ZWSOFT(SH:688083)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was RMB 456,090,102.13, representing a 26.31% increase compared to RMB 361,077,957.87 in 2019[31]. - The net profit attributable to shareholders for 2020 was RMB 120,381,858.67, a 35.15% increase from RMB 89,073,410.02 in 2019[31]. - The net cash flow from operating activities for 2020 was RMB 150,571,253.13, showing a 52.46% increase compared to RMB 98,760,809.83 in 2019[31]. - The total assets at the end of 2020 were RMB 680,067,658.14, a 27.03% increase from RMB 535,380,412.43 at the end of 2019[31]. - The net assets attributable to shareholders at the end of 2020 were RMB 490,862,944.53, reflecting a 19.70% increase from RMB 410,086,629.28 at the end of 2019[31]. - The basic earnings per share for 2020 was RMB 2.59, up 27.59% from RMB 2.03 in 2019[32]. - The net profit after deducting non-recurring gains and losses for 2020 was RMB 95,434,123.44, a 22.32% increase from RMB 78,020,670.53 in 2019[31]. - The company reported a revenue of 456.09 million RMB for 2020, representing a growth of 26.31% compared to 2019[158]. - The net profit attributable to the parent company's shareholders was 120.38 million RMB, an increase of 35.15% year-over-year[158]. - The net cash flow from operating activities was 150.57 million RMB, an increase of 52.46% year-on-year[192]. Dividend Distribution - The company plans to distribute a cash dividend of 7.00 RMB per 10 shares, totaling approximately 43.36 million RMB, which represents 36.02% of the net profit attributable to shareholders for the year 2020[7]. - The total share capital as of April 18, 2021, was 61,943,857 shares, which serves as the basis for the dividend distribution[7]. - The company did not conduct any capital reserve transfers or issue bonus shares for the year 2020[7]. Audit and Governance - The company has received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of the financial report[6]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - There are no non-operational fund occupations by controlling shareholders or related parties reported[9]. - The company has not violated any decision-making procedures regarding external guarantees[10]. - The company has not disclosed any special arrangements for corporate governance[11]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute a substantive commitment to investors[8]. Research and Development - The R&D investment as a percentage of operating income increased by 3.23 percentage points to 33.14%[35]. - Research and development (R&D) expenses amounted to ¥151,159,710.16, representing a 39.95% increase from the previous year's ¥108,012,969.64[132]. - R&D expenses accounted for 33.14% of total operating income, up from 29.91% in the previous year, indicating a 3.23% increase[132]. - The company has developed core technologies in 3D geometric modeling, finite element analysis, and mesh generation, enhancing its competitive edge in the market[127]. - The company has established a dedicated R&D team of 458 members, accounting for 50.05% of total employees, including 14 PhDs from prestigious universities[164]. - The company has strengthened its R&D capabilities by recruiting high-quality talent, leading to a more solid domestic industry position and increasing international influence[85]. Market Position and Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[20]. - The company is focused on enhancing its technology offerings, particularly in CAD/CAM and CAE software solutions, to meet evolving market demands[20]. - The company aims to expand the application of its ZW3D software into high-precision fields such as aerospace and automotive[149]. - The company has successfully built a product matrix centered around CAD/CAM/CAE, achieving full coverage in key industrial design and manufacturing areas[48]. - The company is well-positioned to benefit from the trend of domestic industrial software replacing foreign counterparts due to the emphasis on core technology localization[88]. - The company has successfully entered international markets, with product sales covering over 90 countries and regions, and global authorizations exceeding 900,000[167]. Product Development and Innovation - The company has developed its own 2D CAD platform and core technologies, maintaining independence from third-party suppliers, which enhances its competitive edge[75]. - The company has launched educational versions of its CAD products to foster innovation among students, including ZWCAD Education and ZW3D Education[54]. - The company has developed specialized software based on ZWCAD for different industries, including ZW CAD Mechanical and ZW CAD Architectural versions[51]. - The company has established R&D teams in multiple locations, including Guangzhou, Wuhan, Beijing, Shanghai, and Florida, focusing on technology autonomy and innovation[56]. - The company has developed a proprietary 3D geometric modeling kernel that has been validated through extensive industrial production[127]. - The company has implemented a complete data file reading and writing mechanism that supports various 3D design data formats, aligning with international standards[118]. Challenges and Risks - The company is actively addressing risks related to core technology leakage and personnel turnover, which could impact its competitive edge in the industrial software sector[174][175]. - The company faces challenges in transitioning from a perpetual licensing model to a subscription model, which may impact future cash flow stability[177]. - The company is at risk of market share erosion due to intensified competition from both international and domestic rivals in the CAD software industry[181]. - The company's revenue from ZWCAD and ZW3D series products accounted for over 90% of total revenue, indicating a risk due to product singularity[176]. Industry Overview - In 2020, the software and information technology services industry in China generated a total revenue of CNY 816.16 billion, reflecting a year-on-year growth of 13.3%[71]. - The profit for the software and information technology services industry reached CNY 106.76 billion in 2020, with a growth rate of 7.8% compared to the previous year[71]. - The trend of software legalization in China is expected to create a significant market demand for legitimate software suppliers, benefiting the company due to its competitive pricing[87]. - The increasing importance of industrial software in the manufacturing sector highlights the company's role in the digital transformation of manufacturing processes[88].