CS&S(SH:600536)2020-04-20 16:00Financial Performance - The company's operating revenue for 2019 was RMB 5,819,592,183.30, representing a 26.15% increase compared to RMB 4,613,161,359.60 in 2018[15] - The net profit attributable to shareholders of the listed company decreased by 47.45% to RMB 61,834,735.64 from RMB 117,670,636.27 in the previous year[15] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 48,098,060.94, an increase of 7.08% from RMB 44,919,448.43 in 2018[15] - Basic earnings per share decreased by 47.45% to CNY 0.13 in 2019 from CNY 0.24 in 2018[16] - The weighted average return on equity dropped by 2.68 percentage points to 2.77% in 2019 compared to 5.45% in 2018[16] - The total profit reached 153 million yuan, up 16.33% compared to the previous year[31] - Net profit attributable to the parent company was 61.83 million yuan, a decrease of 47.45% year-on-year[31] - The company reported a net profit attributable to shareholders of CNY 307.27 million in Q4 2019, recovering from losses in the previous three quarters[18] - The company achieved an operating revenue of 5.82 billion yuan, a year-on-year increase of 26.15%[31] Cash Flow and Assets - The net cash flow from operating activities surged by 648.22% to RMB 988,769,136.49, compared to RMB 132,149,878.79 in 2018[15] - Cash and cash equivalents rose by 66.52% to ¥2,559,392,305.93, attributed to better sales collection and higher advance payments[44] - The total assets of the company increased by 18.09% to RMB 6,743,722,131.78 at the end of 2019, up from RMB 5,710,849,324.19 at the end of 2018[15] - The company's cash flow from operating activities was significantly higher than the cash flow from investing and financing activities, indicating strong operational performance[172] - The total cash and cash equivalents at the end of 2019 amounted to CNY 888,387,962.22, up from CNY 710,096,765.63 at the end of 2018, representing an increase of approximately 25.1%[172] Research and Development - R&D expenses rose by 19.62% to ¥1,162,909,703.87 from ¥972,208,472.40, reflecting the company's commitment to innovation[32] - Total R&D expenditure for the year reached ¥1,190,490,748.86, representing an 18.20% increase compared to 2018[42] - R&D expenses accounted for 20.46% of total operating revenue, with 4,252 R&D personnel making up 54.03% of the total workforce[41] - The company is investing 100 million RMB in research and development for new technologies in artificial intelligence[124] Dividend Policy - The company plans to distribute a cash dividend of RMB 0.40 per 10 shares, totaling RMB 19,782,511.28, which represents a cash dividend payout ratio of 31.99%[4] - The company distributed cash dividends of 0.7 RMB per 10 shares for the fiscal year 2018, totaling 34,619,394.74 RMB, which accounted for 31.24% of the net profit attributable to shareholders[67] - The company maintains a cash dividend policy of distributing at least 10% of the annual distributable profit to shareholders, provided that the company is profitable and has positive retained earnings[67] Market and Industry Outlook - The software and information technology services industry is expected to grow at an average annual rate of over 13% during the 13th Five-Year Plan period[22] - The company is focusing on the "Xin Chuang" project, enhancing its capabilities in software products and industry solutions[22] - The company is actively developing new industry information solutions leveraging cloud computing and big data technologies[28] - The company plans to focus on integrating new technologies such as cloud computing, big data, and artificial intelligence to enhance its core competitiveness[62] Corporate Governance and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[3] - The company has described the risks it faces in the annual report, urging investors to pay attention to these risks[6] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6] - The company has not faced any risks of suspension or termination of its listing during the reporting period[85] Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 85,366, down from 95,355 at the end of the previous month[110] - China Electronics Information Industry Group Co., Ltd. holds 30.00% of the shares, totaling 148,353,446 shares, with a decrease of 74,836,800 shares during the reporting period[111] - The top ten shareholders include China Electronics and CITIC Securities, with CITIC holding 60,000,000 shares, representing 12.13%[111] Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2022[124] - A strategic acquisition of a local tech firm was completed, valued at 300 million RMB, aimed at enhancing technological capabilities[124] - The company signed a strategic cooperation agreement with the Wuhu Municipal Government, allowing the withdrawal of a lawsuit against its subsidiary, Zhongruan Information Service Co., Ltd.[101] Social Responsibility - The company actively engaged in social responsibility initiatives, including donations to support poverty alleviation efforts in Xinjiang[105] - The company donated a total of 40,000 yuan for poverty alleviation and 810,000 yuan to support poverty alleviation efforts in western and impoverished areas of Tianjin[107]