NeuSoft(SH:600718)2021-04-28 16:00Financial Performance - The company achieved a net profit of ¥182,892,468 for the year 2020, with a distributable profit of ¥155,458,598 after statutory and discretionary reserves[6]. - The retained earnings at the end of 2020 amounted to ¥5,176,658,595, after adjustments due to the new revenue standards[6]. - The company's operating revenue for 2020 was CNY 7,621,987,666, a decrease of 8.89% compared to 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 131,183,671, representing a significant increase of 252.82% from the previous year[23]. - The net cash flow from operating activities increased by 34.74% to CNY 560,084,412 in 2020[23]. - The total assets at the end of 2020 reached CNY 16,407,700,975, an increase of 12.91% compared to the end of 2019[23]. - The basic earnings per share for 2020 was CNY 0.11, up 253.22% from CNY 0.03 in 2019[23]. - The diluted earnings per share for 2020 was also CNY 0.11, consistent with the basic earnings per share[23]. - The company reported a total of CNY 281,007,815 in non-recurring gains and losses for 2020[28]. Dividend Policy - The board proposed not to distribute dividends for the year 2020, with plans to reinvest retained earnings into core businesses such as healthcare, smart automotive connectivity, and smart city development[6]. - The company has cumulatively distributed profits exceeding 30% of the average distributable profits over the last three years, in line with its articles of association[6]. - The company did not distribute any dividends in 2019 and 2020, with net profits of CNY 37,181,353 and CNY 131,183,671 respectively, representing 0% of the net profit attributable to ordinary shareholders[178][179]. - The company has a cash dividend policy that prioritizes cash dividends over stock dividends, ensuring at least one cash dividend distribution every three years if profits are available[178]. Business Strategy and Focus - The company plans to focus on expanding its core business areas and increasing R&D investments in 2021[6]. - The company is focusing on sectors such as healthcare, smart vehicles, and smart cities, leveraging new technologies like AI and blockchain[34]. - The company plans to utilize undistributed profits for the expansion and R&D of core businesses such as healthcare, social security, smart automotive connectivity, and smart cities in 2021[185]. - The company aims to strengthen its global development strategy and enhance its cloud service capabilities, integrating onshore and offshore delivery[166]. Risk Management and Compliance - The company has detailed risk factors and countermeasures in its annual report, emphasizing the importance of risk awareness for investors[7]. - The company operates under the supervision of the China Securities Regulatory Commission and adheres to relevant regulations[14]. - The company has not engaged in any violations regarding decision-making procedures for external guarantees[7]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[7]. Research and Development - Neusoft's R&D efforts have led to the application of 2,017 patents, with 977 granted and 2,228 software copyrights registered[43]. - The company’s R&D expenses were approximately ¥959 million, a decrease of 4.42% from ¥1.00 billion in the previous year[110]. - Total R&D expenditure was ¥959,917,723, accounting for 12.59% of total revenue, an increase of 0.59 percentage points year-over-year[121]. Market Position and Achievements - The company maintained the number one market share in medical IT solutions for ten consecutive years, assisting 20 hospitals in achieving high-level evaluations of electronic medical records[59]. - The company has established strategic partnerships with over 30 cities in the smart city sector, enhancing its market presence[41]. - Neusoft provides software and services to over 570 tertiary hospitals, more than 2,500 medical institutions, and over 43,000 grassroots medical institutions, covering approximately 700 million people in social insurance services[36]. Financial Investments and Assets - The company has made significant strategic investments in innovation businesses, resulting in a continued reduction in losses and an improvement in overall profitability[60]. - The company has established new subsidiaries, including Neusoft Group (Hohhot) Co., Ltd. and Yichang Neusoft Ruiyun Education Technology Co., Ltd., with investments of RMB 1,500,000 and RMB 6,500,000 respectively[146]. - The company has a total of 50,000,000 RMB in non-redeemable structured deposits as part of its restricted cash[144]. Operational Performance - The operating cost decreased by 8.91% to approximately ¥5.62 billion from ¥6.17 billion year-on-year[110]. - Revenue from the healthcare and social security sector was approximately ¥1.43 billion, down 19.90% year-on-year, with a gross margin of 40.11%[112]. - Revenue from the intelligent automotive connectivity sector increased by 7.93% to approximately ¥2.57 billion, with a gross margin of 18.96%[112]. Related Party Transactions - The company reported actual related party transactions for 2020, including purchasing raw materials for 164.29 million RMB, which was 148.01% of the estimated amount[194]. - The company sold products to related parties amounting to 621.40 million RMB, exceeding the estimated amount by 17.69%[194]. - The company provided services to related parties for 28.47 million RMB, which was 98.19% of the estimated amount[194]. - The company received services from related parties amounting to 365.88 million RMB, which was 89.46% of the estimated amount[194].