XILI TECHNOLOGY(SH:688616)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 452,934,276.38, representing a 6.54% increase compared to CNY 425,134,549.91 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 73,721,139.68, an 18.56% increase from CNY 62,181,985.59 in 2019[19]. - The basic earnings per share for 2020 was CNY 0.66, up 20.00% from CNY 0.55 in 2019[20]. - The net profit after deducting non-recurring gains and losses for 2020 was CNY 65,440,561.38, a 21.49% increase from CNY 53,864,286.87 in 2019[19]. - The total assets at the end of 2020 were CNY 706,032,301.41, a 10.23% increase from CNY 640,483,291.64 at the end of 2019[19]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 460,488,001.35, a 15.70% increase from CNY 398,016,861.67 at the end of 2019[19]. - The total revenue for the company was CNY 451,166,937.67, with a gross profit margin of 31.06%, reflecting a year-on-year increase of 1.77 percentage points[78]. - The company's reliance on the State Grid is significant, with sales to this customer amounting to CNY 37,797.30 million, accounting for 83.45% of total revenue[70]. Dividend Distribution - The proposed cash dividend distribution is 2.20 RMB per 10 shares, totaling 33 million RMB, which represents 44.76% of the net profit attributable to the parent company for 2020[4]. - In 2020, the company distributed a cash dividend of 2.20 RMB per 10 shares, totaling 33,000,000 RMB, representing a payout ratio of 44.76%[112]. - In 2019, the cash dividend was 1.00 RMB per 10 shares, totaling 11,250,000 RMB, with a payout ratio of 18.09%[112]. - In 2018, the cash dividend was also 1.00 RMB per 10 shares, totaling 11,250,000 RMB, with a payout ratio of 38.01%[112]. Research and Development - The company's R&D expenditure as a percentage of operating revenue was 5.16% in 2020, an increase from 4.95% in 2019[20]. - R&D expenses totaled ¥23,358,051.41, representing a 10.98% increase from the previous year, with R&D expenses accounting for 5.16% of operating revenue[47]. - The company has established a multi-departmental collaborative R&D system, focusing on continuous improvement and innovation in product development[31]. - The company has developed a high-reliability data storage middleware technology, enhancing the portability of database middleware and ensuring stable data response in various application scenarios[43]. - The company has completed the R&D of multiple new products, including the State Grid 20th edition single/three-phase smart energy meter and smart external circuit breaker with Bluetooth functionality[46]. - The company is developing an NB-IoT smart water meter, with an expected investment of ¥2,500,000, aimed at precise and low-cost water management[51]. Market Position and Strategy - The company specializes in the research, production, and sales of smart meters, electricity information collection terminals, and energy metering boxes, integrating core technologies such as high-precision measurement and data security[28]. - The company is actively developing new products such as smart water meters and smart gateways, expanding its product line beyond traditional energy metering[28]. - The smart meter industry is experiencing high marketization, with the State Grid implementing a total bid limit to reduce performance risks, leading to a relatively dispersed winning situation among companies[40]. - The company has participated in the formulation of 16 national standards for energy metering products, showcasing its influence in the industry[30]. - The company aims to expand its market presence by increasing overseas market investments and enhancing product certification efforts[104]. Operational Efficiency - The company utilizes an order-based production model, enhancing production efficiency and quality through an MES system integrated with ERP[36]. - The company has developed a Manufacturing Execution System (MES) that automates production processes, achieving a dynamic qualified rate below the target lower limit, with real-time monitoring of the entire production process[45]. - The company has established a robust quality traceability system that allows for real-time analysis and improvement of product quality based on manufacturing data[45]. - The company has implemented modular design principles in its software, improving code readability and maintainability, which is crucial for different hardware platforms[44]. Risks and Challenges - The company faces risks related to the single-source supply of ESAM chips, which are critical for smart meters and could impact production if supply is disrupted[71]. - The company is exposed to risks from fluctuations in raw material prices, which constitute over 80% of its main business costs[71]. - Future changes in national grid policies could adversely affect the company's business scale and performance due to the high correlation with investment arrangements[70]. - The company received government subsidies amounting to CNY 516.08 million, which constituted 7% of total profit, highlighting dependency on external support[73]. Corporate Governance and Compliance - The company has established a long-term commitment to avoid related party transactions and competition within the industry[119]. - The company has made commitments regarding the repurchase of shares in case of significant violations of disclosure regulations[118]. - The company has a profit distribution policy commitment, ensuring transparency in profit allocation[118]. - The company emphasizes the protection of shareholder and creditor rights, ensuring compliance with relevant laws and regulations[187]. Social Responsibility and Environmental Impact - The company actively engages in social responsibility initiatives, including blood donation and support for local employment for disabled individuals[192]. - The company’s emissions of pollutants comply with the total control requirements, and all waste discharges meet the relevant national standards[193]. - The company has implemented noise reduction measures to ensure compliance with industrial noise emission standards[194]. - The company’s production processes are designed to minimize environmental impact, including waste gas and wastewater treatment systems[193].