LEO(SZ:002131)2020-04-27 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2019, representing a year-on-year increase of 15%[15]. - The net profit attributable to shareholders was RMB 150 million, an increase of 10% compared to the previous year[15]. - The company's operating revenue for 2019 was ¥14,032,624,158.53, representing a 14.55% increase compared to ¥12,250,038,568.54 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥307,609,363.91, a significant turnaround from a loss of ¥1,859,508,127.77 in 2018, marking a 116.54% improvement[23]. - The net cash flow from operating activities reached ¥877,475,696.01, a substantial increase of 626.55% from a negative cash flow of ¥166,646,468.75 in 2018[25]. - The basic earnings per share for 2019 was ¥0.05, recovering from a loss of ¥0.33 per share in 2018, representing a 115.15% increase[25]. - The total assets at the end of 2019 were ¥13,322,567,347.52, a decrease of 6.01% from ¥14,174,557,849.86 at the end of 2018[25]. - The net assets attributable to shareholders increased by 18.07% to ¥8,132,631,498.70 at the end of 2019, up from ¥6,887,701,118.81 in 2018[25]. - The company achieved significant contract wins in major water conservancy projects, including a contract worth approximately RMB 213 million with Austrian Voith Hydro[96]. Digital Marketing Expansion - The company has expanded its business into digital marketing, acquiring several companies in this sector, including Shanghai Manku and Shanghai Aike[21]. - The company has established a comprehensive marketing platform integrating internet traffic and precision digital marketing services[21]. - The company reported a significant increase in digital marketing services, supported by government policies promoting the advertising industry[36]. - The digital marketing industry in China is experiencing significant growth, with the market size expected to expand as the number of mobile e-commerce users reaches 713 million in 2019, marking a breakthrough of 700 million users[40]. - The company ranks 3rd in the 2019 digital marketing company rankings published by Internet Weekly, indicating its strong position in the industry[41]. - The company is one of the few in the industry capable of providing integrated digital marketing services, covering a complete service chain from marketing strategy to execution and optimization[54]. - The company has seen a 61.89% increase in construction in progress compared to the beginning of the period, primarily due to increased investment in the Wenling base construction project[53]. - The company has built 15 live broadcast rooms under its "Mars Warehouse" brand, evolving its talent incubation system and establishing an integrated model of people, goods, and venues[58]. - The company’s short video user base in China reached 627 million in 2019, projected to grow to 722 million in 2020, with the market size expected to increase from RMB 23.35 billion in 2019 to RMB 38.08 billion in 2020[99]. Risks and Challenges - The company has faced risks related to market competition and regulatory changes, which are detailed in the report[6]. - The company faces market volatility risks due to its reliance on exports, which may be affected by global economic uncertainties and trade policies[171]. - Fluctuations in raw material prices pose a significant risk, as they constitute a large portion of the company's production costs[174]. - Labor shortages and rising labor costs present a risk to the company's operational expansion plans[175]. - Changes in export tax rebate rates could impact the company's sales gross margin and overall competitiveness in international markets[176]. - The digital marketing industry is experiencing intensified competition, with many companies striving to enhance their operational capabilities[179]. - Regulatory risks are present due to the lack of unified industry standards, which may affect the operational continuity of the newly acquired companies[182]. Investment and Acquisitions - The company has committed to a cash dividend distribution at least once a year, subject to profitability and funding needs[200]. - The company has acquired six companies in the internet sector, indicating a strategic shift from traditional manufacturing to digital marketing[177]. - The acquisition of a 15% stake in Shanghai Manku was completed with a total investment of CNY 20,706.75 million, achieving 100% of the planned investment[143]. - The company has established production facilities in Hungary and Indonesia, enhancing its ability to mitigate the impacts of the US-China trade war[91]. - The company plans to enhance technology development and product innovation in the manufacturing sector, aiming to reduce manufacturing costs and improve production efficiency[168]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of RMB 0.06 per share (before tax) based on a total share capital of 6,754,804,205 shares for the 2019 fiscal year[188]. - The total cash dividend amount for 2019 is RMB 40,528,825.23, which accounts for 13.18% of the net profit attributable to the company's ordinary shareholders[189]. - The company did not distribute any cash dividends or bonus shares in 2018, reflecting a significant change in dividend policy[188]. - The cash dividend policy has remained unchanged during the reporting period, ensuring transparency and adherence to shareholder interests[187]. Research and Development - The company continuously invests in technology and R&D to maintain its competitive advantage and has formed a specialized R&D team for product innovation[72]. - Research and development expenses totaled ¥159,671,003.86, accounting for 1.14% of operating revenue[124]. - The company has established a product R&D center to enhance its capabilities in big data processing and programmatic advertising trading platforms[103]. - New product developments included the IPM5 series high-efficiency permanent magnet synchronous motors and various types of pumps, enhancing the product line and market competitiveness[89].