SZZT(SZ:002197)2021-06-04 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15%[16]. - The net profit attributable to shareholders was RMB 200 million, which is a 10% increase compared to the previous year[16]. - The company's operating revenue for 2020 was CNY 1,328,743,408.73, a decrease of 0.81% compared to CNY 1,339,613,939.45 in 2019[28]. - The net profit attributable to shareholders for 2020 was CNY 18,166,693.67, down 10.75% from CNY 20,355,219.82 in 2019[28]. - The net cash flow from operating activities increased significantly by 213.36% to CNY 328,550,237.61 in 2020, compared to CNY 104,846,356.07 in 2019[28]. - The total assets at the end of 2020 were CNY 6,490,824,824.60, reflecting an increase of 8.37% from CNY 5,989,337,242.29 at the end of 2019[28]. - The net assets attributable to shareholders at the end of 2020 were CNY 2,417,099,818.38, a slight increase of 0.97% from CNY 2,393,768,842.45 in 2019[28]. - The basic earnings per share for 2020 remained at CNY 0.04, unchanged from 2019[28]. - The diluted earnings per share for 2020 also remained at CNY 0.04, unchanged from 2019[28]. - The company reported a net profit excluding non-recurring gains and losses of CNY -28,920,100.24 for 2020, an improvement of 8.20% from CNY -31,504,408.51 in 2019[28]. Market Expansion and Strategy - Market expansion efforts include entering two new provinces, aiming for a 20% increase in market share by the end of 2021[16]. - The company has outlined a performance guidance for 2021, projecting a revenue growth of 12% to 18%[16]. - A strategic acquisition of a local tech firm was completed, expected to enhance the company's capabilities in cloud computing services[16]. - The company's strategy includes a focus on financial technology, IDC, and cloud computing, with an integrated solution capability for clients[26]. - The company has maintained its "IDC + ecosystem" strategy since its inception, indicating a commitment to innovation and market expansion[26]. - The company aims to leverage its IDC and cloud computing capabilities to drive growth in smart city services[46]. - The company will continue to advance its "IDC + ecosystem" strategy, expanding its IDC business in the Guangdong-Hong Kong-Macao Greater Bay Area and central regions, aiming to enhance market share and operational efficiency[180]. Research and Development - The company plans to invest RMB 300 million in R&D for new products and technologies in 2021, focusing on enhancing security chip technology[16]. - The company is actively developing new technologies in financial technology, including AI and facial recognition payment terminals, to enhance its service offerings[47]. - The number of R&D personnel increased to 376 in 2020, up 9.94% from 342 in 2019[99]. - R&D investment amounted to ¥110,758,324.74 in 2020, a slight increase of 0.80% from ¥109,878,474.27 in 2019[99]. - The proportion of R&D investment to operating revenue was 8.34% in 2020, up from 8.20% in 2019, indicating a focus on innovation[99]. - The company achieved 19 product compatibility certifications in 2020, enhancing its product offerings in the IDC and cloud computing sectors[95]. Product and Service Development - The company is committed to enhancing its self-service terminal offerings, with a target of launching three new models in 2021[16]. - The company is actively expanding its product offerings in the secure payment sector, including new face payment devices and PCI6.X keyboards, while ensuring the growth of its secure payment business revenue[67]. - The company launched new products in the fields of 5G communication, facial recognition, and digital currency payment solutions, aiming to enhance its market position[96]. - The company is focusing on optimizing product design and enhancing encryption technology to improve the competitiveness and value of its products[79]. Financial Management and Investments - The company will not distribute cash dividends for the fiscal year 2020, opting to reinvest profits into business growth[16]. - The company plans to raise up to CNY 885.7 million through a private placement, with CNY 620 million allocated to the ZHENGTONG Smart Cloud Data Center project[70]. - The company has not engaged in any securities or derivative investments during the reporting period[123][126]. - The company raised a total of RMB 400 million from the issuance of corporate bonds, with a net amount of RMB 396.63 million after deducting fees[131]. - As of December 31, 2020, the company utilized RMB 397.49 million of the raised funds for repaying bank loans and supplementing working capital[132]. - The company has effectively utilized the raised funds to meet operational needs and enhance project efficiency[149]. Risks and Challenges - The company faces risks including macroeconomic uncertainties and intensified industry competition, which may impact future performance[16]. - The company faces risks from intensified industry competition and will strengthen its market analysis and R&D capabilities to maintain its competitive edge[184]. - The company is focusing on enhancing its cash flow management and credit assessment systems to mitigate risks associated with accounts receivable and ensure stable operational funding[185]. Industry Outlook - The IDC and cloud computing industry is expected to grow significantly, with a projected 40% growth in China's cloud computing market, driven by digital transformation and 5G deployment[165]. - The smart city market in China is projected to reach approximately CNY 25 trillion by 2022, growing at a rate of over 30% annually[168]. - The Chinese IT innovation industry is expected to exceed CNY 365 billion by 2023, with market capacity projected to surpass CNY 1 trillion[169].