AIM(SZ:300446)2021-04-26 16:00Financial Performance - The company reported a revenue of 131.05 million yuan in 2020, a decrease of 60.74% year-on-year[7]. - The net loss attributable to the company for 2020 was 25.17 million yuan, with a significant decline in sales revenue from its main products, thermal sensitive magnetic tickets, down by 76.20%[8]. - The company’s operating revenue for 2020 was ¥131,049,777.63, a decrease of 60.74% compared to ¥333,817,455.11 in 2019[41]. - The net profit attributable to shareholders for 2020 was -¥25,172,866.50, representing a decline of 121.84% from ¥115,982,148.21 in 2019[41]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥42,374,347.80, down 144.11% from ¥96,801,815.40 in 2019[41]. - The cash flow from operating activities was ¥38,890,892.60, a decrease of 56.45% compared to ¥89,709,952.20 in 2019[41]. - The total assets at the end of 2020 were ¥838,115,035.59, a decrease of 4.37% from ¥876,389,436.72 at the end of 2019[41]. - The net assets attributable to shareholders at the end of 2020 were ¥643,006,708.09, down 16.15% from ¥766,824,565.81 at the end of 2019[41]. - The basic earnings per share for 2020 was -¥0.1242, a decline of 121.84% from ¥0.5724 in 2019[41]. - The diluted earnings per share for 2020 was also -¥0.1242, reflecting the same percentage decline as basic earnings per share[41]. - The company’s stock is at risk of being delisted due to the financial performance in 2020, with revenue expected to fall below 100 million yuan after excluding unrelated business income[16]. - In 2020, the company's audited net profit was negative, and operating revenue was below 100 million RMB, triggering delisting risk warnings from the Shenzhen Stock Exchange[26]. Business Expansion and Acquisitions - The acquisition of 71.0355% of LeKai Chemical, which specializes in fine chemicals, was completed in December 2020, expanding the company's business scope[20]. - The company acquired a 71.0355% stake in Baoding Lekai Chemical Co., expanding its business scope into fine chemical materials, which generated revenue of CNY 42.1668 million, accounting for 32.18% of total revenue[111]. - The company has expanded its business into fine chemical materials by acquiring LeKai Chemical, focusing on light stabilizers and antioxidants[56]. - The company acquired 71.0355% of the equity of Lekai Chemical through cash transactions in December 2020, which constituted a business combination under common control[45]. Product Development and Market Trends - The sales revenue from electronic functional materials increased by 21.17% year-on-year, indicating progress in new product development despite overall revenue decline[11]. - The company has increased R&D investments in new products such as automotive interior films and electromagnetic wave shielding films to adapt to market changes[11]. - The company developed new products such as electromagnetic wave protection films and pressure testing films, but these have not significantly impacted operational performance yet[25]. - The company is actively pursuing technological innovation and market expansion to enhance its competitive edge in sustainable development[56]. - The company aims to increase its market share in electronic functional materials, including electromagnetic wave shielding films and pressure testing films[80]. - The company is focusing on resource mergers and acquisitions to enhance its competitive edge and ensure sustainable development[80]. - The company aims to become a leader in the new materials industry, focusing on electronic functional materials and fine chemical materials[197]. - The company plans to accelerate the construction of two industrial bases: the Sichuan Meishan electronic materials R&D base and the Cangzhou Lingang economic development zone rubber and plastic additives industrialization base, targeting production by the end of 2021[198]. Challenges and Risks - The company is facing risks of continued losses due to the ongoing suspension of the thermal sensitive magnetic ticket production line and changes in market demand[15]. - The implementation of EMV migration is expected to decrease the demand for magnetic stripe products, potentially impacting future revenue[21]. - The company is facing risks related to the completion of new projects, which were delayed due to COVID-19 and other factors, affecting product launch timelines[25]. - The company reported a significant decline in orders for thermal magnetic ticket products due to the pandemic, leading to a substantial drop in revenue and a loss situation[79]. - The company’s thermal sensitive magnetic ticket products are primarily used in the domestic railway passenger transport sector, with demand significantly decreasing due to the promotion of electronic tickets[187]. Research and Development - The R&D investment amounted to 39.51 million yuan, a year-on-year increase of 4.78%, accounting for 30.15% of total revenue[82]. - The company holds 39 patents, including 29 invention patents and 10 utility model patents, enhancing its technological innovation capabilities[75]. - R&D personnel accounted for 23.22% of the total workforce, with a total of 85 R&D staff[119]. - The company is committed to optimizing production processes for electronic functional materials, particularly electromagnetic wave shielding films and pressure testing films, to meet high-quality standards[200]. - The company plans to strengthen its talent pool and optimize its organizational structure to support its strategic development[200]. Financial Management and Investments - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on financial stability amid challenges[26]. - The company’s management expenses increased by 47.21% to CNY 28.603 million, primarily due to losses from the shutdown of the thermal ticket production line[117]. - The company’s financial expenses surged by 217.98% to CNY 1.633 million, mainly due to increased exchange losses[117]. - The company’s cash and cash equivalents increased by 159.75% to CNY 17.976 million, reflecting improved liquidity[124]. - The company reported a total of CNY 364,086,108.44 in other income, with a loss of CNY 1,553,383.28 during the reporting period[145]. Market Conditions - The company is the largest producer of magnetic stripes in China, holding over 50% market share domestically and being one of the top four producers internationally[57]. - The FPC market in China was valued at approximately $5.82 billion in 2018, with a significant growth trend expected for electromagnetic shielding films due to the expansion of consumer electronics and automotive electronics[61]. - The pressure testing film market in China reached approximately 473 million yuan in 2015, with a projected growth trajectory as industries stabilize and enhance production technologies[62]. - The global automotive interior film market size was $380 million in 2017, with a significant decline in China's automotive sales from 2018 to 2020 due to policy and COVID-19 impacts[188].