FOUNDERTECH(600601)2021-04-28 16:00Financial Performance - The company reported a net loss attributable to shareholders of RMB -918.52 million for the year 2020, following a loss of RMB -1.33 billion in 2019[6]. - The company's operating capital has been negative for three consecutive years, with figures of RMB -943 million, RMB -1.87 billion, and RMB -3.10 billion for 2018, 2019, and 2020 respectively[5]. - The debt-to-asset ratio has increased over the past three years, reaching 91.69% in 2020, up from 70.59% in 2018[5]. - The company will not distribute profits or increase capital reserves due to the negative retained earnings at the end of 2020[6]. - The company has faced significant uncertainties regarding its ability to continue as a going concern due to consecutive years of losses and negative operating capital[5]. - The company’s financial statements have been audited with an unqualified opinion, despite the emphasis on going concern uncertainties[5]. - The net profit attributable to shareholders was a loss of approximately CNY 918.52 million, an improvement from a loss of CNY 1.33 billion in 2019[26]. - The net cash flow from operating activities decreased by 22.12% to approximately CNY 649.94 million[26]. - The total assets at the end of 2020 were approximately CNY 8.99 billion, a decrease of 9.88% from 2019[26]. - The weighted average return on equity was -70.25%, a decrease of 18.47 percentage points compared to 2019[27]. - The basic earnings per share for 2020 was -CNY 0.4185, compared to -CNY 0.6045 in 2019[27]. - The company reported a total net asset of approximately CNY 732.10 million at the end of 2020, a decrease of 61.17% from the end of 2019[26]. - The company’s cash flow from operating activities decreased by 22.12% to 650 million RMB[57]. Business Operations - The company’s main business includes PCB production and sales, internet access services, and IT system integration, with no significant changes during the reporting period[38]. - The PCB business achieved revenue of 3.216 billion yuan, an increase of 3.27% year-on-year, with net profit of 321 million yuan, up 18.29%[50]. - Internet access service business revenue decreased by 20.77% year-on-year to 459 million yuan, with a net loss of 1.029 billion yuan[51]. - IT system integration and solutions business revenue reached 2.033 billion yuan, a year-on-year increase of 9.25%, with a net loss reduced by 108.47 million yuan[55]. - The company upgraded its IDC dual-core uplink equipment, significantly improving network availability for IDC clients[48]. - The company successfully developed and implemented various projects in the public security and transportation sectors, enhancing its market presence[52]. - The company closed operations in seven cities as part of its business transformation strategy[51]. - The company plans to continue strategic contraction in response to market changes and user retention challenges[56]. Market Environment - The global PCB industry value reached $65.219 billion in 2020, growing by 6.4% year-on-year, with China accounting for 53.7% of the total market[38]. - The number of fixed broadband access users in China reached 484 million by the end of the reporting period, with a net increase of 34.27 million users[41]. - Fixed broadband users with access speeds of 100 Mbps and above totaled 435 million, representing 89.9% of all fixed broadband users, an increase of 4.5 percentage points from the previous year[41]. - Revenue from fixed value-added services in China reached 174.3 billion yuan, growing by 26.9% year-on-year, with cloud computing and big data services seeing significant growth[42]. - The software and information technology service industry in China reported revenues of 2.2758 trillion yuan for software products, a year-on-year increase of 10.1%[42]. - The PCB industry is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2025, with the market value expected to reach 86.325 billion USD by 2025[85]. Research and Development - Research and development expenses increased by 10.62% to 307 million RMB, reflecting ongoing investment in new technologies[57]. - The company added one invention patent and one software copyright during the reporting period[48]. - The company is actively involved in the development of new technologies and solutions, leveraging big data, cloud computing, and AI[38]. - The company is establishing an open research institute to enhance its technical capabilities through collaboration with leading communication and consumer electronics clients[87]. Financial Management and Governance - The company has committed to a cash dividend policy, stating that it will distribute at least 10% of the distributable profits in cash annually over the next three years[103]. - The company plans to ensure that the cumulative cash dividends over three years will not be less than 30% of the average distributable profits for those years[103]. - The company has not proposed any cash profit distribution plans during the reporting period despite having positive profits available for distribution[102]. - The company has not engaged in any share repurchase activities that would count towards cash dividends[101]. - The company’s board approved a resolution to not distribute profits for the years 2019 and 2020 due to financial losses[100]. - The company has made commitments to avoid substantial competition with its controlling shareholders and related parties[102]. - The company has postponed the injection of assets from its controlling shareholders due to ongoing losses and restructuring processes[103]. - The company reported a total of 16,114.31 million RMB in financing leasing services and accounts receivable/payable factoring transactions with related parties[118]. - The company provided guarantees totaling 1,183,092,188.15 RMB, which accounts for 162% of the company's net assets[125]. Environmental Responsibility - The company has implemented a stable wastewater and air treatment system, adhering to ISO 14001 standards, ensuring compliance with national regulations[145]. - The company has established an internal environmental monitoring center to oversee pollution management and ensure compliance with emission standards[145]. - The company has maintained stable operations of its environmental protection facilities, with all pollutant emissions meeting the approved environmental assessment and discharge permit requirements[145]. - The company has not reported any major environmental issues or pollution incidents during the reporting period[151]. Shareholder Structure - The total number of common stock shareholders at the end of the reporting period was 180,828, an increase from 177,016 at the end of the previous month[156]. - The top shareholder, Beida Forward Information Industry Group Co., Ltd., held 276,333,368 shares, representing 12.59% of total shares[156]. - The company has no restricted shares among the top ten shareholders[156]. - The company’s controlling shareholder, Beida Forward Information Industry Group Co., Ltd., holds a 30.6% stake in Hong Kong-listed Forward Holdings[161]. - The company is undergoing a significant restructuring process, which may impact its equity structure[164]. Employee Management - The total number of employees in the parent company and major subsidiaries is 7,124, with 4,074 in production, 353 in sales, and 1,854 in technical roles[185]. - The company has established a competitive and equitable compensation system, providing various benefits including health checks and subsidies for employees in need[186]. - The training system is comprehensive, utilizing mentorship and project-based training to rapidly integrate new employees into the company[187]. - The company has a total of 210 employees with a master's degree or higher, and 2,030 with a bachelor's degree[185]. Legal and Compliance - The company has faced a total of 1,504 lawsuits from investors, with a total claim amount of approximately RMB 246 million, and has recognized a provision of approximately RMB 21.15 million for expected liabilities[115]. - There were no penalties imposed by securities regulatory authorities in the past three years[183]. - The company has not experienced any insider trading incidents during the reporting period[198].