RAISECOM(SH:603803)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was RMB 1,952,143,218.14, a decrease of 26.61% compared to RMB 2,660,080,151.25 in 2019[23]. - The net profit attributable to shareholders for 2020 was RMB 138,148,088.07, down 22.08% from RMB 177,302,150.08 in 2019[23]. - The net cash flow from operating activities significantly dropped to RMB 3,599,120.08, a decrease of 98.02% compared to RMB 181,350,764.24 in 2019[23]. - The total assets as of the end of 2020 were RMB 3,684,142,429.47, a decline of 5.58% from RMB 3,901,866,489.82 at the end of 2019[23]. - Basic earnings per share for 2020 were RMB 0.33, a decrease of 21.43% from RMB 0.42 in 2019[24]. - The weighted average return on net assets for 2020 was 5.21%, down 1.76 percentage points from 6.97% in 2019[24]. - The gross margin for the communication industry was 42.31%, with a decrease of 4.65 percentage points year-on-year[66]. - The sales revenue of integrated access terminal equipment decreased by 47.21% year-on-year, attributed to a slowdown in new household broadband user growth[67]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.10 per 10 shares, totaling RMB 46,316,111.27, which accounts for 33.53% of the net profit attributable to shareholders for 2020[7]. - The cash dividend distribution for 2019 was RMB 1.50 per 10 shares, totaling RMB 63,158,333.55, representing 35.62% of the net profit attributable to shareholders[117]. - In 2018, the cash dividend was RMB 1.20 per 10 shares, amounting to RMB 50,526,666.84, which was 40.37% of the net profit attributable to shareholders[117]. - The company will not conduct capital reserve transfers or stock dividends for the year 2020, with remaining undistributed profits carried forward to future years[115]. - The company adheres to the cash dividend policy as per the guidelines from the China Securities Regulatory Commission and the Shanghai Stock Exchange[114]. Market and Industry Trends - The significant decline in performance was primarily due to a 71.32% drop in sales of home terminal products, totaling approximately 1.65 million units sold[25]. - As of the reporting period, domestic telecom operators had over 450 million home broadband users, with a slowdown in new user additions[25]. - The ongoing 5G network construction is accelerating digital transformation across various industries, creating new application scenarios and development space[34]. - The F5G network is expected to support the development of new digital industries and infrastructure construction[34]. - The company is focused on providing access layer network solutions and technical services to telecom operators and industry-specific network clients[33]. Research and Development - The company has maintained annual R&D investment exceeding 10% of revenue since its listing, with over 50% of its workforce being technical personnel[36]. - In 2020, the company achieved breakthroughs in F5G gigabit optical networks, next-generation OTN, and cloud-network integration solutions, enhancing its competitive edge in the communication access sector[36]. - The company has developed multiple MEC solutions compatible with 4G and 5G networks, laying a solid foundation for 5G applications in vertical industries[39]. - Research and development expenses amounted to 262,196,904.01 RMB, representing 13.43% of total revenue, with 1,014 R&D personnel making up 56.77% of the total workforce[74]. Strategic Initiatives - The company is actively working on strategies to improve cash flow and efficiency, including debt restructuring agreements[31]. - The company plans to invest up to 400 million RMB in the construction of a smart manufacturing base for optical communication and industrial internet products in Ma'anshan[85]. - The company aims to enhance customer value through continuous innovation in technology, products, and solutions[33]. - The company plans to enhance its industrial internet business by promoting the commercialization of 5G/F5G technologies in vertical industries[102]. - The company will leverage its experience in 5G/F5G and industrial internet to provide reliable solutions for industry users, enhancing its brand influence in the industry private network market[103]. Risk Management - The company has outlined potential risks in its future development strategies, urging investors to be cautious[10]. - The company has established a risk management framework to improve operational efficiency and risk prevention capabilities[198]. - The company will strengthen its supply chain channels to mitigate risks associated with the global pandemic and international relations, ensuring stable supply sources[104]. Corporate Governance - The company has implemented a stock option incentive plan, with adjustments made to the exercise price and the list of incentive recipients[137]. - The company has not disclosed any major related party transactions during the reporting period, reflecting a focus on transparency[137]. - The company’s board of directors consists of experienced professionals from various sectors, enhancing its governance structure[181]. - The company continues to focus on expanding its market presence and enhancing its technological capabilities through strategic investments[182]. Shareholder Information - The total share capital as of December 31, 2020, was 421,055,557 shares[115]. - The number of shareholders increased from 20,612 to 21,250 during the reporting period[159]. - The top ten shareholders collectively hold 38,693,251 shares each, representing 9.19% of the total shares[161]. - The company has no preferred shareholders with restored voting rights as of the reporting period[159]. - The company’s actual controllers include six shareholders: Gao Lei, Zhu Chuncheng, Ren Jianhong, Li Yuejie, Wang Jianming, and Feng Xuesong, who collectively hold the restricted shares[164]. Employee and Labor Information - The number of employees in the parent company is 1,303, while the total number of employees in the parent company and major subsidiaries is 1,786[186]. - The company has implemented a comprehensive training program for employees, enhancing their skills and competencies[190]. - The company has a total of 364 employees with master's degrees or higher, indicating a strong educational background among staff[188]. Legal and Compliance - There were no major lawsuits or arbitration matters reported during the year, indicating a stable legal environment for the company[135]. - The company has not faced any penalties from securities regulatory agencies in the past three years[186]. - The company has complied with national environmental laws and regulations throughout its operations[148].