Baolande(SH:688058)2021-04-25 16:00Financial Performance - The company's operating revenue for 2020 was CNY 182,260,206.51, representing a 27.19% increase compared to CNY 143,302,329.84 in 2019[22]. - The net profit attributable to shareholders of the listed company was CNY 61,055,136.92, a slight decrease of 0.31% from CNY 61,243,121.93 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 49,239,726.23, down 17.53% from CNY 59,708,842.33 in 2019[22]. - The net cash flow from operating activities increased by 46.80% to CNY 26,871,698.94 from CNY 18,304,802.13 in 2019[22]. - As of the end of 2020, the total assets amounted to CNY 1,018,442,219.74, reflecting a 5.89% increase from CNY 961,813,672.98 at the end of 2019[22]. - The net assets attributable to shareholders of the listed company were CNY 980,380,212.25, which is a 4.37% increase from CNY 939,325,075.33 in the previous year[22]. - The company's operating revenue increased by 27.19% year-on-year, driven by stable demand from major clients and expansion into government and financial sectors[23]. - Net profit attributable to shareholders decreased by 0.31%, primarily due to the growth in operating costs and expenses outpacing revenue growth[24]. - Basic and diluted earnings per share decreased by 20.73% and 21.24% respectively, attributed to an increase in the total number of shares following the IPO in 2019[24]. - The company achieved revenue of 68.73 million yuan from the government sector in 2020, representing a significant increase of 616.56% year-on-year[108]. Research and Development - Research and development expenses accounted for 22.17% of operating revenue, reflecting a 0.62 percentage point increase from the previous year[23]. - The total R&D expenditure for the year was ¥40,410,684.22, an increase of 30.85% compared to the previous year, primarily due to an increase in R&D personnel and salary adjustments[71]. - The company has continuously invested in research personnel and funding to improve and innovate product technology, enhancing product functionality and technical level[61]. - The company obtained 3 new authorized invention patents and applied for 20 new invention patents during the reporting period, totaling 57 invention patents in the application process by the end of the reporting period[62]. - The company has a total of 60 invention patents applied for, with 3 granted, indicating a focus on innovation and technology development[69]. - The company is focusing on the integration of big data and artificial intelligence technologies into operational practices, indicating a strategic shift towards intelligent operations[60]. - The company is actively expanding its patent portfolio, with a significant number of patents in various stages of application and authorization, reflecting its commitment to innovation[62]. Corporate Governance - The company has a comprehensive governance structure in place, ensuring accountability and transparency[4]. - The report includes a standard unqualified audit opinion from Tianjian Accounting Firm[5]. - The financial report is confirmed to be true, accurate, and complete by the responsible persons of the company[5]. - The company does not have any special arrangements for corporate governance[7]. - The company has detailed various operational risks and corresponding mitigation measures in the report[4]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company has not faced any issues with more than half of the board members being unable to ensure the authenticity and completeness of the annual report[7]. Dividend Policy - The company plans to distribute a cash dividend of 14.25 RMB per 10 shares, totaling 57 million RMB, which accounts for 93.36% of the net profit attributable to shareholders for 2020[5]. - The company has established a cash dividend policy that prioritizes cash dividends, with a minimum of 10% of distributable profits to be distributed as cash dividends annually[165]. - 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 and has positive retained earnings[168]. - The company will review its shareholder dividend return plan at least every three years, considering the opinions of independent directors and shareholders[168]. - The company’s dividend distribution plan for 2020 has been approved by the board and is pending approval from the annual shareholders' meeting[169]. Market Expansion and Strategy - The company is exploring market expansion opportunities and new product development in the field of intelligent operations and application performance management[12]. - The company is actively involved in the development of 5G networks, which is expected to significantly boost the demand for IT support systems related to IoT applications[58]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 100 million allocated for potential deals[181]. - The company plans to continue expanding its market presence in the government sector, having added multiple government industry agents during the year[135]. - The company aims to enhance its core competitiveness and expand its market to achieve dual improvements in revenue and profitability[193]. Operational Efficiency - The company has implemented a distributed architecture to enhance system scalability and overall operational efficiency[28]. - The company has adopted a microservice architecture to ensure the scalability and sustainability of its service functions[30]. - The company aims to improve operational efficiency through centralized management of application resources, with various projects in progress[79]. - The company is focusing on enhancing product quality management to improve competitiveness and customer experience[160]. Risks and Challenges - The company faces risks related to dependency on China Mobile, which significantly impacts its revenue and accounts receivable[113]. - The company is exposed to market competition risks, particularly from established international IT firms like IBM and Oracle[114]. - The company acknowledges the risk of dilution in immediate returns due to the increase in share capital and net assets following the public offering[192]. Innovation and Technology - The company has developed cloud middleware technology based on its research on Docker container technology and is continuously improving this technology[157]. - The rise of cloud computing, IoT, and mobile internet technologies presents new opportunities for middleware development, driving innovation and market competition[158]. - The company aims to strengthen its leading position in the middleware market and focus on developing intelligent operations, big data, and container PaaS products and technologies[159].