惠程科技(002168) - 2019 Q4 - 年度财报

Share Repurchase and Dividends - The company repurchased a total of 17,766,200 shares for a total amount of RMB 147,613,580.50, which is considered as cash dividends for the year [4]. - The company will not distribute cash dividends or issue bonus shares due to the need for substantial funds for daily operations and future investments [4]. - The cash dividend amount accounted for 109.35% of the net profit attributable to ordinary shareholders, indicating no cash dividends were distributed for 2017 and 2018 [115]. - The company’s cash dividend total (including other methods) for 2019 was ¥147,613,580.50, which is 100% of the total distributable profit [115]. - The company repurchased and canceled 12.21 million restricted stock units due to underperformance in 2018, reducing total shares from 814,139,568 to 801,929,568 [186]. - The company’s total share capital after the repurchase and cancellation of shares is now 801,929,568 shares [182]. - The company’s total share capital decreased by approximately 1.5% following the repurchase of restricted stocks [186]. Financial Performance - The company reported a significant focus on future development plans and potential risks in its 2020 operational plan [4]. - The company’s operating revenue for 2019 was CNY 1,092,321,442.57, a decrease of 42.45% compared to CNY 1,898,158,382.53 in 2018 [16]. - The net profit attributable to shareholders for 2019 was CNY 134,997,926.83, down 59.87% from CNY 336,389,804.53 in 2018 [16]. - The net cash flow from operating activities was negative CNY 267,042,882.90, a decline of 186.44% compared to CNY 308,950,003.63 in 2018 [16]. - The basic earnings per share for 2019 was CNY 0.17, a decrease of 60.47% from CNY 0.43 in 2018 [16]. - The weighted average return on net assets for 2019 was 6.92%, down from 20.44% in 2018, reflecting a significant decline in profitability [16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 137,568,478.64, a decrease of 47.39% from CNY 261,472,491.31 in 2018 [16]. - The company achieved a revenue of 1,092.32 million yuan and a net profit of 134.99 million yuan in 2019, laying a solid foundation for future stable development [41]. Business Operations and Market Position - The company maintained high investment in internet traffic resources in 2019 to stay competitive in the gaming industry [21]. - The company’s game business achieved revenue of 784 million yuan, capturing approximately 0.50% of the mobile game market, which had a total sales revenue of 158.11 billion yuan in 2019, reflecting a year-on-year growth of 18.0% [30]. - The company is actively exploring overseas game operations, with a subsidiary in Japan already established to promote independent games [43]. - The company is focusing on compliance and quality in its game operations, having obtained multiple game licenses since the resumption of approvals in December 2018 [30]. - The company is actively expanding into the smart grid and high-end intelligent technology sectors, including the production of unmanned delivery robots [38]. - The company has successfully developed and operated several digital entertainment products, including popular titles that have won national awards, showcasing its strong R&D capabilities [26]. Investment and Financial Strategy - The company plans to continue its investment strategy focused on financial products, securities, and equity investments to drive its industrial transformation and upgrade [28]. - The company has established a long-term partnership with well-known enterprises such as ABB and Schneider, aiming to leverage its 20 years of experience in the electrical industry to enhance its product offerings [31]. - The company has strengthened risk control in its investment business, reducing the frequency of securities investments to ensure stable development [32]. - The company’s long-term loans increased by 269.75 million yuan, primarily due to a new long-term loan from Industrial and Commercial Bank of China [34]. - The company’s total investment amount for the reporting period reached ¥2,704,890,052.22, representing a significant increase of 167.02% compared to the previous year's investment of ¥1,012,980,933.46 [76]. Research and Development - The company reported a significant increase in R&D expenses, totaling approximately 72.32 million yuan, which is a 34.27% increase from the previous year, aimed at enhancing product technology and innovation [62]. - R&D investment increased by 23.93% to ¥77,370,912.34 in 2019, accounting for 7.08% of operating revenue, up from 3.29% in 2018 [64]. - The number of R&D personnel rose to 368, representing 42.30% of the workforce, an increase of 0.41% from the previous year [64]. - The company aims to enhance its R&D capabilities and increase the proportion of self-developed games, contributing significantly to performance [100]. Compliance and Governance - The company has committed to maintaining independence in assets, personnel, finance, business, and organization as per the acquisition report, with commitments made on June 22, 2016, and currently in normal performance [119]. - The company has guaranteed not to relinquish its controlling shareholder status for a period of 60 months from the completion of the transaction, with commitments made on December 20, 2017, and currently in normal performance [119]. - The company has ensured that any related transactions will be conducted at fair prices to protect the interests of the company and its shareholders, with commitments made on December 21, 2017, and currently in normal performance [120]. - The company has not faced any penalties or rectification issues during the reporting period [135]. Legal Matters - The company is involved in a copyright dispute with Shanghai Xuanting Entertainment Technology Co., Ltd., with a first-instance judgment requiring the company to compensate 5 million yuan for economic losses and reasonable expenses [133]. - The company has a total of 11 ongoing lawsuits, with a total amount involved of approximately 5,001,238 yuan, and 3 cases have reached mediation with both parties not bearing compensation responsibility [134]. - The company has a total of 8 lawsuits where it or its subsidiaries are defendants, with a total amount involved of approximately 1,754.01 million yuan [134]. Social Responsibility and Sustainability - The company emphasizes environmental protection and sustainable development, focusing on green and low-carbon production processes [170]. - The company actively fulfills its social responsibilities, balancing economic benefits with social and environmental considerations [166]. - The company does not belong to the key pollutant discharge units as identified by environmental protection authorities [170].