Financial Performance - For the fiscal year ended December 31, 2020, the company's revenue was approximately RMB 180.4 million, representing a year-on-year increase of 1.0% compared to RMB 177.6 million in 2019[12]. - The gross profit for 2020 was RMB 152.5 million, which is an increase from RMB 148.8 million in 2019, indicating a growth of approximately 2.3%[7]. - The profit attributable to owners of the company for 2020 was RMB 64.6 million, up from RMB 51.7 million in 2019, reflecting a growth of about 25.0%[7]. - The total assets of the company increased to RMB 339.3 million in 2020, compared to RMB 270.1 million in 2019, marking a growth of approximately 25.7%[7]. - The total liabilities decreased slightly to RMB 140.9 million in 2020 from RMB 142.5 million in 2019, showing a reduction of about 1.1%[7]. - The company’s net profit for the fiscal year ended December 31, 2020, was approximately RMB 64.6 million, an increase of about 25.0% compared to the same period in 2019[16]. - The adjusted net profit, not in accordance with IFRS, was RMB 79.1 million, a 31.1% increase from RMB 60.3 million in the previous year[44]. - Online advertising services revenue for the year ended December 31, 2020, was approximately RMB 178.96 million, accounting for 99.2% of total revenue, with a year-on-year growth of 2.2%[29]. - Total revenue for the year ended December 31, 2020, was approximately RMB 180.40 million, representing a year-on-year increase of 1.6%[29]. - Gross profit increased by approximately RMB 3.7 million (or 2.5%) to approximately RMB 152.5 million for the year ended December 31, 2020, with a gross margin of 84.5%[30]. - Other income rose by approximately RMB 0.2 million (or 5.7%) to approximately RMB 3.2 million for the year ended December 31, 2020[32]. - Selling expenses decreased by approximately RMB 13.6 million (or 28.4%) to approximately RMB 34.2 million for the year ended December 31, 2020[34]. - Administrative expenses increased by approximately RMB 0.4 million (or 1.1%) to approximately RMB 34.8 million for the year ended December 31, 2020[35]. - Research and development expenses decreased by approximately RMB 2.0 million (or 16.3%) to approximately RMB 10.5 million for the year ended December 31, 2020[38]. - Income tax expenses increased by approximately RMB 7.8 million (or 131.2%) to approximately RMB 13.8 million for the year ended December 31, 2020[40]. - Financial costs increased by approximately RMB 0.4 million (or 486.9%) to approximately RMB 0.5 million for the year ended December 31, 2020, primarily due to expenses related to the relocation of the headquarters[39]. Market Trends and Opportunities - The company anticipates a shift in automotive marketing budgets from offline to online platforms, driven by changing consumer preferences and the rise of digital technologies[11]. - The online automotive advertising market is projected to reach RMB 28.9 billion by 2024, with a compound annual growth rate of 8.6% since 2019[10]. - The penetration rate of online automotive advertising is expected to reach 59.8% in 2020, up from 45.6% in 2019, indicating a significant shift towards digital marketing[10]. - The automotive industry in China showed signs of recovery in 2020, with new car sales experiencing a negative growth rate of only 12.4% by September 30, 2020, compared to the drastic decline earlier in the year[12]. - The company is well-positioned to capture new business opportunities due to its advanced internal technological capabilities[11]. Business Operations and Strategy - The company plans to enhance its SaaS services and IT systems, aiming to provide comprehensive and digital marketing solutions for the automotive industry, leveraging cloud management, big data, and AI core algorithms[20]. - The company aims to strengthen its market position in the automotive advertising industry by improving the quality and quantity of PGC, enhancing brand awareness, and expanding its user base in lower-tier cities[21]. - The company intends to selectively seek strategic alliances, investments, and acquisition opportunities to complement its existing services and strategies, focusing on PGC producers and self-media advertising companies[24]. - The company established 430 new service contracts for online advertising services in the fiscal year ended December 31, 2020, compared to 406 new service contracts in the same period of 2019[16]. - As of December 31, 2020, the company recorded approximately 10.6 million daily unique visitors across its own and third-party platforms, with an average of 9.1 visits per user per month, leading the industry[19]. - The company has a strong internal creative team that produces and publishes content across its own platforms and over 1,000 partner platforms[96]. Employee and Management Information - As of December 31, 2020, the group had 210 full-time employees, an increase from 193 employees as of December 31, 2019[66]. - Employee benefits and expenses for the year ended December 31, 2020, amounted to approximately RMB 47.2 million, including salaries, bonuses, retirement costs, and other social security costs[66]. - The company has established a competitive compensation system to attract and motivate employees, linking their remuneration to overall performance[115]. - The company has adopted a share incentive plan and a restricted share unit plan on June 25, 2019, allocating 100,000,000 shares under these plans[66]. - On December 25, 2020, the board granted 80,000,000 restricted share awards and 2,170,000 restricted share units to selected employees[67]. - The company has a management team with extensive experience in various sectors, including technology, media, and finance[83][87]. - The company’s CEO, Xu Chong, has over 16 years of experience in the online automotive advertising industry[72]. - The Chief Operating Officer, Liu Lei, has over 16 years of sales and marketing experience in the internet industry[75]. - The Chief Financial Officer, Zhu Boyang, has a background in financial management and investment relations, previously working as an analyst at China International Capital Corporation[76]. - The Chief Technology Officer, Lin Yuqi, leads the R&D team and has over ten years of experience in the internet industry[77]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as its own governance code, ensuring compliance with applicable laws and regulations[183]. - The board of directors consists of four executive directors and three independent non-executive directors, meeting the requirements of the Listing Rules[192]. - The independent non-executive directors have confirmed their independence as per the listing rules[130]. - The company has established a remuneration committee to review the compensation policy based on operational performance and market practices[138]. - The company has adopted a board diversity policy to ensure a balanced mix of skills, experience, and perspectives among board members[197]. - Continuous professional development is mandated for all directors to enhance and update their knowledge and skills[199]. - The company ensures that all directors are kept informed about the company's performance, condition, and prospects[199]. - The audit committee reviewed the accounting principles and practices adopted by the group for the year ended December 31, 2020[182]. - The independent auditor issued an unqualified opinion on the group's continuing connected transactions for the year[173]. Future Outlook and Investments - The net proceeds from the global offering amount to approximately HKD 243.0 million, with plans to utilize these funds for market position consolidation (39.8%), R&D and IT system enhancement (36.1%), future investments and acquisitions (14.1%), and working capital (10.0%) by the end of 2023[109]. - The company has not provided specific future outlook or performance guidance in the available information[101]. - The company plans to enhance its R&D and IT systems, including optimizing the Picker engine and developing new products such as owner services and virtual reality applications[110]. Shareholder Information - The company has a total of 1,234,600,000 shares issued and outstanding as of the report date[145]. - Mr. Xu holds 802,500,000 shares, representing 65.00% of the total shares[141]. - Mr. Liu and Mr. Zhu each hold 20,000,000 shares, representing 1.60% of the total shares[141]. - Mr. Lin holds 10,000,000 shares, representing 0.80% of the total shares[141]. - Ms. Suo holds 20,000,000 shares, representing 1.60% of the total shares[141]. - The company has no available distributable reserves as of December 31, 2020, compared to approximately RMB 947,000 as of December 31, 2019[121]. - The company has maintained a public float of at least 25% of its total issued share capital since the listing date, complying with the minimum public float requirement[184].
车市科技(01490) - 2020 - 年度财报