ECC(SH:600850)2021-03-29 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of RMB 317,473,880.12, a decrease of 1.26% compared to RMB 321,521,980.99 in 2019[4] - The company's operating revenue for 2020 was RMB 8,129,616,635.73, representing a year-on-year increase of 4.51% from RMB 7,778,849,374.39 in 2019[21] - Basic earnings per share for 2020 were RMB 0.7438, a decrease of 1.51% from RMB 0.7552 in 2019[22] - The company reported a weighted average return on equity of 12.02% for 2020, down from 13.09% in 2019, a decrease of 1.07 percentage points[25] - The net profit attributable to shareholders in Q3 2020 was CNY 93.69 million, while in Q4 2020, it decreased to CNY 70.89 million, indicating a decline of 24.3%[26] - The company reported non-recurring gains and losses of CNY -1.72 million for 2020, compared to CNY 25.27 million in 2019, showing a significant decrease[27] - The net profit attributable to shareholders was 317 million RMB, a decrease of 1.26% year-on-year, while the net profit excluding non-recurring gains and losses increased by 7.74% to 319 million RMB[42] - The company reported a net profit of ¥2,178,177,858.32 in 2020, compared to ¥1,984,792,665.93 in 2019, marking an increase of about 9.8%[188] - Net profit for 2020 was ¥335,197,128.47, a slight decrease from ¥342,714,507.70 in 2019, representing a decline of 2.21%[198] Cash Flow and Assets - The net cash flow from operating activities decreased by 23.71% to RMB 654,747,531.39 in 2020, down from RMB 858,273,446.00 in 2019[21] - The total assets of the company increased by 19.52% to RMB 8,356,895,161.19 at the end of 2020, compared to RMB 6,991,757,477.67 at the end of 2019[21] - The company's net assets attributable to shareholders rose by 6.54% to RMB 2,724,583,497.60 at the end of 2020, up from RMB 2,557,428,215.62 at the end of 2019[21] - The company's cash and cash equivalents amounted to ¥2,527,195,703.26 in 2020, compared to ¥2,020,303,868.23 in 2019, representing a growth of about 25.1%[186] - Total current assets increased to ¥8,188,055,512.37 in 2020, up from ¥6,816,331,247.82 in 2019, representing a growth of approximately 20.1%[186] - Total liabilities increased to ¥5,457,391,186.27 in 2020, compared to ¥4,258,517,963.58 in 2019, indicating a rise of about 28.2%[188] Revenue Segments - The financial technology segment generated revenue of 3.485 billion RMB, reflecting a year-on-year growth of approximately 30%[41] - The company's main business revenue increased by 4.51% compared to last year, driven by a 2.20% growth in industry information solutions and an 18.92% increase in data center intelligent solutions[46] - Revenue from industry information solutions was CNY 5,877,004,130.97, with a gross margin of 13.73%, reflecting a decrease of 0.31 percentage points compared to the previous year[47] - Data center intelligent solutions revenue reached CNY 1,070,453,906.87, with a gross margin of 6.07%, marking an increase of 0.32 percentage points year-on-year[47] Investments and R&D - Research and development expenses increased by 9.27% to 307 million RMB, indicating a focus on innovation[45] - The company invested CNY 306,707,418.28 in R&D expenses, representing 3.99% of total revenue, with 1,130 R&D personnel accounting for 40.82% of the total workforce[56] - The company is investing 50 million in R&D for new technologies, focusing on AI and machine learning applications[140] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 2.5 per 10 shares to shareholders, totaling RMB 209,545,318.58 available for distribution[4] - In 2020, the company distributed a cash dividend of 2.50 RMB per 10 shares, totaling 106,713,057 RMB, which represents 33.61% of the net profit attributable to ordinary shareholders[96] - The board of directors has approved a stock buyback program worth 200 million to enhance shareholder value[140] Market Presence and Client Base - The company has a strong client base in the financial sector, including major banks such as ICBC and CCB, indicating robust market presence[34] - The company has established partnerships with major banks, including Industrial and Commercial Bank of China and China Construction Bank, to implement new generation information system projects[41] Operational Challenges and Risks - The company does not foresee any significant risks in its operations for the upcoming year[6] - The company has identified risks related to international environment changes, operational uncertainties, and investment project viability, which may impact performance[89] Corporate Governance and Compliance - The company has implemented strict information disclosure practices, ensuring transparency and compliance with regulations[6] - The audit opinion on the financial statements was a standard unqualified opinion, indicating no significant issues were found[172] - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[152] Employee and Management Structure - The company employed a total of 2,784 staff, including 1,961 technical personnel and 388 sales personnel[155] - The company has a training program in place that includes various internal and external training opportunities to enhance employee skills and promote growth[157] - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[165] Future Outlook and Strategic Plans - The company provided a forward guidance of 1.8 billion in revenue for the next fiscal year, indicating a growth target of 20%[140] - The company plans to expand its business in Southeast Asia through the establishment of a wholly-owned subsidiary in Singapore, with an initial investment of 141.576 million RMB[73] - The company aims to leverage digital, networked, and intelligent technologies to create comprehensive digital solutions for key industries such as financial technology, transportation, and industrial internet[85]