LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
Stock Code: 002600 Stock Abbreviation: LY iTECH Announcement No.: 2021-026
LINGYI iTECH (GUANGDONG) COMPANY
2020 Annual Report Summary
I．Important Notes
Please be noted that this summary is extracted from the Company’s full annual report filing to the regulatory authority. To
access more detailed information on the Company's operating results, financial status and future development plans,
investors shall read the full annual report thoroughly. Annual report has been disclosed with the media designated by the
China Securities Regulatory Commission (CSRC).
Indicated by check mark if the statement of objections by directors, supervisors and senior management
□ Applicable N/A
All directors of the Company personally attended the board meeting to review this annual report
Notes of non-standard audit opinion
□ Applicable N/A
Indicated by check mark whether the dividend distribution plan for the common stock or the plan of converting reserved
funds into share capital during the reporting period was reviewed by the board meeting
□ Applicable N/A
Indicated by check mark whether to convert reserved funds into share capital
□ Yes N/A
The Company does not propose distribution of cash dividends or bonus shares, and there will be no increase of share
capital from reserves.
Indicated by check mark whether the dividend distribution plan for the preferred stock during the reporting period is
approved by the board of directors.
Applicable N/A
This summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings
between the two versions, the Chinese versions shall prevail.
II. Basic Situation of the Company
1. Company Profile
Stock Abbreviation LY iTECH Stock Code 002600
Stock Exchange for Stock Listing Shenzhen Stock Exchange
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
Contact Person and Contact
Secretary of the Board Securities Affairs Representative
Information
Name Manjun Lei ,Minling Huang
8 LongWan Road, Jiangmen City, 8 LongWan Road, Jiangmen City,
Contact Address
GuangDong Province, China GuangDong Province, China
Tel 0750-3506078 0750-3506078
Email Mia.Lei@lingyiitech.com IR@lingyiitech.com
2. Main Business or Product Introduction during the Reporting Period
LINGYI iTECH (GUANGDONG) COMPANY (hereinafter referred to as "LY iTECH") is dedicated to be a global leader on
precision manufacturing and creatively offers ‘one-stop’ solutions to its customers. Product solutions of the Company span
a wide range of categories, from basic materials to precision components to core devices and modules, satisfying a diverse
of customer demands in a timely manner. Among which, basic materials include magnetic materials, die-cutting materials
and ceramic applications; precision components include die-cutting, stamping, CNC, injection molding, printing, assembly,
etc.; core devices and modules include linear motors, wireless charging, chargers, softgoods, keyboards, thermal modules,
5G RF devices, structural parts, etc. Related products are widely used in consumer electronics, vehicle-mounted industrial
control, smart security, smart wear, smart home, new energy vehicles, medical and other fields. During the reporting period,
the company continued to innovate and upgrade in consumer electronics, smart wearables, and new energy vehicles,
providing broad market space and huge development potential for the company. The company continues to adopt the key
customer-centric strategy while actively exploring other customers, expanding product lines, and vertically integrating,
leveraging the advantages of the group to improve its comprehensive competitiveness in order to achieve rapid
development. With the mission of "Lead the world with intelligent manufacturing and exert to achieve dreams", the
Company establishes the vision of “Managing with modern management concepts and continuous pursuit of excellence,
we aim to become the world’s leading precision intelligent manufacturing enterprise” and to set the Company leading
positions in the corresponding industry segments worldwide.
3. Major Financial Information
(1) Major accounting data and financial indicators in the past three years
Indicated by check mark whether the financial data for previous fiscal years need to be retroactively adjusted or restated.
Yes □ No
Retroactive adjustment or restatement reasons
Business combination under common control
Unit: RMB
Increasing or
decreasing
2019 compared with 2018
2020
the previous
year
Unadjusted Adjusted Adjusted Unadjusted Adjusted
28,142,547,99 23,915,823,14 23,915,823,14 22,499,664,4 22,499,664,452.5
Operating revenue 17.67%
0.05 7.04 7.04 52.56 6
Net profits attributable 2,266,162,950. 1,894,179,510. 1,894,898,038. -679,896,383
19.59% -678,370,412.06
to shareholders of the 77 15 16 .51
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
parent company
Net profits attributable
to shareholders of the
2,112,419,075. 906,772,872.8 906,772,872.8 -3,850,682.3
parent company after 132.96% -3,850,682.35
72 2 2 5
deducting non-recurring
gains and losses
Net cash flow from 2,469,829,699. 2,997,104,502. 2,995,881,380. 1,532,292,45
-17.56% 1,533,290,478.77
operating activities 50 13 58 7.49
Basic earnings per
share 0.33 0.28 0.28 17.86% -0.10 -0.10
(RMB/share)
Diluted earnings per
share 0.32 0.27 0.27 18.52% -0.10 -0.10
(RMB/share)
Weighted average
17.09% 17.49% 17.49% -0.40% -6.90% -6.90%
return on equity
Increasing or
decreasing at
the end of this
At the end of At the end of 2019 At the end of 2018
year compared
2020
with the
previous year
Unadjusted Adjusted Adjusted Unadjusted Adjusted
29,387,252,88 27,317,778,00 27,323,586,39 22,122,169,1 22,130,390,445.0
Total assets 7.55%
0.86 1.39 2.75 81.25 2
Net assets attributable
14,457,125,13 11,619,265,29 11,621,093,91 9,848,983,37
to shareholders of the 24.40% 9,850,093,457.56
6.25 9.73 0.85 4.45
parent company
(2) Major accounting data by quarter
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 5,379,395,655.70 6,564,820,257.72 7,557,792,326.30 8,640,539,750.33
Net profits attributable to
shareholders of the parent 64,876,078.75 566,441,681.24 810,529,509.63 824,315,681.15
company
Net profits attributable to
shareholders of the parent
307,289,351.77 299,978,786.68 778,225,240.18 726,925,697.09
company after deducting
non-recurring gains and losses
Net cash flow from operating
1,112,267,310.07 -194,608,082.78 280,627,655.17 1,271,542,817.04
activities
Indicated by check mark whether the above financial indicators or the total amount are significantly different from the
related financial indicators in the Company’s disclosed quarterly and half-year reports
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
□ Yes No
4. Share Capital and Shareholders
(1) Number of common stockholders and preferred stockholders with voting rights restored and
the shareholding conditions of the top 10 shareholders
Unit: Share
Total number of
Total number of Total number of
preferred
Total number of common preferred
shareholders whose
common shareholders at the shareholders
voting rights were
shareholders at the 149,764 end of the month 195,580 with voting 0 0
restored at the end of
end of the reporting before the rights restored
the month before the
period disclosure of the at the end of the
disclosure of the
annual report reporting period
annual report
Shareholdings of the Top 10 Shareholders
Number of Pledged or frozen
Number of
Shareholder Shareholder shares held with
Shareholder name shareholder Statues of
nature ratio limited sales Amount
held Shares
conditions
Domestic
LS INVESTMENT
non-state legal 58.77% 4,139,524,021 4,139,524,021 Pledged 398,490,000
(SHENZHEN) LIMITED
person
Domestic
Wang Nandong 3.70% 260,443,413 253,165,237 Frozen 260,443,413
nature person
Shenzhen Lingshang Domestic
Investment Partnership non-state legal 2.78% 196,103,812 196,103,812
(Limited Partnership) person
Hong Kong Securities Overseas legal
2.21% 155,548,852
Clearing Company Limited person
Shenzhen Lingjie Investment Domestic
Partnership (Limited non-state legal 1.33% 93,859,344 93,859,344
Partnership) person
The Government of
Overseas legal
Singapore Investment 0.90% 63,666,370
person
Corporation Pte Ltd
China Merchants Bank Co.,
Ltd. - Ruiyuan growth value
Others 0.89% 62,467,309 17,185,821
hybrid securities investment
fund
Domestic
Chen Guoshi 0.79% 55,461,576 55,461,576
nature person
Bank of China Limited - China Others 0.63% 44,598,435
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
Securities 5g communication
subject trading open end
index securities investment
fund
Domestic
Cao Yun 0.54% 37,871,329 18,697,258 Pledged 5,000,000
nature person
Zeng Fangqin is the actual controller of LS INVESTMENT (SHENZHEN)
LIMITED and has significant influence on Shenzhen Lingshang Investment
Partnership (Limited Partnership) and Shenzhen Lingjie Investment
Partnership (Limited Partnership). LS INVESTMENT (SHENZHEN)
LIMITED, Shenzhen Lingshang Investment Partnership (Limited
Description of the above-mentioned Partnership) and Shenzhen Lingjie Investment Partnership (Limited
shareholder association or concerted action Partnership) constitute a concerted action relationship. There is no
association between Wang Nandong, Cao Yun, and Chen Guoshi. Save for
the above, it is not aware that any other above-mentioned shareholders are
persons acting in concert. In addition, the company does not know whether
other shareholders of the top 10 common shares are related and constitute
a concerted action relationship.
Shareholders involving margin business (if
N/A
applicable)
(2) The total number of preferred shareholders and the top 10 preferred shareholders'
shareholdings of the Company
□ Applicable N/A
During the reporting period, the Company did not have preferred stockholders holding shares.
(3) The property rights and controlling interest between the Company and the actual controller are
disclosed in block diagram below
5. Corporate Bond
Whether the Company has bonds publicly issued and listed on the stock exchange that have not expired or expired but not
paid in full on the date of approval of the annual report
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
No
III. Discussion and Analysis of Business Operation
1. Overview of Business Operation during the Reporting Period
In 2020, the global outbreak of COVID-19 has caused a great impact on the world economy and brought great challenges
to Chinese manufacturing companies under globalization. Facing the sudden impact of the epidemic, our people gave full
play to the entrepreneurial spirit of “Self – reliance, Mission must accomplish”. For example, we quickly organized
resumption of work and production, seized market opportunities, and cooperated with customers’ new product NPI (New
Product Introduction), fully support the customer's production plan and complete the annual business goals with excellent
results.
In 2020, the company realized revenue of RMB 28,142.55 million in business, an increase of 17.67% comparing with the
same period of previous year. After excluding the impact of Shenzhen DJN Optronics Technology Co., LTD. and the equity
of Guangdong JP Hi-tech Industrial Park co., Ltd. were disposed in the year, the current period increased by 38.14%
compared with the previous period. In 2020, the company achieved a net profit of RMB 2,324.22 million in the
manufacturing industry, an increase of 16.26% compared with RMB 1,999.15 million in the same period of the previous
year. After excluding the influence of the disposed Shenzhen DJN Optronics Technology Co., LTD. and the equity of
Guangdong JP Hi-tech Industrial Park co., Ltd., the current period increased by 18.79% compared with the previous period.
Net profits attributable to shareholders of the parent company was RMB 2,266.16million, an increase of 19.59% compared
with RMB 1,894.90 million in the same period of the previous year. The R&D investment in 2020 is RMB 1,819.91 million,
accounting for 6.47% of the currentrevenue.
Among which, Lingyi Technology (Shenzhen) Co.,Ltd (hereinafter referred to as "Lingyi Technology") and its subsidiaries
achieved the net profit attributable to the owner of the parent company in an amount of RMB 2,545.33 million, an increase
of 3.32% comparing with the same period of previous year; after deducting the non-recurring gains and losses, the net
profit attributable to the owner of the parent company is in an amount of RMB 2,413.84 million, with the amount of RMB
170.42 million more than the year 2020 performance commitment RMB 2,243.43 million under the valuation adjustment
mechanism (VAM) originally made at the completion of reverse IPO .From 2017 to 2020, the performance commitment of
Lingyi Technology is fully fulfilled with a performance commitment completion rate as 124.22%.
2. Is there any major change in the main business during the reporting period?
□ Yes No
3. Overview of products which account for more than 10% of the revenue or profit of the
Company’s main business
Applicable □ N/A
Unit：RMB
Gross Changes in Changes in
Operating Changes in
Name of Product Operating Profit Profit Operating Gross Profit
Revenue Operating Profit
Margin Revenue Margin
Precision
functional and 21,695,363,219.12 5,528,634,499.51 25.48% 28.13% 24.51% -0.75%
structural parts
Charger 3,896,785,185.06 222,854,247.96 5.72% 150.28% 29.37% -5.34%
4. Is there any seasonal or periodical characteristics in the operation which needs special
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
attention?
□ Yes No
5. Presentation of major changes in operating revenue, operating cost, total amount or
composition of net profits attributable to shareholders of common stock of public company
during the reporting period when compared to the previous reporting period
□ Applicable N/A
6. Conditions of suspension and termination of listing
□ Applicable N/A
7. Matters related to financial statements
(1) Explanation of changes in accounting policy, accounting estimates and accounting methods
when compared to the financial statements of the previous year
Applicable □ N/A
1) Changes in accounting policy
Approval
Changes in accounting policy and reasons Note
procedures
Since January 1, 2020, the Company has implemented “Accounting Standards for Board of
Business Enterprises No. 14 – Revenue” revised in 2017 directors ①
① The influence of the implementation of the new revenue standard on the company
According to the provisions of the new revenue standard, the first adjustment amount of cumulative impact of the first
implementation is to implement the amount of retained earnings and other related items in the financial statements at the
beginning of the first implementation period (ie January 1,2020),and it shall not be adjusted for the comparable period
information.
When implementing the new revenue standard, the selection is only to adjust the cumulative impact amount of contracts
that have not been completed on January 1, 2020. For contract changes that occurred before the beginning of the earliest
comparable period or before the beginning of 2020, no retrospective adjustments are made and the changes are based on
the contract. The final arrangement is to identify the fulfilled and unfulfilled performance obligations, determine the
transaction price, and allocate the transaction price between the fulfilled and unfulfilled performance obligations.
The influence of the implementation of the new revenue standard on the balance sheet at the beginning of the period is
listed below:
Items 2019.12.31 Reclassification 2020.1.1
Advances 2,645.62 -2,645.62
Contract liabilities 2,465.99 2,465.99
Other current liabilities 179.63 179.63
From 1 January 2020, according to the revised “Accounting Standards for Enterprises No.14–Revenues”, transportation fee,
storage fee and customs declaration fee are necessary for the company to perform contract obligation, which shall be
included in the operating cost as contract cost. The amount of reclassification in the reporting period is RMB 165.31 million.
LINGYI iTECH (GUANGDONG) COMPANY 2020 Annual Report Summary
(2) Explanation of ratification of major accounting error in the reporting period which needs to be
tracked and restated
□ Applicable N/A
No ratification of major accounting error in the reporting period which needs to be tracked and restated.
(3) Explanation of changes in the scope of combined financial statements when compared with
financial statements of the previous year
Applicable □ N/A
The Company established subsidiaries: Shenzhen Lingtao Technology Co., Ltd., Shenzhen Lingpeng Intelligent
Technology Co., Ltd., Triumph Lead (Singapore) Pte. Ltd., SALCOMP TURKEY TEKNOLOJI SANAYI VE TICARET
ANONIM SIRKETI;
The company acquired YiDao Medical Technologies (Suzhou) Co., Ltd. through business combination under common
control;
The company transferred all the equity of Dongguan Jinri Mould Co., Ltd., Guangdong JP Hi-tech Industrial Park co., Ltd.,
Shenzhen DJN Optronics Technology Co., LTD., Ganzhou DJN Optronics Technology Co., LTD., DJN Optronics (Shenzhen)
Co., LTD., DJN Semiconductor (Shenzhen) Co., Ltd., HK DJN Optronics Technology Co., LTD;
The company cancelled Chongqing DJN Optronics Technology Co., LTD., Chongqing DONGFANG LIANGCAI PRECISION
TECHNOLOGY CO., LTD., Ling Yi (Jiangsu) Precision Electronics Manufacturing Co., Ltd., Guangdong Jiangfen Financial
Services Holdings Co., Ltd., Shenzhen Longyuan Huixin Technology Co., Ltd.
