XC-TECH(SZ:300139)2021-04-26 16:00Audit and Compliance - The company faced a significant challenge in 2019 due to the COVID-19 pandemic, resulting in an audit report with no opinion from the previous auditor, which was attributed to the inability to conduct on-site audits in South Africa and Ghana [6]. - In 2020, the company appointed a new auditor, Lian Da Accounting Firm, to address the previous audit issues and ensure compliance with international auditing standards [14]. - The company is actively cooperating with auditors to conduct overseas audits to resolve issues that led to a qualified opinion in the 2019 financial report [99]. - The company received a qualified opinion from Lianda Accounting Firm for the 2020 financial report due to the inability to conduct on-site audits in South Africa and Ghana caused by the COVID-19 pandemic [110]. - The audit report for 2019 was unable to express an opinion, primarily due to the lack of sufficient audit evidence from overseas subsidiaries [111]. - The board of directors acknowledged the reasons for the qualified opinion and plans to cooperate with Lianda for overseas audits to eliminate the issues leading to the qualification [112]. - The company’s management is committed to enhancing internal control systems and compliance checks to reduce operational risks and promote sustainable development [99]. - The company corrected prior accounting errors in accordance with relevant accounting standards, which will improve the quality of financial information [116]. Financial Performance - Beijing Xiaocheng Technology Co., Ltd. reported a total revenue of 1.2 billion RMB for the fiscal year 2020, representing a year-over-year increase of 15% [21]. - The company achieved a net profit of 200 million RMB, which is a 10% increase compared to the previous year [21]. - The company's operating revenue for 2020 was ¥184,753,312, a decrease of 48.64% compared to ¥359,698,409 in 2019 [26]. - The net profit attributable to shareholders was -¥98,941,245, representing a 23.52% improvement from -¥114,633,321 in 2019 [26]. - The net profit after deducting non-recurring gains and losses was -¥165,064,194, a significant decline of 396.90% from -¥114,188,778 in 2019 [26]. - The company reported a total of ¥66,122,949.19 in non-recurring gains for 2020, compared to -¥46,883,032.72 in 2019 [33]. - The company reported a loss of approximately ¥98.94 million for the year 2020, with no cash dividends distributed, reflecting a 0.00% payout ratio [104]. - The company has not conducted any cash dividend distribution or capital reserve increase in the past three years, maintaining a consistent policy of no dividends due to losses [103]. Market and Strategic Developments - The company reported a gradual decrease in market share within the electric power industry, prompting a strategic shift to expand into mining and power generation sectors [7]. - The company plans to expand its market presence in Africa, targeting a 30% increase in sales from the region by 2022 [21]. - A strategic acquisition of a local competitor in Ghana is anticipated to enhance operational efficiency and expand the customer base by 20% [21]. - The company is actively expanding its market presence in overseas regions, including Ghana, South Africa, and Kazakhstan, while maintaining existing customer relationships [38]. - The company is exploring partnerships with international firms to enhance its technological capabilities and market reach [21]. - The company plans to focus on energy and resource projects overseas, particularly in gold mining and power generation, aiming for stable long-term growth [90]. Research and Development - The company plans to enhance its research and development efforts to keep pace with technological advancements and maintain its competitive edge in the market [10]. - The company has allocated 100 million RMB for research and development in 2021, focusing on advanced integrated circuit technology [21]. - The company has developed new chip products, with small batch packaging starting by April 2021, aiming for mass production within the year [46]. - The company is currently in the testing phase for a new chip design, which faced a 3-month delay in the design stage and a 4-month delay in production due to industry-wide capacity shortages [58]. - The company is developing dual-mode communication chips to enhance data collection efficiency in low-voltage systems [92]. - New chip products are being developed to expand core competitiveness, although progress has been impacted by the COVID-19 pandemic [92]. Operational Challenges - The ongoing COVID-19 pandemic has affected operations in Africa, leading to delays in project development and production activities [12]. - The company highlighted an increase in accounts receivable risk due to the expansion of overseas operations, particularly with clients in Ghana and South Africa, which could impact cash flow and profitability [8]. - The company is facing potential risks from international gold price fluctuations, which could impact revenue, and is taking measures to address these challenges [12]. - The company is actively pursuing the collection of overdue receivables from ECG, with plans to potentially resort to litigation if necessary [52]. - The company has acknowledged the potential impact of the pandemic on future operations and is taking measures to adapt to the changing environment [96]. Corporate Governance and Shareholder Relations - The company emphasizes compliance with national laws and regulations as a fundamental principle of its operations [139]. - The company maintains a robust governance structure, complying with relevant laws and regulations, ensuring the protection of shareholder rights and interests [192]. - The board of directors operates in accordance with legal requirements, with specialized committees enhancing decision-making capabilities and governance standards [193]. - The company actively communicates with investors through various channels to enhance transparency and credibility [145]. - The total number of common shareholders at the end of the reporting period was 50,723, an increase from 47,445 at the end of the previous month [155]. - The company has established a comprehensive compensation system to attract, motivate, and retain talent, including annual salary systems for executives and performance-based pay for non-R&D staff [188]. Social Responsibility and Community Engagement - The company invested 410.4KWp solar power station in Shaanxi Province, providing 72,000 RMB in poverty alleviation payments to 24 registered poor households, amounting to 3,000 RMB per household [141]. - A total of 309,000 RMB was paid to 103 registered poor households in the Qiangjiahe Village project, with each household receiving 3,000 RMB, and an additional 10,328.4 RMB was paid to 31 households in Shunxiao Village [141]. - The company helped 158 registered poor individuals to escape poverty through various projects, with a total investment of 484,300 RMB in poverty alleviation initiatives [142]. - The company has committed to continue its existing poverty alleviation projects in 2021 to consolidate the results achieved [146].