Hangzhou Seck Intelligent Technology (SZ:300897)2021-04-22 16:00Dividend Distribution - The company plans to distribute a cash dividend of 6 RMB per 10 shares to all shareholders, based on a total of 68,000,000 shares [4]. - The total cash dividend proposed for 2020 is RMB 40,800,000, which corresponds to a distribution of RMB 6 per 10 shares, based on a total share capital of 68,000,000 shares [141]. - The cash dividend for 2019 was RMB 15,300,000, distributed at RMB 3 per 10 shares, based on a total share capital of 51,000,000 shares [146]. - The company aims to maintain a consistent cash dividend policy, planning to distribute 40% of its net profits to shareholders annually [152]. - The company plans to distribute at least 20% of its distributable profits as cash dividends annually, provided there are no significant capital expenditure arrangements in the next 12 months [154]. - In mature development stages without major capital expenditures, the cash dividend proportion should be at least 80% of the profit distribution [154]. - Cash dividends will be prioritized over stock dividends if conditions are met [154]. - The company must have positive distributable profits and an unqualified audit report to distribute cash dividends [154]. Financial Performance - The company's operating revenue for 2020 was CNY 380,783,301.39, an increase of 18.69% compared to CNY 320,828,265.84 in 2019 [16]. - The net profit attributable to shareholders for 2020 was CNY 69,829,231.29, reflecting a growth of 7.34% from CNY 65,052,692.94 in 2019 [16]. - The total assets at the end of 2020 reached CNY 1,031,533,557.27, a significant increase of 144.50% from CNY 421,890,752.81 at the end of 2019 [16]. - The net assets attributable to shareholders increased by 198.00% to CNY 847,705,863.73 at the end of 2020, compared to CNY 284,469,026.63 at the end of 2019 [16]. - The basic earnings per share for 2020 was CNY 1.26, a slight decrease of 1.56% from CNY 1.28 in 2019 [16]. - The weighted average return on equity for 2020 was 16.05%, down from 25.39% in 2019, indicating a decline of 9.34% [16]. - The company reported quarterly revenues of CNY 49,487,269.54, CNY 77,536,390.91, CNY 99,084,697.27, and CNY 154,674,943.67 for Q1, Q2, Q3, and Q4 respectively in 2020 [18]. - The net profit attributable to shareholders for Q4 2020 was CNY 34,036,765.80, which was the highest quarterly profit for the year [18]. - The company achieved total revenue of 380.78 million yuan in 2020, an increase of 18.69% year-on-year [40]. - The net profit attributable to shareholders was 69.83 million yuan, reflecting a growth of 7.34% compared to the previous year [40]. Research and Development - The company is focusing on building a first-class technology R&D center to optimize product structure and enhance overall R&D capabilities [47]. - The company’s R&D expenses reached CNY 24,831,654.66 in 2020, a 31.15% increase compared to CNY 18,934,423.57 in 2019, accounting for 6.52% of total revenue [65][67]. - The number of R&D personnel increased to 105 in 2020, accounting for 22.29% of the total workforce, up from 17.21% in 2019 [68]. - The company added 7 new patents in 2020, including 2 invention patents and 2 utility model patents [41]. - The company is currently developing several projects, including a small-caliber ultrasonic smart water meter and an unmanned pump room management system, with significant progress reported [67]. - The company plans to enhance its research and development capabilities in areas such as IoT-based smart water meters and ultrasonic water meters, aligning with industry trends [105]. - The company will strengthen R&D investments and integrate resources to enhance innovation capabilities and meet rapid technological advancements in smart metering products [124]. Market and Industry Trends - The domestic demand for smart water meters is expected to remain strong due to the "one household, one meter" policy and mandatory six-year inspections [95]. - The smart water meter industry is experiencing a shift towards higher accuracy and reliability, with advancements in data collection technology [99]. - The smart water meter market in China is expected to grow significantly due to the implementation of tiered water pricing and the one-meter-per-household policy, with over 300 million water meters currently in use [107][108]. - The smart water service market is projected to grow at a compound annual growth rate of 25% from 2020 to 2025, indicating a robust market opportunity [112]. - The company anticipates that the production capacity will reach approximately 2 million sets of smart water meter sensors and collection systems two years after the investment projects are completed [116]. Operational Efficiency - The company is committed to improving operational efficiency and reducing water loss rates in water supply networks through innovative solutions [8]. - The company focuses on integrating smart technology with traditional equipment to enhance operational efficiency in water supply management [43]. - The smart water supply platform integrates cloud computing, big data, and IoT technologies for real-time monitoring and management of water supply systems [37]. - The company has implemented an expense reimbursement system to enhance cost control and improve employee efficiency [46]. - The company aims to optimize product structure and increase production equipment investment to improve reliability and stability of products [116]. Governance and Compliance - The company has established a comprehensive governance structure to ensure effective management and compliance [10]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management [3]. - The company has committed to social responsibility, focusing on environmental protection and sustainable development [191]. - The company has established a clear and balanced corporate governance structure, including a shareholders' meeting, board of directors, supervisory board, and general manager, to protect shareholder rights [192]. - The company strictly adheres to legal regulations for the operation of shareholders' meetings, ensuring equal participation and voting rights for all shareholders, especially minority shareholders [193]. Risk Management - The company emphasizes the importance of risk awareness regarding future strategic developments and projections [4]. - The report includes a section on the company's future development outlook, detailing potential risks and countermeasures [4]. - The company recognizes the risk of technological innovation and talent shortages in the industry and plans to continuously invest in new technologies and attract skilled personnel [129][130]. - The average procurement price of key raw materials has shown some volatility, which could impact gross margins if prices rise significantly [134]. - The company aims to optimize its raw material supply chain and improve inventory turnover to mitigate risks from raw material price fluctuations [134]. Shareholder Relations - The company has committed to a lock-up period for its shares, preventing transfers for six months post-IPO [151]. - The actual controllers have agreed to not transfer shares for 36 months after the IPO, ensuring stability in shareholding [151]. - The commitment from major shareholders includes a promise to avoid engaging in competitive activities with the company [157]. - Major shareholders are obligated to minimize related party transactions with the company and ensure fair pricing [157]. - The company has established a framework for the management of shareholding changes and stock repurchase procedures [156]. Investment and Capital Management - The company committed to invest CNY 30,600 million in various projects, with CNY 9,495.98 million already invested by the end of the reporting period [87]. - The project for producing 200,000 smart sensors per year has a cumulative investment of CNY 5,651.53 million, achieving 30.00% of the planned investment [87]. - The company reported a total guarantee amount of 12 million RMB for its subsidiary, which has been fully performed [184]. - The company has not engaged in any entrusted loans during the reporting period [189]. - The company will ensure compliance with regulations regarding the reduction of shares by major shareholders and senior management [161].