BTH(SH:600640)2020-04-29 16:00Financial Performance - In 2019, the company's operating revenue was RMB 4,178,346,153.44, a decrease of 8.10% compared to RMB 4,546,695,902.09 in 2018[24] - The net profit attributable to shareholders was RMB 142,074,140.06, down 45.83% from RMB 262,290,824.33 in the previous year[24] - The company reported a significant decrease in net profit attributable to shareholders, with a decline of 57.38% in the first half of 2019 compared to the same period in 2018[24] - The net profit attributable to shareholders for 2019 was CNY 28,581,521.28, a decrease of 41.9435% compared to the previous year[31] - The basic earnings per share for 2019 was CNY 0.1786, down 45.8131% from CNY 0.3296 in 2018[31] - The net cash flow from operating activities for 2019 was -CNY 196,613,772.24, a significant decline compared to CNY 672,258,433.06 in 2018[31] - The weighted average return on equity for 2019 was 3.1515%, a decrease of 2.8134 percentage points from 5.9649% in 2018[31] - The company achieved a total revenue of 4.178 billion RMB in 2019, with a net profit attributable to the parent company of 142 million RMB, representing a year-on-year decline of 45.83%[51] Dividends and Profit Distribution - The company proposed a cash dividend of RMB 0.54 per 10 shares, totaling RMB 42,967,580.76, which accounts for 30.24% of the net profit attributable to the parent company[6] - As of December 31, 2019, the total distributable profit was RMB 86,876,373.29[6] - In 2019, the company distributed cash dividends totaling approximately 42.97 million RMB, which accounted for 30.24% of the net profit attributable to shareholders[119] - The company is committed to a cash dividend policy where the cash dividends distributed to shareholders will not be less than 30% of the net profit attributable to shareholders[118] Assets and Liabilities - The total assets at the end of 2019 were CNY 6,822,754,890.76, representing a 1.9408% increase from CNY 6,692,861,158.55 in 2018[31] - The company's total consolidated assets amounted to 6.823 billion RMB, an increase of 130 million RMB (+1.9%) compared to the previous period[81] - The equity attributable to the parent company was 4.540 billion RMB, up 1.4%[51] Revenue Segments - The internet entertainment segment generated a total revenue of 1.671 billion RMB, with the video company contributing 1.072 billion RMB and the animation company contributing 39 million RMB[52] - The company's points operation business generated 2.058 billion RMB in revenue, a year-on-year increase of 17.7%, with general points revenue increasing by 24.4%[52] - The company’s hotel business reported a revenue of 505 million RMB, a year-on-year decrease of 7.9%, while net profit attributable to the parent company increased by 17% to 34.18 million RMB[52] - The company’s video operation revenue decreased by 8.03% to 1.0069 billion RMB, while the gross margin improved to 22.59%[88] - The gaming business revenue dropped by 49.43% to 173.46 million RMB, with a gross margin of 52.66%[88] - The digital reading and cloud VR revenue fell by 53.53% to 103.12 million RMB, with a significant decline in gross margin to 4.53%[88] Research and Development - Research and development expenses fell by 27.41% to $143,554,221.54, down from $197,765,646.15 year-over-year[53] - Research and development expenses totaled approximately 153 million, accounting for 3.67% of total revenue, with a focus on 5G product development[71] - The total capitalized R&D expenses were approximately 9.7 million, representing 6.33% of total R&D expenditures[71] Strategic Initiatives and Future Plans - The company aims to leverage 5G technology to enhance its content operations and expand its market presence in the digital economy[40] - The company plans to leverage 5G technology to drive growth in the digital cultural industry, with an expected new consumption value exceeding CNY 8 trillion from 2020 to 2025[101] - The company aims to achieve a user base of 20 million for its 5G products, focusing on Tianyi Ultra HD, Tianyi Cloud Gaming, and Tianyi Cloud VR, by enhancing product R&D and user experience[107] - The company is exploring new business applications in live streaming, cultural performances, and cloud gaming, collaborating with various quality content providers[102] Risks and Challenges - The company faces risks including regulatory changes in the 5G sector, intensified market competition, and the need for continuous innovation to maintain profitability[113] - The company recognizes the increasing demand for high-tech talent in areas like AI and VR/AR, emphasizing the importance of effective talent management and incentives[116] Governance and Shareholder Structure - The largest shareholder, China Telecom Group Co., Ltd., holds 407,061,147 shares, representing 51.16% of total shares[171] - The top three shareholders are all state-owned enterprises, indicating a strong government influence[171] - The company has no significant changes in the actual controller during the reporting period[180] - The company is focused on maintaining a stable governance structure with experienced personnel in key positions[188] Audit and Compliance - The audit report issued by Deloitte Huayong was a standard unqualified opinion[5] - The company has not faced any significant issues regarding the audit process or accounting errors during the reporting period[141] - The company appointed Deloitte Huayong as its new auditor for the 2019 fiscal year, with an audit fee of CNY 148 million[143] Social Responsibility and Community Engagement - The company introduced over 70 specialty agricultural products in its poverty alleviation program, covering multiple impoverished counties[163] - The company achieved a total of 14.30 million RMB in funding for poverty alleviation projects during the reporting period[164] - The company has committed to ongoing poverty alleviation activities, integrating material assistance with educational support to enhance self-development capabilities in impoverished areas[167]