LZRJ(SH:688588)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 630,091,561.79, representing a year-on-year increase of 5.61% compared to CNY 596,622,687.25 in 2019[22]. - Net profit attributable to shareholders for 2020 was CNY 200,747,667.40, a significant increase of 33.97% from CNY 149,840,625.28 in 2019[22]. - The net cash flow from operating activities reached CNY 169,322,043.48, up 23.98% from CNY 136,570,310.03 in the previous year[22]. - The company's total assets increased by 64.97% to CNY 1,303,729,531.21 at the end of 2020, compared to CNY 790,291,204.88 at the end of 2019[22]. - The basic earnings per share for 2020 was CNY 0.5192, reflecting a growth of 24.75% from CNY 0.4162 in 2019[23]. - The company's net assets attributable to shareholders grew by 76.57% to CNY 1,200,149,319.44 at the end of 2020, compared to CNY 679,711,001.10 at the end of 2019[24]. - The company reported a quarterly revenue of CNY 183,881,555.51 in Q4 2020, with a net profit of CNY 63,002,275.33 for the same period[26]. - The company reported a total revenue of 10,740 million RMB, with a net profit of 5,935.82 million RMB, indicating a strong financial performance[78]. Research and Development - Research and development expenses accounted for 9.42% of operating revenue in 2020, an increase of 0.36 percentage points from 9.06% in 2019[23]. - R&D investment totaled ¥5,935.82 million in 2020, a 9.78% increase from ¥5,406.98 million in the previous year, representing 9.42% of total revenue[67]. - The number of R&D personnel increased to 268, representing 15.35% of the total workforce, up from 13.09% in the previous period[80]. - The research and development team comprises 1,586 members, accounting for 90.84% of the total workforce, highlighting the company's talent advantage[90]. - The company has applied for 5 invention patents and 42 software copyrights, increasing its total to 19 patents and 177 copyrights[67]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2 per 10 shares, totaling approximately RMB 80,002,000.60, which represents 39.85% of the net profit attributable to shareholders for the year 2020[5]. - The proposed cash dividend for the 2020 fiscal year is also set at RMB 2 per 10 shares, with a total expected distribution of RMB 80,002,000.60, pending shareholder approval[162]. - The cash dividend policy stipulates that the company will distribute at least 10% of its distributable profits in cash, with a cumulative distribution of at least 30% over any three consecutive years[158]. - The company will adopt a combination of cash and stock for dividend distribution[168]. - The company plans to prioritize cash dividends in profit distribution, with a minimum of 80% for mature stages without major capital expenditures[169]. Corporate Governance - The report includes a standard unqualified audit opinion from Zhonghua Certified Public Accountants[5]. - The company has confirmed that all board members attended the board meeting[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company has not disclosed any special arrangements for corporate governance[8]. Market Position and Strategy - The company's revenue from software development services for the Japanese market accounted for 83.97% of total revenue in 2020[44]. - The company has established long-term framework contracts with major clients, enhancing its competitive position in the Japanese financial software market[40]. - The company focuses on high-value software development services, maintaining a strong market position with significant barriers to entry[43]. - The company plans to continue strengthening its collaboration with major clients in the Japanese software development service market[45]. - The company is actively pursuing new business models, including SaaS services, to increase customer satisfaction and long-term revenue stability[62]. Technology and Innovation - The company employs a technology-driven R&D model, closely tracking international trends to meet market demands[37]. - The company has developed a proprietary software project management system to effectively manage the entire process of software development projects, ensuring high efficiency and quality[53]. - The company’s self-developed automation testing platform significantly improves production efficiency and quality in software project development[53]. - The company’s low-code development platform reduces project failure rates and lowers the technical skill requirements for system developers, representing a comprehensive upgrade from the previous LMSP platform[53]. - The company has developed a cloud-based microservices architecture that enhances system efficiency and reduces complexity, enabling independent deployment and scaling of services[56]. Risk Management - The company has outlined various operational risks and corresponding mitigation strategies in the report[4]. - The report includes a forward-looking statement risk disclaimer, indicating that future plans and strategies do not constitute a commitment to investors[6]. - The company remains heavily reliant on the Japanese market for software development services, which poses a risk if market conditions change[108]. - The company faces risks related to high customer concentration, particularly with its largest client, Nomura Research Institute[109]. - The company is exposed to exchange rate risks as its revenue is primarily denominated in Japanese yen while costs are in RMB[115]. Investment and Financial Management - The company has invested RMB 113.16 million in bank wealth management products, with an outstanding balance of RMB 100.36 million[179]. - The company has invested RMB 300 million in bank wealth management products using raised funds, with an outstanding balance of RMB 295 million[179]. - The company has ongoing financial products with expected returns that are yet to be realized, indicating a strategy focused on future income generation[185]. - The company has diversified its financial product portfolio across various banks, ensuring a spread of risk and potential returns[184]. - The total amount of raised funds is RMB 38,504.57 million, with RMB 4,279.97 million invested in the current year[188]. Compliance and Legal Matters - There are no significant lawsuits or arbitration matters reported for the current year[176]. - The company has not faced any situations that could lead to delisting[176]. - There are no major accounting errors or changes in accounting policies reported for the current year[174]. - The company has not made any significant related party transactions during the reporting period[177]. Environmental and Social Responsibility - The company has not been classified as a key pollutant unit and has implemented effective waste management practices, ensuring no industrial wastewater is produced[196]. - The company’s solid waste mainly consists of household waste and packaging materials, with hazardous electronic waste being properly handled by suppliers[196]. - The company has not disclosed any environmental information due to its non-involvement in key pollution industries[196]. - The company’s public relations and social responsibility initiatives are not applicable as per the report[196].