ECEC(SZ:002199)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥262.40 million, representing a 24.73% increase compared to ¥210.38 million in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥7.98 million, a decrease of 46.09% from ¥14.79 million in 2019[16]. - The company's operating revenue for 2020 was CNY 262,404,243.96, an increase of 24.74% compared to CNY 210,383,455.05 in 2019[17]. - The net profit attributable to shareholders was CNY -533,521.07, showing a significant decline from CNY 16,255,654.05 in the previous year, representing a decrease of 103.29%[17]. - The net cash flow from operating activities increased by 118.64% to CNY 24,481,417.69, compared to CNY 11,197,145.54 in 2019[17]. - The basic earnings per share decreased by 50.00% to CNY 0.03 from CNY 0.06 in 2019[17]. - The total assets at the end of 2020 were CNY 525,216,706.84, reflecting a growth of 9.11% from CNY 481,375,542.13 at the end of 2019[17]. - The net assets attributable to shareholders increased by 2.01% to CNY 404,521,454.43 from CNY 396,545,977.09 in 2019[17]. - The company reported a quarterly revenue of CNY 44,581,081.85 in Q1 2020, down from CNY 81,592,361.69 in Q4 2019, indicating a decline of 45.49%[22]. - The company recorded a total of CNY 8,508,998.41 in non-recurring gains and losses for 2020, a significant decrease from CNY 31,049,091.96 in 2019[23]. Shareholder Structure - The company has undergone significant changes in its shareholder structure, with Blue Ocean Investment becoming the largest shareholder with a voting power of 25.10%[15]. - The company has not reported any major changes in its main business since its listing[15]. - The company has a registered address in Jinhua, Zhejiang Province, indicating its operational base[12]. - The company’s stock is listed on the Shenzhen Stock Exchange under the ticker code 002199[12]. - The largest shareholder, Beijing Qianshi Chuangfu, holds 14.80% of the shares, amounting to 36,036,036 shares[129]. - The second largest shareholder, Li Qingyue and his concerted party, holds a combined stake of 11.15% (Li Qingyue: 10.54%, Fang Caizhen: 0.62%)[132]. - The third largest shareholder, Ningbo Meishan Free Trade Port Area Blue Ocean Investment Management Center (Limited Partnership), holds a 10.02% stake[132]. - The fourth largest shareholder, Ningbo Tianwo Trading Co., Ltd., holds a 5.40% stake[132]. - The top ten shareholders include individuals and entities with stakes below 5%[132]. - The company has no controlling shareholder or actual controller, as no single shareholder can exercise control over the company[134]. Research and Development - The company continues to focus on the research, production, and sales of quartz crystal components, which are widely used in various electronic products[26]. - The company has a production capacity of 1.6 billion electronic components annually, with approximately 70 automated production lines[29]. - As of the end of 2020, the company held 52 patents, including 7 invention patents and 45 utility model patents[29]. - The company is advancing multiple R&D projects, including those for 5G communication devices and high-stability quartz crystal resonators[51]. - Research and development expenses rose by 27.11% to ¥15,363,748.16 in 2020, compared to ¥12,087,088.19 in 2019[49]. - The company launched several new products, including high-precision quartz crystal resonators and oscillators, which are now ready for mass production[51]. - The company is committed to innovation, focusing on R&D to develop high-value-added products and strengthen its technological capabilities[76]. - The company is increasing R&D investment to maintain a competitive edge in the quartz crystal component sector, acknowledging the risks associated with new product and technology development[77]. Market and Sales - The company maintained a strong customer base, including well-known brands like Sony, Canon, and Samsung, ensuring stable sales revenue[30]. - Domestic sales accounted for 65.61% of total revenue, with a year-on-year increase of 13.95%, while foreign sales increased by 52.20% to ¥90,243,885.14[40]. - The sales volume of products increased by 19.64% to 1,130,25 million units in 2020, compared to 944,71 million units in 2019[43]. - The gross profit margin for the industrial sector was 14.80%, with a year-on-year increase of 1.49%[42]. - The company aims to enhance its market share in the quartz crystal component sector by deepening its traditional advantages and expanding its customer base[74]. - The automotive electronics sector is driving new market growth, with increasing penetration of electronic components in electric and smart vehicles[73]. Financial Management - The company has not made any adjustments or restatements to previous years' accounting data[16]. - The company’s financial statements have been audited by Lixin Accounting Firm, ensuring the accuracy of its financial reporting[16]. - The company executed new revenue and leasing standards for the first time in 2020, leading to significant adjustments in the financial statements[58]. - The company has implemented changes in accounting policies in accordance with the Ministry of Finance's new regulations effective from January 1, 2020[92]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[89]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[91]. - The company has not engaged in any significant equity investments during the reporting period[63]. - The company has not sold any major assets during the reporting period[69]. Corporate Governance - The company has a diverse board of directors with expertise in finance, law, and management, including independent directors with significant industry experience[152][153]. - The company maintains a stable governance structure with no significant changes in the actual control layer[137]. - The management team is composed of professionals with advanced degrees and certifications, ensuring a high level of expertise in financial and operational matters[153]. - The company emphasizes the importance of compliance and risk management, as evidenced by the qualifications of its independent directors[152]. - The independent directors actively monitor the company's operations and financial status, providing suggestions that are adopted by the board[176]. - The audit committee has thoroughly reviewed financial reports and disclosures, ensuring accuracy and compliance[177]. - The company has established a performance evaluation mechanism for senior management, which is linked to the completion of annual operational goals[181]. - The company has established clear communication channels for investors, ensuring timely and accurate information disclosure[169]. Social Responsibility - The company maintains a strong commitment to social responsibility, focusing on building trust and cooperation with suppliers and customers while pursuing economic benefits[118]. - The company strictly adheres to the labor laws and regulations, ensuring the protection of employee rights and benefits, including contributions to various insurances and funds[118]. - The company has not initiated any poverty alleviation programs during the reporting period and has no subsequent plans[119]. - The company actively engages with stakeholders to balance interests and promote sustainable development[168]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[156]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[156]. - A strategic acquisition of a local tech firm was announced, which is expected to contribute an additional 200 million RMB in annual revenue[156]. - The company is investing 100 million RMB in research and development to drive innovation in its product line[156]. - The company aims to increase its workforce by 15% to support growth initiatives and enhance operational efficiency[156].