AVD(SZ:300939)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was ¥824,064,138.71, representing a 2.85% increase compared to ¥801,254,947.72 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥83,344,899.90, a decrease of 3.70% from ¥86,546,816.14 in 2019[18]. - The net profit after deducting non-recurring gains and losses was ¥63,688,009.45, down 14.39% from ¥74,392,855.37 in 2019[18]. - The net cash flow from operating activities was ¥77,121,316.81, a significant decline of 48.48% compared to ¥149,677,520.14 in 2019[18]. - The total assets at the end of 2020 amounted to ¥613,698,159.37, reflecting a 17.58% increase from ¥521,960,490.98 at the end of 2019[18]. - The net assets attributable to shareholders increased by 25.30% to ¥411,177,542.18 from ¥328,156,828.49 in 2019[18]. - The basic earnings per share for 2020 were ¥1.39, a decrease of 3.47% from ¥1.44 in 2019[18]. - The weighted average return on equity was 22.56%, down from 29.45% in 2019, indicating a decline of 6.89%[18]. - The overall gross margin for 2020 was 24.59%, a decrease of 2.70 percentage points from the previous year, primarily due to changes in revenue structure and increased raw material costs[65]. Revenue Breakdown - The company's total revenue for Q1, Q2, Q3, and Q4 was approximately ¥151.17 million, ¥222.71 million, ¥225.97 million, and ¥224.22 million respectively, showing a steady increase in revenue throughout the year[21]. - The net profit attributable to shareholders for the same quarters was ¥11.23 million, ¥23.60 million, ¥26.72 million, and ¥21.79 million, indicating a significant growth in profitability, particularly in Q3[21]. - The revenue from color LCD modules reached CNY 318.4193 million, a year-on-year increase of 23.63%, driven by growing demand in various applications[65]. - The revenue from capacitive touch screens was CNY 150.9604 million, a year-on-year increase of 2.49%, with expectations for rapid growth in related business areas[65]. - The revenue from monochrome LCD modules decreased by 19.06% to ¥193,322,822.69, while the revenue from color LCD modules increased by 23.63% to ¥318,419,273.90[67]. - Domestic revenue grew by 13.73% to ¥375,693,181.40, while international revenue decreased by 4.79% to ¥448,370,957.31[67]. Research and Development - The company is focusing on R&D projects including automotive automatic dimming liquid crystal valves and 5G communication wavelength selectors, with expected progress[49]. - The company invested CNY 38.8951 million in R&D, accounting for 4.72% of its revenue, maintaining a high level compared to peers[59]. - The company is developing a gesture recognition LCD display module to enhance user interaction while minimizing contact, with sample development planned for 2021[61]. - The company has increased its R&D investment to enhance technological innovation and product development, aiming to meet rising customer demands[110]. - The company plans to increase R&D investment in new display technologies, including automotive applications and 5G communication devices[104]. Market Position and Strategy - The company is focusing on expanding its product line to include embedded display control systems and new technologies such as laser radar LCD valves for autonomous driving[28]. - The company aims to enhance its market position by developing integrated solutions for human-machine interaction and smart control products[28]. - The company operates primarily in the manufacturing sector, specifically in the production of LCD and touch control products for various industries including industrial control and automotive electronics[34]. - The company has established long-term partnerships with renowned clients such as Omron, HP, Siemens, and GE, enhancing its market competitiveness[45]. - The company is actively expanding into high-growth industries such as industrial control, IoT, healthcare, and automotive electronics, increasing market share[57]. Risk Management - The company has outlined potential risks and strategies for future development in its annual report, emphasizing the importance of investor awareness regarding these risks[5]. - The company faces risks from intense market competition and potential fluctuations in foreign exchange rates due to its significant export activities[106][107]. - The company faces risks related to fluctuations in raw material prices, which significantly impact production costs and profitability[109]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of ¥5 per 10 shares, totaling ¥40,000,000 based on 80,000,000 shares[6]. - The cash dividend distributed in 2020 accounted for 47.99% of the net profit attributable to shareholders, with a total distributable profit of CNY 166.10 million[119]. - The company reported a net profit of CNY 73.90 million for the year 2020, with a profit distribution plan proposing a cash dividend of CNY 5.00 per 10 shares, totaling CNY 40 million[116]. - The company has committed to maintaining a stable profit distribution policy, ensuring that cash dividends will not be less than 20% of the distributable profits achieved in the year[122]. - The company plans to implement cash dividends annually after the shareholders' meeting, with the possibility of mid-term cash dividends based on profitability and funding needs[122]. Corporate Governance - The company has established a robust management system that includes quality management certifications such as IATF16949:2016 and ISO9001:2015, ensuring efficient operations[33]. - The company emphasizes the importance of protecting investor rights and has revised its articles of association to reflect a proactive profit distribution policy[122]. - The company has committed to avoiding competition with its controlling shareholder and actual controller, ensuring no direct or indirect engagement in competing activities[124]. - The company’s board of directors may increase holdings if the stock price exceeds the net asset value for five consecutive trading days[125]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[127]. - Future guidance includes a target of achieving 1 billion RMB in net profit by the end of the next fiscal year, reflecting a 15% increase from the current year[128]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[127]. - A strategic acquisition of a smaller tech firm is in progress, which is anticipated to enhance the company's technological capabilities and market reach[128].