WANXIN MEDIA(SH:601801)2021-04-16 16:00Financial Performance - The company's operating revenue for 2020 was RMB 8,850,886,617.21, a slight increase of 0.21% compared to RMB 8,832,683,700.93 in 2019[21]. - The net profit attributable to shareholders for 2020 was RMB 613,745,947.53, representing a growth of 10.18% from RMB 557,027,382.28 in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 618,017,634.56, up 12.26% from RMB 550,517,336.79 in the previous year[21]. - The net cash flow from operating activities decreased by 37.47% to RMB 714,686,995.45 from RMB 1,142,957,434.75 in 2019[21]. - As of the end of 2020, the net assets attributable to shareholders were RMB 10,604,744,202.64, an increase of 2.50% from RMB 10,346,108,994.88 at the end of 2019[21]. - Total assets increased by 4.28% to CNY 14,677,012,182.21 in 2020 from CNY 14,075,273,163.56 in 2019[22]. - Basic earnings per share rose by 10.71% to CNY 0.31 in 2020 compared to CNY 0.28 in 2019[22]. - The weighted average return on equity increased by 0.35 percentage points to 5.85% in 2020 from 5.50% in 2019[22]. - The company achieved operating revenue of 8.85 billion RMB, a year-on-year increase of 0.21%[46]. - Net profit attributable to shareholders reached 614 million RMB, up 10.18% year-on-year[46]. - The net profit after deducting non-recurring gains and losses was 618 million RMB, reflecting a 12.26% increase year-on-year[46]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.6 per 10 shares, totaling approximately RMB 318,272,757.92 based on the total share capital of 1,989,204,737 shares[5]. - The company distributed cash dividends of RMB 1.60 per 10 shares, totaling RMB 318,272,757.92 (including tax) for the fiscal year 2020, which represents 51.86% of the net profit attributable to ordinary shareholders[96]. - The cash dividend policy execution complies with relevant laws and regulations, ensuring the protection of minority shareholders' rights[96]. - The company plans to maintain the cash dividend distribution of RMB 1.60 per 10 shares for the fiscal year 2020, pending shareholder approval[96]. - In 2019, the company also distributed cash dividends of RMB 1.60 per 10 shares, totaling RMB 318,272,757.92 (including tax), which accounted for 57.14% of the net profit[96]. Operational Highlights - The company operates over 780 physical outlets across various regions, enhancing its distribution and education service systems[28]. - The company aims to strengthen its education service network and expand into K12 smart schools and vocational education[29]. - The logistics business is being upgraded through lean operations and smart technology to enhance supply chain services[29]. - The company is actively involved in game publishing and investment in cultural education and technology sectors[29]. - The company's supply chain and logistics services achieved revenue of 2.199 billion yuan, representing a year-on-year growth of 20.03%[38]. - The "Reading+" new retail system generated sales of 392 million yuan, a significant increase of 383.59% year-on-year[39]. - The education equipment and multimedia business reported revenue of 1.141 billion yuan, with a year-on-year growth of 47.85%[41]. - The company secured 64 smart education construction and operation projects, with a total bid amount of 680 million yuan, reflecting a year-on-year increase of 398%[41]. - The company launched over 240 products on its gaming platform, with registered users exceeding 1.2 million[41]. - The company established 121 shared bookstores as part of its new retail system by the end of 2020[39]. - The company completed the construction and renovation of 124 township outlets during the reporting period, bringing the total to 780 physical outlets[38]. - The company’s smart logistics system underwent automation upgrades in Hefei and Beijing, enhancing its logistics capabilities[41]. - The company’s digital education platform, covering over 11,000 schools and 16 million users, was recognized as a "2020 Lifelong Learning Brand Project" by the Ministry of Education[41]. Research and Development - The company reported a significant increase in R&D expenses, which rose by 157.69% to 20.22 million RMB[46]. - Total R&D investment amounted to ¥28,353,277.71, representing 0.32% of operating revenue[55]. - Research and development expenses rose significantly to 20,216,763.02 CNY in 2020, compared to 7,845,503.32 CNY in 2019, reflecting an increase of about 157%[192]. Risks and Challenges - The company reported no significant risks that could materially affect its operations during the reporting period[5]. - The company is facing risks from the ongoing impact of the COVID-19 pandemic, which may affect its business operations[91]. - The company has faced significant risks due to technological innovations in 5G, cloud computing, and AI, impacting traditional publishing and cultural consumption[92]. - The competitive landscape in the publishing industry has intensified, prompting the company to explore new business models and enhance digital capabilities[92]. Shareholder Information - The total number of ordinary shareholders increased from 26,897 to 27,521 during the reporting period[130]. - The top shareholder, Anhui Xinhua Publishing Group Co., Ltd., holds 1,092,968,865 shares, representing 54.95% of total shares[131]. - The second-largest shareholder, Xinhua Group - Guotai Junan - holds 310,000,000 shares, accounting for 15.58%[131]. - The third-largest shareholder, New EB Guarantee and Trust Property Special Account, increased its holdings by 240,000 shares to 124,640,000 shares, which is 6.27%[131]. - The company has no significant changes in its top ten shareholders during the reporting period[132]. - The actual controller of the company is the Anhui Provincial Government[135]. - There are no significant changes in the actual controller during the reporting period[135]. Employee and Management Information - The number of employees in the parent company is 110, while the total number of employees in major subsidiaries is 6,197, resulting in a combined total of 6,307 employees[153]. - The company organized 401 online training activities throughout the year, with a total of 22,500 participants[155]. - The company has implemented a performance-oriented salary system based on market conditions, including annual salary, position performance pay, and contractual salary systems[154]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.2439 million yuan[149]. - The company has undergone changes in its board of directors and senior management, with several new appointments made during the reporting period[150]. Audit and Compliance - The company’s financial report received a standard unqualified audit opinion from the accounting firm Rongcheng[4]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2020[168]. - The internal control self-assessment report was disclosed simultaneously with the annual report, indicating no significant deficiencies in internal controls during the reporting period[163]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[102].