SHINRY(SZ:300745)2021-04-26 16:00Financial Performance - In 2020, the company's product sales volume decreased by 48.09%, and operating revenue fell by 40.70% year-on-year[4]. - The company's operating revenue for 2020 was ¥353,696,960.31, a decrease of 40.70% compared to ¥596,468,911.96 in 2019[21]. - The net profit attributable to shareholders was -¥284,780,040.29, representing a decline of 1,153.13% from a profit of ¥27,041,348.98 in 2019[21]. - The net cash flow from operating activities was -¥73,193,780.45, which is a 48.29% increase in cash outflow compared to -¥49,358,437.64 in 2019[21]. - The total assets at the end of 2020 were ¥1,417,485,380.83, down 7.64% from ¥1,534,802,750.85 at the end of 2019[21]. - The net assets attributable to shareholders decreased by 25.80% to ¥814,328,289.37 from ¥1,097,543,208.97 in 2019[21]. - The company reported a basic and diluted earnings per share of -¥2.49, a decrease of 1,137.50% from ¥0.24 in 2019[21]. - The company reported a net loss of CNY 284.78 million for the year 2020, with a parent company net loss of CNY 264.34 million[140]. - The total distributable profit at the end of 2020 was CNY 75.08 million, with no cash dividends or stock bonuses proposed for the year[141]. Research and Development - The total amount invested in R&D during 2020 was RMB 103.269 million, accounting for 29.20% of the total operating revenue[6]. - The company invested CNY 103.27 million in R&D during the reporting period, accounting for 29.20% of total revenue, to support its "brand upward" strategy and expand into global supply chains[57]. - The company has developed a range of high-power electric power electronic products, including vehicle-mounted power supply series products and hydrogen fuel cell products, marking a significant expansion into high-end equipment manufacturing[36]. - The company holds 25 invention patents, 331 utility model patents, and 32 design patents, indicating a strong R&D capability and industry leadership in intellectual property[48]. - The company’s R&D facilities can support up to 40 new technology platforms or 160 automotive component projects simultaneously, enhancing its innovation capabilities[63]. Market and Industry Trends - The new energy vehicle industry in China has a penetration rate of only 5.4%, indicating significant future growth potential[6]. - By 2025, it is projected that new energy vehicles will account for approximately 20% of total new car sales in China, which will positively impact the demand for the company's products[43]. - The company is positioned to benefit from the anticipated growth in the new energy vehicle market, as each vehicle requires a vehicle-mounted power supply and fuel cell products[43]. - In 2020, the production and sales of new energy vehicles in China reached 1.366 million units, with a year-on-year growth of 7.5% and 10.9% respectively, indicating a growing market for the company's products[40]. Operational Challenges - The comprehensive capacity utilization rate for the year was only 34.58%, leading to a significant increase in product cost allocation[4]. - The company faced significant challenges due to intensified competition and policy changes in the electric vehicle market, leading to increased pressure on customer sales and profit margins[56]. - The company faced challenges due to the decline in new energy vehicle subsidies and increased competition from international brands, impacting order volumes and production[76]. - The company is facing risks from raw material price fluctuations and supply shortages, particularly due to the ongoing global chip supply crisis, which could impact production capacity[135]. - The decline in government subsidies for new energy vehicles may lead to reduced sales prices for vehicle-mounted power products, affecting the company's profitability if it cannot adapt quickly[136]. Strategic Focus - The company plans to focus on three business segments in 2021: the new energy vehicle sector, hydrogen energy and fuel cell business, and high-end equipment manufacturing[9]. - The company is enhancing accounts receivable management to mitigate risks associated with customer creditworthiness, especially as some clients face financial difficulties due to industry restructuring[134]. - The company plans to enhance its hydrogen and fuel cell business and expand into high-end equipment manufacturing as part of its growth strategy[96]. - The company has established ongoing cooperation with major automotive manufacturers such as Geely, BYD, and Xpeng, focusing on the new energy vehicle sector[127]. Financial Management - The company will not distribute cash dividends, issue bonus shares, or increase share capital from reserves for the year[10]. - The company has committed to ensuring that all related party transactions comply with legal and internal regulations to prevent improper benefit transfers[153]. - The company has a commitment from its controlling shareholder to cover costs related to the forced removal of leased properties if necessary[153]. - The company has established a performance evaluation system for its restricted stock incentive plan, with a maximum release ratio of 100% based on performance scores[153]. Corporate Governance and Compliance - The company has established measures to protect its interests against potential competitive actions from related parties[151]. - The company emphasizes the importance of transparency and accountability in its commitments to investors[150]. - The report highlights the company's proactive approach to investor protection and transparency in its financial disclosures[149]. - The company has outlined legal consequences and civil liability for failing to fulfill commitments made in the prospectus, with measures in place to address any breaches[149]. Future Outlook - The company plans to increase its shareholding by 20% within six months after the triggering of the obligation, with the purchase price not exceeding 120% of the net asset value per share[146]. - The company aims to become a global leader in high-power power electronics energy conversion system solutions, focusing on strategic customers and quality projects[124]. - The company plans to propose supplementary or alternative commitments to safeguard the interests of the company and its investors[150].