ZOWEE(SZ:002369)2021-04-29 16:00Financial Performance - The company reported a total revenue of RMB 1.5 billion for the year 2020, representing a year-on-year increase of 10%[13]. - The net profit attributable to shareholders was RMB 200 million, which is a 15% increase compared to the previous year[13]. - The company's operating revenue for 2020 was CNY 3,040,626,182.23, representing a decrease of 9.05% compared to CNY 3,344,731,714.02 in 2019[19]. - The net profit attributable to shareholders was CNY -602,861,383.30 in 2020, a significant decline of 1,376.86% from CNY 50,245,772.33 in 2019[19]. - The company reported a significant adjustment in accounting data due to errors in revenue cost accounting and government subsidy financial processing, leading to restated financial figures[19]. - The company reported a net profit of -119.39 million in 2020, reflecting a decrease of 0.20% compared to the previous year[97]. - The company reported a total revenue of 271,146.91 million RMB for the year 2020[142]. - The company reported a total of RMB 63,335,326.52 in trading financial assets, reflecting an increase of 1,142,052.02 during the reporting period[79]. - The company reported a total of CNY 609.89 million in litigation-related liabilities, with no expected provisions for these liabilities[138]. Investment and R&D - The company plans to invest 20% of its revenue into research and development for new technologies and products in the upcoming year[13]. - The company has established R&D centers in Shenzhen, Xi'an, and Wuhan, focusing on automation and IoT product development[41]. - Research and development expenses amounted to ¥160,340,481.57, representing 5.27% of total revenue, an increase of 5.77% from the previous year, primarily due to new investments in TWS earphones and the Wuhan R&D base[52]. - The company has made technological breakthroughs in 5G, positioning itself to benefit from the ongoing digital economy transformation[31]. - The company has a high-quality R&D team with extensive experience, ensuring alignment with market trends and customer needs[41]. - The company is developing a "smart wireless Bluetooth headset" project, with a projected market size of 302.3 million units by 2023, driven by TWS earphones[67]. - The company plans to enhance its core competitiveness by accelerating the construction of related R&D laboratories under the innovation support platform project[90]. Market Expansion and Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share in that region by 2022[13]. - Future guidance indicates an expected revenue growth of 15% for 2021, driven by new product launches and market expansion efforts[13]. - The company is actively pursuing market expansion in smart hardware, particularly in smart wearables and smart home devices, leveraging the growth of 5G technology[34]. - The company aims to increase its ODM business proportion and strengthen relationships with major clients by enhancing core technology research and production capabilities[107]. - The company plans to focus on "large manufacturing, large clients, and large innovation" as its core business strategy to enhance automation and smart manufacturing capabilities[110]. Operational Challenges - The company faces potential risks related to supply chain disruptions and market competition, which are discussed in detail in the report[5]. - The company experienced a negative net profit for three consecutive years, indicating ongoing financial challenges[20]. - The company is exposed to market risks due to high competition in the electronic manufacturing services industry, necessitating continuous technological advancements and market responsiveness[113]. - The company is monitoring raw material price fluctuations, which could impact production costs and profit margins if prices rise significantly[114]. Corporate Governance and Compliance - The company has made significant efforts to improve its governance and compliance following the regulatory actions taken against it[144]. - The company received an administrative regulatory measure decision from the Shenzhen Securities Regulatory Commission on September 9, 2020, requiring corrective actions[199]. - The controlling shareholder, Xia Chuanwu, had 97,317,172 shares frozen due to allegations of market manipulation, and was arrested on October 28, 2020[145]. - The company has fulfilled all commitments made by actual controllers and shareholders during the reporting period[123]. Shareholder and Dividend Policy - No cash dividends will be distributed to shareholders for the year 2020, as the company focuses on reinvestment[6]. - The cash dividend distribution plan for the year is not applicable, with no cash dividends proposed for 2020[122]. - The company has not distributed dividends in the past three years due to insufficient distributable profits, with 2020 showing a loss of 60.29 million yuan[120]. Legal and Regulatory Issues - The company is undergoing bankruptcy proceedings for its subsidiary, Shenzhen Yifengsheng Technology Co., Ltd., which was officially accepted by the court on November 14, 2020[137]. - The company has faced multiple lawsuits, including a claim for CNY 540,871.2 in rent and interest, which has been upheld by the court[140]. - The company has been involved in arbitration with Zhongxing Kangxun, requiring payment of CNY 1,706,752.24 for overdue payments and associated legal fees[140]. Employee and Social Responsibility - The company has implemented effective training systems to enhance employee skills and management capabilities, contributing to a strong professional talent pool[187]. - The company is committed to fulfilling its social responsibilities while achieving its business goals and enhancing its corporate culture[193]. - The company emphasized the importance of safety production management and conducted regular safety training and inspections[191].