IReader Technology(SH:603533)2020-04-10 16:00Financial Performance - In 2019, the company's operating revenue was approximately CNY 1.88 billion, a decrease of 1.09% compared to CNY 1.90 billion in 2018[22]. - The net profit attributable to shareholders of the listed company reached approximately CNY 161 million, an increase of 15.57% from CNY 139 million in 2018[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 140 million, reflecting a growth of 9.26% compared to CNY 128 million in 2018[22]. - The net cash flow from operating activities significantly increased by 115.40% to approximately CNY 309 million, compared to CNY 143 million in 2018[22]. - The gross profit margin for 2019 was 37.58%, an increase of 8.12 percentage points year-on-year, reflecting improved profitability[41]. - The company's total revenue for 2019 was CNY 1,882,346,953.45, a slight decrease of 1.09% compared to the previous year, while the gross profit margin increased by 8.12 percentage points to 37.58%[50]. - Digital reading platform revenue was CNY 1,583,827,579.94, down 5.55% year-on-year, but the gross profit margin improved by 7.47 percentage points to 35.33%[50]. - The company achieved a net profit of 161.00 million yuan, representing a year-on-year growth of 15.57%[41]. - The revenue from copyright products grew by 91.17% to CNY 261,644,938.25, with a gross profit margin of 51.98%[50]. - The total revenue for the year 2019 was approximately 270.49 million, a decrease of 3.18 million compared to the previous year, representing a decline of about 1.16%[132]. - The company reported a user base growth, with a total of 267.31 million users, indicating a slight decrease from the previous year[132]. - The company reported a total revenue of CNY 1,647,406,008.63 from sales of goods and services, down 5.1% from CNY 1,736,960,719.61 in 2018[187]. Dividends and Shareholder Returns - The company proposed a cash dividend of CNY 1.50 per 10 shares, based on a total share capital of 40.1 million shares as of December 31, 2019[6]. - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares for the year 2019, totaling 60,150,000 RMB, which represents 37.36% of the net profit attributable to ordinary shareholders[83]. - The cash dividend for 2018 was 1.10 RMB per 10 shares, amounting to 44,110,000 RMB, which accounted for 31.66% of the net profit attributable to ordinary shareholders[83]. - The company distributed dividends totaling CNY 44,110,000.00 in 2019, compared to CNY 13,634,000.00 in 2018, indicating a significant increase in shareholder returns[188]. Assets and Liabilities - Total assets grew by 20.12% to CNY 1,911,656,793.69 from CNY 1,591,391,803.09 in the previous year[24]. - The company's total liabilities increased to CNY 656,980,767.40 in 2019 from CNY 473,881,673.30 in 2018, representing a growth of about 38.6%[170]. - The total equity attributable to shareholders rose to CNY 1,240,683,659.45 in 2019, up from CNY 1,113,099,889.19 in 2018, indicating an increase of approximately 11.4%[171]. - Cash and cash equivalents reached CNY 1,198,923,537.70 in 2019, compared to CNY 1,031,575,880.67 in 2018, marking a growth of around 16.2%[169]. - The company's inventory stood at CNY 48,131,948.79 as of December 31, 2019, with no prior year data provided for comparison[169]. - The company's retained earnings increased to CNY 412,380,911.94 in 2019 from CNY 311,474,874.80 in 2018, showing a growth of approximately 32.4%[171]. Research and Development - Research and development expenses for 2019 were 120.07 million yuan, a 6.56% increase from the previous year, highlighting the company's commitment to innovation[41]. - The company has developed 212 patents and 116 software copyrights, showcasing its strong R&D capabilities[37]. - The company is committed to increasing its R&D investment to drive innovation in its product lines[133]. - Research and development expenses for 2019 were CNY 120,065,447.12, slightly up from CNY 112,679,245.69 in 2018, highlighting continued investment in innovation[177]. Market and User Engagement - The digital reading user base in China reached 740 million, growing by 1.4% year-on-year[33]. - The digital reading market size is projected to reach CNY 20.48 billion, with a year-on-year growth of 21%[33]. - The average monthly active users reached 140 million, indicating strong user engagement and retention on the digital reading platform[36]. - The company is focused on expanding its digital reading services and enhancing its hardware product offerings[22]. - The company aims to enhance its product offerings and is focusing on new technology development to improve user engagement and retention[133]. - The company plans to enhance user scale and traffic resources by deepening partnerships with major mobile manufacturers and internet platforms[69]. Risks and Challenges - The report includes a risk statement regarding future plans and development strategies, emphasizing the importance of investor awareness of investment risks[7]. - The company faces risks related to potential regulatory changes in the internet digital reading industry, which could impact its business operations[73]. - The company has identified risks related to increasing competition in the digital reading industry, which could impact its market position and operational performance[74]. - The company faces risks from copyright infringement in the digital content sector, which could adversely affect sales revenue due to the prevalence of piracy[75]. - There is a risk of losing core management and technical personnel due to intensified competition for talent in the industry[76]. - The company acknowledges the risk of insufficient business model innovation, which may hinder its ability to adapt to market changes and achieve performance targets[77]. Corporate Governance and Compliance - The company has maintained a standard unqualified audit opinion from the accounting firm Rongcheng[5]. - The company has not violated any decision-making procedures for providing guarantees[8]. - The company has committed to preventing non-operational fund occupation and ensuring compliance with relevant laws and regulations[93]. - The company emphasizes the importance of corporate governance and investor relations, ensuring shareholder rights and stable returns[113]. - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, ensuring effective governance[143]. - The company actively engages in investor relations, ensuring timely and fair disclosure of information through designated media[144]. Social Responsibility - The company actively engaged in social responsibility by launching the "National Reading Cultural Dream" project, donating reading rooms and e-readers to impoverished areas[109]. - In 2019, the company established reading rooms in dozens of primary schools in Ganzi Prefecture, Sichuan, and donated reading materials[110]. - The company donated a total of 2 million yuan to hospitals in Hubei Province for COVID-19 prevention efforts[113]. - The company has trained over 100 disabled individuals in Hebei Province, helping many achieve employment[111]. - The company plans to continue its "National Reading Cultural Dream" project, ensuring ongoing support and updates for donated reading rooms over the next three years[112]. Shareholder Structure - The total share capital of the company is 401,000,000 shares, with 237,848,465 shares under limited sale conditions and 163,151,535 shares under unrestricted sale conditions[117]. - The number of shareholders at the end of the reporting period is 23,995, a decrease from 28,953 at the end of the previous month[119]. - The top shareholder, Zhang Lingyun, holds 121,973,572 shares, representing 30.42% of the total shares, all of which are under pledge[121]. - The second-largest shareholder, Cheng Xiangjun, owns 115,874,893 shares, accounting for 28.90% of the total shares, also under pledge[121]. - The company does not have a controlling shareholder situation, indicating a more distributed ownership structure[125]. Future Outlook - Future outlook includes plans for market expansion and potential mergers and acquisitions to strengthen its market position[133]. - The financial guidance for the next fiscal year indicates a cautious optimism with expectations of revenue stabilization[132]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[185].