弘信电子(300657) - 2020 Q4 - 年度财报

Financial Performance - The company's net profit significantly declined due to the COVID-19 pandemic, with a severe loss in Q1 impacting the overall annual performance[5]. - The net profit attributable to shareholders decreased by 56.52% to approximately ¥77.51 million in 2020 from ¥178.25 million in 2019[22]. - The company's revenue for 2020 was approximately ¥2.645 billion, representing a 7.11% increase compared to ¥2.470 billion in 2019[22]. - The basic earnings per share decreased by 60.34% to ¥0.23 in 2020 from ¥0.58 in 2019[22]. - The diluted earnings per share also decreased by 58.62% to ¥0.24 in 2020 from ¥0.58 in 2019[22]. - The weighted average return on equity was 5.38% in 2020, down from 20.03% in 2019, indicating a significant decline in profitability[22]. - The company reported a net profit of approximately -¥39.23 million after deducting non-recurring gains and losses in 2020, compared to a profit of ¥105.03 million in 2019, marking a 137.35% decrease[22]. - The company achieved operating revenue of CNY 264,520.83 million, a year-on-year increase of 7.11%, while net profit attributable to shareholders was CNY 7,750.76 million, a decline of 56.52% compared to the previous year[55]. Market Conditions - The domestic smartphone market saw a decrease in shipment volume and new model launches, contributing to intensified competition and reduced product prices[5]. - The company faced a substantial drop in demand from key terminal customers due to US-China trade tensions, leading to unavoidable adverse effects on performance[5]. - The FPC industry is highly competitive, with both foreign and domestic players intensifying competition, necessitating increased investment in high-end product development[10]. - The decline in net profit was primarily due to the impact of COVID-19, which severely affected production capacity in Q1, leading to significant revenue loss and high operational costs[56]. Strategic Initiatives - Despite the challenges, the company aims to recover in 2021 by optimizing internal management and enhancing customer order structures[6]. - The company plans to strengthen its product structure by focusing on high-end boards and developing pressure sensors as part of its FPC+ business strategy[7]. - The company is actively negotiating with suppliers to mitigate the impact of rising raw material prices and is exploring alternative materials[8]. - The company is focusing on R&D for new products and technologies, particularly in 5G applications and automotive sectors, supported by funds raised through private placements[61]. - The company is targeting a diversified business structure, focusing on mobile modules, automotive electronics, FPC+, industrial control medical, and overseas markets[42]. Research and Development - The company has a strong focus on R&D, with its R&D center recognized as a national enterprise technology center, enhancing product performance and production processes[43]. - The company has established a flexible electronics research institute to enhance R&D capabilities in collaboration with universities and research institutions, aiming to transition from traditional manufacturing to a R&D-driven enterprise[44]. - The company completed several key R&D projects, including the full-screen LCD under-display fingerprint backlight module and the dual-blind hole structure backlight module, enhancing production capabilities[81]. - Research and development expenses increased by 24.79% to CNY 120,966,066.72, reflecting a focus on market-driven R&D[79]. Production Capacity and Investments - The company is actively expanding its production capacity to meet the increasing demand from downstream markets, particularly in the context of 5G and automotive electronics[39]. - The company invested CNY 1.72 billion in fixed assets and CNY 275 million in equipment for its flexible electronics industrial park during the reporting period[46]. - The company is focusing on expanding its production capacity, with significant investments in flexible printed circuit board technology upgrades and intelligent production lines[99]. - The company plans to release significant production capacity for multilayer boards in 2021 to meet customer demand in OLED screens[34]. Financial Management and Shareholder Relations - The board approved a profit distribution plan, proposing a cash dividend of 0.6 yuan per 10 shares and a capital reserve conversion of 2 shares for every 10 shares held[11]. - The cash dividend payout ratio for 2020 was 26.26% of the net profit attributable to shareholders[134]. - The company has committed to fulfilling various promises related to share transfers and capital increases as per regulatory requirements[136]. - The company has established a commitment to notify the issuer three trading days in advance before any planned share reduction[138]. Environmental and Social Responsibility - The company has maintained a focus on environmental protection and energy consumption reduction in its production processes[180]. - The company has implemented advanced wastewater treatment technology combining chemical treatment and membrane processes, ensuring compliance with environmental standards[185]. - The company has established a dedicated water management department to oversee the operation and maintenance of environmental protection facilities[185]. - The company has conducted emergency drills for environmental incidents, enhancing its emergency response capabilities[188]. Subsidiaries and Joint Ventures - The company’s subsidiary, Xiamen Honghan Optoelectronics, achieved operating revenue of CNY 97,937.47 million, a year-on-year increase of 24.04%, despite a net loss of CNY 294.86 million[63]. - The company has established stable strategic partnerships with major manufacturers such as Xiaomi and BYD, enhancing its market presence[34]. - The company has invested 28,500,000 in Shenzhen Ruihu Technology, acquiring a 23.50% stake, which is expected to enhance its sensor production capabilities[96].