LONGLI(SZ:300752)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,012,343,285.76, an increase of 18.27% compared to CNY 1,701,423,451.80 in 2019[18]. - The net profit attributable to shareholders decreased by 49.06% to CNY 43,456,139.63 in 2020 from CNY 85,313,921.85 in 2019[18]. - The basic earnings per share dropped by 50.68% to CNY 0.36 in 2020, down from CNY 0.73 in 2019[18]. - The total assets increased by 29.87% to CNY 2,468,496,034.22 at the end of 2020, compared to CNY 1,900,698,867.13 at the end of 2019[18]. - The net profit after deducting non-recurring gains and losses was CNY 12,458,504.38, a decrease of 78.89% from CNY 59,024,154.55 in 2019[18]. - The company reported a total of CNY 30,997,635.25 in non-recurring gains for 2020, compared to CNY 26,289,767.30 in 2019[23]. - The company's fixed assets increased by 23.53% compared to the previous year, primarily due to expanded production and increased equipment investment[36]. - The company reported a net cash flow from operating activities of CNY 66,038,391.47, a 3.00% increase from CNY 64,112,464.26 in 2019[18]. - The company reported a gross margin of 12.28% for the backlight display module segment, a decrease of 3.10% compared to the previous year[68]. - The total operating costs for 2020 amounted to ¥1,762,446,502, which is a 23.09% increase compared to ¥1,435,701,954 in 2019[73]. Dividend Policy - The company reported a cash dividend of 0.8 RMB per 10 shares (including tax) and a capital reserve increase of 6 shares per 10 shares for all shareholders[4]. - The total distributable profit for the year is RMB 300,020,854.61, with cash dividends accounting for 100% of the profit distribution[152]. - The company will issue 6 additional shares for every 10 shares held as a capital reserve transfer[154]. - The cash dividend distribution policy requires a minimum of 20% cash dividends for companies in a growth stage with significant capital expenditure plans[152]. - The cash dividend payout ratio for 2020 was 22.19% of the net profit attributable to shareholders[158]. - The cash dividend payout ratio for 2019 was 20.35% of the net profit attributable to shareholders[158]. - The cash dividend payout ratio for 2018 was 44.93% of the net profit attributable to shareholders[158]. - The company aims to maintain a stable and sustainable dividend policy, balancing short-term and long-term interests of shareholders[141]. Risk Management - The company emphasizes the importance of risk awareness regarding customer concentration, product price decline, intensified market competition, and raw material price fluctuations[5]. - The top five customers accounted for 87.31% of total annual sales, with the largest customer contributing 34.00%[75]. - The company faces customer concentration risk, relying on major clients like BOE and TCL, and plans to diversify its product applications to mitigate this risk[129]. - The overall price level of the company's main products has been declining, influenced by market competition and customer pressures, necessitating improvements in production efficiency and product line expansion[130]. - The company is exposed to raw material price volatility risks, which could impact profitability, and is focusing on cost control and technological innovation to mitigate this[132]. Research and Development - The company invested 108.89 million yuan in R&D, a year-on-year increase of 28.69%, focusing on Mini-LED and Micro-LED technologies[49]. - The Mini-LED backlight technology achieved breakthroughs in applications for automotive displays, tablets, and notebooks, with small batch shipments realized[50]. - The company has filed for 139 new patents, including 74 invention patents, to protect its innovations in Mini-LED and other core technologies[54]. - The company is actively pursuing Mini-LED and Micro-LED technologies, with 95 related patent applications filed in 2020, reflecting a commitment to innovation and market leadership[80]. - The company plans to increase R&D investment in Mini-LED technology, focusing on its industrialization in the automotive display and monitor markets[120]. Market Expansion - The company aims to expand its product applications in the rapidly growing 5G and 8K ultra-high-definition display markets[28]. - The company is actively pursuing new market opportunities in the automotive and VR sectors, aligning with its strategic growth plans[47]. - The company intends to expand its market presence in mid-size products, leveraging its integrated supply chain advantages[122]. - The company will continue to strengthen its existing mobile backlight product market to increase market share[123]. - The company is actively expanding into new markets and product applications, including AR/VR and wearable devices, to capture emerging opportunities[136]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The company has a stable management team with over 10 years of industry experience, enabling timely responses to customer needs and market trends[44]. - The company has commitments from major shareholders regarding shareholding restrictions and conditions for potential stock sales[159]. - The company has established a commitment to avoid any actions that may harm the legitimate rights and interests of its shareholders[169]. - The company has promised to adhere to the latest regulations from the China Securities Regulatory Commission regarding compensation measures and commitments[171]. Operational Efficiency - The company emphasizes improving operational efficiency and management capabilities to enhance overall performance[124]. - The company has implemented a comprehensive set of production management systems to ensure product quality and safety standards are met[33]. - The company maintains a procurement model of "production-based ordering," ensuring stable quality and supply by collaborating with multiple suppliers[31]. - The company’s production model is characterized by "customization and batch production," responding to client orders through an ERP system[33]. Financial Management - The company reported a significant increase in financing activities, with net cash flow from financing activities rising by 3,870.53% to ¥373,773,866.71 in 2020[83]. - The company’s total assets increased, with cash and cash equivalents at year-end reaching 576,410,475 yuan, representing 23.35% of total assets, up from 23.09% at the beginning of the year[89]. - The company’s short-term borrowings increased to 100,137,569 yuan, accounting for 4.06% of total assets, compared to 1.56% previously[90]. - The company has committed to taking legal and effective measures to ensure compliance with related party transaction decision-making procedures[169]. Shareholder Engagement - The company emphasizes communication with minority shareholders regarding profit distribution proposals, ensuring their opinions are considered[167]. - The board of directors will propose adjustments to the cash dividend ratio based on the company's development stage and capital expenditure plans[166]. - The company has committed to transparency in the use of raised funds, with detailed reports available for stakeholders[101]. - The company will disclose detailed information about its cash dividend policy and its execution in the annual report[167].