KCT(SZ:002625)2021-04-27 16:00Business Transition and Focus - The company's audited revenue from metamaterials business exceeded 60% of total revenue in 2020, indicating a significant shift from traditional automotive parts manufacturing to the development and production of advanced metamaterial equipment[9]. - The company has transitioned its main business focus to the research and production of advanced metamaterial equipment, moving away from traditional automotive components[9]. - The automotive parts business faced challenges due to a 2% decline in China's automotive production and sales in 2020[20]. - The company is focusing on expanding its metamaterials product offerings, which are expected to meet the growing demand for advanced equipment in various sectors[19]. - The company has established a research center for metamaterials and advanced equipment, indicating a commitment to innovation and technology development[9]. Financial Performance - The company's operating revenue for 2020 was ¥636,509,963.75, representing a 32.25% increase compared to ¥481,282,342.41 in 2019[11]. - The net profit attributable to shareholders for 2020 was ¥163,169,444.70, a 41.90% increase from ¥114,985,210.75 in 2019[11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥130,873,167.27, up 50.82% from ¥86,772,587.06 in 2019[11]. - The company's total assets at the end of 2020 were ¥8,647,377,935.63, a 7.41% increase from ¥8,050,930,876.42 at the end of 2019[12]. - The net assets attributable to shareholders at the end of 2020 were ¥7,872,059,731.98, reflecting a 2.12% increase from ¥7,708,945,440.10 at the end of 2019[12]. Cash Flow and Investment - The company reported a significant decline in net cash flow from operating activities, which was ¥11,677,933.13, down 87.68% from ¥94,764,413.02 in 2019[11]. - The net cash flow from investment activities increased by 107.82% to ¥2,206,539,443.29, primarily due to the recovery of restricted deposits[49]. - Operating cash inflow totaled ¥487,751,713.63, a 1.50% increase year-on-year, while cash outflow increased by 23.40% to ¥476,073,780.50[48]. - The company’s net increase in cash and cash equivalents was ¥2,548,671,087.70, reflecting a 160.09% increase year-on-year[49]. Research and Development - The company invested 174.43 million yuan in customized product development and underlying technology research, a 37.12% increase from 2019[29]. - Research and development expenses reached ¥70,958,361.23, an increase of 14.06% compared to the previous year[45]. - The company's R&D investment was ¥89,778,777.72, which accounted for 14.10% of operating revenue, a decrease from 19.76% in the previous year[47]. Shareholder and Governance - The company has not proposed any cash dividend distribution for the past three years, including 2020, 2019, and 2018[80]. - The company has made commitments to avoid competition with its subsidiaries and ensure fair business practices post-restructuring[82]. - The company guarantees the independence of its financial operations, including maintaining separate bank accounts and independent financial decision-making[85]. - The company reported a total of 1.215 billion yuan in guarantees provided to related enterprises without following the necessary approval procedures, which violated commitments regarding asset independence[85]. Market Outlook and Strategy - The company anticipates a rapid increase in business volume due to rising demands for new generation advanced equipment in China's "14th Five-Year Plan"[72]. - The company expects to achieve a revenue of 1 billion yuan and a net profit of 310 million yuan in 2021[73]. - The company plans to focus on the development of metamaterial advanced equipment, aiming to expand its market share and enhance its core business[73]. - The company aims to establish industry standards for metamaterial advanced equipment based on actual application needs[73]. Operational Efficiency - The company has implemented measures to strengthen information disclosure management, ensuring timely feedback of significant information to the board[175]. - The company has established a transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, enhancing governance standards[163]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring complete operational autonomy[166]. Employee and Management - The total number of employees in the company is 1,335, with 834 in production, 276 in technology, and 45 in sales[155]. - The total remuneration for the general manager, Zhao Zhiya, is 2.353 million yuan, while the chairman, Liu Ruopeng, received no remuneration[153]. - The company has implemented a performance-oriented compensation mechanism to align employee interests with corporate performance[157]. Compliance and Internal Control - The company has established a special team to rectify internal control issues, enhancing compliance with securities laws and regulations[175]. - The internal control audit report issued by DaHua Accounting Firm provided a standard unqualified opinion, confirming effective internal controls as of December 31, 2020[177]. - The company has recognized the importance of improving corporate governance and internal control systems to prevent future issues[175].