Baolande(SH:688058)2020-04-15 16:00Financial Performance - The company's operating revenue for 2019 was ¥143,302,329.84, representing a year-on-year increase of 17.11% compared to ¥122,369,993.69 in 2018[24]. - The net profit attributable to shareholders for 2019 was ¥61,243,121.93, reflecting a growth of 19.04% from ¥51,447,523.95 in 2018[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 16.25% to ¥59,708,842.33 in 2019[24]. - The net cash flow from operating activities for 2019 was ¥18,304,802.13, up 11.04% from ¥16,485,485.78 in 2018[24]. - The total assets at the end of 2019 reached ¥961,813,672.98, a significant increase of 403.64% compared to ¥190,971,587.98 in 2018[24]. - The net assets attributable to shareholders surged to ¥939,325,075.33, marking a 458.95% increase from ¥168,051,546.05 in 2018[24]. - Basic earnings per share for 2019 were ¥1.93, up 12.87% from ¥1.71 in 2018[25]. - The total revenue for the year was CNY 60,670,000, with a net profit of CNY 37,872,760.90, representing a profit margin of approximately 62.3%[77]. - The company achieved a revenue of 143.30 million yuan in 2019, representing a year-on-year growth of 17.11%[95]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was 59.71 million yuan, with a year-on-year increase of 16.25%[95]. Dividend Policy - The company plans to distribute a cash dividend of 5.00 RMB per 10 shares, totaling 20,000,000 RMB, which accounts for 32.66% of the net profit attributable to shareholders for 2019[6]. - The cash dividend distribution policy states that at least 20% of the distributable profit for the year must be allocated as cash dividends if the company is profitable[156]. - The company has not proposed any stock bonus or capital reserve conversion to increase share capital in the profit distribution plan[6]. - The independent directors have agreed to the profit distribution plan, ensuring the protection of minority shareholders' rights[157]. - The company has a commitment to prioritize cash dividends while considering its growth stage and funding needs[155]. - The company will review its dividend distribution plan at least every three years, considering the opinions of independent directors and shareholders[155]. - The total net profit attributable to ordinary shareholders for 2019 was 61,243,121.93 RMB, with a cash dividend payout ratio of 32.66%[158]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 21.55% in 2019, up 3.58 percentage points from 17.97% in 2018[25]. - Total R&D expenses for the period amounted to ¥30,882,917.35, representing 21.55% of total revenue[68]. - The company has 136 R&D personnel, accounting for 49.45% of the total workforce[68]. - The company has no capitalized R&D expenses for the period, indicating a focus on immediate R&D investments[68]. - The company holds 18 core technologies in middleware and intelligent operation, with an additional 26 technologies in reserve, showcasing its strong R&D capabilities[59]. - During the reporting period, the company applied for 34 new invention patents, bringing the total to 40 patents in the application process, indicating robust innovation efforts[60]. - The company has invested CNY 2,749.67 million in R&D personnel, with an average salary of CNY 20.73 million per person, indicating a strong commitment to innovation[80]. Market Position and Strategy - The company attributed revenue growth to stable demand from major clients and the expansion into new industry clients[26]. - The company aims to expand its market presence through strategic partnerships and product enhancements to meet evolving customer needs[36]. - The company is actively pursuing market expansion strategies, focusing on enhancing its presence in high-barrier industries like telecommunications and finance[53]. - The company is currently developing multiple platforms, including the Smart Operation and Maintenance Platform V1.0, which has a budget of CNY 3,100,000[12]. - The company is collaborating with Huawei and other firms to build a domestic software and hardware ecosystem, enhancing its competitive position[97]. - The company is focusing on enhancing its technical capabilities and expanding its product line and market reach through future investments in technology-related firms[126]. Operational Compliance and Governance - The report includes a standard unqualified audit opinion from Tianjian Accounting Firm[5]. - The report indicates that all board members attended the board meeting, ensuring governance compliance[5]. - The company has maintained compliance with its dividend principles and policies as outlined in its articles of association[157]. - The company has confirmed that there are no significant lawsuits or arbitration matters during the reporting period[194]. - The company has maintained a good integrity status, with no major defaults or regulatory actions taken against it during the reporting period[194]. - The company has implemented changes in accounting policies in accordance with the revised financial reporting standards effective from January 1, 2019[191]. Risks and Challenges - The company faces high technical and market barriers, requiring extensive service and support to build a stable customer base in the software industry[50]. - The company faces risks related to market competition, particularly from established players like IBM and Oracle, which may impact its market share[100]. - The company is exposed to risks from potential changes in tax policies that could affect its favorable tax rates[103]. - The impact of the COVID-19 pandemic has posed risks to the company's performance, affecting project bidding and order confirmations[103]. - The company faced risks related to high customer concentration in the telecommunications sector, primarily relying on China Mobile[101]. Investment and Financial Management - The company has approved the use of up to RMB 500 million of temporarily idle raised funds for cash management, ensuring it does not affect project progress or normal operations[199]. - The company has invested RMB 750 million in structured deposits, with an outstanding balance of RMB 250 million[197]. - The company has engaged in structured deposits with a projected annual yield of 3.45% and 3.6%, with expected returns of RMB 96.88 thousand and RMB 101.1 thousand respectively[200]. - The company has confirmed that all cash management activities have followed legal procedures and are expected to continue in the future[200]. Shareholder Rights and Commitments - The company will ensure compliance with relevant regulations and improve governance structures to protect the rights of shareholders, especially minority shareholders[177]. - The company will publicly disclose reasons for not implementing stabilization measures if required by the CSRC or the Shanghai Stock Exchange[175]. - The company will compensate investors for direct losses incurred due to reliance on unfulfilled commitments, with the compensation amount determined through negotiation or regulatory authority[186]. - The company has committed to avoid any competitive business activities that may conflict with its operations, ensuring no direct or indirect competition during the association period[188].