CASTECH(SZ:002222)2021-04-23 16:00Financial Performance - Revenue for 2020 reached 546.46 million yuan, a year-on-year increase of 9.04%[19] - Net profit attributable to shareholders was 143.68 million yuan, up 6.81% compared to 2019[19] - Operating cash flow surged by 45.93% to 154.92 million yuan in 2020[19] - Basic earnings per share increased by 6.80% to 0.3361 yuan per share[21] - Diluted earnings per share also increased by 6.80% to 0.3361 yuan per share[21] - Weighted average return on equity decreased by 0.48 percentage points to 14.09%[21] - Total assets grew by 10.35% to 1,193,304,751.01 yuan[21] - Net assets attributable to shareholders increased by 10.37% to 1,069,699,799.68 yuan[21] - Quarterly revenue peaked in Q2 at 151,545,698.00 yuan[24] - Net profit attributable to shareholders was highest in Q2 at 46,581,844.82 yuan[24] - Revenue for the reporting period reached 546.46 million yuan, a year-on-year increase of 9.04%[57] - Net profit attributable to shareholders of the listed company was 143.68 million yuan, up 6.81% year-on-year[57] - Operating cash flow increased by 45.93% year-on-year to 154.92 million yuan[57] - Total operating revenue increased by 9.04% year-over-year to RMB 546,455,792.73, with the optoelectronics industry accounting for 100% of the revenue[59] - Gross margin improved by 1.33 percentage points to 54.90%, driven by a 9.04% increase in operating revenue and a 5.93% rise in operating costs[59] - Sales volume increased by 4.44% to 4,175,050 units, while production volume rose by 19.60% to 2,569,817 units[62] - Inventory decreased significantly by 52.02% to 1,480,302 units, primarily due to the sale of low-cost, high-volume bonded products from previous periods[62] - Revenue from laser devices increased by 43.79% to RMB 107,659,145.41, with a gross margin of 28.20%[60] - Revenue from precision optical components grew by 7.33% to RMB 160,638,332.34, with a gross margin of 45.17%[60] - Sales expenses decreased by 9.99% year-over-year to 9,761,325.52 yuan[71] - Management expenses increased by 11.09% year-over-year to 73,402,811.40 yuan[71] - Financial expenses surged by 276.38% year-over-year to 2,087,921.72 yuan due to RMB appreciation[71] - R&D expenses increased by 3.69% year-over-year to 56,097,150.90 yuan[71] - Net cash flow from operating activities increased by 45.93% year-over-year to 154,922,817.49 yuan[76] - Net cash flow from investing activities decreased by 42.22% year-over-year to -51,407,135.40 yuan[76] - Net increase in cash and cash equivalents surged by 108.88% year-over-year to 57,221,795.83 yuan[76] - Total investment in 2020 increased by 180.98% year-over-year to 25,288,178.16 yuan[85] Dividend Distribution - The company plans to distribute a cash dividend of 1 yuan per 10 shares, totaling 42.75 million yuan[7] - The company's total share capital is 427.5 million shares[7] - The company's 2019 profit distribution plan is to distribute a cash dividend of 1.00 yuan per 10 shares (tax included) based on the total share capital of 427,500,000 shares at the end of 2019, totaling 42,750,000.00 yuan (tax included)[122] - The 2020 profit distribution proposal (subject to shareholder approval) is to distribute a cash dividend of 1.00 yuan per 10 shares (tax included) based on the existing total share capital of 427,500,000 shares, totaling 42,750,000.00 yuan (tax included)[122] - In 2020, the cash dividend distribution was 42,750,000.00 yuan (tax included), accounting for 29.75% of the net profit attributable to the company's ordinary shareholders[122] - In 2019, the cash dividend distribution was 42,750,000.00 yuan (tax included), accounting for 31.78% of the net profit attributable to the company's ordinary shareholders[122] - In 2018, the cash dividend distribution was 42,750,000.00 yuan (tax included), accounting for 28.42% of the net profit attributable to the company's ordinary shareholders[122] - The company's 2020 profit distribution plan includes a cash dividend of 1.00 yuan per 10 shares (tax included) based on the existing total share capital of 427,500,000 shares, totaling 42,750,000.00 yuan (tax included)[126] - The company's cash dividend distribution in 2020 accounted for 29.75% of the net profit attributable to the company's ordinary shareholders[126] - The company's cash dividend distribution in 2019 accounted for 31.78% of the net profit attributable to the company's ordinary shareholders[126] - The company's cash dividend distribution in 2018 accounted for 28.42% of the net profit attributable to the company's ordinary shareholders[126] - The company's 2020 profit distribution plan is in line with the company's development stage and significant capital expenditure arrangements, with cash dividends accounting for at least 40% of the total profit distribution[126] Business Operations - The company's main subsidiaries include Huajing Investment, Haitai Optoelectronics, and Ruichuang Optoelectronics[13] - The company's main business focuses on laser and optical communication applications[32] - Products are used in solid-state lasers, fiber lasers, and optical communication systems[35] - Domestic business grew by 30.75% year-on-year, accounting for 55.10% of total revenue, up 9.15 percentage points[55] - Overseas business declined by 9.42% year-on-year, accounting for 44.90% of total revenue, down 9.15 percentage points[55] - Revenue from crystal components, precision optical components, and laser devices increased by 7.97%, 7.33%, and 43.79% respectively[55] - Revenue from nonlinear optical crystal components grew by 14.12% to RMB 202,582,096.55, representing 37.07% of total revenue[59] - Domestic sales surged by 30.75% to RMB 301,098,528.40, accounting for 55.10% of total revenue, while international sales declined by 9.42% to RMB 245,357,264.33[59] - The top five customers contributed RMB 111,272,814.03, accounting for 20.36% of total annual sales, with no related party transactions[67] - The top five suppliers accounted for 31.90% of total annual procurement, with no related party transactions[68] - Total procurement from the top five suppliers amounted to 42,173,052.03 yuan, accounting for 31.90% of total procurement[70] - The laser industry has a mature supply chain, with upstream crystal materials and optoelectronic components, midstream laser manufacturing, and downstream laser equipment and applications[101] - The company's main business is in the upstream of the laser industry, producing core components for laser manufacturing, including crystal elements, precision optical components, and laser devices[104] - The laser industry is moving towards higher power, higher beam quality, higher reliability, and lower cost, driving demand for advanced laser materials and electronic components[104] - The company has accumulated extensive experience in crystal material growth, optical processing, device synthesis, marketing, technical services, and business management, forming a complete product supply capability in crystals, optics, and devices[105] - The company aims to become the best supplier of components in the global laser and optical communication fields, focusing on high-cost-performance products and comprehensive solutions[106] - In 2021, the company plans to improve the quality and yield of crystal products, accelerate the development of new magneto-optical and laser crystal materials, and promote automated processing and testing processes[109] - The company will focus on developing non-spherical, large-diameter flat and grating products in the precision optics business, and actively explore the industrial AR and laser radar markets[109] - The company will continue to improve the development of magneto-optical, acousto-optic, and electro-optic series products in the laser device business, and actively develop new customers[109] - The company will strengthen the construction of ISO9001, ISO14001, ISO45001, and IATF16949 management systems to ensure annual audits and improve overall enterprise management[109] - The company faces risks of declining product prices due to intensified market competition, especially in the precision optics and laser device businesses[110] - The company will increase R&D investment, focus on high-value-added products, improve production processes, and strengthen cost control to enhance competitiveness[110] - The company's export revenue accounts for about 45% of total revenue, mainly priced in USD, making it susceptible to exchange rate fluctuations[115] - The company will strengthen the collection of foreign sales receivables and increase domestic market development to mitigate the impact of exchange rate fluctuations[115] Subsidiaries and Investments - Wuhan Hari Laser Co., Ltd. invested RMB 17,788,178.16, holding a 4.21% stake, with the investment completed and no litigation involved[86] - Wuhan Hari Laser's business scope includes R&D, production, and sales of solid-state semiconductor pump lasers and laser precision processing equipment, excluding medical devices[88] - Wuhan Hari Laser's shareholders include Wuhan Huagong Laser Engineering Co., Ltd., Xu Jinlin, and other entities, with the company's initial 5% stake diluted to 4.21% due to a management team capital increase[88] - Qingdao Haitai Optoelectronics Technology Co., Ltd., a subsidiary, reported total assets of RMB 118,619,588.60 and net profit of RMB 22,609,506.61[95] - Fujian Ruichuang Optoelectronics Technology Co., Ltd., a subsidiary, reported a net loss of RMB 2,222,631.84[95] - Fujian Huajing Investment Co., Ltd., a wholly-owned subsidiary, reported total assets of RMB 19,822,014.57 and a net loss of RMB 177,985.43[95] Corporate Governance and Shareholders - The company's registered address is at Fuzhou Software Park, Fuzhou, China[13] - The company's website is www.castech.com, and its email is securities@castech.com[15] - The company's auditor is Da Hua Certified Public Accountants[18] - The company's stock code is 002222, listed on the Shenzhen Stock Exchange[13] - No changes in the scope of consolidated financial statements compared to the previous year[136] - The company has appointed Da Hua Certified Public Accountants (Special General Partnership) as its domestic accounting firm, with a remuneration of RMB 700,000 and a continuous service period of 2 years[137] - No major litigation or arbitration matters occurred during the reporting period[138] - No penalties or rectifications were imposed on the company during the reporting period[139] - The company did not implement any equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[142] - No significant related-party transactions related to daily operations, asset or equity acquisitions, or joint investments occurred during the reporting period[143][144][145] - The company's total share capital remained unchanged at 427,500,000 shares, with 98.93% being unrestricted shares[169] - The company donated a total of RMB 330,000 for poverty alleviation efforts in 2020, including contributions to education and social welfare[160][161] - The company is not listed as a key pollutant discharge unit by environmental protection authorities[164] - No significant events occurred in the company's subsidiaries during the reporting period[165] - The total number of ordinary shareholders at the end of the reporting period was 50,379, with 51,427 shareholders at the end of the previous month before the annual report disclosure[173] - The largest shareholder, the Fujian Institute of Research on the Structure of Matter, Chinese Academy of Sciences, holds 25.10% of the shares, totaling 107,295,474 shares[173] - Central Huijin Asset Management Co., Ltd. holds 1.31% of the shares, totaling 5,608,500 shares[173] - Li Xiaofei, an individual shareholder, holds 0.93% of the shares, totaling 3,956,793 shares[173] - The Basic Pension Insurance Fund 801 Portfolio holds 0.61% of the shares, totaling 2,599,945 shares[173] - Chen Yaping, an individual shareholder, holds 0.60% of the shares, totaling 2,545,900 shares[173] - Chen Hui, an individual shareholder, holds 0.56% of the shares, totaling 2,374,198 shares, with a decrease of 791,399 shares during the reporting period[173] - Hu Xuekun, an individual shareholder, holds 0.53% of the shares, totaling 2,248,800 shares[173] - Huangfu Ling, an individual shareholder, holds 0.51% of the shares, totaling 2,195,650 shares[173] - Xie Fali, an individual shareholder, holds 0.49% of the shares, totaling 2,073,919 shares, with a decrease of 691,307 shares during the reporting period[173] - Chairman Chen Hui reduced his shareholding by 791,399 shares, representing a 25% decrease from the initial holding of 3,165,597 shares[186] - Vice Chairman Xie Fali reduced his shareholding by 691,307 shares, representing a 25% decrease from the initial holding of 2,765,226 shares[186] - The total shareholding of directors, supervisors, and senior management decreased by 1,482,706 shares, representing a 24.3% decrease from the initial total of 6,100,002 shares[186] - Lan Guozheng resigned as a director on September 3, 2020, due to work-related reasons[188] - Zhang Yunfeng resigned as a director on January 19, 2021, due to work-related reasons[188] - Liao Hongping was appointed as Vice President on April 16, 2020[188] - Chen Hui, the Chairman, holds a dual bachelor's degree in Laser Physics and Law from Tsinghua University and has extensive experience in the technology and management sectors[189][191] - Xie Fali, the Vice Chairman, holds a master's degree and has a strong background in sales and development within the company[191] - Chen Qiuhua, the General Manager, has been with the company since 1993 and has held various positions including sales and management roles[191] - Hong Maochun, a director, is a member of the Chinese Academy of Sciences and has a distinguished career in research and development[192] - Chen Qiuhua serves as the General Manager of the company[197] - Cai Dequan, born in February 1967, holds a university degree and has been the Vice President and Board Secretary since May 2009[197] - Guo Zonghui, born in October 1971, is the CFO and has been with the company since July 2003[197] - Zhang Xing, born in December 1975, has been the Vice President since May 2018 and previously served as the Sales Director[197] - Liao Hongping, born in September 1973, has been the Vice President since April 2020 and previously served as the Production Director and Optical Division Director[198] Assets and Liabilities - Construction in progress decreased by 59.24% compared to the beginning of the year, mainly due to transfer to fixed assets[42] - Monetary funds increased by 30.47% compared to the beginning of the year, driven by increased revenue and good payment collection[42] - Other non-current financial assets increased by 75.56% compared to the beginning of the year, mainly due to the acquisition of Wuhan Huari equity[42] - Accounts receivable increased by 42.88% compared to the beginning of the year, mainly due to increased use of electronic commercial bills by customers[42] Government Subsidies and Non-Recurring Gains - Government subsidies contributed 14,683,889.28 yuan to non-recurring gains[29]