Primeton(SH:688118)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was ¥360,718,170.70, a decrease of 8.90% compared to ¥395,978,625.16 in 2019[23]. - Net profit attributable to shareholders decreased by 37.61% to ¥31,365,211.08 from ¥50,274,595.54 in the previous year[23]. - The net profit after deducting non-recurring gains and losses dropped by 82.59% to ¥8,007,188.28, significantly higher than the overall net profit decline[23]. - Basic earnings per share decreased by 52.66% to ¥0.329 from ¥0.695 in 2019[24]. - The weighted average return on net assets fell by 9.68 percentage points to 3.23% compared to 12.91% in the previous year[24]. - The gross profit margin for the software industry was 55.95%, down 3.55 percentage points from the previous year[98]. - The software platform business generated revenue of 254.71 million yuan, a decrease of 9.31% year-on-year[98]. - The application development business based on the software platform saw revenue of 106.01 million yuan, a decrease of 7.91% year-on-year[98]. Cash Dividend Policy - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 28,595,389.50, which accounts for 91.17% of the net profit attributable to shareholders for 2020[6]. - The proposed cash dividend for 2020 is CNY 3.00 per 10 shares, totaling CNY 28,595,389.50, which represents 91.17% of the net profit attributable to shareholders[135]. - The cash dividend policy is designed to protect the rights of minority investors and is compliant with the company's articles of association[135]. - The company has a differentiated cash dividend policy based on its development stage, with a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[134]. - The independent directors and supervisory board have approved the profit distribution plan, ensuring transparency and compliance in the decision-making process[135]. Research and Development - Research and development expenses accounted for 15.73% of operating revenue, an increase of 1.81 percentage points from 2019[24]. - The total R&D expenditure for the year was ¥56,750,995.08, representing a 2.98% increase from the previous year's ¥55,109,635.76[59]. - The company has developed over 40 core technologies with independent intellectual property rights, supported by a high proportion of R&D investment[52]. - The company has established a unique iPALM R&D system, enhancing product delivery speed and efficiency through reusable underlying technologies[71]. - The company launched multiple software products, including the Puyuan Application Server Platform Software V7 and Puyuan Low-Code Cloud Application Development Platform, which received several awards[83]. Market Expansion and Strategy - The company aims to enhance its software infrastructure capabilities to support digital transformation for medium and large enterprises and government institutions[33]. - The company is focused on expanding its market presence in the financial, telecommunications, and energy sectors through innovative software solutions[33]. - The digital transformation of enterprises in China is accelerating, with significant growth potential for digital middle platforms supported by national policies[49]. - The company is currently developing the Primeton DSP data sharing platform, which aims to support over 1,000 concurrent job scheduling and provide fine-grained control over data access[67]. - The company plans to strengthen its marketing strategy in the financial sector to improve project delivery efficiency and cost management in 2021[129]. Risk Management - The report includes a detailed discussion of various operational risks and corresponding mitigation strategies[4]. - The company emphasizes that forward-looking statements are based on subjective assumptions and may differ from actual results[7]. - The company identified risks related to core competitiveness, including the need for continuous technological innovation and the challenge of attracting high-end technical talent[89]. Corporate Governance - The board of directors and supervisory board members confirm the authenticity and completeness of the annual report[4]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has committed to not reducing its shareholdings during the restructuring period, ensuring stability for investors[137]. - The company’s controlling shareholder committed to not interfere with the company's management activities and to protect the interests of the company and its shareholders[149]. Financial Management - The net cash flow from operating activities increased by ¥18,447,429.64, primarily due to an increase in sales collections[25]. - The net cash flow from investment activities was 126.41 million RMB, a significant increase of 670.41 million RMB from the previous year, mainly due to the maturity of bank wealth management products purchased with idle funds[111]. - The company reported a total revenue of 22,480 million RMB, with a net profit of 5,561.69 million RMB for the year 2020[67]. - The company has established a comprehensive quality control system and has passed CMMI5, ISO9001, and ISO27001 certifications to ensure product quality[185]. Shareholder Information - The total number of ordinary shares was 95,400,000, with 77.29% being restricted shares and 22.71% being unrestricted shares[190]. - The top shareholder, Liu Yadong, holds 22,771,802 shares, representing 23.87% of the total shares[199]. - The company’s shareholder structure includes significant holdings from domestic natural persons, accounting for 55.66% of the total shares[190]. - The top ten shareholders collectively hold 56.12% of the total shares, indicating a significant concentration of ownership[199]. Compliance and Legal Matters - The company guarantees that the prospectus submitted for the initial public offering does not contain any false records, misleading statements, or significant omissions[151]. - There were no significant lawsuits or arbitration matters during the reporting period[161]. - The company will ensure compliance with legal requirements for the issuance of shares and will be held accountable for the accuracy of the prospectus[151].