STS(SH:603322)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.48 billion, representing a year-on-year increase of 16.65% compared to ¥1.27 billion in 2019[22]. - The net profit attributable to shareholders was ¥39.60 million, a significant recovery from a loss of ¥93.34 million in 2019[22]. - The basic earnings per share for 2020 was ¥0.25, compared to a loss of ¥0.68 per share in 2019[23]. - The company reported a net cash flow from operating activities of approximately ¥80.71 million, an increase of 106.97% from ¥38.99 million in 2019[22]. - The total assets at the end of 2020 were approximately ¥2.28 billion, reflecting a 2.25% increase from ¥2.23 billion in 2019[22]. - The company achieved an operating income of 1.478 billion yuan, representing a year-on-year growth of 16.65%[40]. - The company reported a significant increase in revenue, achieving a total of RMB 1 billion for the fiscal year, representing a growth of 20% year-over-year[107]. - The total revenue for the year reached 98,259.59 million RMB, accounting for 66.49% of annual sales from the top five customers[61]. Cost Management - The company reduced its period expenses by approximately ¥55 million through enhanced cost control measures[24]. - The company reported a significant decrease in sales expenses by 26.19%, from 46,507,158.07 RMB to 34,328,638.52 RMB[63]. - Research and development expenses were reduced by 22.47% to CNY 57,684,903.98, enhancing cost control[48]. - The company aims to reduce operational costs by 15% through efficiency improvements and process optimization[107]. Investments and Acquisitions - The company completed the acquisition of 51% equity in Haopu Environmental for ¥41.82 million and invested ¥50 million and ¥80 million in Chaoxun Equipment and Chaoxun Smart Link, respectively[80]. - The company established a new investment entity, Chaoxun Future, with a registered capital of ¥50 million, holding a 51% stake[80]. - The company is actively pursuing mergers and acquisitions, but faces integration risks that could affect expected synergies and performance commitments from acquired companies[98]. Government Support - The company received government subsidies totaling approximately ¥19 million during the reporting period[24]. - The company received government subsidies amounting to CNY 22,725,039.78, a 127.05% increase compared to the previous year[48]. Risk Management - The company has detailed potential risks in the report, which can be found in the section discussing operational conditions[7]. - The company faces risks related to customer concentration, particularly reliance on China Mobile, and plans to diversify its customer base[97]. - The company faces risks of profit decline due to intensified market competition and cost control measures by telecom operators[98]. - Goodwill impairment risk exists if the acquired companies' operational conditions deteriorate or performance commitments are not met, which could negatively impact the company's financial performance[99]. Corporate Governance - The company has implemented measures to minimize investor losses and ensure compliance with commitments made during the IPO process[106]. - The company has established a cash dividend policy and has not made any adjustments to it during the reporting period, ensuring the protection of minority investors' rights[102]. - The company maintained strict compliance with information disclosure regulations, ensuring timely and accurate communication with investors[164]. - The board of directors was re-elected on December 24, 2020, consisting of 7 members, including 3 independent directors, complying with legal requirements[163]. Research and Development - The company launched several new products, including a city-level energy big data platform and a smart community service platform[45]. - Research and development investments are set to increase by 30%, focusing on artificial intelligence and machine learning technologies[107]. - The company established the "Guangdong Province Ultra High Definition Front-end Innovation Center" to enhance its R&D capabilities[45]. Market Expansion - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[107]. - The company is focusing on expanding its smart city solutions, integrating communication, IT, AI, and big data technologies[33]. Employee Management - The company emphasizes a competitive salary system based on job roles, levels, and market conditions to motivate employees[158]. - The company has established a training plan focused on safety production and project management, along with technical training tailored to subsidiaries[159]. - The number of employees in the parent company was 947, while the total number of employees in the parent company and major subsidiaries was 1,437[157]. Financial Position - The company's total assets increased to ¥2,283,569,719.45 in 2020, compared to ¥2,233,346,926.88 in 2019, reflecting a growth of 2.25%[189]. - The equity attributable to shareholders rose to ¥420,366,511.20 in 2020, up from ¥381,297,537.05 in 2019, marking an increase of 10.24%[188]. - The company reported a significant increase in long-term receivables, rising by 1,056.39% to ¥54,015,509.08 from ¥4,668,906.67[71]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,581, an increase from 15,546 at the end of the previous month[140]. - The largest shareholder, Liang Jianhua, reduced his holdings by 7,826,000 shares, bringing his total to 65,380,000 shares, which represents 41.77% of the total shares[149]. - The company has no controlling shareholder or actual controller, with Liang Jianhua serving as the chairman and legal representative[143].