SDGI(SZ:000070)2021-06-18 16:00Business Expansion and Development - The company reported a significant expansion in its main business areas, including optical fiber and cable production, smart access industry, military information technology, and smart service industry[22]. - The company achieved a 70% stake in Sichuan Huatuo, extending its reach in the optical module production and sales sector[22]. - The company is focusing on expanding its business in the "new infrastructure" and smart city sectors, leveraging technologies such as 5G, big data, cloud computing, and artificial intelligence[39]. - The company has expanded its product offerings to include fire electronic products, security systems, and energy-saving technology services[22]. - The company is transitioning from a "product provider" to a "comprehensive product, solution, and implementation service provider" in response to new infrastructure opportunities[65]. - The company is actively expanding its overseas market presence, with plans to establish factories in countries like Vietnam and India[61]. - The company has established a joint venture with Shenzhen Sanqi Technology Co., Ltd. to promote military information technology R&D projects and expand new markets[44]. - The company launched new products such as the automatic optical switching system and micro data center, which are now in the market promotion phase[70]. Financial Performance - The company's operating revenue for 2020 was ¥4,722,428,257.52, representing a year-on-year increase of 1.43% compared to ¥4,655,911,057.79 in 2019[26]. - The net profit attributable to shareholders for 2020 was ¥11,445,456.46, a significant decrease of 96.46% from ¥323,176,298.40 in 2019[26]. - The net profit after deducting non-recurring gains and losses was -¥55,764,181.49 in 2020, compared to ¥78,321,501.26 in 2019, marking a decline of 171.20%[26]. - The company's total assets increased by 39.30% to ¥10,619,606,224.59 at the end of 2020, up from ¥7,623,760,794.35 at the end of 2019[26]. - The company reported a significant increase in total assets and net assets, with net assets reaching ¥2,969,191,086.82 at the end of 2020, up 1.90% from ¥2,913,835,019.93 in 2019[26]. - The total profit for the company was 124 million yuan, a decrease of 272 million yuan or 68.75% compared to the previous year[66]. - The net profit was 58 million yuan, down by 288 million yuan or 83.16% year-on-year[66]. - The company reported a significant loss in asset impairment of -191,055,872.56 yuan, primarily due to inventory write-downs[114]. Cash Flow and Investments - The net cash flow from operating activities for 2020 was ¥64,751,953.26, a turnaround from -¥254,983,835.20 in 2019, indicating a 125.39% improvement[26]. - The company's financing activities generated a net cash flow of 2,245,955,556.30 CNY, a significant increase of 1,393.88% from 150,343,921.69 CNY in the previous year[111]. - The total investment amount for the reporting period was 192,186,183.60 yuan, a 107.99% increase compared to the previous year[120]. - The company raised 550 million yuan through convertible bonds to support the construction of smart city projects and daily operations[74]. - The company utilized 15,539.63 thousand yuan of raised funds in the current year, with a cumulative usage of 241,355.28 thousand yuan by the end of 2020, leaving a balance of 180,281.83 thousand yuan in the special account for raised funds[135]. Research and Development - The company has established a comprehensive technology innovation platform with 1 national-level enterprise technology center and multiple provincial and municipal technology centers[58]. - The company holds a total of 445 patents, including 75 invention patents, reflecting its strong commitment to R&D[58]. - The company added 77 new patents in 2020, bringing the total to 445, including 75 invention patents[78]. - Research and development expenses amounted to 224,230,685.07 CNY, a decrease of 10.60% from 250,827,590.41 CNY in the previous year[106]. - The company’s R&D investment accounted for 5.55% of total revenue, up from 5.39% in 2019[110]. Market Position and Challenges - The company maintained its market share in the optical fiber and cable industry while expanding into access networks, optical modules, and military markets[65]. - The company faced significant challenges due to the pandemic, including supply chain disruptions and increased logistics costs, but managed to maintain production and meet key customer demands[66]. - The company is addressing the risk of declining prices in the optical fiber and cable market by optimizing supply chain management and expanding into overseas markets[166]. - The company is facing risks from macroeconomic conditions, including international trade tensions and technology export restrictions, which may impact future operations[165]. Profit Distribution and Shareholder Engagement - The company did not distribute cash dividends or issue bonus shares for the reporting period[7]. - The company plans to not distribute cash dividends, issue bonus shares, or increase capital using capital reserves for the 2020 fiscal year, with undistributed profits carried forward to the next year[179]. - The company has maintained a transparent decision-making process regarding profit distribution, ensuring the protection of minority shareholders' rights[176]. - The company has been actively engaging with investors regarding its convertible bond issuance progress throughout 2020[171]. - The company approved the extension of the completion date for three fundraising investment projects to December 31, 2021, without changing the total investment amount or implementation content[139].