recognized for its contributions to standard-setting in the power line communication sector, receiving awards from the China Intelligent Measurement Industry Technology Innovation Strategic Alliance[48]. - The company has established a complete in-house R&D team for algorithm, chip design, and application solution development, which enhances efficiency and reduces time to market[1].