Eastcompeace(SZ:002017)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,178,720,034.45, representing a 2.26% increase compared to ¥1,152,713,285.67 in 2018[16] - The net profit attributable to shareholders for 2019 was ¥39,513,573.64, a slight increase of 0.78% from ¥39,206,875.93 in 2018[16] - The net profit after deducting non-recurring gains and losses was ¥33,327,515.54, which is a significant increase of 24.83% compared to ¥26,698,267.56 in 2018[16] - The net cash flow from operating activities increased by 94.18% to ¥180,543,079.93 from ¥92,976,418.26 in 2018[16] - The total assets at the end of 2019 were ¥2,097,784,053.98, reflecting a 27.25% increase from ¥1,648,594,296.69 at the end of 2018[17] - The net assets attributable to shareholders increased by 43.42% to ¥1,395,128,686.84 from ¥972,727,449.53 in 2018[17] - The basic earnings per share for 2019 was ¥0.0938, up 3.53% from ¥0.0906 in 2018[16] - The diluted earnings per share also stood at ¥0.0938, reflecting the same growth of 3.53% compared to the previous year[16] - The weighted average return on equity decreased to 3.01% from 4.10% in 2018, indicating a decline of 1.09%[16] Revenue Breakdown - The smart card product revenue grew by 1.78%, while the Internet of Things (IoT) security products and industry system solutions saw growth rates of 4.57% and 17.90%, respectively[37] - The manufacturing sector accounted for ¥1,169,447,177.89, or 99.21% of total revenue, with a year-on-year growth of 2.39%[47] - Domestic sales reached ¥889,455,009.33, accounting for 75.46% of total sales, with a year-on-year increase of 5.14%[47] - The company’s overseas sales decreased by 5.71% to ¥289,265,025.12, attributed to increased competition and price reductions in emerging markets[47] Cash Flow and Investments - The company's cash and cash equivalents increased by 77.55% year-on-year, primarily due to the completion of a share placement that raised CNY 395.40 million[27] - The company's net cash flow from financing activities surged by 1,252.70% to ¥425,296,319.87, reflecting successful fundraising efforts[61] - The company raised a total of ¥404,649,421.92 through a share placement, with net proceeds of ¥395,296,319.87 allocated to various projects including the development of NB-IoT technology-based security access solutions[44] Research and Development - R&D expenses decreased by 6.31% to ¥102,657,780.25 in 2019 from ¥109,576,758.67 in 2018, with R&D personnel count dropping by 16.59%[58] - The proportion of R&D investment to operating income decreased to 8.71% in 2019 from 9.51% in 2018[58] - The company plans to focus on digital security and IoT security technology solutions in its R&D efforts[58] - The company has completed 59 patent applications in 2019, including 38 invention patents, and received 26 new patent authorizations[58] Dividend Policy - The company plans to distribute a cash dividend of ¥0.3 per 10 shares, based on a total of 446,486,084 shares[4] - The total cash dividend amount for 2019 was 13,394,582.52 CNY, representing 33.90% of the net profit attributable to the company's ordinary shareholders[100] - The cash dividend policy has been consistent over the past three years, with the same dividend amount of 0.3 CNY per 10 shares for 2017, 2018, and 2019[99] - The company has established a three-year shareholder return plan for 2019-2021, which was approved by the board and the annual general meeting[95] Market Expansion and Strategy - The company is actively expanding into the IoT security sector while optimizing its existing product structure to meet customer demands[26] - The company aims to enhance its IoT security business, which has shown significant revenue growth, and plans to further strengthen its strategic extension in this area[80] - The company will focus on expanding its domestic market product lines, particularly in the financial sector, and will pursue high-value personalized services[82] - The company plans to increase its overseas market strategy, emphasizing risk management and adjusting operational strategies in response to market changes[83] Shareholder Information - The total share capital increased to 446,486,084 shares after the completion of a rights issue, which added 100,160,748 new shares[150] - The company’s capital structure has been optimized as a result of the share issuance[162] - The proportion of shares held by the largest shareholder, Putian Oriental Communication Group Co., Ltd., is 29.38%, with a total of 131,172,253 shares[165] - The company has not conducted any repurchase transactions among the top 10 ordinary shareholders during the reporting period[166] Future Outlook - Future guidance indicates an expected revenue growth of 10% for the upcoming fiscal year, targeting a revenue of approximately 1.74 billion[181] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[193] - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[198] - The management emphasized the importance of diversifying product offerings to mitigate market risks[199]