DEREN(SZ:002055)2021-05-07 16:00Financial Performance - The company's operating revenue for 2020 was ¥7,272,228,518.21, a decrease of 2.86% compared to ¥7,486,212,149.89 in 2019[18] - The net profit attributable to shareholders in 2020 was ¥117,833,720.93, representing a significant increase of 120.13% from a loss of ¥585,481,081.76 in 2019[18] - The net cash flow from operating activities was -¥639,581,721.91, a decline of 298.33% compared to ¥322,489,488.12 in 2019[18] - The basic earnings per share for 2020 was ¥0.2472, a recovery from a loss of ¥1.2205 per share in 2019[18] - The total assets at the end of 2020 were ¥9,476,665,361.14, down 7.32% from ¥10,224,978,917.28 at the end of 2019[18] - The net assets attributable to shareholders increased by 3.46% to ¥1,971,298,369.23 at the end of 2020, compared to ¥1,905,387,936.36 at the end of 2019[18] - The weighted average return on equity for 2020 was 6.06%, a recovery from -24.65% in 2019[18] - The company reported a significant improvement in net profit excluding non-recurring gains and losses, with a loss of ¥79,557,344.63 in 2020 compared to a loss of ¥617,779,643.82 in 2019, an improvement of 87.12%[18] - Operating profit increased by 116.21% to 10,783.08 million yuan, while total profit rose by 116.26% to 10,933.43 million yuan[45] - Net profit attributable to the parent company reached 11,783.37 million yuan, marking a year-on-year increase of 120.13%[45] Market Trends - The global connector market size was projected to grow from $52.9 billion in 2019 to $59.5 billion in 2020, with a compound annual growth rate of 4.2% from 2012 to 2021[29] - China's connector market size reached $16.5 billion in 2019, making it the largest connector market globally[29] - The production focus of global connectors has shifted to mainland China, which is now the largest production base for connectors[30] - In 2020, China's automotive industry produced and sold 25.23 million and 25.31 million vehicles, respectively, with a year-on-year decline of 2% and 1.9%[32] - The sales of new energy vehicles in China reached 1.366 million units in 2020, showing a year-on-year growth of 10.9%[32] - In 2020, the sales of new energy passenger vehicles in Europe reached 1.367 million units, a year-on-year increase of 142%[34] - The market share of new energy passenger vehicles in Europe reached 11% in 2020, marking the first time it surpassed double digits[34] Business Strategy - The company is focusing on high-end connectors, particularly in the automotive and telecommunications sectors, to drive future growth[31] - The company aims to expand its product applications in the communication and automotive sectors, particularly in the 5G field[35] - The company has established a comprehensive industrial layout in the automotive sector, enhancing its market competitiveness[36] - The company is actively expanding its high-quality domestic and international customer base, focusing on long-term strategic partnerships[39] - The company plans to enhance platform product development for OBC, focusing on high-voltage and high-power products to expand market share[48] - The company is focusing on the development of high-end connectors and electric vehicle onboard chargers, requiring significant investment in R&D, capacity upgrades, and market expansion[123] Research and Development - The company’s R&D investment decreased by 7.49% year-on-year, totaling ¥398,297,966.31, which represents 5.48% of operating revenue[73] - R&D personnel increased by 3.22% to 930, representing 8.41% of the total workforce[73] - Investment in R&D increased by 30% year-over-year, focusing on innovative technologies and product development[110] - The company is focusing on enhancing its research and development capabilities to maintain a technological edge in the market[102] Cash Flow and Dividends - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The company did not propose any cash dividend distribution for the year 2020, despite having a positive profit available for distribution to ordinary shareholders[121] - The company’s profit distribution policy emphasizes reasonable returns to investors while ensuring sustainable development[118] - The company’s cash dividend policy has been revised to prioritize cash dividends when conditions allow, with independent directors involved in the decision-making process[120] Subsidiaries and Investments - The company established a new subsidiary, Shaanxi Shuangyifei Electric System Co., Ltd., on June 19, 2020, and deregistered Shenzhen Derun Che Lian Technology Co., Ltd. on May 12, 2020[67] - The company completed a share transfer of 49% in Shenzhen Hualin Company for ¥17,542,000, contributing 125.78% to net profit[94] - The company holds a 35.09% stake in Meta System S.p.A., which is expanding its business in electric vehicle charging modules and has secured significant orders from major automotive brands[99] Management and Governance - The company experienced a significant turnover in its board and management, with multiple directors and executives leaving on December 2, 2020, due to term expiration[198] - The company aims to enhance its governance structure with the appointment of new independent directors to ensure compliance and strategic oversight[198] - The company is focused on maintaining stability in its leadership team following the recent departures, which may impact future strategic initiatives[198] Operational Challenges - The automotive electrical systems business experienced a significant decline in profitability due to the pandemic and a slowdown in the domestic automotive market[44] - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[18] - The company anticipates challenges from ongoing global pandemic uncertainties, rising raw material prices, and semiconductor shortages in the automotive industry[101] Environmental and Social Responsibility - The company established a mask production line during the pandemic to provide masks for employees, customers, suppliers, and local governments[161] - The company maintained a "zero infection, zero suspected" status during the pandemic by providing free nucleic acid testing for employees[161] - The company strictly adheres to environmental protection laws and regulations, ensuring energy conservation and environmental protection in its production processes[164] - The company emphasizes the importance of employee rights and provides training and growth opportunities for staff[162]