Token Sciences(SZ:300088)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was ¥6,023,777,582.46, a decrease of 37.35% compared to ¥9,614,875,119.47 in 2018[28]. - Net profit attributable to shareholders for 2019 was ¥845,436,642.81, an increase of 18.74% from ¥712,021,433.45 in 2018[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥727,114,273.59, up 76.85% from ¥411,146,120.50 in 2018[28]. - The net cash flow from operating activities for 2019 was ¥1,482,730,757.72, a significant increase of 96.79% compared to ¥753,469,401.23 in 2018[28]. - Basic earnings per share for 2019 was ¥0.37, representing a growth of 19.35% from ¥0.31 in 2018[28]. - Total assets at the end of 2019 were ¥9,018,621,203.73, a decrease of 3.28% from ¥9,324,564,985.81 at the end of 2018[28]. - The net assets attributable to shareholders at the end of 2019 were ¥6,304,237,116.90, an increase of 29.81% from ¥4,856,675,033.94 at the end of 2018[28]. - The fourth quarter net profit attributable to shareholders after deducting non-recurring gains and losses was ¥31,226,181.17, significantly impacted by non-recurring items[31]. - Non-recurring gains for 2019 totaled ¥118,322,369.22, primarily due to compensation from Shenzhen BAK Battery Co., Ltd. for unmet performance commitments[34]. - The company reported a weighted average return on equity of 16.09% for 2019, up from 15.54% in 2018[28]. Risk Management - The company emphasizes the importance of managing accounts receivable, which has historically been high, and is implementing measures to reduce risks associated with it[6]. - The company is actively managing foreign exchange risks associated with its import and export business, primarily settled in USD, by matching foreign currency income and expenses[10]. - The company is focused on risk awareness regarding forward-looking statements and the potential differences between plans, forecasts, and commitments[5]. - The company is facing risks from potential declines in customer demand due to geopolitical tensions and the economic impact of the COVID-19 pandemic, prompting a focus on top-tier domestic and international clients[9]. - The company is managing goodwill impairment risks from acquisitions by implementing a group management model to enhance operational efficiency and monitor the performance of acquired subsidiaries[197]. - The company maintains a high focus on accounts receivable safety, implementing measures to reduce risks, including enhancing organizational structure and increasing collection efforts[195]. - The company faces risks from rapid technological updates in the display industry, necessitating close technical communication with downstream clients to maintain product competitiveness[195]. - The company is addressing potential declines in customer demand due to global de-globalization trends and the economic slowdown from COVID-19 by focusing on top domestic and international clients and accelerating new product introductions[196]. Technological Innovation - The company is focusing on technological innovation to enhance product competitiveness and meet market demands, particularly in the touch display industry[9]. - The company acknowledges the rapid pace of technological upgrades in the optoelectronic display industry and is adapting its manufacturing processes accordingly[9]. - Continuous investment in R&D for flexible OLED technology and related components, focusing on high-tech barriers and emerging ultra-thin glass business[54]. - The company holds 20 invention patents and 127 utility model patents, showcasing a robust technological foundation and commitment to innovation[55]. - The company is focusing on developing new technologies such as low-reflective touch sensors and high-precision automatic dispensing systems to enhance product quality and production efficiency[92][93]. - The company is actively integrating AR coating capabilities and vehicle-mounted cover processing capabilities to maintain technological leadership in automotive electronics[182]. - The company is focusing on the development of flexible OLED mobile display modules, leveraging its first-mover advantage and technical monopoly in the field[181]. - The company is committed to accelerating the construction of the UTG project to quickly release economic benefits and maintain coordination with suppliers for foldable phone cover materials[179]. Market Position and Strategy - The company established a leading position in consumer electronics, automotive electronics, and ultra-thin LCD panels, with a focus on high-end products[42]. - In the high-end LCD mobile phone touch display module sector, the company captured approximately 40% of domestic 5G mobile phone shipments in January, supplying major clients like Huawei and Xiaomi[42]. - The wearable display module business has become an industry leader, providing products for top clients such as Samsung and Fitbit[43]. - The company achieved a 119.07% increase in construction in progress, primarily due to investments in the smart wearable project funded by convertible bonds[48]. - The company maintained a high market share in ITO conductive glass, consistently ranking first in the industry for several years[45]. - The company focuses on high-end clients, ensuring stable and sustainable business relationships through rigorous supplier certification processes[51]. - The company maintains a strong market position by leveraging relationships with top-tier clients, enhancing product market share and penetration[53]. - The company is enhancing its competitive edge in the automotive sector by optimizing its organizational structure and improving management efficiency[70]. Investment and Financial Management - The company reported a significant increase in R&D expenses, totaling ¥209,050,031.62, which is a 113.99% increase year-on-year[87]. - The company's R&D investment in 2019 amounted to approximately ¥209 million, representing 3.47% of its operating revenue, a significant increase from 1.02% in 2018[98]. - The number of R&D personnel increased to 1,653 in 2019, accounting for 11.69% of the total workforce, up from 10.90% in 2018[98]. - The company plans to increase the production capacity of hard OLED wearable display modules to 3.6KK/month by mid-2020 to meet growing demand[65]. - The company has successfully entered the supply chain of a leading global smart electronics company, becoming the only certified supplier for its thinning business[66]. - The company aims to gradually put 10% of the new production capacity into operation by the second half of 2020 to meet customer demand[66]. - The company has established a comprehensive layout in the automotive display module sector, covering various products including vehicle sensors and touch modules[70]. - The company is collaborating with a global high-end electric vehicle manufacturer to provide central control screen modules for flagship models[70]. Operational Efficiency - The company is committed to talent development, enhancing employee benefits, and implementing stock incentive plans to foster growth and loyalty among key personnel[188]. - Internal management will be refined to ensure effective execution of policies and procedures, addressing the challenges of a rapidly evolving industry[189]. - The company is accelerating digital transformation to establish a smart factory, enhancing operational efficiency through data analysis and real-time decision-making[190]. - Continuous improvement in automation and equipment capabilities is prioritized to enhance production efficiency and quality[57]. - Cost reduction initiatives will be a key focus for 2020, targeting non-production expenses and improving operational efficiency through specialized management[187].