CASHWAY(SH:603106)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥923.74 million, a decrease of 9.55% compared to ¥1,021.33 million in 2019[21]. - The net profit attributable to shareholders was ¥32.43 million, a significant recovery from a loss of ¥40.54 million in 2019[21]. - The basic earnings per share for 2020 was ¥0.08, compared to a loss of ¥0.10 per share in 2019[22]. - The weighted average return on equity increased to 1.96% in 2020, up by 4.45 percentage points from -2.49% in 2019[22]. - The net cash flow from operating activities was negative at -¥38.02 million, a decline of 151.39% compared to ¥73.98 million in 2019[21]. - The total assets decreased by 5.29% to ¥2,567.94 million from ¥2,711.28 million in 2019[21]. - In 2020, the company achieved operating revenue of CNY 923.74 million, a decrease of 9.55% year-on-year[62]. - The net profit attributable to shareholders was CNY 32.43 million, marking a turnaround from a loss[62]. - Total assets amounted to CNY 2.57 billion, down 5.29% compared to the previous year[62]. - The company reported a significant reduction in sales expenses by 79.25% to 45.98 million yuan, mainly due to the implementation of new revenue recognition standards[80]. Dividend and Capital Changes - The company plans to distribute a cash dividend of RMB 0.60 per 10 shares, totaling RMB 24.024 million, and will increase its capital stock by 3 shares for every 10 shares held, resulting in a new total of 520.52 million shares[5]. - The company's registered capital will change to RMB 520.52 million following the proposed capital increase[5]. - The company has established a cash dividend policy, proposing a cash dividend of RMB 0.60 per 10 shares, totaling RMB 24.024 million[117]. - The company plans to increase its capital stock by converting capital reserves, proposing a 3-for-10 stock increase, resulting in a new total of 520.52 million shares[117]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management, who assume legal responsibility for any misrepresentation[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[7]. - The company has not disclosed any significant non-compliance issues regarding the annual report's authenticity and completeness[7]. - The company has not reported any significant accounting policy changes or errors during the reporting period[128]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies in internal controls during the reporting period[199]. Risk Management - The company has outlined potential risks in its report, advising investors to pay attention to these risks as they may impact future performance[6]. - The company has established a comprehensive risk management framework to address potential market changes affecting its strategic plans[6]. - The company faces risks related to market competition, operational challenges, and potential declines in gross margins due to price pressures[111]. Market and Business Strategy - The company plans to continue expanding its market presence and investing in new technologies[23]. - The company is a leading provider of smart banking solutions in China, focusing on financial self-service devices and leveraging financial technology and artificial intelligence to meet diverse customer needs[30]. - The company is actively implementing a strategy of "four transformations" to enhance its operational efficiency and promote the concept of "liberating humans through machines" in various sectors including finance, government, and healthcare[31]. - The company aims to transform from cash-based devices to non-cash devices, and from hardware providers to software service providers, focusing on sustainable high-quality development[95]. - The company is committed to deepening its focus on financial technology, with a strategy that includes capital operations and asset management to extend its industrial ecosystem[97]. Research and Development - R&D investments over the past three years were CNY 86.02 million, CNY 92.63 million, and CNY 101.31 million, representing 8.83%, 9.11%, and 10.97% of revenue respectively[49]. - The total R&D investment was 101.31 million yuan, accounting for 10.97% of the company's operating income, with 746 R&D personnel representing 27.85% of the total workforce[82][83]. - The R&D segment is developing solutions for open banking, unmanned bank outlets, and intelligent risk control, with a focus on technologies like facial recognition and big data analysis[105]. Corporate Governance - The company has strengthened its corporate governance structure in compliance with relevant laws and regulations[190]. - The board of directors consists of 7 members, including 3 independent directors, and has established four specialized committees[192]. - The company has not faced any significant penalties from regulatory authorities in the past three years[185]. - The company has not yet elected a new independent director, indicating a potential governance issue that may need to be addressed[171]. Social Responsibility and Community Engagement - The company actively participates in poverty alleviation efforts, contributing to the goal of building a moderately prosperous society[145]. - The company provided targeted assistance to 500 registered impoverished individuals in Hubei, contributing a total of 2 million RMB to charity efforts[146]. - The total financial input for poverty alleviation amounted to 4.55 million RMB, with 1.80 million RMB in material donations[147]. - The company has received multiple awards for its contributions to pandemic relief and social responsibility, including recognition as a national advanced private enterprise in combating COVID-19[147]. Employee and Management - The company has a total of 2,679 employees, with 2,585 in the parent company and 94 in major subsidiaries[186]. - The employee composition includes 746 technical personnel, 134 sales personnel, and 1,532 service personnel[186]. - The company has implemented a competitive compensation policy that aligns with its strategic goals and performance metrics[187]. - A comprehensive training program has been established to enhance employee skills and meet the company's strategic needs[188]. Shareholder Information - The total number of ordinary shareholders reached 29,610 by the end of the reporting period, an increase from 29,074[156]. - The largest shareholder, Hengrong Investment Group, holds 185.90 million shares, representing 46.43% of total shares[158]. - The company holds 185,900,000 shares, representing a 46.43% ownership stake[177]. - Chairman Jiang Haoran indirectly holds 148,720,000 shares through Hengrong Investment, with no changes during the year[177].