Megmeet(SZ:002851)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was ¥3,376,442,661.13, a decrease of 5.15% compared to ¥3,559,587,190.35 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥402,967,482.32, an increase of 11.60% from ¥361,091,180.98 in 2019[24]. - The net cash flow from operating activities decreased by 24.68% to ¥464,096,475.01 in 2020 from ¥616,173,769.18 in 2019[24]. - Total assets at the end of 2020 were ¥5,206,361,297.77, representing a 31.93% increase from ¥3,946,304,205.39 at the end of 2019[25]. - The net assets attributable to shareholders increased by 59.43% to ¥3,069,401,048.21 at the end of 2020 from ¥1,925,218,549.51 at the end of 2019[25]. - The basic earnings per share for 2020 was ¥0.8438, an increase of 8.86% from ¥0.7751 in 2019[24]. - The company reported a total of ¥97,976,307.64 in non-recurring gains and losses for 2020, compared to ¥46,436,311.92 in 2019[31]. - The company experienced a decrease in the weighted average return on equity to 17.89% in 2020 from 20.02% in 2019[24]. - The fourth quarter revenue was ¥920,242,842.16, showing a consistent growth trend throughout the year[28]. - The company's overall sales revenue experienced a slight decline, with a significant drop in sales of electric control products for new energy vehicles, while other business segments showed steady growth, resulting in a 24.72% year-on-year increase in non-new energy vehicle business[80]. Dividend Distribution - The company plans to distribute a cash dividend of 1.7 RMB per 10 shares (including tax) based on a total share capital of 501,907,534 shares as of December 2020[5]. - The proposed cash dividend for the 2020 fiscal year is 1.70 CNY per 10 shares, amounting to 85,324,280.78 CNY (including tax), pending shareholder approval[159]. - The company distributed a cash dividend of 1.70 CNY per 10 shares, totaling 85,324,280.78 CNY for the year 2020, which represents 100% of the distributable profit[162]. - The cash dividend amount for 2019 was 75,113,232.96 CNY, which accounted for 20.80% of the net profit attributable to ordinary shareholders[160]. - The cash dividend amount for 2018 was 40,686,334.52 CNY, representing 20.13% of the net profit attributable to ordinary shareholders[160]. - The company is in a growth phase and has significant capital expenditure plans, ensuring that cash dividends meet the minimum requirement of 20% of the profit distribution[162]. Risk Management - The company acknowledges potential risks from evolving pandemic conditions and macroeconomic fluctuations affecting global market demand, as well as rising raw material costs and management risks due to business structure changes[5]. - The company emphasizes the importance of monitoring risks associated with changes in total share capital that may affect the dividend distribution amount[5]. - The company has a comprehensive risk management strategy in place to address potential operational challenges[5]. - The company is continuously optimizing processes and organizational structures to address management risks associated with business expansion[151]. - The company has maintained a safety stock of key components and is steadily advancing necessary material substitution to ensure supply chain stability[151]. - Rising raw material prices and extended supply cycles for semiconductors are expected to affect the company's cost structure and operational performance[150]. Research and Development - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[5]. - The company maintained a research and development investment of approximately 10% of sales revenue, with R&D expenses reaching CNY 36,792.34 million, a year-on-year increase of 9.67%[68]. - The company holds over 590 valid patents, reflecting its strong commitment to innovation and technology development[68]. - Research and development expenses for 2020 amounted to RMB 367,923,416.97, a year-on-year increase of 9.67%, representing 10.90% of total sales revenue[107]. - The company has committed to a long-term strategy of sustainable practices, aiming for a 50% reduction in carbon emissions by 2025[169]. Market Expansion - The company is focused on power electronics and related control technologies, aiming to become a leading provider in electrical control and energy-saving solutions globally[34]. - The company has established a global R&D layout with centers in multiple locations, including Shenzhen, Germany, and Sweden, to enhance collaborative development[37]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[169]. - The company is actively exploring opportunities in the new energy vehicle market, providing power electronics modules and motor drivers to major clients like BAIC New Energy[146]. - The company is expanding its global delivery capabilities by establishing production capacity in India and Thailand, although progress has been delayed due to the pandemic[87]. Operational Structure - The company operates multiple wholly-owned subsidiaries across various regions, enhancing its operational capabilities and market reach[13]. - The company operates under a "division + resource platform" matrix management model, which has matured over years of continuous development and adjustment[36]. - The management team is composed of highly educated professionals, with many holding advanced degrees and experience in Fortune 500 companies, contributing to the company's competitive edge[73]. - The company continues to strengthen its operational platform, integrating resources across various departments to enhance efficiency and support new business development[70]. - The company has established a robust customer base, focusing on leading clients in both consumer and industrial sectors, which supports steady business growth[75]. Product Development - Major product categories include smart home appliance control products, industrial power supplies, industrial automation, and products for new energy vehicles and rail transportation[35]. - The company has established three core technology platforms: power conversion hardware, digital power control, and automation control and communication software, enhancing product development efficiency[37]. - The sales model relies heavily on direct sales for smart home appliance control products and industrial power supplies, with a focus on deep cooperation with clients during product development[41]. - The company has expanded its product offerings across various industries, including consumer electronics, industrial automation, and new energy vehicles, enhancing its market presence[66]. - The company introduced two new product lines in 2020, contributing to a 12% increase in overall sales revenue[169]. Financial Investments - The company reported a significant increase in trading financial assets from CNY 480,667,632.54 to CNY 1,018,515,641.06, with a proportion increase of 7.38% from 12.18% to 19.56%[114]. - The total investment amount for the reporting period was CNY 1,271,187,564.64, a 63.12% increase compared to CNY 779,296,093.28 in the previous year[119]. - The company has CNY 449,997,466.73 in restricted assets, primarily due to bank credit guarantees[118]. - The company utilized CNY 8,789.45 million of the raised funds in 2020, with a cumulative usage of CNY 49,894.15 million since the initial public offering[122]. - The company has a total of RMB 217,800,000.00 in unredeemed financial products from the 2019 convertible bond issuance[134]. Corporate Governance - The company has adhered to commitments regarding share lock-up periods and has fulfilled related obligations during the reporting period[163]. - The controlling shareholder, Tong Yongsheng, pledged not to reduce or transfer shares held in the company from April 27, 2020, to December 31, 2020[172]. - The company has established a linkage between stock incentive conditions and the execution of performance compensation measures[173]. - The company has committed to not providing financial assistance for the acquisition of restricted stock under the incentive plan[171]. - The company has no overdue commitments that have not been fulfilled during the reporting period[172].