Focus Tech.(SZ:002315)2020-02-07 16:00Financial Performance - The company's operating revenue for 2019 was ¥978,005,673.25, representing an increase of 11.75% compared to ¥875,181,934.57 in 2018[26]. - The net profit attributable to shareholders for 2019 was ¥150,917,649.09, a significant increase of 168.03% from ¥56,305,632.30 in 2018[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥63,054,787.35, up 263.93% from ¥17,326,173.19 in 2018[26]. - Basic and diluted earnings per share increased by 166.67% to ¥0.64 from ¥0.24[29]. - The weighted average return on equity was 7.82%, up from 3.09% in the previous year[29]. - Total assets reached ¥2,900,861,875.79, representing a 14.29% increase year-over-year[29]. - Net assets attributable to shareholders increased by 10.87% to ¥1,986,106,300.10 from ¥1,791,392,433.09[29]. - Quarterly revenue for Q4 was ¥251,394,405.31, with a total annual revenue growth trend observed[32]. - The net profit attributable to shareholders for Q4 was -¥7,545,901.17, indicating a loss compared to previous quarters[32]. - Non-recurring gains and losses totaled ¥87,862,861.74 for the year, significantly higher than the previous year's figure[36]. Business Strategy and Operations - The company continues to focus on its core business of cross-border trade services, helping SMEs reduce risks and costs associated with international expansion[24]. - The company has not experienced significant changes in its main business since its listing, maintaining its focus on e-commerce platforms and related services[24]. - The company has established subsidiaries such as InQbrands Inc. and Doba, Inc. to enhance its cross-border trade capabilities[24]. - The company is actively involved in the development and operation of various online platforms, including Made-in-China.com and Crov.com[24]. - The company is focused on expanding its B2B e-commerce platforms and enhancing cross-border trade services[44][45]. - The company has implemented a new online pricing and small order direct sales model to increase user engagement and transaction completion rates[44]. - The company launched the "Star Buyer" service in the second half of 2019, enhancing buyer identification and service efficiency[73]. - The cross-border trading division focused on optimizing the Crov.com business model, targeting small and medium-sized overseas intermediaries[79]. - The company established a strong risk control system for its platform services, enhancing user trust and increasing transaction opportunities[73]. - The online trading function was successfully launched, allowing for online negotiation and small order direct sales in various product categories[73]. Revenue Breakdown - B2B segment contributed ¥683,563,687.25, accounting for 69.89% of total revenue, with a year-on-year growth of 7.62%[95]. - Insurance segment revenue increased by 28.27% to ¥187,104,985.10, making up 19.13% of total revenue[95]. - Membership fees generated ¥490,758,268.96, which is 50.18% of total revenue, reflecting a growth of 35.36%[95]. - The company achieved a 36.31% increase in revenue from commercial services, totaling ¥39,294,971.75[95]. Investments and Assets - The company reported a long-term equity investment balance of RMB 45.88 million at the end of the reporting period, an increase of RMB 3.78 million, or 8.97%, primarily due to new investments in Jiangsu Yihui Electronic Commerce Service Co., Ltd.[50]. - Fixed assets at the end of the reporting period amounted to RMB 65.71 million, reflecting a slight increase of RMB 0.16 million, or 0.24%[50]. - Intangible assets reached RMB 75.81 million, up by RMB 1.46 million, or 1.96%, mainly due to the completion of certain internal R&D projects that were transferred from development expenses[50]. - Construction in progress increased significantly to RMB 360.76 million, a rise of RMB 190.45 million, or 111.82%, due to increased investment in the Focus Building and its ancillary projects[50]. - Loans and advances at the end of the reporting period totaled RMB 279.82 million, an increase of RMB 79.41 million, or 39.63%, attributed to new loans issued during the reporting period[50]. - Other receivables amounted to RMB 19.36 million, up by RMB 4.70 million, or 32.02%, primarily due to increased interest receivable from fixed deposits and loans issued[50]. Research and Development - The company established a dedicated research institute to drive innovation strategies and AI technology research, aiming to lead the industry through technological advancements[64]. - The company has over 20 years of experience in internet technology application and e-commerce platform development, with a focus on developing core systems and network security technologies[61]. - The company has been actively expanding its internet insurance services through its subsidiary, leveraging its long-term operational experience in the internet insurance sector[48]. - R&D investment amounted to ¥114,761,349.93, an increase of 2.75% compared to ¥111,693,655.13 in 2018[114]. - The proportion of R&D investment to operating revenue decreased to 11.73% from 12.76% in the previous year[114]. Risk Management and Future Plans - The company emphasizes the importance of risk management and plans to enhance its internal control systems to address various risks associated with technological innovations[171]. - The company aims to leverage big data and artificial intelligence to improve user credit profiling and establish an efficient, intelligent risk control system[173]. - The company is focused on expanding its insurance product offerings and enhancing its technology platform to improve service and pricing advantages[170]. - The company plans to strengthen its service provider cooperation system and expand partnerships with third-party payment service providers, logistics service providers, and other sectors to offer comprehensive cross-border services[156]. - The company faces risks from macroeconomic fluctuations, market competition, and cultural integration challenges in its overseas expansion efforts[163][164][165]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of ¥7.5 per 10 shares, based on a total of 235,000,000 shares[8]. - The cash dividend distribution for 2019 represents 116.79% of the net profit attributable to ordinary shareholders, which is RMB 150,917,649.09[184]. - The company has proposed to increase its share capital by 3 shares for every 10 shares held, resulting in a total share capital increase to 305,500,000 shares[188]. - The company reported a retained profit of RMB 194,705,651.62 to be carried forward to the next fiscal year after the proposed dividend distribution[188]. - The company commits to a cash dividend distribution of no less than 30% of the lower of the distributable profits in the consolidated and parent company financial statements each year[189].