Net263(SZ:002467)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,013,565,798.16, representing a 9.13% increase compared to CNY 928,733,524.63 in 2018[26]. - The net profit attributable to shareholders of the listed company reached CNY 174,612,994.49, a significant increase of 102.94% from CNY 86,042,223.02 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 36,671,967.01, showing a decrease of 53.66% compared to CNY 79,138,319.07 in 2018[26]. - The net cash flow from operating activities was CNY 146,243,612.74, which is a 14.70% increase from CNY 127,495,669.92 in the previous year[26]. - Basic earnings per share increased to CNY 0.13, up 116.67% from CNY 0.06 in 2018[26]. - The diluted earnings per share also rose to CNY 0.13, reflecting the same percentage increase of 116.67% from CNY 0.06 in the previous year[26]. - The weighted average return on equity was 8.72%, an increase from 4.63% in 2018[26]. - The company reported a total of CNY 137,941,027.48 in non-recurring gains and losses for 2019, significantly higher than CNY 6,903,903.95 in 2018[37]. - The company achieved a revenue of 1,013.57 million CNY in 2019, an increase of 9.13% compared to the previous year[53]. - The net profit attributable to shareholders reached 174.61 million CNY, up 102.94% year-on-year[53]. Assets and Investments - Total assets at the end of 2019 were CNY 2,708,651,589.48, an increase of 6.66% compared to the end of 2018[29]. - Net assets attributable to shareholders at the end of 2019 were CNY 2,062,692,811.76, reflecting an increase of 8.41% from the end of 2018[29]. - The company’s equity assets increased by CNY 21,232.07 million, a rise of 86.83%, primarily due to the increase in the fair value of non-current financial assets[42]. - Cash and cash equivalents decreased by CNY 32,684.57 million, a reduction of 53.08%, mainly due to increased bank wealth management purchases and dividend payments[42]. - The company’s investment in non-current financial assets saw significant fair value increases, contributing to profit growth[53]. - The total amount of other non-current financial assets reached CNY 406,952,801.34, which is 15.02% of total assets, an increase of 7.68%[89]. - The fair value of trading financial assets increased by CNY 177,753,998.54 during the period, with a total of CNY 809,626,595.63 at the end of the reporting period[93]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.5 per 10 shares, totaling CNY 67,702,109.65 based on the current total share capital of 1,354,041,873 shares[9]. - The profit distribution plan for 2019 proposes a cash dividend of RMB 0.5 per 10 shares, totaling RMB 67,702,093.65, which represents 38.77% of the net profit attributable to ordinary shareholders[153][157]. - The cash dividend for 2019 is 100% of the total distributable profit, indicating a strong commitment to returning value to shareholders[158]. - The company has not proposed any stock bonus or capital reserve conversion for the 2019 fiscal year[153]. Business Operations and Strategy - The company has not reported any changes in its main business since its listing[24]. - The company plans to expand its international communication services, leveraging the "Belt and Road" initiative[40]. - The company is actively pursuing mergers and acquisitions to enhance its main business and foster new business development[54]. - The company aims to leverage its advantages in product, talent, and capital to explore international markets, particularly in the OTT sector, as domestic competition intensifies[131]. - The company is focusing on international market expansion as part of its long-term sustainable development strategy[134]. - The company aims to provide communication services using internet technology and resale methods, focusing on enterprise-level SaaS services for various domestic enterprises[138]. - The company is committed to leveraging internet technology to enhance communication services for its clients[138]. Research and Development - The company has a strong focus on R&D in communication technology, holding multiple patents in internet communication and resale[46]. - Research and development expenses amounted to CNY 117,903,664.82, a decrease of 12.84% compared to the previous year[77]. - R&D personnel accounted for 56.13% of the workforce, up from 53.09% in the previous year[79]. - The company’s R&D investment capitalized amount was CNY 9,170,768.88, a significant increase of 402.38% compared to the previous year[79]. Market Trends and Future Outlook - The company’s cloud video business is expected to benefit significantly from the 5G technology development, aligning with the "Video+" strategy initiated in 2019[130]. - The Chinese 5G commercial launch is anticipated to drive explosive growth in the telecommunications sector from 2020 to 2025, enhancing user experience and supporting a vast number of IoT devices[130]. - The market for cloud office and video services is expected to experience rapid growth post-pandemic as enterprises favor these efficient communication methods[138]. - The company is positioned to become a comprehensive internet service provider in North America, targeting both enterprise and personal customer markets[138]. Compliance and Governance - The company has not reported any issues or problems in the use and disclosure of raised funds[111]. - The company has received necessary approvals for all investment changes, ensuring compliance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange[119]. - The company has implemented new financial instrument standards effective from January 1, 2019, which require financial assets to be classified based on cash flow characteristics and management business models[170]. - The company has complied with the revised consolidated financial statement format issued by the Ministry of Finance on September 19, 2019[170]. Legal and Regulatory Matters - There is an ongoing copyright infringement lawsuit involving the company's wholly-owned subsidiary iTalk Global Communications, Inc. with a claim amount of 434.14 million RMB[178]. - The company reported no significant related party transactions during the reporting period[184]. - The report indicates no penalties or rectifications faced by the company during the reporting period[177].