ABT Networks(SH:688168)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 262,835,660.84, representing a 5.67% increase compared to CNY 248,731,759.62 in 2019[23]. - The net profit attributable to shareholders of the listed company decreased by 39.72% to CNY 44,473,425.09 from CNY 73,771,975.96 in the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 32,099,198.70, down 53.47% from CNY 68,990,205.17 in 2019[23]. - The net cash flow from operating activities was CNY 12,479,395.72, a decrease of 45.60% compared to CNY 22,940,105.08 in 2019[23]. - As of the end of 2020, the total assets amounted to CNY 1,145,058,888.71, reflecting a 7.52% increase from CNY 1,064,997,333.22 at the end of 2019[23]. - The net assets attributable to shareholders of the listed company increased by 2.03% to CNY 1,019,996,189.88 from CNY 999,665,911.12 at the end of 2019[23]. - Basic earnings per share decreased by 50.85% to CNY 0.87 from CNY 1.77 in the previous year[24]. - The company's cash flow from operating activities decreased by 45.60% to CNY 12.48 million, indicating potential liquidity challenges[110]. Research and Development - The company's R&D investment as a percentage of operating revenue increased by 8.89 percentage points to 24.08%, reflecting a significant increase in R&D expenses by CNY 25.53 million, or 67.58% year-on-year[24]. - The company achieved a total R&D expenditure of ¥63,300,838.14, representing a 67.58% increase compared to the previous year[78]. - R&D expenditure accounted for 24.08% of total revenue, an increase of 8.89 percentage points from the previous year[78]. - The company applied for 71 new patents and obtained 22 new invention patents during the reporting period, bringing the total number of patents to 44[76]. - The company has a strong focus on R&D, with numerous patents and software copyrights related to its core technologies, indicating a commitment to innovation[69]. Corporate Governance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has stated that there are no violations of decision-making procedures for external guarantees[8]. - The board of directors and supervisory board members have ensured the accuracy and completeness of the annual report[4]. - The company does not have any special arrangements for corporate governance[8]. - The company emphasizes the importance of internal control systems to effectively manage risks[145]. - The company is committed to enhancing corporate governance and operational standards[145]. Market and Industry Trends - The global cybersecurity industry reached a scale of $124.40 billion in 2019, with an expected growth to $127.83 billion in 2020, reflecting a growth rate of 2.75% due to the pandemic impact[50]. - In China, the cybersecurity industry size was approximately ¥156.36 billion in 2019, growing by 17.1% from 2018, and is projected to reach ¥170.20 billion in 2020, with a growth rate of about 8.85%[50]. - The cybersecurity industry in China is entering a "fast lane" of development, driven by policy support, demand expansion, and application upgrades[56]. - The company is focusing on the development of security products for 5G, including advanced firewalls and gateways, to enhance security capabilities[53]. Shareholder and Stock Information - The profit distribution plan for 2020 proposes a cash dividend of 3.00 RMB per 10 shares, totaling approximately 15,354,000.00 RMB (including tax) to be distributed to shareholders[6]. - The cash dividend for 2019 was 4.5 RMB per 10 shares, totaling 23,031,000.00 RMB, which was 31.22% of the net profit attributable to shareholders[149]. - The total share capital as of December 31, 2020, was 51,180,000 shares[148]. - The company has established a cash dividend policy in accordance with relevant laws and regulations[148]. Social Responsibility - During the COVID-19 pandemic, the company donated 5,000 protective masks to Jianghan Fangcang Hospital and 3,000 masks to Wuhan Donghu Middle School, among other contributions[193]. - The company actively engaged in social responsibility initiatives, particularly during the pandemic, to support healthcare workers and local communities[193]. Risk Management - The report includes a detailed description of potential risks faced by the company[4]. - The company faced challenges due to the pandemic, impacting sales and R&D activities, particularly in its subsidiary Wuhan Sipuleng[24]. - The company is focusing on product upgrades and R&D investments to mitigate risks associated with rapid technological advancements in the industry[106]. Audit and Compliance - The company has received a standard unqualified audit report from Da Xin Accounting Firm[5]. - The internal control audit will also be conducted by Da Xin Accounting Firm, with a remuneration of 150,000 RMB[169]. - The company has committed to fulfilling all disclosed commitments in the prospectus to protect the rights of investors[165].