YAOJI TECHNOLOGY(002605)2021-04-25 16:00Financial Performance - The company reported a total revenue of 400,434,990 RMB for the year 2020, with a cash dividend distribution of 5 RMB per 10 shares to all shareholders[7]. - The company's operating revenue for 2020 was ¥2,561,895,757.44, representing a 47.52% increase compared to ¥1,736,595,927.84 in 2019[31]. - The net profit attributable to shareholders for 2020 was ¥1,093,361,472.30, a significant increase of 217.06% from ¥344,842,563.11 in 2019[31]. - The basic earnings per share for 2020 was ¥2.7450, a 215.88% increase from ¥0.8690 in 2019[31]. - The total assets at the end of 2020 were ¥3,886,358,589.27, reflecting a 28.65% increase from ¥3,020,971,880.60 at the end of 2019[31]. - The net profit for 2020 was achieved despite the challenges posed by the market, indicating resilience in the company's operations[176]. - The total profit reached 1,307.27 million CNY, up 161.26% compared to the previous year, while the net profit attributable to shareholders was 1,093.36 million CNY, reflecting a growth of 217.06%[65]. - The company reported a significant increase in net profit from CNY 159,954,014.40 in 2019 to CNY 200,217,495 in 2020, marking a growth of approximately 25.2%[171]. Risk Management - The company has outlined potential risks and future development strategies in the report, highlighting the need for investors to be aware of investment risks[6]. - The company acknowledges risks related to regulatory policies and market competition in the mobile internet gaming sector and is taking measures to mitigate these risks[143]. - The company faces risks related to network security, including potential disruptions from infrastructure failures and cyberattacks, and is taking measures to strengthen security protocols[146]. - The company is at risk of intellectual property infringement, which could negatively impact operations and revenue, and has a dedicated legal team to protect its IP rights[146]. - The company is exposed to raw material price fluctuations and supply risks in its poker business, particularly due to reliance on a single supplier[149]. - The company has implemented a comprehensive credit risk management strategy to mitigate potential losses from trade receivables[148]. Corporate Governance and Transparency - The company emphasized the importance of accurate financial reporting, with the management team ensuring the completeness and truthfulness of the annual report[5]. - The company has committed to maintaining transparency in its financial disclosures through various media outlets[25]. - The management team is led by Yao Shuo Bin, who is responsible for overseeing the company's financial integrity[5]. - The company has established a dedicated investor relations email for communication with stakeholders, enhancing engagement and transparency[24]. - The company confirmed that all documents related to the transaction are true, accurate, and complete, with no misleading statements or omissions[197]. Subsidiaries and Acquisitions - The company has a comprehensive list of subsidiaries and affiliated companies, indicating a diversified business structure[16]. - The company acquired the remaining 88% stake in Luming Technology, which became a wholly-owned subsidiary, enhancing its innovative marketing capabilities[65]. - The company completed the acquisition of 53.45% equity in Shanghai Chengqi Information Technology Co., Ltd., with a total payment of RMB 5,000 million[118]. - The company has established multiple new subsidiaries during the reporting period, with no significant impact on overall operations or net profit[136]. Investment and R&D - The company invested 137.66 million CNY in R&D, accounting for 5.37% of total revenue, and successfully applied for 50 software copyrights and 28 trademark copyrights[65]. - The company is focusing on AI technology to enhance content production capabilities, which is becoming a competitive advantage in the marketing sector[51]. - The company will increase R&D investment in H5 games, WeChat mini-program games, and 3D effects, aiming to upgrade existing mobile game products and develop new high-quality mobile games[140]. Marketing and Business Strategy - The company’s mobile gaming business focuses on developing and operating casual and nurturing games, with key titles including "Finger Fishing" and "Fishing Blast" that have strong player retention[45]. - The company aims to enhance brand influence and operational efficiency by integrating its poker and mobile game businesses, targeting younger consumer demographics[56]. - The company is actively expanding into overseas markets, aiming to export more high-quality gaming products[60]. - The company will explore new marketing strategies, including short video marketing and e-commerce live streaming, to expand its digital marketing footprint[140]. Shareholder Engagement - The company plans to distribute cash dividends of RMB 5 per 10 shares for 2020, totaling approximately RMB 200.22 million[166]. - The company has a three-year shareholder return plan (2018-2020) to ensure stable and continuous profit distribution policies[166]. - The company reported a commitment from major shareholders not to transfer or delegate management of their shares for 36 months post-IPO[188]. Employee Development - The company has a total of 1,655 employees, including 52 master's degree holders and 545 bachelor's degree holders, enhancing its core competitiveness through talent development[61]. - The company emphasizes the importance of retaining core management and technical personnel, which is crucial for its success[152]. - The company is focused on attracting and retaining high-end talent to address challenges arising from expansion[152].