ISS(SH:600756)2021-03-26 16:00Financial Performance - In 2020, the company reported a net profit attributable to shareholders of RMB -86,208,456.92, with no profit distribution planned for the year[5]. - The company's operating revenue for 2020 was RMB 1,328,897,567.58, representing a decrease of 8.70% compared to 2019[20]. - The basic earnings per share for 2020 was -0.266, a decrease of 395.55% compared to 2019[21]. - The weighted average return on equity was -3.97% for 2020, down by 5.1 percentage points from the previous year[22]. - The company experienced a decline in investment income by RMB 29.48 million compared to the previous year, contributing to the net loss[22]. - The company’s net assets attributable to shareholders decreased by 12.84% to RMB 2,123,932,182.37 at the end of 2020[20]. - The company reported a net profit attributable to shareholders of -RMB 86.21 million for 2020, leading to no profit distribution or capital reserve transfer for the year[70]. - The net profit for 2020 was a loss of CNY 86,149,501.20, compared to a profit of CNY 27,077,333.20 in 2019, indicating a significant decline[159]. - The company reported a basic and diluted earnings per share of -0.266 in 2020, compared to 0.09 in 2019[160]. Cash Flow and Assets - The net cash flow from operating activities increased by 150.98% to RMB 213,002,941.75 in 2020[20]. - The total assets of the company at the end of 2020 were RMB 3,853,754,996.59, an increase of 8.46% from the previous year[20]. - The company's operating cash flow net amount was 213,002,941.75 CNY, a significant increase of 150.98% year-on-year[41]. - The total current assets increased to ¥2,770,035,490.73 in 2020 from ¥2,203,388,955.60 in 2019, representing a growth of approximately 25.7%[150]. - Cash and cash equivalents rose to ¥1,223,186,329.11 in 2020, up from ¥845,297,901.47 in 2019, marking a significant increase of about 44.7%[150]. - Accounts receivable decreased to ¥232,886,158.66 in 2020 from ¥365,363,667.38 in 2019, reflecting a decline of approximately 36.3%[150]. - Inventory surged to ¥381,948,648.37 in 2020, compared to ¥82,686,753.45 in 2019, indicating an increase of around 361.5%[150]. - Total liabilities increased to ¥1,729,751,635.19 in 2020 from ¥1,116,346,870.30 in 2019, representing a growth of approximately 55%[152]. Operational Challenges and Market Position - The company faced operational challenges in the first half of 2020 due to the COVID-19 pandemic, impacting customer demand and project delivery[22]. - The company focuses on the software and information technology services industry, particularly in e-government and tobacco sectors, maintaining a leading position in government informationization[29]. - The company is actively innovating its government service products and accelerating the transition to platform products in response to market trends post-COVID-19[31]. - The company aims to enhance its market position in key sectors such as market regulation and education, with a focus on integrated service models[38]. Research and Development - The company’s R&D expenses were 243,116,465.36 CNY, down 10.14% from the previous year[41]. - Research and development expenses decreased to CNY 243,116,465.36 in 2020 from CNY 270,563,118.73 in 2019, a reduction of approximately 10.2%[159]. - The company capitalized R&D expenditures of ¥47,835,335.93 into "development expenditures" for the year 2020[137]. - Research and development investments increased by 30%, focusing on AI and cloud computing technologies[110]. Shareholder and Governance - The company has committed to avoiding direct or indirect competition with its controlled enterprises, ensuring no harm to the interests of minority shareholders[72]. - The company has appointed Da Xin Accounting Firm as its domestic auditor, with an audit fee of 650,000 RMB for the year 2020[75]. - The company has a total of 67,185 ordinary shareholders at the end of the reporting period, an increase from 66,066 at the end of the previous month[96]. - The largest shareholder, Inspur Software Technology Co., Ltd., holds 61,881,000 shares, representing 19.09% of total shares[98]. - The company has made significant changes in its board composition, with all directors being newly elected[114]. Future Outlook and Strategy - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[110]. - New product launches are expected to contribute an additional 300 million RMB in revenue over the next year[112]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of 500 million RMB allocated for this purpose[112]. - The company aims to improve operational efficiency, targeting a 15% reduction in costs through process optimization[110]. Compliance and Risk Management - The company has not faced any penalties from securities regulatory authorities in the past three years[117]. - The internal control audit report received a standard unqualified opinion, indicating effective internal controls[127]. - The company has implemented a dual prevention system for risk management, enhancing safety and environmental responsibility[89]. - The company has not reported any significant risks that could adversely affect its future development strategy during the reporting period[7].