BTH(SH:600640)2021-04-29 16:00Financial Performance - In 2020, the company's operating revenue was RMB 4,449,226,016.35, representing a year-on-year increase of 6.48% compared to RMB 4,178,346,153.44 in 2019[26]. - The net profit attributable to shareholders of the listed company was RMB 10,312,690.45, a decrease of 92.74% from RMB 142,074,140.06 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB -65,599,529.48, a decline of 176.79% compared to RMB 85,430,836.25 in 2019[26]. - The company reported a total operating income of 1,915,990,833.71 RMB in Q4 2020, with a net profit attributable to shareholders of 168,247,163.10 RMB[30]. - The company achieved a consolidated revenue of 4.449 billion yuan in 2020, an increase of 6.48% year-on-year[57]. - The net profit for the year was 15 million yuan, with a net profit attributable to the parent company of 10 million yuan, a significant decrease of 92.74% year-on-year[57]. - The overall operating income increased by 6.48% to 4.449 billion RMB, while operating costs rose by 16.38% to 4.067 billion RMB[62]. - The gross profit margin for the internet entertainment sector decreased by 16.22 percentage points to 10.11%[67]. - The gaming business revenue surged by 130.28% to 399 million RMB, although the gross profit margin decreased by 25.26 percentage points[67]. Assets and Equity - As of December 31, 2020, the company's total assets amounted to 6.615 billion yuan, a decrease of 3.05% year-on-year, while the equity attributable to the parent company was 4.507 billion yuan, down 0.72%[45]. - The total assets decreased by 3.0470% to 6,614,866,466.27 RMB at the end of 2020 compared to the end of 2019[29]. - The company’s total assets as of December 31, 2020, were 6.615 billion yuan, a decrease of 3.05%[57]. - The company’s equity attributable to the parent company was 4.507 billion yuan, a decrease of 0.72%[57]. Cash Flow - The company achieved a cash flow from operating activities of 672,258,433.06 RMB in 2020, a significant improvement from -196,613,772.24 RMB in 2019[29]. - The company’s net cash flow from operating activities for the year was -80 million yuan[57]. - The cash flow from operating activities showed a significant improvement, with a net cash flow of -80.42 million RMB compared to -196.61 million RMB in the previous year[62]. Dividends and Profit Distribution - As of December 31, 2020, the company proposed a cash dividend of RMB 0.04 per 10 shares, totaling RMB 3,182,783.76, which accounts for 30.86% of the net profit attributable to the parent company[10]. - The company maintains a cash dividend policy, distributing no less than 30% of net profit to shareholders, with a cash dividend of 3,182,783.76 RMB in 2020[127][130]. Risks and Compliance - The company does not face any significant risks that could materially affect its operations during the reporting period[12]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[12]. - The company has not violated decision-making procedures for providing guarantees[12]. - The audit report issued by Deloitte Huayong was a standard unqualified opinion[8]. - The company faces risks including regulatory changes in the 5G sector, intensified market competition, and the need for continuous innovation to maintain profitability[125]. Strategic Initiatives and Future Outlook - The company plans to expand its digital entertainment services, focusing on 5G applications such as cloud gaming and VR content[38]. - The company aims to enhance user engagement through its core products, leveraging high-quality content and advanced technology in the 5G space[38]. - The company is actively pursuing business model innovation and cost control to mitigate the impact of the pandemic on overall performance[61]. - The company is focusing on expanding its 5G business and enhancing content copyright and user acquisition efforts[109]. - The company plans to explore new business models in the 5G+MEC and AR/XR sectors[109]. - The company aims to enhance its digital capabilities by leveraging 5G technology, including cloud graphics rendering and edge computing, to support digital marketing and cultural tourism[120]. Research and Development - The company invested a total of ¥156,067,087.37 in R&D, accounting for 3.51% of total revenue[78]. - The number of R&D personnel is 290, making up 11.20% of the total workforce[78]. - The company has strengthened its R&D efforts in 5G products, focusing on various applications including 4K decoding and cloud gaming systems[79]. User Engagement and Market Expansion - The registered user base for the company's three major 5G applications exceeded 10 million, with over 38 million users for Tianyi Ultra HD, and over 15 million users each for Tianyi Cloud Gaming and Tianyi Cloud VR[46]. - The user base for comprehensive video services reached 724 million with a usage rate of 77.1%, while short video users reached 818 million with a usage rate of 87%[91]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[200]. Social Responsibility and Community Engagement - The company allocated 3,393.87 million RMB for poverty alleviation projects, focusing on e-commerce and industry[164]. - The "Spring Bud Program" initiated by the company provided health lectures and care packages for girls in poverty-stricken areas, with the first batch of donations landing in Sichuan[161]. - The company has been recognized for its outstanding poverty alleviation efforts by the State Council's Office of Poverty Alleviation and has received media coverage from major outlets[167].