Focus Tech.(SZ:002315)2021-03-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,129,744,169.15, representing a 15.52% increase compared to CNY 978,005,673.25 in 2019[20] - The net profit attributable to shareholders for 2020 was CNY 173,377,334.13, up 14.88% from CNY 150,917,649.09 in the previous year[20] - The net cash flow from operating activities reached CNY 539,857,104.43, a significant increase of 254.46% compared to CNY 152,302,276.20 in 2019[20] - The basic earnings per share for 2020 was CNY 0.57, reflecting a 16.33% increase from CNY 0.49 in 2019[20] - Total assets at the end of 2020 amounted to CNY 3,449,742,333.62, an 18.92% increase from CNY 2,900,861,875.79 at the end of 2019[20] - The net assets attributable to shareholders were CNY 2,198,088,296.57, which is a 10.67% increase from CNY 1,986,106,300.10 in 2019[20] - The company reported a 135.31% increase in net profit attributable to shareholders after deducting non-recurring gains and losses, reaching CNY 148,375,918.31 in 2020[20] - The weighted average return on net assets for 2020 was 8.43%, an increase from 7.82% in 2019[20] Quarterly Performance - Total revenue for the first quarter was ¥228,734,269.51, with a net profit attributable to shareholders of -¥20,330,153.40[24] - In the second quarter, total revenue increased to ¥300,153,035.39, with a net profit of ¥68,018,818.19, marking a significant recovery[24] - The third quarter saw a net profit of ¥89,332,979.20, with total revenue of ¥291,726,482.80, indicating continued growth[24] - The company reported a net cash flow from operating activities of ¥317,197,348.30 in the fourth quarter, demonstrating strong cash generation capabilities[24] Revenue Breakdown - B2B revenue accounted for 75.79% of total revenue, amounting to ¥856,209,163.02, with a year-on-year growth of 25.26%[73] - The insurance segment generated ¥164,134,822.55, which is 14.53% of total revenue, but saw a decline of 12.28% compared to the previous year[73] - The cross-border business revenue was ¥105,989,037.10, representing 9.38% of total revenue, with a growth of 7.97% year-on-year[73] Investment and Assets - The company’s long-term equity investments increased by 73.65% to RMB 7,967.79 million, primarily due to new investments in Nanjing Bai Nian Ding Jia Health Consulting Management Co., Ltd. during the reporting period[38] - Fixed assets rose significantly by 732.93% to RMB 54,733.52 million, mainly due to the completion of the Focus Technology Building being transferred to fixed assets[38] - Cash and cash equivalents increased by 33.67% to RMB 115,693.79 million, attributed to an increase in prepaid membership fees and loan recoveries during the reporting period[38] - Inventory surged by 556.62% to RMB 2,563.79 million, primarily due to increased stockpiling of goods[38] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 5 per 10 shares, based on a total of 305,500,000 shares[5] - In 2020, the company distributed cash dividends of RMB 7.5 per 10 shares, totaling RMB 176,250,000, with retained earnings of RMB 194,705,651.62 carried forward to the next year[144] - The cash dividend payout ratio for 2020 was 88.10% of the net profit attributable to ordinary shareholders, which was RMB 173,377,334.13[151] Business Strategy and Development - The company has not experienced significant changes in its main business since its listing, continuing to integrate traditional industries with the internet[18] - The company emphasizes technology innovation and service integration to improve product profitability and overall financial performance[35] - The company launched the "Cloud Plan 2020," which includes five major services: "Cloud Exhibition," "Cloud Data," "Cloud Training," "Cloud Building," and "Cloud Link" to support SMEs during the pandemic[55] - The company is focused on expanding its market presence through strategic partnerships and service offerings[185] Technology and Innovation - The company has a robust R&D capability, having developed a mainstream transaction technology system capable of handling massive concurrent transactions[44] - The company is focusing on developing new technologies such as AI-based platforms and e-commerce data visualization systems to enhance its core competitiveness[86] - The company plans to continue its digital transformation efforts, enhancing trade services for small and medium-sized enterprises to support their growth in foreign trade[121] Compliance and Governance - The company is committed to complying with regulatory requirements and protecting consumer rights while helping partners conduct compliant insurance promotion[126] - The company has maintained compliance with its cash dividend policy, ensuring transparency and protection of minority shareholders' rights[146] Market Presence and Brand Influence - The company has established a strong brand presence in multiple countries, including the USA, UK, and Germany, covering 27 major industries, enhancing its overseas brand influence[45] - The company has been recognized with various awards, including the "Best Customer Service Award" and "Best Service Innovation Award" by industry organizations[47] Future Outlook - The company aims for a revenue target of no less than RMB 1.5 billion for 2021, reflecting a strategic focus on growth despite challenges posed by the COVID-19 pandemic[120] - The company plans to adjust the distribution ratio if there are changes in the share capital before the implementation of the dividend distribution[153]