ENJOYOR(SZ:300020)2020-04-23 16:00Financial Performance - The company's operating revenue for 2019 was ¥2,079,504,434.71, a decrease of 13.83% compared to ¥2,413,277,806.75 in 2018[16] - Net profit attributable to shareholders increased significantly to ¥148,813,913.73, representing a growth of 462.75% from ¥26,444,095.70 in the previous year[16] - The net profit after deducting non-recurring gains and losses was ¥131,459,353.15, up by 6.75% from ¥123,141,898.92 in 2018[16] - The basic earnings per share rose to ¥0.23, a 475.00% increase compared to ¥0.04 in 2018[16] - The total assets at the end of 2019 were ¥6,313,987,388.33, reflecting a growth of 3.88% from ¥6,078,445,611.21 in 2018[16] - The weighted average return on net assets was 4.57%, an increase of 3.76 percentage points from 0.81% in 2018[16] - The net cash flow from operating activities was negative at -¥120,082,247.99, a decline of 1,003.34% compared to ¥13,293,096.36 in 2018[16] - The total net assets attributable to shareholders increased to ¥3,293,905,834.88, a rise of 1.91% from ¥3,232,269,575.73 in 2018[16] - The company reported a non-operating income of 17,354,560.58 in 2019, a significant recovery from a loss of 96,697,803.22 in 2018[23] - Government subsidies recognized in 2019 amounted to 10,307,181.71, compared to 2,469,345.27 in 2018, indicating a substantial increase[23] Dividend Distribution - The company plans to distribute a cash dividend of ¥0.30 per 10 shares, based on a total of 655,789,086 shares[5] - The proposed cash dividend for 2019 is RMB 0.30 per 10 shares, totaling RMB 19,673,672.58 (including tax) based on a total share count of 655,789,086 shares[96] - In 2018, the cash dividend was RMB 0.30 per 10 shares, amounting to RMB 19,673,672.58 (including tax), which represented 74.40% of the net profit attributable to shareholders[98] - The cash dividend for 2017 was RMB 0.50 per 10 shares, totaling RMB 32,789,454.30 (including tax), accounting for 23.65% of the net profit attributable to shareholders[98] - The cash dividend payout ratio for 2019 was 13.22% of the net profit attributable to shareholders[98] - The total cash dividends distributed in 2019 were RMB 19,673,672.58, with no other forms of cash distribution reported[98] - The company has consistently proposed cash dividends over the past three years, with the latest proposal pending approval at the 2019 annual general meeting[97] - The company has committed to maintaining its dividend policy, ensuring returns to shareholders while managing retained earnings for future growth[99] Research and Development - The total R&D investment for 2019 was 119,155,919.99 CNY, with significant projects including the HERO AI Traffic Control System and Smart Security Platform[50] - The company has a total of 185 authorized patents, including 117 invention patents, and has successfully applied for 89 additional patents[35] - The number of R&D personnel in 2019 was 286, accounting for 39.45% of the total workforce, a slight increase from 39.22% in 2018[59] - The company has invested approximately ¥119.16 million in R&D for 2019, representing 5.73% of its operating revenue, an increase from 4.63% in 2018[59] Market and Business Strategy - The company has developed a three-in-one corporate development strategy focusing on system construction, software delivery, and operational services[27] - The company is focused on enhancing its technical capabilities and has been recognized with the first-class award for technological progress in Zhejiang Province[34] - The company is committed to improving investor relations and maintaining effective communication with investors through various platforms[37] - The company aims to expand its market presence by establishing regional service companies across the country, enhancing its marketing network[84] - The company is focusing on the development of "urban brain" applications in traffic management, healthcare, and judicial systems, with specific projects in cities like Hangzhou and Nanchang[84] - The company is actively pursuing the development of a digital industry platform to support its "urban brain" initiatives across various sectors[84] - The company has shown a commitment to expanding its market presence through various infrastructure projects and strategic partnerships[136] Risks and Challenges - The company faces various risks including policy risks, core personnel turnover risks, and risks related to its smart city business model[5] - The company faces risks related to policy changes and market competition, particularly in the smart city sector, which is closely tied to government funding and support[88] - The company has acknowledged potential tax risks associated with its restructuring and is prepared to assume full compensation responsibilities for any related losses[102] - The ongoing litigation is expected to impact the company's financial liabilities and shareholder equity[110] - The company is actively managing its legal risks associated with the ongoing disputes[110] Corporate Governance - The company has established a monetary fund management system to ensure proper financial governance and compliance with regulations[102] - The company has not reported any violations of commitments made by its major shareholders, indicating a stable governance structure[103] - The company operates independently from its controlling shareholder in terms of business, personnel, assets, and finance[182] - The independent directors attended all board meetings and their reasonable suggestions were accepted by the company[191] - The company complies with all relevant corporate governance regulations and has no significant discrepancies with the guidelines issued by the China Securities Regulatory Commission[186] Legal Matters - The company is involved in a civil lawsuit regarding a purchase dispute, with the amount in question being 24,417.48 million yuan[110] - The Zhejiang High People's Court ruled that the company must repurchase and cancel 25,240,153 shares at a price of 1 yuan per share[110] - The case has undergone multiple legal proceedings, with the final ruling from the Supreme People's Court affirming the lower court's decision[111] - The company has initiated a lawsuit to confirm the invalidity of certain asset management contracts related to the shares in question[112] - The litigation process has been lengthy, with multiple appeals and rulings affecting the company's operations[111] Employee and Management - The total number of employees in the company is 725, with 403 in the parent company and 322 in major subsidiaries[175] - The company has 431 technical personnel, 159 sales personnel, and 36 financial personnel, indicating a strong focus on technical expertise[176] - The educational background of employees includes 8 with doctoral degrees, 54 with master's degrees, and 525 with bachelor's degrees, reflecting a highly educated workforce[176] - The company has implemented a performance-based remuneration system for its directors and senior management, aligning incentives with company performance[172] - The company has a strong emphasis on human resources management, with key personnel changes aimed at improving operational efficiency[166] Audit and Compliance - The company appointed Ruihua Certified Public Accountants as its auditor, with an audit fee of RMB 2.51 million, and the firm has provided audit services for five consecutive years[109] - The internal control self-evaluation report was disclosed on April 24, 2020, confirming that all units included in the evaluation accounted for 100% of the company's consolidated total assets and operating income[195] - The audit committee communicated with the auditing firm to determine the schedule for the annual financial report audit during the 2019 annual report preparation[195] - The company has maintained stability in its core personnel, minimizing turnover risks through strategic talent management initiatives[87]