Join-Cheer(002279)2021-04-16 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,821,408,719.24, a decrease of 9.04% compared to ¥3,101,650,196.18 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥71,626,575.82, representing a 37.05% increase from ¥52,264,905.34 in 2019[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥206,488,912.47, with no comparison available for 2019 due to negative values[24]. - The net cash flow from operating activities increased by 16.98% to ¥196,546,348.04 in 2020 from ¥168,011,622.15 in 2019[24]. - The basic earnings per share for 2020 was ¥0.1007, up 37.01% from ¥0.0735 in 2019[24]. - The company's total assets at the end of 2020 were ¥2,667,022,974.11, a decrease of 12.16% from ¥3,036,280,249.02 at the end of 2019[24]. - The net assets attributable to shareholders at the end of 2020 were ¥1,053,445,186.39, down 9.37% from ¥1,162,415,452.99 at the end of 2019[24]. - The company reported a significant increase in government subsidies, with amounts of ¥16,106,464.66 in 2020 compared to ¥5,871,818.75 in 2019[30]. - The total operating revenue for the company was 2,821,408,719.24 yuan, a decline of 9.04% compared to 3,101,650,196.18 yuan in the previous year[71]. - The company's electronic government business revenue was 503,920,885.43 yuan, down 27.80% from the previous year, while maintaining a gross margin of 81.29%[75]. Business Strategy and Development - The company plans to strengthen its technology research and development capabilities and increase R&D investment to enhance core competitiveness[7]. - The company aims to deepen its market presence and enhance technological innovation to mitigate risks from macroeconomic fluctuations and policy changes[6]. - The company emphasizes the importance of adapting to rapid technological changes and market demands to maintain its competitive edge[7]. - The company is focusing on integrating emerging technologies such as cloud computing, big data, and artificial intelligence with the real economy to enhance data governance for government and enterprise clients[37]. - The company is focusing its development strategy more on core management software business[105]. - The company plans to use self-funded or self-raised funds for future investments in projects that have changed their fundraising purposes[110]. - The company is exploring new business growth points in online insurance, online education, and gaming sectors due to changing market demands[67]. - The company aims to focus on industry-specific solutions to create differentiated advantages and expand its market presence in sectors such as finance, transportation, and education[127]. Risk Management - The company reported a significant risk related to accounts receivable due to the large scale of its media resource costs, which could impact cash flow if not managed properly[8]. - The company has established a customer credit rating system to improve the collection of accounts receivable and mitigate financial risks[8]. - The company is actively monitoring the legal proceedings related to the Shanghai Yitong case, which may affect its financial position depending on the outcome[10]. - The company is committed to enhancing post-merger management to reduce the risk of goodwill impairment[10]. Research and Development - The company launched the "Nüwa Platform," a next-generation technology platform aimed at facilitating the digital and intelligent transformation of government departments and large enterprises[42]. - The company obtained 149 new software copyrights and 5 invention patents during the reporting period, bringing the total to 1,015 software copyrights and 37 patents[43]. - Research and development expenses totaled CNY 293,923,353.34 in 2020, accounting for 10.42% of operating revenue, a decrease of 15% from the previous year[86]. - The company has invested significantly in R&D for the next-generation group management platform, leveraging new technologies such as SaaS and big data[104]. Corporate Governance and Compliance - The company has committed to avoiding or minimizing related party transactions and ensuring fair market practices in any unavoidable transactions[138]. - The company has established a commitment to avoid any actions that could damage the interests of its subsidiaries and minority shareholders[142]. - The company will independently conduct transactions with third parties through its subsidiaries, ensuring transparency and compliance with regulations[141]. - The company has outlined specific measures to ensure compliance with legal and regulatory requirements in related party transactions[142]. Shareholder and Equity Management - The company has not declared any cash dividends or stock bonuses for the year[11]. - The company did not distribute cash dividends for the years 2018, 2019, and 2020 due to negative profits available for distribution to ordinary shareholders[134][135][136]. - The cash dividend payout ratio for 2020 was 0.00%, while the repurchase amount represented 16.89% of the net profit attributable to ordinary shareholders[136]. - The company repurchased a total of 8,294,433 shares, representing 1.1662% of the total share capital, with a total transaction amount of RMB 60,092,542.04[193]. Market and Operational Challenges - The company achieved a revenue of 762.74 million yuan in the management software business, a year-on-year decrease of 23.94% due to project delays caused by the pandemic[53]. - The company's digital marketing business generated revenue of 204,687.23 million yuan, a decrease of 1.24% year-on-year, indicating ongoing pressure and challenges in performance growth[66]. - The company continues to deepen cooperation with major state-owned construction enterprises, enhancing its market expansion efforts[62]. - The company has made breakthroughs in its smart financial solutions, enhancing capabilities in RPA, voice recognition, OCR, and deep machine learning[50]. Future Outlook - The future outlook emphasizes the integration of big data, cloud computing, and AI technologies to support digital transformation and improve government service efficiency[124]. - The company has set performance guidance for the next fiscal year, projecting a revenue increase of approximately 15%[200]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[200]. - The annual report outlines a strategic focus on enhancing customer engagement through digital platforms, aiming for a 25% increase in user interaction[200].