Rapoo(SZ:002577)2021-02-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 450,098,659.05, a slight increase of 0.09% compared to CNY 449,680,144.28 in 2019[16]. - The net profit attributable to shareholders in 2020 was CNY 46,512,829.94, representing a significant increase of 126.75% from a loss of CNY 173,866,140.00 in 2019[16]. - The net profit after deducting non-recurring gains and losses was CNY 29,039,219.48, up 131.25% from a loss of CNY 92,924,018.57 in the previous year[16]. - The basic earnings per share for 2020 was CNY 0.16, compared to a loss of CNY 0.61 in 2019, marking a 126.75% improvement[16]. - The total assets at the end of 2020 were CNY 1,175,089,528.65, an increase of 6.21% from CNY 1,106,403,316.10 at the end of 2019[16]. - The net assets attributable to shareholders increased by 5.48% to CNY 1,057,750,483.17 at the end of 2020, compared to CNY 1,002,842,120.02 at the end of 2019[16]. - The company reported a negative net cash flow from operating activities of CNY -4,757,307.15 in 2020, a decline of 109.61% from CNY 49,493,316.91 in 2019[16]. - The company reported a significant increase in financial losses due to foreign exchange fluctuations, with financial expenses rising by 128.17%[58]. - The company reported a total undistributed profit of -257.74 million yuan as of December 31, 2019, and -216.22 million yuan as of December 31, 2020, indicating it did not meet the conditions for cash dividends in these years[87][89]. - The company has not distributed any cash dividends for the years 2018, 2019, and 2020, with a cash dividend ratio of 0% for each year[92]. Revenue and Sales - In 2020, the company achieved a revenue of 450.10 million CNY, a year-on-year increase of 0.09%[41]. - Revenue from computer peripherals accounted for 87.86% of total revenue, increasing by 18.55% year-on-year from ¥333,596,412.82[47]. - Sales revenue from computer peripheral products increased by 18.55% year-on-year, contributing to an overall improvement in gross margin[41]. - Overseas sales increased by 25.65% to ¥113,054,895.39, while domestic sales decreased by 6.30% to ¥337,043,763.66[47]. - The company reported a significant increase in sales volume of computer peripherals by 34.98% to 11,612,168 units, and production volume increased by 56.98% to 12,711,082 units[50]. - The rental business saw a remarkable growth of 1,437.51% in revenue, reaching ¥30,919,427.76[47]. Market and Product Development - The company’s main business focuses on computer peripheral products, with a strong emphasis on gaming hardware, which has seen a growing market presence due to the expanding esports industry[25]. - The global gaming market revenue is projected to reach $159.3 billion in 2020, with Asia-Pacific contributing $78.4 billion, indicating a robust growth opportunity for the company’s gaming peripherals[28]. - The company launched a new sub-brand "Ralemo" targeting female consumers, introducing products like cushion mice and mousse keyboards, aiming to diversify its user base[26]. - The company has expanded its product offerings in the consumer electronics sector, including TWS earphones, smart glasses, wireless chargers, docking stations, and cameras[41]. - The company’s wireless product line has expanded to include various devices such as TWS headphones and smart glasses, aligning with the growing trend of wireless technology[26]. - The company aims to enhance its product layout and technology innovation capabilities, focusing on high-end gaming peripherals and mobile accessories[77]. Research and Development - The company’s research and development strategy combines in-house innovation with external collaboration, focusing on market demand and competitive technology advancements[29]. - The company actively recruited talent to enhance its technical and marketing capabilities, aiming to build a robust talent pipeline[44]. - Research and development expenses decreased by 17.23% year-on-year to ¥15,942,598.69, representing 3.54% of operating revenue[59]. - The number of R&D personnel increased by 5.71% to 37, making up 22.16% of the total workforce[59]. - The company is committed to increasing R&D investment and expanding its R&D team to enhance product development capabilities[78]. Risk Management and Future Outlook - The company faced uncertainties regarding its ability to continue as a going concern, as indicated in the audit report[16]. - The company has outlined potential risk factors and countermeasures in its future development outlook[4]. - The company acknowledges the risks associated with new product development, including high initial costs and market uncertainty[80]. - The company faces market competition risks as international firms intensify their focus on the Chinese market[79]. - The company has identified the need for risk assessment and management in its merger and acquisition processes to ensure successful integration and operational efficiency[82]. Corporate Governance and Compliance - The company has implemented a comprehensive internal governance structure to protect shareholder rights, ensuring transparency and compliance with regulations[126]. - The company has maintained a strong commitment to employee welfare, providing benefits and adhering to labor laws[126]. - The company has not faced any penalties or corrective actions during the reporting period, indicating compliance with regulatory standards[108]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[106]. - The company has established a fair and transparent performance evaluation and incentive mechanism for its directors and senior management[166]. Shareholder Information - The total number of shares is 282,880,000, with 99.99% being unrestricted shares[134]. - The largest shareholder, Hotkey Electronics (Hong Kong) Co., Ltd., holds 170,843,678 shares, accounting for 60.39% of total shares[137]. - The company has not reported any significant changes in shareholder structure or major events during the reporting period[130]. - There were no share repurchase activities or changes in shareholding for the top 10 shareholders during the reporting period[137]. Audit and Financial Reporting - The audit report issued by Rongcheng Accounting Firm provided a standard unqualified opinion on the financial statements for the year ended December 31, 2020[187]. - The audit identified revenue recognition as a key audit matter due to the inherent risk of management potentially manipulating revenue figures to meet targets[188]. - The company has implemented internal controls to ensure the financial statements are free from material misstatement due to fraud or error[192]. - The company’s internal control self-assessment report was disclosed on February 9, 2021, confirming the absence of major deficiencies[179].