SHIJIA TECH(002796)2021-04-26 16:00Financial Performance - The company reported a total revenue of 252,426,948 RMB for the year 2020, with no cash dividends distributed to shareholders [4]. - The company's operating revenue for 2020 was ¥1,640,945,850.17, a decrease of 12.31% compared to ¥1,871,298,846.63 in 2019 [20]. - The net profit attributable to shareholders for 2020 was ¥37,728,449.47, down 60.48% from ¥95,460,136.28 in 2019 [20]. - The net cash flow from operating activities in 2020 was ¥40,402,387.42, a significant decline of 85.22% compared to ¥273,368,137.65 in 2019 [20]. - The basic earnings per share for 2020 was ¥0.15, a decrease of 60.53% from ¥0.38 in 2019 [21]. - The total assets at the end of 2020 were ¥2,416,023,484.37, a slight decrease of 0.65% from ¥2,431,854,690.77 at the end of 2019 [21]. - The net profit attributable to the parent company was CNY 3,772.84 million, down 60.48% compared to the previous year [52]. - The company's total assets amounted to CNY 241,602.35 million, a decrease of 0.65% year-on-year [51]. - The company reported a significant drop in the net profit excluding non-recurring gains and losses, which was ¥30,232,907.24 in 2020, down 65.03% from ¥86,447,076.56 in 2019 [20]. Dividend Policy - The company plans to distribute a stock dividend of 0 shares per 10 shares held, indicating no increase in share capital from reserves [4]. - The board of directors has approved the profit distribution plan, emphasizing the commitment to maintaining shareholder value despite the lack of cash dividends [4]. - The company plans to not distribute cash dividends for the fiscal year 2020 due to significant cash expenditures related to the construction of the Jianlin Road Phase II project [144]. - The company has adjusted its profit distribution policy, with a cash dividend of 0.50 yuan per share (totaling 8.414569 million yuan) approved for the 2019 fiscal year [141]. - The company has not proposed any cash dividend distribution plan despite having positive distributable profits for the reporting period [147]. - The total distributable profits for the company amount to CNY 70.2749 million [148]. - The company’s board and supervisory committee have approved the decision to not distribute dividends, pending shareholder meeting approval [152]. Market and Operational Strategy - The company is focusing on expanding its market presence and enhancing its product offerings in response to industry trends [4]. - The company is actively engaged in research and development of new technologies to stay competitive in the market [4]. - The company has established a complete industrial chain involving metal processing manufacturing, focusing on precision metal manufacturing and mobile communication equipment [31]. - The company has established production bases in Suzhou and Zhongshan to quickly respond to customer demands in the Yangtze River Delta and Pearl River Delta regions [33]. - The company is exploring opportunities for mergers and acquisitions to bolster its market position and capabilities [4]. - The company plans to focus on the communication industry and leverage opportunities in 5G base station construction in 2021 [53]. - The company aims to optimize resource allocation in the precision box system business and expand market share in specialized equipment box systems, targeting major clients like Schindler and Thyssenkrupp [123]. - The company will continue to develop its mobile communication equipment business, aiming to enter the supplier system of major operators like T-Mobile and AT&T [125]. Risks and Challenges - The company has outlined potential risks and corresponding mitigation strategies in its future development outlook section [4]. - Future projections indicate a cautious approach to growth, with an emphasis on risk management and strategic planning [4]. - The company is facing risks from weak market demand and potential delays in 5G construction, which could impact revenue growth in both precision box systems and mobile communication equipment [127]. - Rising raw material prices, including stainless steel and aluminum, could adversely affect the company's operating performance if product prices are not adjusted timely [130]. - The company faces rental risks due to potential increases in rental costs and the possibility of needing to relocate if properties are reclaimed by the government [131]. - The company reported accounts receivable of 214.197 million yuan, which has been increasing annually alongside rapid business growth, raising concerns about collection risks [133]. Research and Development - Research and development expenses for 2020 were CNY 75.92 million, accounting for 4.63% of operating revenue [46]. - The number of R&D personnel decreased by 9.90% to 282, while the proportion of R&D personnel remained relatively stable at 14.23% [75]. - The company plans to strengthen R&D investment and technology innovation, focusing on 5G base station filters and antennas, to maintain technological leadership [125]. Customer and Supplier Relationships - The report highlights the importance of maintaining strong relationships with key clients in the telecommunications sector [4]. - The company's mobile communication equipment products are primarily used in 4G and 5G base stations, with increasing competition potentially affecting order acquisition and pricing [128]. - The top five customers accounted for 77.52% of total sales, with the largest customer contributing 37.24% [67]. - The total procurement amount from the top five suppliers was ¥273,262,617.51, representing 18.75% of total procurement [69]. Financial Management and Compliance - The company has established a management responsibility for accounts receivable, with potential additional lock-up of shares if the management responsibility amount remains after the annual audit [153]. - The company has committed to ensuring the independence of its operations and management structure post-transaction, protecting the interests of all shareholders [159]. - The company has established a governance structure to maintain operational independence in business, assets, finance, and personnel [159]. - The company has established a compliance framework to adhere to relevant laws and regulations regarding share transactions [165]. - The company will ensure compliance with the performance obligations related to share lock-up and release [153]. Impact of COVID-19 - The company faced challenges in 2020 due to the COVID-19 pandemic, which affected production rates and export expectations [182]. - Suzhou Sega Technology Co., Ltd. reported a net profit decline of 39.68% for Suzhou Bofate Electronics Technology Co., Ltd. and 54.45% for Kunshan Endian Communication Equipment Co., Ltd. due to COVID-19 impacts, insufficient operating rates, and unmet expectations in 5G base station construction [115].