DKEM(300842)2021-04-25 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15% compared to 2019[16]. - The gross profit margin for 2020 was 30%, a decrease of 5% from the previous year, indicating challenges in maintaining profitability[16]. - The company's operating revenue for 2020 was ¥1,581,544,560.49, representing a year-over-year increase of 21.71%[21]. - The net profit attributable to shareholders for 2020 was ¥1,299,421,610.08, an increase of 16.10% compared to 2019[21]. - The net profit after deducting non-recurring gains and losses was ¥80,059,617.83, reflecting a growth of 15.30% year-over-year[21]. - The total assets at the end of 2020 amounted to ¥1,618,609,280.55, showing an increase of 82.85% from the previous year[21]. - The company's operating cash flow was negative, raising concerns about liquidity and operational sustainability[6]. - The company's cash flow from operating activities was negative at -¥520,598,228.39, a significant decline of 907.55% compared to the previous year[21]. - The company reported a weighted average return on equity of 13.27% for 2020, down from 19.24% in 2019, a decrease of 5.97%[21]. - The company achieved a net profit attributable to shareholders of 82,086,519.78 yuan for the year 2020[153]. Research and Development - The company plans to invest 10% of its revenue into R&D for new product development and technological innovation in the upcoming year[16]. - The company invested CNY 57,161,200 in R&D in 2020, maintaining its leading position in the industry[66]. - The company has established a self-research and development system, focusing on market-oriented and customer-driven innovation, leading to multiple core technologies in conductive silver paste[48]. - The company is focused on developing conductive silver paste for photovoltaic cells, which is crucial for enhancing conversion efficiency in solar energy applications[33]. - The company is actively researching conductive adhesives for semiconductor packaging to meet diverse thermal conductivity requirements[126]. - The company plans to strengthen its product offerings in the semiconductor electronic packaging field, expanding its product application areas[64]. - The company is constructing a new R&D center in Shanghai, expected to be operational by mid-2021, to enhance its R&D capabilities[66]. Market Strategy and Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 25% increase in market share within the next two years[16]. - User data showed an increase in customer base by 20%, reaching a total of 500,000 active users by the end of 2020[16]. - The company aims to enhance its market share in conductive silver paste for solar cells, focusing on high-performance products and expanding into N-type solar cell applications[124]. - The company has established a long-term stable partnership with major photovoltaic manufacturers, enhancing its brand image as "efficient, stable, and reliable" in the market[64]. - The company has implemented a direct sales model primarily targeting high-quality customers, supported by a responsive sales and R&D team[43]. - The company is enhancing service quality for existing customers, aiming to increase market share and expand sales resources towards leading clients in the photovoltaic sector[49]. Risks and Challenges - The company is facing risks including market competition and fluctuations in exchange rates, which could impact future performance[6]. - The company is at risk of declining gross margins due to intensified competition and market pressures, which may affect pricing strategies[135]. - The company is exposed to foreign exchange risks due to its reliance on imported raw materials, primarily settled in USD and JPY[136]. - The company faces risks from increasing market competition, as domestic firms improve the quality of conductive silver paste, attracting more competitors into the market[132]. - The company has implemented measures to manage cash flow risks, including optimizing settlement methods and enhancing receivables management[139]. Shareholder and Governance - The company has no plans to distribute cash dividends or issue bonus shares for the fiscal year 2020[6]. - The company proposed not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the year 2020, with undistributed profits carried forward to the next year[153]. - The cash dividend total for 2020 was 0.00 yuan, representing 0.00% of the total profit distribution[148]. - The company has not distributed any cash dividends in the past three years, maintaining a consistent policy of reinvesting profits into business development[156]. - The company emphasizes the importance of using undistributed profits to support daily operations and long-term development needs[158]. - The company is committed to improving its governance structure and ensuring compliance with relevant laws and regulations[77]. Legal and Compliance - The company has ongoing litigation involving a total amount of RMB 736.03 million related to unpaid debts from a contract with Zhongdian Nanjing[195]. - The company has a pending lawsuit against Nantong Sumin New Energy Technology Co., Ltd. for RMB 30.03 million, with a repayment agreement reached in January 2021[198]. - The company received RMB 610,000 from a previous lawsuit settlement related to Jiangyin Xinhui Solar Energy Co., Ltd. after the bankruptcy proceedings were concluded[198]. - There are no penalties or rectification measures reported during the reporting period[199]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[194].