Genew(SH:688418)2021-05-26 16:00Financial Performance - The company reported a total revenue of RMB 100 million for the year 2020, reflecting a year-over-year growth of 15%[13]. - The company's operating revenue for 2020 was ¥499,891,186.51, representing a year-on-year increase of 17.82% compared to ¥424,272,295.26 in 2019[26]. - The net profit attributable to shareholders of the listed company decreased by 29.40% to ¥43,110,574.71 in 2020 from ¥61,066,867.76 in 2019[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥33,488,683.68, down 42.23% from ¥57,967,434.85 in the previous year[26]. - The basic and diluted earnings per share for 2020 were CNY 0.2607, down 38.02% from 2019[28]. - The company's total assets at the end of 2020 were CNY 1,501,233,922.19, an increase of 100.82% from the end of 2019[27]. - The weighted average return on equity for 2020 was 5.26%, down from 12.97% in 2019[28]. - The net cash flow from operating activities was CNY -86,713,583.07, primarily due to reduced tax refunds and increased cash payments to employees[29]. - The company reported a quarterly operating revenue of CNY 228,553,671.72 in Q4 2020, showing strong performance in the last quarter[32]. - The company achieved operating revenue of 499.89 million yuan, a year-on-year increase of 17.82%[98]. - The net profit attributable to the parent company was 43.11 million yuan, a decrease of 29.40% compared to the previous year[98]. - The main business cost rose by 26.38% to RMB 235.14 million, reflecting the increase in operating revenue[116]. - The gross margin for the core network system decreased by 6.52 percentage points to 75.62%, attributed to a higher proportion of software sales in the previous year[119]. Research and Development - Investment in R&D for new technologies increased by 25%, focusing on 5G and edge computing solutions[14]. - Research and development expenses accounted for 13.66% of operating revenue, a decrease of 2.25 percentage points from the previous year[28]. - The company achieved a total R&D investment of ¥68,288,279.86, representing a 1.19% increase from the previous year[72]. - The number of R&D personnel increased to 374, accounting for 56.16% of the total workforce, compared to 50.19% in the previous year[86]. - The company has a strong focus on R&D, with a total of 53 software copyrights acquired, indicating a commitment to innovation and technology development[64]. - The company is actively pursuing new business qualifications, including the Guangdong Province Security Technology Prevention System Design and Construction Qualification Certificate, valid until March 9, 2022[67]. - The company has developed a comprehensive suite of software solutions for various applications, including 5G network management and satellite communication systems[64]. - The company is focusing on high-security communication solutions for government applications, addressing the needs for secure voice and data transmission[76]. Market Strategy and Expansion - The company expects a revenue growth guidance of 10-15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[13]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[13]. - The company is targeting market expansion in emerging countries along the "Belt and Road" initiative, which includes over 60 countries with nearly half of the global population[154]. - The company aims to deepen its penetration in the domestic private network market, particularly in government emergency and smart city sectors, to increase business scale and market share[159]. - The company is exploring partnerships with telecom operators to enhance its service offerings and improve customer experience[14]. - The company is focusing on the development of specialized communication markets, leveraging new technologies such as 5G, edge computing, and AI[151]. Corporate Governance and Compliance - The report includes a standard unqualified audit opinion from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial statements[4]. - The board of directors has confirmed that all members attended the board meeting, ensuring governance compliance[4]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has committed to timely disclosure of any related party transactions to protect the interests of shareholders[189]. - The company has established a fundraising management system to ensure that raised funds are used specifically for designated projects[179]. - The company will actively manage costs and expenses to improve profitability, with specific cost optimization tasks assigned to various departments[180]. - The company has made long-term commitments regarding housing leases, ensuring to bear all losses caused by any disputes related to leased properties[189]. Risks and Challenges - The company faces risks related to core technology leakage and competition, which could impact its market position and profitability[108]. - The company has detailed various operational risks and corresponding mitigation measures in the report, emphasizing the importance of risk management[4]. - The company is experiencing a trend of accelerated domestic substitution due to the impact of the US-China trade dispute on the communication industry[153]. - The company reported a significant loss in the Philippines market with a net loss of 78.98 million[148]. Shareholder and Financial Management - The company plans to distribute a cash dividend of RMB 0.70 per 10 shares, totaling RMB 13,552,700, which accounts for 31.44% of the net profit attributable to shareholders for the year 2020[5]. - The company will implement competitive performance reward and equity incentive systems to align employee interests with company growth[159]. - The company has committed to not occupying company funds and will not engage in any actions that may harm the interests of the company and its shareholders[189]. - The company will not repurchase shares during the lock-up period, ensuring stability in shareholding structure[170]. - The company will report its share reduction plans to the Shanghai Stock Exchange 15 trading days prior to any sale[171]. - The company will not transfer or entrust others to manage its shares within 36 months from the date of listing, as per the regulations of the Shanghai Stock Exchange and the China Securities Regulatory Commission[170].