ETI(SZ:002005)2021-04-29 16:00Financial Performance - The company reported a total revenue of 1.35 billion CNY from the sale of land in Yangzhou, expected to be completed in the first half of 2021[4]. - The company's operating revenue for 2020 was ¥2,216,002,596.15, a decrease of 25.65% compared to ¥2,980,356,543.25 in 2019[21]. - The net profit attributable to shareholders was -¥596,103,597.22 in 2020, representing a decline of 325.76% from ¥264,045,436.49 in 2019[21]. - The net cash flow from operating activities was -¥394,570,712.58, down 175.56% from ¥522,229,645.51 in the previous year[21]. - The total assets at the end of 2020 were ¥4,063,483,966.90, a decrease of 24.74% from ¥5,399,087,624.72 at the end of 2019[21]. - The net assets attributable to shareholders decreased by 28.78% to ¥1,773,284,773.08 from ¥2,489,860,903.99 in 2019[21]. - The company reported a basic earnings per share of -¥0.3378 for 2020, a decline of 325.80% from ¥0.1496 in 2019[21]. - The weighted average return on equity was -27.20% in 2020, down 38.26% from 11.06% in 2019[21]. - The company’s cash and cash equivalents decreased by 62.33% compared to the beginning of the year, primarily due to litigation settlement payments and reduced cash inflow from operations[32]. - The company reported a total revenue of 8,379.16 million for the year 2020, reflecting a significant increase compared to the previous year[147]. - The company reported a total revenue of 29,982 million CNY for the year 2020[149]. Business Operations - The company plans to optimize and adjust its small household appliance business, although this plan has not yet been approved by the board[4]. - The company has ceased operations in the LED display business and is currently focused on small household appliances and LED packaging[19]. - The company’s main business has shifted from LED products to small household appliances since 2004, with significant changes in its operations over the years[19]. - The company’s management has expressed concerns about the sustainability of the small household appliance business amid restructuring efforts[4]. - The small home appliance sector generated revenue of CNY 1,802,875,544.39, accounting for 81.36% of total revenue, with a year-on-year increase of 2.25%[42]. - The LED sector's revenue dropped to CNY 368,173,317.97, representing a 66.54% decrease year-on-year[42]. - The company has decided to optimize its small appliance business by focusing on high-margin products like coffee machines and reducing low-margin products[34]. - The company closed its LED display business to reduce operational pressure and losses, aiming for healthier future operations[38]. - The company is actively promoting the disposal of idle assets to improve financial conditions and support transformation[38]. - The company is focusing on diversifying its market presence to reduce reliance on high-consumption markets like Europe and the U.S., targeting regions such as Japan, Russia, and Southeast Asia[87]. Legal and Compliance Issues - The company is involved in ongoing litigation with a potential claim amounting to ¥580 million, which has not yet been resolved[118]. - The company has reached a settlement in a lawsuit with Lumileds, agreeing to pay $66 million in damages[119]. - The total direct losses incurred by the company due to legal fees and other expenses amount to $9,660,873.22[121]. - The company has been permanently prohibited from using, disclosing, or selling Lumileds' so-called "trade secrets" as part of the legal proceedings[120]. - The company has faced a significant legal battle regarding its intellectual property rights, which has impacted its business operations[121]. - The company continues to pursue legal action to protect its intellectual property and mitigate losses from ongoing disputes[121]. - The company has not fulfilled court judgments totaling 1.34 million CNY and 1.6 million CNY in two separate cases involving Dalian Dehao and Dalian Lianxin Electronics Technology Co., Ltd. as of December 31, 2020[131][132]. - The company has pending payments of 31.07 million CNY related to a ruling from July 20, 2020, which has not been fulfilled by the end of 2020[135]. Shareholder and Governance Structure - The company has no controlling shareholder or actual controller, which may affect decision-making processes[19]. - The company has a history of adhering to its commitments made during the share reform process[101]. - The company has committed to distributing no less than 30% of the distributable profits achieved over the three years from 2018 to 2020 as cash dividends, subject to conditions[103]. - The company has not engaged in any risky investments or provided financial assistance to entities outside of its controlling subsidiaries in the past twelve months[105]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[145]. - The company has seen a significant change in its shareholder structure, with Zhejiang Chengze Technology Co., Ltd. becoming the largest shareholder after acquiring 146,572,839 shares[188]. - The company has no shareholders holding more than 50% of the shares or having actual control over 30% of the voting rights[192][194]. Environmental Compliance - The company has a commitment to environmental protection, with no instances of exceeding pollution discharge standards reported[171]. - The company reported a total wastewater discharge of 1.546 million tons with no exceedances in pollutant emissions[172]. - The company achieved a COD (Chemical Oxygen Demand) level of 51 mg/L and NH3-N (Ammonia Nitrogen) level of 0.3 mg/L in wastewater, both within regulatory limits[173]. - The company has implemented a wastewater treatment process involving acid-base neutralization, coagulation, and filtration, ensuring all facilities operate normally and meet discharge standards[174]. - The company has established a comprehensive pollution prevention facility, including wastewater treatment and air pollution control systems, which are functioning effectively[174]. Future Outlook and Strategy - The company plans to enhance its product development and innovation capabilities by attracting industry talent and closely monitoring market trends[84]. - The company is actively pursuing new product development and technological advancements to drive future growth[147]. - The company anticipates ongoing related party transactions with a projected total amount of 42.87 million CNY[149]. - The company plans to continue its market expansion strategy, focusing on LED applications and related technologies[149].