Qiangsheng Holding(SH:600662)2021-03-24 16:00Financial Performance - The company achieved a consolidated net profit attributable to shareholders of CNY 58,392,935.32 in 2020, with a cumulative undistributed profit of CNY 1,014,311,555.46[6] - The parent company's net profit for 2020 was CNY 220,839,594.23, with a cumulative undistributed profit of CNY 1,012,408,287.34[6] - The company's operating revenue for 2020 was ¥2,701,061,161.59, a decrease of 29.59% compared to ¥3,836,303,756.48 in 2019[28] - Net profit attributable to shareholders was ¥58,392,935.32, down 37.39% from ¥93,264,015.34 in the previous year[28] - The net cash flow from operating activities was ¥443,483,856.52, a decrease of 23.91% compared to ¥582,829,603.10 in 2019[28] - Basic earnings per share for 2020 were ¥0.0554, a decline of 37.40% from ¥0.0885 in 2019[31] - The weighted average return on equity decreased to 1.8068% from 2.8412% in the previous year, a drop of 1.03 percentage points[31] - The net profit attributable to shareholders, excluding non-recurring gains and losses, was -¥122,519,853.71, reflecting a decrease of 219.38% compared to -¥38,361,601.70 in 2019[28] - The total assets at the end of 2020 were ¥6,855,504,368.22, a decrease of 2.40% from ¥7,024,037,459.08 at the end of 2019[28] - The company reported a government subsidy of approximately ¥120.74 million in 2020, a significant increase from ¥28.48 million in 2019, reflecting a growth of over 323%[40] Asset Restructuring - The company plans to inject 100% equity of Shanghai Foreign Service (Group) Co., Ltd. into the company through a major asset swap and issuance of shares, which has been approved by the board and shareholders[6] - The company decided not to distribute profits or increase capital reserves for 2020 to ensure the smooth implementation of the asset swap transaction[7] - The company is currently in the process of obtaining approval from the China Securities Regulatory Commission for the major asset restructuring[7] - The company is undergoing a major asset restructuring to inject 100% equity of a profitable human resources service business, which is pending approval from the China Securities Regulatory Commission[63] - The restructuring plan involves a non-public issuance of up to 893,908,602 A shares to raise supporting funds[97] Impact of COVID-19 - The company experienced a significant impact on its main business due to the COVID-19 pandemic, leading to increased idle vehicles and a halt in tourism product sales[32] - The decline in operating revenue was attributed to several factors, including increased vehicle downtime in the taxi segment and the suspension of tourism product sales due to the pandemic[102] - The tourism business segment was significantly affected, leading to a reduction in revenue from tourism products[102] - The revenue from the tourism service sector dropped by 59.83%, reflecting the impact of the pandemic on travel-related activities[121] - The company has been recognized as an advanced enterprise in combating COVID-19, receiving multiple honors for its efforts during the pandemic[75] Technological Advancements - The company has developed an integrated Android smart terminal for taxis, which has been deployed in 204 new energy taxis, and has successfully created a smart terminal with remote pricing capabilities[58] - The company has developed several new products, including a Linux-based smart terminal with ETC functionality and an Android-based terminal with DMS capabilities[133][134] - The company has developed 45 software copyrights and 16 utility model patents, enhancing its technological advantages in the transportation sector[71] Service Quality and Market Presence - The company maintained a fleet of over 12,000 vehicles, accounting for approximately 25% of the taxi fleet in Shanghai, highlighting its market presence[51] - The company achieved a passenger satisfaction index ranking first in Shanghai's taxi industry for ten consecutive years, demonstrating its commitment to service quality[51] - The company has actively expanded its service offerings, including specialized services for school transportation and safety measures for female passengers during late hours[51] - The company is focused on enhancing its service quality and expanding its market reach, aiming to become a leading transportation service provider in Shanghai[48] Challenges and Operational Strategies - The company faced challenges such as driver shortages and rising fixed costs, leading to a continuous decline in operating income and gross profit margin[78] - The company emphasizes cost reduction and efficiency improvement as key operational strategies[193] - Strongson Auto Repair focused on mid-to-high-end 4S brand development, optimizing internal management and labor allocation, and merging management teams of subsidiaries to enhance operational efficiency[82] Investment and Growth - The company made an investment of 16 million yuan in a technology company, holding a 40% stake[161] - The company also invested 19.6363 million yuan in a sports equipment company, holding a 45% stake[161] - The company is exploring the construction of smart vehicle compartments to provide personalized and value-added services[196] - The company aims to enhance its digital transformation, focusing on creating a "multi-scenario internet comprehensive travel ecosystem" to provide one-stop travel solutions[194] Employee Development and Training - Strongson Human Resources developed an online learning platform, "Strongson Cloud Classroom," providing high-quality training to 18,000 employees during the pandemic[89] - The company improved training programs for management and frontline employees, enhancing the quality and categories of training compared to the previous year[89] - The company is enhancing its training business, focusing on high-skill talent development through various training modules[200]