SHEN YU(SZ:300563)2021-03-15 16:00Financial Performance - The company's operating revenue for 2020 was ¥621,487,603.26, representing a 31.86% increase compared to ¥471,333,552.18 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥61,841,873.94, up 15.29% from ¥53,639,557.88 in 2019[22]. - The net profit after deducting non-recurring gains and losses was ¥55,830,435.11, an increase of 8.07% from ¥51,661,841.21 in 2019[22]. - The total assets at the end of 2020 reached ¥1,099,209,994.45, a 55.44% increase from ¥707,177,166.10 at the end of 2019[22]. - The net assets attributable to shareholders increased by 71.71% to ¥907,196,310.31 from ¥528,322,535.00 in 2019[22]. - The basic earnings per share for 2020 was ¥0.70, a 4.48% increase from ¥0.67 in 2019[22]. - The company achieved a revenue of 621.49 million yuan, representing a year-on-year growth of 31.86%[38]. - The net profit attributable to the parent company was 61.84 million yuan, up by 8.20 million yuan or 15.29% year-on-year[38]. - The communication equipment sector contributed ¥477,181,992.33, accounting for 76.78% of total revenue, with a year-on-year growth of 31.39%[78]. - The sales volume of RF coaxial cables reached 763,528 kilometers, an increase of 28.95% from 592,125 kilometers in 2019[81]. Research and Development - The company aims to enhance R&D and sales investment to improve product innovation and meet customer demands, thereby strengthening its competitive advantage in the RF coaxial cable market[7]. - The company is committed to strengthening its independent R&D and technological innovation capabilities to keep pace with the rapid advancements in wireless communication technology[5]. - The company invested 22.30 million yuan in R&D, representing a 51.86% increase compared to the previous year, with R&D expenses accounting for 3.70% of operating revenue[66][70]. - The company has a high-level R&D team, with 99 R&D personnel accounting for 20.12% of the total workforce[70]. - The company has established provincial-level engineering technology research centers and enterprise technology centers to enhance its R&D capabilities[50]. - The company has developed multiple core production processes for RF coaxial cables, aligning with industry trends towards high shielding and low loss, enabling customized solutions for clients[55]. - The company is developing several new products, including high-frequency RF coaxial cables for aerospace applications, expected to be ready for mass production in 2021[92]. Market Strategy and Competition - The company reported a significant increase in market competition due to rising demand for RF coaxial cables and increased foreign investment in the domestic market[6]. - The company has a strategic focus on expanding its market presence and rapidly increasing production capacity to seize market opportunities[7]. - The company is focusing on the "one main body, four directions" strategy, targeting consumer terminals, IoT, mobile communication, and aerospace applications for RF coaxial cables[38]. - The company has established long-term partnerships with major aerospace enterprises, enhancing its position in the military RF coaxial cable market[47]. - The company has established long-term, stable partnerships with major clients, including QiJi Technology Co., Ltd. and TP-LINK, enhancing its competitive advantage in market expansion[58]. - The company plans to leverage the growth of 5G and the Internet of Things (IoT) to enhance its scale and profitability, focusing on RF coaxial cable production[126]. - The RF coaxial cable market is expected to grow rapidly due to the comprehensive launch of 5G infrastructure and the increasing demand in various emerging fields[125]. Production and Operations - The company will optimize production processes and reduce costs to enhance product competitiveness and market share[7]. - The company aims to enhance its production capabilities by increasing automation and improving response times to customer demands[36]. - The company completed a private placement project, enhancing its production capacity for high-stability RF coaxial cables for 5G communication and aerospace applications[39]. - The company's fixed assets increased by 35.62% due to the implementation of a private placement project and the acquisition of new equipment[48]. - The company has over a thousand advanced equipment and instruments, including microwave integrated vector analyzers and high-frequency high-voltage spark testers, supporting continuous technological innovation[57]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares (including tax) based on a total of 93,517,119 shares as of December 31, 2020[10]. - The profit distribution policy states that cash dividends should account for at least 20% of the distributable profits, with a minimum of 80% for mature companies without major capital expenditures[150]. - The total distributable profits for the year amount to RMB 296,641,188.28, with the cash dividend representing 100% of the profit distribution total[156]. - The company has consistently maintained a cash dividend policy, with previous distributions of RMB 1.15 and RMB 2.00 per 10 shares in 2018 and 2019, respectively[157]. - The cash dividend distribution is contingent upon the company achieving profitability and having positive retained earnings[149]. - In 2020, the cash dividend amount was ¥14,027,567.85, representing 22.68% of the net profit attributable to ordinary shareholders[159]. Risk Management - The company faces risks from macroeconomic fluctuations, intensified market competition, and raw material price volatility, which it aims to mitigate through strategic adjustments and innovation[139][140][141]. - The company acknowledges the volatility of raw material prices and plans to maintain long-term partnerships with strategic customers to sustain a high market share[8]. - The company emphasizes a culture of quality and customer satisfaction, aiming for continuous innovation and improvement in its operations[126]. Corporate Governance and Compliance - The company has committed to improving corporate governance and operational transparency to ensure sustainable development[134]. - The independent directors are responsible for ensuring the fairness and transparency of the profit distribution process, including gathering opinions from minority shareholders[152]. - The company has maintained compliance with all commitments made regarding shareholding and profit distribution policies[162]. - The company has not engaged in any investor communications or interviews during the reporting period[145]. - The company has not faced any major litigation or arbitration matters during the reporting period[175]. - The company adheres to laws and regulations, ensuring shareholder rights such as information access, participation, and dividend rights[199].