Tonhe TECH.(SZ:300491)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was RMB 320,586,339.11, representing a 15.85% increase compared to RMB 276,716,689.50 in 2019[26]. - The net profit attributable to shareholders for 2020 was RMB 41,497,343.25, a 38.28% increase from RMB 30,009,227.48 in 2019[26]. - The net profit after deducting non-recurring gains and losses decreased by 37.71% to RMB 14,008,344.82 from RMB 22,488,165.13 in 2019[26]. - The basic earnings per share for 2020 increased by 36.84% to RMB 0.26 from RMB 0.19 in 2019[26]. - The total assets at the end of 2020 were RMB 929,744,081.85, an 8.09% increase from RMB 860,129,687.87 at the end of 2019[26]. - The net assets attributable to shareholders at the end of 2020 were RMB 695,089,678.17, a 2.74% increase from RMB 676,552,248.67 at the end of 2019[26]. - The net cash flow from operating activities improved by 49.05%, reaching RMB -5,024,177.72 compared to RMB -9,861,596.35 in 2019[26]. - The weighted average return on equity for 2020 was 5.95%, up from 4.97% in 2019[26]. - The company achieved total revenue of 320,586,339.11 yuan in 2020, representing a year-on-year growth of 15.85%[63]. - Net profit attributable to shareholders reached 41,497,300 yuan, an increase of 38.28% compared to the previous year[58]. Accounts Receivable and Inventory - The company's accounts receivable at the end of the reporting period amounted to CNY 293.92 million, representing a growth of 21.11% compared to the beginning of the period[7]. - The company's inventory at the end of the reporting period was CNY 94.76 million, an increase of 21.61% from CNY 77.92 million at the beginning of the period[11]. - The company emphasizes the importance of strict accounts receivable management to mitigate risks associated with delayed payments[7]. - The company aims to optimize inventory management to reduce liquidity risks associated with increased stock levels[12]. - Accounts receivable rose to CNY 293.92 million, accounting for 31.61% of total assets, up from 28.21% in 2019, due to increased sales revenue[86]. - Inventory increased to CNY 94.76 million, representing 10.19% of total assets, driven by sales growth and preparations for future sales[86]. Research and Development - The company has committed to increasing R&D investment to maintain its technological advantage and product competitiveness[9]. - The company’s R&D investment for 2018, 2019, and 2020 was 24.67 million RMB, 36.21 million RMB, and 38.94 million RMB, accounting for 15.23%, 13.09%, and 12.15% of total revenue respectively[49]. - The company has accumulated 101 patents and 40 software copyrights, with 184 R&D personnel making up 28.22% of the total workforce[49]. - The company has achieved significant advancements in technology, including the implementation of resonant soft-switching technology, which enhances conversion efficiency and reduces material consumption[54]. - The company is focusing on strategic breakthroughs in smart grids, new energy vehicles, and military equipment, aiming for balanced development across these areas[50]. - The company will continue to invest in R&D to strengthen its product capabilities and maintain a competitive edge in the market[97]. - The company emphasizes the importance of aligning R&D with market demands to ensure successful product development and maintain technological advantages[101]. Market and Industry Trends - The company is actively involved in new infrastructure projects, including electric vehicle charging stations and power supply systems, aligning with national development strategies[18]. - The new energy vehicle market is expected to see significant growth due to government subsidies and tax exemptions extended until 2022[45]. - The company is positioned to benefit from the digitalization and smartization trends in the power industry, driven by national policies[40]. - The national investment in power distribution network construction and renovation is set to exceed 2 trillion yuan, providing strong momentum for the industry[41]. - The company is focusing on large customer strategies, enhancing collaboration depth and breadth with key clients[43]. - The construction of new energy charging stations is crucial for the promotion of new energy vehicles, with significant market potential[44]. Risks and Challenges - The company faces risks related to rapid growth in accounts receivable and inventory, which could impact cash flow and liquidity[7][11]. - The company acknowledges the risk of declining gross margins due to increased competition in the electric vehicle and military power supply sectors[10]. - The company anticipates potential declines in gross margins due to increased competition in the new energy vehicle and military equipment sectors[101]. - The company faces risks related to industry policy changes that could impact profitability, particularly in the smart grid and new energy vehicle sectors[98]. Corporate Governance and Shareholder Matters - The company plans to distribute a cash dividend of CNY 0.25 per 10 shares (including tax) based on a total of 160,761,503 shares[13]. - The total cash dividend for 2020 amounted to 4,019,037.58 yuan, representing 9.69% of the net profit attributable to shareholders[111]. - The company’s profit distribution plan complies with relevant regulations and ensures the protection of minority shareholders' rights[106]. - The company has made commitments to avoid engaging in competitive activities with its subsidiaries and to notify the company of any potential conflicts[124]. - The company is currently in compliance with all regulatory requirements regarding share transfers and performance commitments[123]. - The company’s performance during the reporting period has met the commitments made by its executives, with no violations reported[122]. Future Outlook - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[127]. - The company aims to achieve sustainable growth in scale and efficiency over the next three to five years, focusing on strategic directions in smart grids, new energy vehicles, and military equipment[96]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[129]. - The company has set a performance guidance of 1.65 billion RMB in revenue for the upcoming fiscal year, reflecting a 10% increase[127]. Employee and Management - The total number of employees in the company is 652, with 422 in the parent company and 230 in major subsidiaries[198]. - The company has a total of 264.18 million yuan in compensation paid to directors, supervisors, and senior management during the reporting period[197]. - The company has established a competitive compensation policy, which includes basic salary and performance bonuses[199]. - The company has a training plan that aligns with its talent strategy, based on training needs assessment[200]. - The management team includes experienced professionals with significant industry experience, which supports the company's operational effectiveness[189].