SM Micro(SH:688699)2021-03-22 16:00Financial Performance - The company's operating revenue for 2020 was RMB 525.26 million, representing a year-on-year increase of 13.47% compared to RMB 462.90 million in 2019[22]. - The net profit attributable to shareholders for 2020 was RMB 109.27 million, a 35.36% increase from RMB 80.72 million in 2019[22]. - The net profit after deducting non-recurring gains and losses was RMB 101.84 million, up 39.45% from RMB 73.03 million in the previous year[22]. - The basic earnings per share for 2020 was RMB 1.96, reflecting a growth of 35.17% compared to RMB 1.45 in 2019[24]. - The gross profit margin improved to 33.84% in 2020, an increase of 3.14 percentage points compared to 2019[98]. - The company's total revenue for Q1 was approximately ¥86.09 million, Q2 was ¥97.06 million, Q3 was ¥138.10 million, and Q4 was ¥204.01 million, showing a significant increase in revenue throughout the year[27]. - The net profit attributable to shareholders for Q4 reached ¥50.80 million, up from ¥29.51 million in Q3, indicating strong year-end performance[28]. Dividend and Capital Management - The company plans to distribute a cash dividend of RMB 6 per 10 shares, totaling RMB 44,620,800, which accounts for 40.84% of the net profit attributable to shareholders for 2020[5]. - The company does not plan to increase capital reserves or issue bonus shares for the year[5]. - The company executed a clear and compliant profit distribution policy during the reporting period, ensuring the protection of minority shareholders' rights[135]. - In 2020, the company distributed cash dividends amounting to approximately 44.62 million RMB, representing 40.84% of the net profit attributable to ordinary shareholders[136]. Audit and Compliance - The board of directors has confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements[4]. - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[4]. - The company has not reported any violations in decision-making procedures regarding external guarantees[7]. - The company has maintained compliance with all commitments made by its actual controllers and shareholders during the reporting period[138]. Research and Development - Research and development expenses accounted for 7.12% of operating revenue, a decrease of 0.64 percentage points from 7.76% in 2019[24]. - The company achieved a total R&D investment of ¥37,413,529.45, representing a 4.10% increase from the previous year[64]. - The company has established a dynamic R&D model focused on innovation and market demand, leveraging a skilled team and advanced equipment[39]. - The company has developed several core technologies that are at or near international advanced levels, which have been effectively applied in major product designs[55]. Market and Product Development - The company plans to continue expanding its market presence and developing new high-margin products to sustain growth in the coming years[25]. - The company specializes in integrated circuit design, focusing on LED display driver chips, LED lighting driver chips, and power management chips, which are widely used in various applications[34]. - The company has established partnerships with well-known industry players such as Strong Power Giant, Leyard, and Unilumin for mass production of its LED driver products[35]. - The company aims to enhance market penetration through continuous R&D of new products, including intelligent and dimmable lighting solutions[102]. Operational Challenges - The net cash flow from operating activities decreased by RMB 49.27 million, a decline of 397.29% compared to RMB 16.57 million in 2019[22]. - The net cash flow from operating activities was negative in Q1 at -¥24.32 million, but improved to -¥22.38 million in Q4, reflecting ongoing operational challenges[28]. - The company faces risks related to core technology leakage, which could undermine its competitive edge in the technology-intensive integrated circuit design industry[88]. - The company is exposed to macroeconomic risks, including potential impacts from the COVID-19 pandemic and trade tensions, which could affect market demand and operational performance[94]. Technological Advancements - The company has achieved significant technological advancements in LED driver technology, including constant current control and high-voltage self-start capabilities[46]. - The company has made significant technological breakthroughs in high-voltage linear driving, expanding its application in smart lighting solutions[36]. - The company has successfully implemented a fabless model, outsourcing wafer manufacturing while maintaining some in-house packaging and testing capabilities[40]. - The company has developed multiple advanced technologies in LED driving, including SM-PWM technology, which enhances the display refresh rate of LED screens to 8KHz[59]. Corporate Governance - The company has not disclosed any special arrangements for corporate governance[7]. - All board members attended the board meeting to discuss the annual report[4]. - The company has committed to avoiding competition with Mingwei Electronics and its subsidiaries[160]. - The company has not faced any situations that could lead to delisting or bankruptcy restructuring[166]. Environmental and Social Responsibility - The company is committed to green and sustainable development through product innovation and adherence to environmental regulations[183]. - The company has passed ISO9001, ISO14001, and GB/T28001 certifications to ensure product quality and safety[182]. - The company has not experienced any environmental pollution incidents during the reporting period[184]. - Hazardous waste generated by the company is managed by qualified disposal units, ensuring proper handling and storage[185].