Bonree(SH:688229)2021-05-14 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 2 per 10 shares, totaling RMB 8,880,000, which represents 40.82% of the cumulative distributable profits[6]. - The third quarter profit distribution plan was approved, with a cash dividend of RMB 10 per 10 shares, which has already been distributed to shareholders[6]. - The company does not plan to issue bonus shares or convert capital reserves into share capital for the 2020 fiscal year[6]. - The proposed cash dividend for 2020 is RMB 2 per 10 shares (including tax), totaling RMB 8,880,000 (including tax), which represents 40.82% of the cumulative distributable profit[175]. - The cash dividend distribution plan for Q3 2020 was approved, with a distribution of RMB 10 per 10 shares (including tax) to all shareholders, totaling RMB 44,400,000 shares as the base[174]. - The company has not conducted cash profit distribution in the last three years, which restricts it from issuing new shares or convertible bonds to the public[174]. - The company must communicate with shareholders, especially minority shareholders, before the general meeting to gather opinions on the cash dividend plan[173]. - Independent directors are required to provide clear independent opinions on the cash dividend plan and disclose them publicly[174]. - The cash dividend policy must comply with the company's articles of association and the resolutions of the shareholders' meeting[173]. - The company plans to maintain the total distribution amount unchanged, adjusting the per-share distribution ratio if the total share capital changes before the dividend record date[175]. - The company has not proposed a cash dividend plan in the annual profit distribution scheme; it must explain the reasons and the intended use of retained funds in the regular report[173]. - The company’s cash dividends for 2020 represent a net profit rate of 171.10% for the ordinary shareholders[176]. Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth[24]. - The company's operating revenue for 2020 was CNY 138.84 million, a decrease of 15.62% compared to 2019[25]. - Net profit attributable to shareholders was CNY 31.14 million, down 48.98% year-over-year[25]. - The net profit after deducting non-recurring gains and losses was CNY 22.14 million, a decline of 60.81% from the previous year[25]. - The net cash flow from operating activities was CNY 27.15 million, a decrease of 46.98% compared to 2019[25]. - The company's total assets increased to CNY 874.72 million, up 270.27% from the previous year[26]. - The net assets attributable to shareholders rose to CNY 840.89 million, reflecting a growth of 312.41% year-over-year[26]. - Basic earnings per share decreased to CNY 0.84, down 54.10% from 2019[27]. - The company achieved a total R&D expenditure of ¥39,523,251.14, representing a 27.23% increase from the previous year[66]. - The company reported a financial expense of -591.33 million RMB, a decrease of 929.07% year-on-year, primarily due to increased interest income from raised funds[123]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[24]. - A strategic acquisition of a local tech firm was completed, enhancing the company's capabilities in AI technology[24]. - The company is focusing on integrating AI technologies to improve operational efficiency and automate decision-making processes[53]. - The company plans to enhance its marketing network and R&D capabilities, which may lead to increased operational costs in the future[97]. - The company is actively pursuing market expansion and technological advancements to address evolving IT operational challenges[69]. - The company aims to penetrate traditional industries by offering APM products and solutions tailored to their specific needs, capitalizing on the growing demand for digital services[46]. Research and Development - Research and development expenses accounted for 28.47% of operating revenue, an increase of 9.59 percentage points compared to the previous year[27]. - The company has developed 27 core technologies and holds 7 authorized invention patents, with 60 patents pending and 63 software copyrights[52]. - The company has established a comprehensive R&D management system to ensure product quality and efficiency, following a standard software development process that includes demand analysis, development initiation, design and development, testing, acceptance, and training[44]. - The workforce for R&D increased by 66 personnel, contributing to a rise in R&D personnel costs by ¥8,316,100 compared to the previous year[67]. - The company is focusing on enhancing its product ecosystem to empower IT operations through data, aiming for a more agile and intelligent management system[67]. Risks and Compliance - The company has outlined various risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[4]. - The company’s future plans and development strategies are subject to risks and do not constitute a commitment to investors[7]. - The company faces risks related to core talent retention and rising human resource costs due to high competition in the IT sector[91]. - The company is exposed to market competition risks as new entrants and overseas players emerge in the APM industry[92]. - The company has committed to strict adherence to the lock-up agreements by its major shareholders and management[177]. Client Relationships and Revenue Sources - The company’s primary revenue sources are monitoring service income and software sales, with a significant client base including major internet companies like Baidu, Tencent, and Alibaba[43]. - Major clients include Tencent, Baidu, and China Construction Bank, indicating strong customer retention and market presence across various industries[80]. - The top five customers contributed 42.63% of total sales, with the largest customer, Huawei, accounting for 11.65%[115]. - The company maintained stable relationships with major clients, with no significant loss of top customers reported[117]. Technology and Innovation - The company focuses on IT operations management (ITOM) and application performance management (APM), providing services that enhance software application performance for enterprise clients[39]. - The company utilizes machine learning technology to create dynamic baselines for application health standards, enhancing its service offerings[39]. - The company has developed proprietary technologies for data processing and analysis, including a distributed computing framework for massive time-series data[42]. - The company has developed a multi-protocol online media playback technology that supports various protocols including HTTP, HTTPS, RTSP, and HLS, enhancing user experience and performance monitoring[57]. - The company has introduced a dynamic code modification technology for mobile applications, enabling real-time monitoring without altering the original source code[58]. Shareholder Commitments and Regulations - The lock-up period for major shareholders, including the actual controller and related parties, is set for 36 months starting from August 17, 2020[177]. - The company has committed to stabilizing its stock price for a period of 36 months starting from the listing date on August 17, 2020[178]. - The company has established a profit distribution policy that is effective long-term, ensuring shareholder returns are prioritized[180]. - The company has committed to fulfilling obligations related to compensation or liability as per legal requirements[180].