ENC(SH:603869)2021-04-09 16:00Financial Performance - The company achieved operating revenue of ¥1,174,809,880.72 in 2020, a decrease of 63.61% compared to ¥3,227,973,598.50 in 2019[5] - The net profit attributable to shareholders was ¥16,947,982.07, while the parent company's net profit was -¥58,174,327.93[5] - The company's net profit attributable to shareholders was CNY 16,947,982.07, a decrease of 92.11% compared to the previous year[23] - The net profit after deducting non-recurring gains and losses was CNY -335,612,326.89, a decline of 295.48% year-on-year[23] - The operating revenue after excluding non-main business income was ¥1,173,126,683.52, also reflecting a 63.61% decrease from the previous year[22] - The company's total assets decreased by 10.24% to CNY 6,410,390,123.58 from CNY 7,142,019,621.01 in the previous year[23] - Basic earnings per share were CNY 0.03, down 93.02% from CNY 0.43 in 2019[24] - The weighted average return on net assets was 0.43%, a decrease of 5.00 percentage points from the previous year[24] - The company's operating revenue for the reporting period decreased significantly, with a decline of 72.94% in product sales and system integration, and a decrease of 68.60% in industry cognitive solution business revenue[59] - Operating costs were CNY 795.52 million, down 65.97% year-on-year[54] Dividend and Shareholder Information - The company proposed a cash dividend of ¥0.1 per 10 shares, resulting in a total dividend distribution of ¥6,977,317.71, which accounts for 41.17% of the net profit attributable to shareholders[6] - The company reported a cash dividend of 1,999,659.5 RMB for 2020, representing 11.80% of its profits[99] - The company did not propose a cash dividend for 2019, as the total amount paid for share repurchases reached 46.09% of the net profit attributable to shareholders[95] - The total number of ordinary shares is 504,500,508, with 100% being tradable shares[130] - The total number of ordinary shareholders decreased from 19,506 to 14,554 during the reporting period[133] - The largest shareholder, Xin'ao Energy Supply Chain Co., Ltd., holds 176,841,072 shares, representing 35.05% of the total shares, with 147,444,480 shares pledged[135] Cash Flow and Financial Stability - The operating cash flow net amount was CNY 606,599,663.71, an increase of 136.57% compared to the previous year[23] - The company improved its cash flow from operating activities, reaching CNY 606.60 million, an increase of 136.57% compared to the previous year[54] - Cash and cash equivalents increased by 133.81% to ¥1,773,533,862.71, accounting for 27.67% of total assets, primarily due to strong sales collections and proceeds from the sale of equity in Beihai Xinyi Yacht[71] - Trade receivables decreased by 31.00% to ¥1,525,812,177.92, representing 23.80% of total assets, attributed to improved sales collections and adjustments under new revenue recognition standards[71] - The company has reduced accounts receivable by 30.98% to CNY 1.53 billion, improving cash flow stability[51] Business Strategy and Focus Areas - The company plans to continue its focus on sustainable and steady profitability while considering long-term development[6] - The company is focusing on smart city solutions and has developed platforms for data aggregation and decision-making to enhance operational efficiency[33] - The company has developed industry-specific solutions in areas such as smart policing and public safety, including systems for risk insight, security management, and emergency response[40] - The company aims to improve its delivery capabilities in policing, public services, and community sectors by leveraging core products like the smart IoT platform and intelligent central platform[85] - The company is focusing on transitioning from project construction to operational services in smart city development, targeting new business models and growth points[86] Research and Development - The company has maintained a high level of R&D investment, focusing on innovative technologies and improving development efficiency[46] - R&D expenses reached 134.39 million RMB, accounting for 11% of total operating revenue, ensuring sustained investment in R&D and maintaining core competitive advantages[64] - Total R&D investment amounted to 159.90 million RMB, representing 13.61% of operating revenue, with 63.94% of the workforce engaged in R&D[65] - The company aims to increase its R&D budget by 15% to support ongoing innovation and product development initiatives[149] Corporate Governance and Compliance - The company has committed to reducing related party transactions and avoiding competition with peers, with commitments made by actual controllers Wang Yusuo and Zhang Tao since February 2016[101] - The company has guaranteed the authenticity and completeness of restructuring documents, with commitments made by major shareholders and controllers since February 2016[101] - The company emphasizes compliance with laws and regulations while actively participating in social responsibility initiatives[122] - The company has received recognition for its contributions to social welfare and economic development, including awards for outstanding contributions[124] - The company emphasizes compliance with information disclosure requirements, ensuring timely and accurate reporting to shareholders[165] Market and Competitive Environment - The company acknowledges potential risks from the post-pandemic economic environment, including possible fiscal tightening and reduced project investments from local governments[89] - The company faces intensified market competition in the smart city sector, necessitating a focus on strengthening its technical capabilities and operational services[92] Employee and Talent Management - The company focuses on talent development and employee welfare, enhancing overall corporate responsibility awareness[127] - The company has implemented a value-sharing incentive system for employee remuneration, which includes baseline sharing and excess performance sharing[157] - The company organized various training programs for management and new employees to enhance their skills and integration into the company culture[159] Asset Management - The company's goodwill balance was 701.65 million yuan, with a goodwill impairment provision of 89.24 million yuan as of December 31, 2020[182] - Total current assets as of December 31, 2020, amounted to ¥4,804,566,850.04, an increase from ¥4,178,235,915.50 in 2019, representing a growth of approximately 14.9%[192] - Total liabilities decreased from CNY 3,144,750,990.53 in 2019 to CNY 2,416,122,813.66 in 2020, a decline of about 23.2%[194] Audit and Financial Reporting - The company has maintained a standard unqualified audit opinion from its accounting firm, Zhihong CPA[4] - The audit report confirmed that there were no material misstatements identified in the financial statements, ensuring reliability for stakeholders[185] - The company has implemented significant internal controls related to equity transfer transactions, ensuring compliance and accuracy in financial reporting[184]