Cosonic(SZ:300793)2021-04-19 16:00Financial Performance - The total revenue for 2020 was approximately ¥2.65 billion, representing a 17.54% increase compared to ¥2.26 billion in 2019[22]. - The net profit attributable to shareholders decreased by 43.48% to approximately ¥68.25 million from ¥120.75 million in 2019[22]. - The net profit after deducting non-recurring gains and losses was approximately ¥27.07 million, a decline of 77.68% compared to ¥121.29 million in 2019[22]. - Basic earnings per share dropped by 71.74% to ¥0.26 from ¥0.92 in 2019[22]. - The gross profit margin for the electronic industry decreased by 3.51% to 11.46% in 2020[61]. - The net profit attributable to the parent company was CNY 68,245,800, a decrease of 43.48% year-on-year[60]. - TWS earphone revenue reached CNY 152,678,850, marking a significant growth of 111.28% compared to 2019[60]. - The company faced significant foreign exchange losses due to the depreciation of the US dollar, impacting profitability[60]. - Direct material costs accounted for 79.32% of total operating costs, reflecting a 25.55% increase from the previous year[65]. Cash Flow and Investments - The net cash flow from operating activities increased by 29.90% to approximately ¥98.77 million from ¥76.04 million in 2019[22]. - The net cash flow from financing activities decreased by 74.34% to ¥118,185,684.65, primarily due to the previous year's fundraising completion[79]. - Cash and cash equivalents decreased by 115.95% to -¥49,477,417.53, influenced by changes in operating and investment activities[79]. - The total investment amount for the reporting period reached ¥1,453,816,725.06, a significant increase of 966.67% compared to ¥229,338,604.21 in the same period last year[88]. - Investment cash inflows surged to ¥1,175,560,735.75, a significant increase of 18,994.69% compared to the previous year[79]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥2.63 billion, a 30.63% increase from ¥2.02 billion at the end of 2019[22]. - The proportion of accounts receivable increased to 29.27% of total assets, up from 20.12% at the beginning of the year[84]. - The company’s total share capital increased to 266,688,000 shares following the capital reserve conversion in 2019, which involved a 6-for-10 bonus share distribution[139]. Research and Development - As of December 31, 2020, the company held 50 invention patents, 367 utility model patents, and 166 design patents, indicating a strong focus on R&D[43]. - Research and development expenses increased by 31.36% to ¥104,334,763.69, driven by increased investment in R&D[72]. - The number of R&D personnel rose to 321, with R&D investment accounting for 3.93% of operating revenue[74]. - The company focused on R&D in TWS technology, increasing investment in professional acoustics, Bluetooth upgrades, and smart wearables[60]. Market Position and Strategy - The company’s main products include headphones, speakers, and audio cables, with headphones accounting for over 88% of revenue, and TWS headphones making up 65.32% of the headphone segment[35]. - The company has established long-term strategic partnerships with renowned institutions such as the Chinese Academy of Sciences and Tsinghua University, focusing on wearable smart product development[50]. - The company has accumulated a strong customer base, including international brands like Harman and Skullcandy, as well as domestic companies such as Huawei and Anker, enhancing its market position[50]. - The company is actively expanding its market presence and reducing dependency on single customers by acquiring new clients and exploring new markets[50]. - The company is committed to strengthening vertical supply chain integration to adapt to the increasing multifunctionality and intelligence requirements of consumer electronics[116]. Dividend Policy - The company plans to distribute a cash dividend of ¥1 per 10 shares to all shareholders[6]. - The total distributable profit as of December 31, 2020, is 213,682,409.81 RMB, after accounting for a legal surplus reserve of 3,933,963.38 RMB and a previous year's distribution of 50,004,000 RMB[135]. - The cash dividend distribution represents 100% of the total profit distribution amount for the year[135]. - The company has a cash dividend policy that mandates a minimum distribution of 80% of profits for mature companies without significant capital expenditure plans[130]. Risks and Challenges - High customer concentration poses a risk, as major clients like Harman and Huawei could reduce orders or lower prices, negatively impacting performance[119]. - The company's gross margin is susceptible to fluctuations due to industry conditions, customer structure, and raw material prices[120]. - Significant foreign revenue exposure means that exchange rate fluctuations, particularly with the USD, could adversely affect profit levels[120]. - The company faces intensified market competition, with both leading and small enterprises vying for market share through technological advancements and production scale[119]. Compliance and Governance - The company has committed to fulfilling promises made during the acquisition and restructuring processes, with ongoing compliance as of the report date[140]. - The company is actively working on compliance with legal regulations regarding shareholding and transfer, reinforcing its commitment to corporate governance[140]. - The company has established a long-term commitment to compensate investors for any losses resulting from misleading statements in the IPO prospectus[169]. - The company has made commitments regarding information disclosure, ensuring no false records or misleading statements in its IPO prospectus[158].