FREEWON(SH:688678)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was ¥516,950,211.02, representing a 16.63% increase compared to ¥443,222,365.69 in 2019[26]. - The net profit attributable to shareholders for 2020 was ¥111,559,341.41, which is a 3.91% increase from ¥107,358,821.39 in 2019[26]. - The cash flow from operating activities increased by 78.71% to ¥143,334,918.46 in 2020, up from ¥80,204,435.66 in 2019[26]. - The total assets at the end of 2020 reached ¥1,718,149,984.72, a 110.38% increase from ¥816,694,451.49 at the end of 2019[26]. - The total net assets attributable to shareholders increased by 147.98% to ¥1,316,153,789.62 at the end of 2020, compared to ¥530,757,871.12 at the end of 2019[26]. - The company achieved a main business revenue of RMB 511.78 million in 2020, representing a year-on-year growth of 16.26%[75]. - The net profit attributable to the parent company reached RMB 111.56 million, an increase of 3.91% compared to the previous year[75]. - The profit margin for 2020 was 46.62%, up from 36.33% in 2019, indicating improved operational efficiency[141]. Research and Development - The company’s R&D expenditure as a percentage of operating revenue increased to 8.04% in 2020, up from 4.94% in 2019[28]. - The company achieved a significant increase in R&D investment, totaling approximately ¥41.57 million in 2020, representing an 89.90% increase compared to ¥21.89 million in the previous year[57]. - The company applied for 46 new patents during the reporting period, of which 27 were granted, bringing the total granted patents to 102[54]. - The company has developed 11 core technologies, including high-precision metal injection molding and high-stability precision spring forming technology, which are crucial for its long-term quality development[53]. - The company is actively pursuing online detection technologies to improve product quality and production efficiency in ultra-precision machining[51]. - The company plans to enhance its R&D capabilities by increasing investment and establishing a systematic innovation platform, focusing on material application, process development, and product application development[128]. Business Strategy and Market Position - The company focuses on the research, manufacturing, and sales of precision metal components, primarily serving the 3C, automotive, and power tool industries[38]. - The company anticipates no significant changes in its business model or influencing factors in the near future[42]. - The company is committed to the development of both large-scale and micro-scale precision processing equipment to meet the needs of various industries[50]. - The company plans to expand its main business in customized precision metal components, targeting new product development and high-quality customer acquisition in industries such as 5G communications, IoT, new energy vehicles, and medical devices over the next three years[126]. - The company is focused on expanding into new markets and industries while maintaining strong relationships with existing clients[75]. Corporate Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants[5]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[5]. - The company has not identified any violations of decision-making procedures regarding external guarantees[8]. - The company has committed to fully disclose related party transactions in accordance with securities supervision laws and regulations, with no undisclosed transactions existing at present[184]. Dividend Policy - The company plans to distribute a cash dividend of RMB 3 per 10 shares, totaling an estimated cash distribution of RMB 52,005,000 based on a total share capital of 173,350,000 shares as of December 31, 2020[6]. - The cash dividend policy stipulates that at least 20% of the distributable profits should be allocated as cash dividends, with higher percentages for mature companies without major capital expenditures[135]. - The company did not propose a cash profit distribution plan for ordinary shares despite having positive distributable profits, which is not applicable for the reporting period[141]. Risk Management - The company has outlined potential risks in its development strategy and future operational plans, advising investors to be cautious[7]. - The company has emphasized the importance of risk factors in its operational analysis, which can impact future performance[4]. Operational Efficiency - The company focuses on high-precision and high-efficiency processing methods, aiming to balance efficiency and precision in ultra-precision machining[50]. - The company is engaged in multiple R&D projects, including a project aimed at enhancing the stability of turning and milling processes, with a total investment of ¥1.21 million[59]. - The company has developed new riveting machines that improve production efficiency and quality stability[60]. Shareholder Commitments - The company has committed to not transferring or entrusting the management of shares held prior to the IPO for 36 months post-listing[143]. - The company will not repurchase shares held prior to the IPO during the first 12 months post-IPO[156]. - The company has established a commitment to uphold these restrictions even in the event of management changes or departures[158].