LME(SH:688589)2021-04-22 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 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 cumulative increase in net profit attributable to shareholders after deducting non-recurring gains and losses for the first three quarters was approximately ¥2.24 million[32]. - 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 accounted for 21.32% of operating revenue, an increase of 5.88 percentage points from the previous year[24]. - The total R&D investment for the year was approximately ¥45.98 million, representing a 7.62% increase from the previous year's ¥42.72 million[125]. - R&D investment accounted for 21.32% of total operating revenue, up from 15.44% in the previous year, indicating a significant increase of 5.88 percentage points[125]. - 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 has established a complete in-house R&D team, which enhances efficiency and shortens product development cycles[139]. - The company is focusing on developing energy management systems, with ongoing R&D projects aimed at improving energy efficiency across various industries[1]. - The company has developed a new generation of Beidou multi-mode navigation core chips, which are widely applied in smart city construction, transportation, and IoT applications, and are at the leading level in the domestic market[1]. Market Position and Strategy - The company focuses on the design and development of IoT communication technology and specialized chips, aiming to establish a leading position in the PLC chip sector and the broader IoT application market[40]. - The company aims to provide comprehensive solutions for smart grid, smart appliances, and smart city applications, leveraging its core technology and innovative spirit[41]. - The company is recognized as a national high-tech enterprise and has received multiple certifications, including ISO three-system certification and AAA credit enterprise certification[47]. - The company is actively expanding its IoT applications, collaborating with leading manufacturers in 5G and new energy sectors[146]. - The company aims to become a leading brand in IoT communication chips, leveraging its experience in the smart grid market[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 poses a risk to the company's performance, especially if it fails to develop products that meet future procurement cycles[161]. - The ongoing trade disputes between China and the U.S. may negatively impact the company's operations due to potential restrictions on the semiconductor industry[166]. - The company is exposed to seasonal fluctuations in revenue, particularly in the power grid market, which is influenced by strict budget management and procurement approval processes of end customers[163]. Corporate Governance and Compliance - 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 engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company’s governance structure does not have any special arrangements[7]. Product Development and Innovation - The company has developed narrowband PLC chips that support a frequency range of 9-500 kHz, significantly improving data transmission rates while maintaining adaptability to power line channels[42]. - The company’s high-speed PLC chips operate within a frequency range of 0.7-12 MHz and are integrated with proprietary high-performance communication technologies, targeting applications in the national power grid's new generation of electricity information collection systems[43]. - The company has developed a comprehensive energy management platform that integrates communication technology and chips for efficient energy consumption analysis[46]. - The company has developed a high-precision timing system based on satellite communication, providing local time accuracy within 10 nanoseconds[111]. - The company has developed a low-power wireless communication system that significantly reduces power consumption and response time, achieving industry-leading levels domestically and internationally[109]. Financial Health and Investments - The company's cash and cash equivalents increased by 484.67% to 435,114,064.91 RMB, primarily due to funds raised from issuing new shares[198]. - The accounts receivable financing increased by 74.87% to 37,141,975.00 RMB, indicating improved credit terms with higher-rated banks[198]. - The total assets increased significantly, with cash and cash equivalents now comprising 54.04% of total assets[198]. - The company reported no related party sales among the top five customers, indicating a diversified customer base[184]. - The procurement from the top five suppliers showed no related party purchases, ensuring a stable supply chain[190].