INSIGHT(SZ:300781)2021-04-27 16:00Financial Performance - In 2020, the company's operating revenue decreased by 18.53% year-on-year, while the net profit attributable to shareholders dropped by 69.71%[5]. - The company's operating revenue for 2020 was CNY 319,913,844.04, a decrease of 18.53% compared to CNY 392,668,484.97 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 15,944,165.21, down 69.71% from CNY 52,633,493.60 in 2019[20]. - The net profit for 2020 was 27.02 million yuan, down 48.68% year-on-year, with net profit attributable to shareholders of the listed company at 15.94 million yuan, a decline of 69.71%[45]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 8,623,025.99, a decline of 81.33% from CNY 46,180,943.65 in 2019[20]. - The net cash flow from operating activities increased by 155.88% to CNY 58,704,519.97 in 2020, compared to CNY 22,942,321.53 in 2019[20]. - The total assets at the end of 2020 were CNY 832,141,461.98, an increase of 17.43% from CNY 708,626,392.59 at the end of 2019[20]. - The basic earnings per share for 2020 was CNY 0.1886, a decrease of 73.49% from CNY 0.7115 in 2019[20]. - The weighted average return on net assets was 2.56% in 2020, down from 11.32% in 2019, a decline of 8.76%[20]. - The company reported a net profit of CNY 8,574,734.14 in Q1 2020, which decreased to CNY -1,921,250.53 in Q4 2020[22]. Impact of COVID-19 - The decline in revenue was primarily due to the impact of the COVID-19 pandemic, macroeconomic conditions, and changes in industry trends, leading major clients to reduce their marketing budgets[5]. - The decline in revenue and net profit was primarily due to clients reducing their marketing budgets amid the COVID-19 pandemic and economic changes[46]. Strategic Initiatives and Growth Plans - The company has made significant breakthroughs in the automotive marketing sector and is investing in expanding its professional service team and establishing offices to better serve clients[5]. - The company plans to integrate external growth from investments and mergers with internal development to create new growth sources[7]. - A key initiative includes the establishment of the "Yinsai Group Internet Marketing Industry Ecological Base" to enhance the company's sustainable operational and profitability capabilities[7]. - The company aims to enhance its brand management services, focusing on strategic clients and expanding its marketing wisdom service ecosystem[39]. - The company has established a long-term development vision and strategic plan for 2030, outlining a three-step development path[47]. - The company aims to enhance its resource, intelligence, and digital capabilities in brand marketing services through a dual-track model of establishing subsidiaries and joint ventures[95]. - The company is focusing on business model innovation in response to rapid changes in brand marketing communication needs, particularly in digital economy contexts[101]. - The company aims to become a world-class brand marketing intelligence service group by 2030, assisting leading Chinese enterprises in building global market leadership brands[114]. Investment and Acquisitions - The company acquired 51.01% equity in Tianyu Kong for a total consideration of CNY 21,459.99 million and an additional capital contribution of CNY 2,000.00 million[14]. - The company completed the acquisition of 51% of Tianyu Kong, enhancing its capabilities in brand content marketing and digital marketing[50]. - The strategic acquisition of Tianyu has expanded the company's brand management service capabilities and increased its market presence in East and North China[104]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[174]. Research and Development - The company is increasing its investment in technological innovation and R&D in areas such as smart marketing technology platforms and big data marketing[5]. - Research and development expenses amounted to ¥2,711,171.79, which is 0.85% of the operating revenue[71]. - The company has developed various professional knowledge and technology support platforms to enhance service quality and efficiency[42]. - The company is investing heavily in R&D, with a budget allocation of 150 million RMB, aiming to enhance product innovation and technology[174]. Profit Distribution and Shareholder Policies - The profit distribution plan approved by the board includes a cash dividend of 0.6 RMB per 10 shares and a capital reserve conversion of 3 shares for every 10 shares held[8]. - The total cash dividend amount for the year 2020 is 5,072,485.20 CNY, which accounts for 100% of the distributable profit[160]. - The cash dividend per 10 shares is 0.60 CNY (including tax), with a total of 84,541,420 shares as the base[161]. - The company has established a profit distribution policy that emphasizes cash dividends, aiming to distribute at least 10% of the distributable profits as cash dividends when conditions are met[152]. - The company has committed to a net profit of no less than CNY 2,400 million for the year 2020, CNY 3,200 million for 2021, CNY 3,900 million for 2022, and CNY 4,600 million for 2023, with cumulative commitments reaching CNY 14,100 million by the end of 2023[183]. Market Trends and Industry Outlook - The marketing service industry is expected to see increased concentration, moving from a fragmented to a more centralized competitive landscape[111]. - The demand for integrated marketing services is rising, with clients seeking comprehensive solutions from consumer insights to execution[108]. - The company operates in a rapidly developing integrated marketing communication service industry, which is significantly influenced by downstream brand merchants' marketing expenditure, potentially impacting revenue if economic growth slows[145]. - The integrated marketing communication service industry is talent-intensive, and the company faces risks related to the high turnover of professional talent, which is crucial for maintaining competitiveness[147]. Corporate Governance and Compliance - The company has committed to ensuring that the prospectus and related documents submitted to the China Securities Regulatory Commission contain no false records, misleading statements, or significant omissions, and will bear legal responsibility for their authenticity, accuracy, completeness, and timeliness[173]. - The company has established a commitment to reduce and regulate related party transactions, ensuring fairness and market-based pricing[178]. - The company has not engaged in any research, communication, or interview activities during the reporting period[148]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[188].