Weaver Network(SH:603039)2020-07-15 16:00Financial Performance - The net profit attributable to shareholders for 2019 was RMB 139,734,523.25, with the parent company achieving a net profit of RMB 127,681,570.23[7]. - The company's operating revenue for 2019 was CNY 1,286,034,406.75, representing a 28.14% increase compared to CNY 1,003,600,759.35 in 2018[29]. - The net profit attributable to shareholders for 2019 was CNY 139,734,523.25, which is a 22.05% increase from CNY 114,487,090.34 in 2018[29]. - The cash flow from operating activities for 2019 was CNY 238,072,659.26, showing a 19.19% increase compared to CNY 199,749,435.23 in 2018[29]. - The total assets at the end of 2019 were CNY 1,926,331,832.96, a 19.82% increase from CNY 1,607,642,720.46 at the end of 2018[29]. - The net assets attributable to shareholders at the end of 2019 were CNY 900,636,370.70, reflecting a 24.38% increase from CNY 724,091,970.43 at the end of 2018[29]. - The basic earnings per share for 2019 was CNY 0.95, up 21.79% from CNY 0.78 in 2018[32]. - The diluted earnings per share for 2019 was CNY 0.94, an increase of 22.08% compared to CNY 0.77 in 2018[32]. - The company achieved a total revenue of 1,286.03 million RMB in 2019, an increase of 28.14% compared to the previous year[88]. - The net profit after deducting non-recurring gains and losses was 110.57 million RMB, up 17.13% from the previous year[88]. - The operating cash flow net amount reached 238.07 million RMB, representing a year-on-year increase of 19.19%[88]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 1.50 per 10 shares (including tax) and to increase capital by 4 shares for every 10 shares held[7]. - The total distributable profit for 2019, after accounting for the legal surplus reserve and previous undistributed profits, is RMB 495,128,944.18[7]. - The company has reported a 10% legal surplus reserve extraction from the net profit, amounting to RMB 12,768,157.02[7]. - In 2019, the cash dividends distributed amounted to RMB 22,746,044.40, representing 16.28% of the net profit attributable to shareholders[178]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[4]. - The company has committed to ensuring that the information provided regarding the major asset restructuring is true, accurate, and complete, with no false records or misleading statements[182]. - The company has pledged to minimize related party transactions with the restructured entity and ensure fairness and transparency in unavoidable transactions[187]. Risks and Uncertainties - The company faces various risks and uncertainties that may impact its future operational and strategic plans[8]. - The report includes a detailed discussion of potential risks and countermeasures in the management analysis section[11]. - The company’s future plans and strategies are subject to risks and uncertainties, which do not constitute a commitment to investors[8]. - The company faces risks from market competition and potential talent loss, which could impact service quality and customer retention[170]. Research and Development - The company invested approximately 16.64 million yuan in R&D, accounting for 12.94% of its revenue, maintaining a high level of investment in innovation[75]. - The number of R&D personnel reached 694, representing 56.10% of the total workforce, indicating a strong focus on innovation[112]. - The total R&D investment amounted to approximately 166.39 million yuan, accounting for 12.94% of total operating revenue[112]. - The company will continue to invest in R&D to launch the latest versions of its smart office products and optimize product functionality based on customer needs[167]. Market Strategy and Operations - The company primarily operates through a direct sales model and channel distribution, with direct sales focusing on large and medium enterprises using e-cology products, while small enterprises utilize e-office and etteams[57][60]. - The company aims to enhance its marketing service system by expanding its existing marketing service institutions and establishing new service points in new regions[168]. - The company plans to continue adopting a combination of direct sales and channel distribution models to rapidly increase market coverage and share[172]. - The company has established regional authorized business operation centers across the country to provide localized customer service, ensuring quick response and support[61]. Product Development and Innovation - The company launched the new generation OA product "e-cology 9.0," focusing on intelligent, platform-based, and fully electronic office solutions[83]. - The company has developed intelligent office assistant software, enhancing product capabilities in data analysis and risk prediction[116]. - The e-office product line, designed for small and medium-sized organizations, includes dozens of functional modules to improve management efficiency at a low cost[49]. - The company has implemented a no-code platform to facilitate rapid application development and deployment, enhancing user experience[42]. Investment Activities - The company has invested in fixed assets, intangible assets, and construction projects, with significant investments in OA software industrialization projects over the past three years[133]. - The company received investment dividends totaling ¥408.75 million from its investment in Shanghai Digital Certification in 2019, resulting in an equity method investment income of ¥636.75 million[134]. - The investment in Ganyan Network resulted in an equity method investment loss of ¥1,588.45 million in 2019, but the company maintains a strong cooperative relationship due to product complementarity[134]. - The company's investment activities are primarily focused on long-term assets and financial products, with no significant impact from non-core business activities on profit changes[135]. Employee and Management - The company's employee compensation payable increased by 42.76% to ¥20,786,837.15, reflecting higher bonuses[137]. - The company will focus on enhancing its talent recruitment, training, and evaluation mechanisms to build a larger professional team[168]. - The company has maintained a consistent accounting policy by fully expensing R&D costs, ensuring comparability of financial data over time[120].