SUZHOU GOOD-ARK(SZ:002079)2021-03-22 16:00Acquisitions and Subsidiaries - In 2020, Suzhou Good-Ark Electronics achieved a significant milestone by completing the acquisition of a controlling stake in Suzhou Jingyin New Materials Co., Ltd., with 40.8932 million shares issued for the purchase[13]. - In 2020, the company completed the acquisition of Suzhou Jingyin New Materials Technology Co., becoming its wholly-owned subsidiary, enhancing its position in the photovoltaic sector[43]. - The company completed the acquisition of Suzhou Crystal Silver New Materials Co., Ltd., making it a wholly-owned subsidiary[58]. - The company acquired a 45.2% stake in Suzhou Jingyin New Materials Co., which has now become a wholly-owned subsidiary[164]. - The company completed the acquisition of 100% equity in Suzhou Crystal Silver, making it a wholly-owned subsidiary[96]. Financial Performance - The company's operating revenue for 2020 was CNY 1,804,661,200.03, a decrease of 8.88% compared to 2019[29]. - The net profit attributable to shareholders for 2020 was CNY 90,376,608.05, down 6.30% from the previous year[29]. - The net cash flow from operating activities was CNY 124,668,995.57, representing a decline of 34.79% year-on-year[30]. - The total assets at the end of 2020 were CNY 2,374,118,364.06, an increase of 5.81% compared to the end of 2019[30]. - The net assets attributable to shareholders increased by 10.54% to CNY 1,904,138,844.95 at the end of 2020[30]. - In Q4 2020, the operating revenue reached CNY 584,169,996.04, marking a significant increase compared to previous quarters[33]. - The basic earnings per share for 2020 was CNY 0.1241, a decrease of 6.34% from 2019[30]. - The company reported a total of CNY 29,994,528.72 in non-recurring gains and losses for 2020[37]. - The company reported a total investment of CNY 130.73 million in the reporting period, a 15.32% increase compared to CNY 113.37 million in the previous year[86]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a year-over-year growth of 15%[196]. Sales and Market Performance - The company reported a 20% year-on-year increase in sales for its subsidiary Suzhou Minghao Sensor Technology Co., Ltd., despite the pandemic, with historical highs in shipment volumes[13]. - The company reported a significant increase in shipment volumes for flat-panel clients, with a 200% year-on-year growth[13]. - The company reported a 12% growth in domestic market sales in 2020, driven by the acceleration of semiconductor localization and favorable economic conditions[52]. - The company’s automotive product shipments saw significant growth in 2020, supported by its status as a tier-one supplier to major global automotive manufacturers[49]. - The total sales amount from the top five customers reached ¥558,552,816.31, accounting for 30.95% of the annual total sales[69]. - The company’s products are primarily sold in markets such as the US, Japan, South Korea, and Europe, with over 60% of sales coming from these regions[52]. - The company reported a 20% year-over-year increase in overall sales volume for 2020, reaching a historical high[103]. Research and Development - The company applied for 30 patents in 2020, bringing its total effective patents to 183, including 5 invention patents and 25 utility model patents[50]. - Research and development expenses amounted to ¥84,537,385.58, which is a 4.24% increase compared to ¥81,100,121.28 in 2019[73]. - The number of R&D personnel increased to 449, up 34.43% from 334 in 2019, with R&D personnel accounting for 28.58% of the total workforce[73]. - The company has developed advanced technologies, including MEMS-CMOS three-dimensional integration and eight-inch wafer-level packaging, achieving international advanced levels[41]. - The company is focusing on expanding into the energy storage, shared bicycle power supply, and 5G base station markets to enhance sales and market share[120]. Dividend Policy - A cash dividend of 0.4 yuan per 10 shares (including tax) will be distributed to shareholders, based on a total of 768,864,673 shares[6]. - The cash dividend payout ratio for 2020 was 34.03%, compared to 30.19% in 2019 and 23.10% in 2018, indicating a consistent increase in dividend distribution relative to net profit[178]. - The company reported a total distributable profit of 595,429,243.03 yuan for the 2020 fiscal year, with the cash dividend representing 100% of the profit distribution[179]. - The company has maintained a clear and transparent cash dividend policy, ensuring that minority shareholders have the opportunity to express their opinions and that their rights are protected[174]. - The company has not made any adjustments to its cash dividend policy during the reporting period, indicating stability in its financial strategy[174]. Operational Strategies - The company is committed to expanding its overseas operations, particularly in Malaysia, to enhance its research and production capabilities[16]. - The company is actively responding to national strategies for carbon neutrality by promoting new product development and upgrading existing products[13]. - The company is focusing on enhancing domestic procurement and sales in the semiconductor supply chain to mitigate the impact of international supply chain disruptions due to COVID-19[163]. - The company plans to strengthen accounts receivable management and collection efforts, especially in the photovoltaic sector, to mitigate credit risk[165]. - The company aims to diversify credit risk by optimizing customer selection and actively seeking new clients[165]. Market Outlook - The semiconductor market in China is projected to grow at a compound annual growth rate of 6% until 2025, with the market size expected to reach 2.38 trillion USD[128]. - The automotive semiconductor market is projected to grow by 18% in 2021, reaching a market size of $44.9 billion[135]. - The global MEMS market size was $11.5 billion in 2019, expected to reach nearly $17.7 billion by 2025, with a CAGR of 7.4% from 2019 to 2025[133]. - 5G smartphones are expected to account for 30% of all smartphone shipments in 2021, with semiconductors for 5G phones making up nearly 54% of the revenue in that segment[136]. - The Chinese government plans to build 5.54 million 5G base stations by 2024, significantly increasing demand for key components like 5G baseband and RF chips[139]. Corporate Governance and Compliance - The company has confirmed that all legal rights to the assets are clear and free from disputes or restrictions[184]. - The company has fulfilled all capital contribution obligations as per the company's articles of association[184]. - The company has no ongoing or foreseeable litigation that could affect the transfer of ownership of the assets[184]. - The company has committed to maintaining its independence in personnel, finance, organization, assets, and business operations, ensuring no interference from the controlling shareholder[192]. - The company has stated that it will strictly adhere to the laws and regulations regarding stock reduction and timely fulfill information disclosure obligations[184].