SMHC(SH:600131)2020-04-29 16:00Financial Performance - The company achieved an annual revenue of 7.765 billion RMB and a total profit of 571 million RMB in 2019[3]. - The company's operating revenue for 2019 was CNY 7,765,101,078.28, representing an increase of 18.40% compared to CNY 6,558,636,343.65 in 2018[20]. - The net profit attributable to shareholders for 2019 was CNY 486,978,325.97, up 19.25% from CNY 408,365,345.54 in 2018[20]. - The company reported a net profit of CNY 349,510,374.01 for 2019, an increase from CNY 289,688,056.57 in 2018, representing a growth of approximately 20.7%[27]. - The company reported a net profit of 2 billion RMB, with a profit margin of 20%, compared to 15% last year[169]. Assets and Equity - Total assets at the end of the year amounted to 8.895 billion RMB, with shareholders' equity reaching 2.737 billion RMB[3]. - The company's total assets at the end of 2019 were CNY 8,895,368,039.64, a 4.08% increase from CNY 8,546,669,918.26 in 2018[20]. - The net assets attributable to shareholders at the end of 2019 were CNY 2,737,000,357.88, down 5.84% from CNY 2,906,744,378.67 in 2018[20]. Dividends - The company plans to distribute a cash dividend of 1.25 RMB per 10 shares, resulting in an estimated total distribution of approximately 149.42 million RMB, with a cash dividend ratio of 30.68%[9]. - The company reported a cash dividend of 0.50 RMB per 10 shares for 2018, totaling 25,206,257.75 RMB, which is 24.51% of the net profit attributable to shareholders[75]. Business Strategy and Development - The company aims to become a leading provider of cloud-network integrated technology products and services in China[3]. - The company emphasizes the importance of talent development and technological innovation to enhance core competitiveness[5]. - The company will focus on deepening traditional business markets while accelerating the development of emerging business markets[5]. - The company intends to strengthen compliance culture and establish an internal control system that meets business development needs[5]. - The company aims to enhance its digital infrastructure and capabilities in response to the growing demand for 5G and industrial internet applications[63]. Research and Development - Research and development expenses totaled ¥230,789,772.87, a 15.22% increase from ¥200,310,062.39, accounting for 4.92% of total revenue[48]. - The total R&D investment was ¥381,989,227.57, with capitalized R&D accounting for 39.58% of the total[49]. - The company holds over 1,000 patents and software copyrights in the energy sector, supported by a strong R&D team of nearly 800 professionals[38]. Market and Industry Trends - The cloud computing market in China exceeded USD 10.7 billion in 2019, with a strong demand for software and information technology services, growing by 15.4% year-on-year[33]. - The telecommunications industry in China achieved a total business volume of CNY 1.74 trillion in 2019, representing a year-on-year growth of 18.5%[34]. - The company’s revenue from information technology services reached CNY 42,574 billion in 2019, with a year-on-year growth of 18.4%[33]. Compliance and Governance - The company intends to strengthen its internal control and compliance management systems to mitigate risks and ensure legal compliance across operations[69]. - The company has implemented measures to ensure compliance with regulations regarding related party transactions post-restructuring[80]. - The company has committed to maintaining the interests of all shareholders and will not seek preferential treatment in transactions with the listed company[89]. Legal and Regulatory Matters - The company has no significant litigation or arbitration matters pending[110]. - The company is involved in a lawsuit against Huiyuan Group for a breach of contract regarding the establishment of a high-energy-consuming enterprise, claiming a penalty of RMB 7.65 million[116]. - The company has initiated legal proceedings to recover debts from Tianwei Sichuan Silicon Industry Co., Ltd. due to its bankruptcy status[115]. Shareholder Structure - The largest shareholder, State Grid Information Communication Industry Group Co., Ltd., holds 50.46% of the shares, totaling 558,713,938 shares[153]. - The total number of ordinary shares increased from 504,125,155 to 1,107,346,251 shares after the issuance of 603,221,096 new shares during the major asset restructuring[149]. Future Outlook - The company provided a future outlook with a revenue guidance of 12 billion RMB for the next fiscal year, indicating a growth target of 20%[169]. - The company plans to implement a new marketing strategy focusing on digital channels, aiming to increase customer engagement by 30%[167]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[169].