Synthesis Electronic Technology (SZ:300479)2021-04-27 16:00Financial Performance - The company's net profit attributable to shareholders for 2020 was CNY 6.92 million, a decrease of 65.14% year-on-year[6]. - Total operating revenue for 2020 was CNY 375.59 million, down 20.15% from CNY 470.39 million in 2019[20]. - The basic earnings per share for 2020 was CNY 0.0408, a decline of 65.39% from CNY 0.1179 in 2019[20]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of CNY -12.98 million, a decline of 247.69% from CNY 8.79 million in 2019[20]. - The weighted average return on net assets was 1.11%, down from 3.31% in 2019[20]. - The company achieved a total revenue of 375.59 million yuan in 2020, a year-on-year decrease of 20.15%, with a net profit of 6.92 million yuan, down 65.14%[71]. - The company reported a net profit attributable to shareholders of ¥5,336,340 in Q4 2020, compared to ¥7,654,281 in Q4 2019, indicating a decline[88]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[162]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion yuan for the year, representing a growth of 15% compared to the previous year[166]. Cash Flow and Investments - The net cash flow from operating activities increased by 181.49% to CNY 39.68 million compared to CNY 14.10 million in 2019[20]. - The net cash flow from investment activities improved by 28.91% year-on-year, mainly due to decreased expenditures on fixed and intangible assets[112]. - The net cash flow from financing activities decreased by 214.99% year-on-year, attributed to reduced borrowings and a lack of funds from issuing shares for asset purchases[112]. - The company reported a total operating cash inflow of ¥471,005,721.34, a decrease of 5.67% compared to the previous year[110]. - The company reported a total of ¥33,454,178.18 in other income, primarily from government subsidies, reflecting a 351.07% increase[113]. - The company reported a significant adjustment in its accounting policies, implementing new revenue recognition standards effective January 1, 2020, as mandated by the Ministry of Finance[177]. Research and Development - The company increased its R&D investment to ¥55,317,370.07 in 2020, representing 14.73% of operating revenue, up from 12.54% in 2019[105]. - The company has over 200 professionals with advanced degrees, focusing on continuous technological innovation and maintaining a competitive edge in AI and cloud services[60]. - The company’s R&D personnel accounted for 46.72% of total employees, with a total of 299 R&D staff in 2020[105]. - The company applied for 84 new patents during the reporting period, including 54 invention patents related to artificial intelligence technology[82]. - The company is exploring potential acquisitions to strengthen its technology portfolio, with a budget of 500 million RMB allocated for this purpose[162]. Market and Product Development - The company focused on identity authentication and AI cloud service solutions, targeting industries such as finance, public security, and healthcare, which are crucial for digital city construction[29]. - The company successfully developed AI products like the child protection detection robot and AIU+, which are ready for mass promotion[31]. - The company’s mobile business solutions, including secure tablets and multifunctional terminals, were successfully supplied to multiple state-owned banks, enhancing its market presence in the financial sector[35]. - The company has developed a series of intelligent aggregation authentication payment terminals, successfully included in the first batch of national medical insurance business comprehensive service terminal (Category III) inspection product list[38]. - The company has established a wholly-owned subsidiary, Shen Si Computer Vision Technology (Guiyang) Co., Ltd., to further advance its artificial intelligence business[84]. - The company is expanding its market presence, targeting a 30% increase in market share in the next two years[162]. Strategic Initiatives - The company plans to continue advancing its three-tier business development and market expansion strategies[6]. - The company aims to scale its AI cloud services in 2020, despite facing challenges due to the pandemic, which affected order delivery and project timelines[70]. - The company has formed strategic partnerships with leading AI firms to enhance its technological ecosystem and drive innovation in the industry[64]. - The company plans to enhance its AI cloud service solutions and aims for significant growth in revenue and profit in 2021[126]. - The company will focus on strategic cooperation and talent acquisition to strengthen its market position in identity authentication[126]. Compliance and Governance - The company has established a complete corporate governance structure, including independent boards and committees[164]. - The company emphasizes compliance with relevant laws and regulations in all transactions with InnoMicro[161]. - The company has committed to ensuring that all stock incentive plan benefits will be returned to the company if any false records or misleading statements are confirmed[174]. - The company is actively working on compliance with all relevant laws and regulations regarding its operations and shareholder agreements[171]. - The company has pledged to provide accurate and complete information regarding its financial activities and transactions, avoiding any misleading statements[165]. Challenges and Risks - The company faces management risks due to the presence of numerous branches, which requires effective coordination and resource sharing among them[147]. - There is a risk of goodwill impairment due to significant performance declines in subsidiaries, which could adversely affect the company's financial results[147]. - The rapid growth of the company's AI cloud services may lead to risks concerning product quality and service delivery, necessitating a focus on maintaining high standards[146]. - The company has identified potential risks related to talent acquisition and retention, emphasizing the need for a robust talent strategy to support its AI cloud service business growth[146]. Dividend Policy - The company will distribute a cash dividend of CNY 0.2 per 10 shares to all shareholders[8]. - The company reported a positive profit for the reporting period, but did not propose a cash dividend distribution plan for ordinary shareholders[157]. - The company has maintained a consistent cash dividend policy, with the 2020 distribution representing 100% of the total profit distribution amount[155]. - In 2020, the total cash dividend distributed was 3,391,104.74, representing 49.04% of the net profit attributable to ordinary shareholders[157].