CS&S(SH:600536)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 7,408,151,562.49, representing a 27.30% increase from CNY 5,819,592,183.30 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 68,230,406.29, a 10.34% increase compared to CNY 61,834,735.64 in 2019[16]. - The total profit reached 184 million RMB, reflecting a year-on-year growth of 20.54%[35]. - The total comprehensive income for 2020 was CNY 163,826,941.48, compared to CNY 144,349,697.51 in 2019, marking an increase of 13.54%[172]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the fiscal year 2020, representing a year-over-year growth of 15%[131]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 0.42 CNY per 10 shares, totaling 20,771,636.84 CNY, which accounts for 30.44% of the net profit attributable to shareholders for the year[4]. - The net cash flow from operating activities decreased by 81.72% to CNY 180,761,933.42 from CNY 988,769,136.49 in 2019[16]. - The company has retained undistributed profits of 20,403,424.84 CNY to be carried forward to the next year[4]. - The company maintains a profit distribution policy that ensures at least 10% of the distributable profit is allocated as cash dividends when conditions are met[73]. - The company has a clear and stable profit distribution policy that prioritizes cash dividends, ensuring investor returns while considering long-term interests[73]. Assets and Liabilities - The total assets at the end of 2020 were CNY 8,694,798,718.40, an increase of 28.93% from CNY 6,743,722,131.78 at the end of 2019[16]. - The company's total liabilities increased to CNY 5,809,277,582.98, compared to CNY 3,981,949,596.39 in 2019, marking a rise of about 46%[167]. - The total equity attributable to shareholders reached CNY 2,310,895,112.59, up from CNY 2,272,815,204.51, showing a growth of approximately 1.7%[167]. - Accounts receivable increased significantly to CNY 2,093,657,853.47 from CNY 1,343,252,731.07, reflecting a growth of approximately 55.8%[165]. - The inventory increased to CNY 1,709,879,060.51 from CNY 1,126,020,720.54, representing a growth of approximately 51.6%[165]. Business Operations and Strategy - The company established subsidiaries or branches in multiple provinces including Henan, Hubei, and Xinjiang, enhancing its national strategic layout and market expansion[23]. - The company’s core business segments include independent software products, industry solutions, and service-oriented businesses, focusing on information technology and software services[23]. - The company is focusing on digital transformation solutions, enhancing application maturity across various sectors[32]. - The company plans to focus on product transformation and aims to become a leading force in the national network security industry during the "14th Five-Year Plan" period[67]. - The company is actively exploring intelligent upgrades in patent examination and IT technology applications[32]. Research and Development - The total R&D expenditure amounted to ¥1,332,460,812.61, representing 17.99% of total revenue, with a year-over-year growth of 11.93%[48]. - The company plans to invest 500 million RMB in research and development for new technologies over the next two years[131]. - The company’s self-developed operating system, Galaxy Kirin V10, has achieved significant breakthroughs and is widely applied in various government and financial institutions[29]. - The company has developed and piloted 8 new technologies and solutions, including voice and facial recognition, expanding applications in various sectors[105]. - The company is focusing on developing core software products and industry solutions to support digital governance and infrastructure construction[68]. Governance and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[3]. - The company has confirmed that more than half of the directors can guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has established a complete operational asset structure to ensure independent business activities[77]. - The company’s governance practices align with the requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[144]. - The company has not reported any major litigation or arbitration matters in the current year, indicating a stable legal environment[86]. Market and Competitive Position - The software and information technology services industry in China showed steady growth in 2020, recovering from the impacts of the COVID-19 pandemic[23]. - The company benefits from strong support from its controlling shareholder, China Electronics, in various aspects including policy and capital resources[27]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[131]. - The company has received multiple high-level certifications, including ISO9001 and ISO27001, enhancing its competitive position in the market[26]. - The company’s railway-specific products have increased market share and contributed to stable sales and profit performance[29]. Social Responsibility - The company has actively integrated social responsibility into its operations, enhancing its service capabilities and ensuring smooth operation of key systems[105]. - The company donated 900,000 yuan to combat COVID-19, including 15 air purification machines valued at 103,500 yuan to frontline medical staff[108]. - The company completed poverty alleviation purchases amounting to 1.03 million yuan in 2020, supporting impoverished regions such as Hubei and Xinjiang[108]. - The company has been recognized as an advanced collective in the fight against COVID-19, highlighting its commitment to social responsibility[105]. - The board of directors highlighted the commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2025[131].