Leascend(SZ:300051)2021-04-26 16:00Financial Performance - The company reported a net profit of negative value for the last three accounting years, indicating a need for measures to enhance resource utilization and optimize cost control [6]. - The company has reported negative net profits for the last three consecutive fiscal years, leading to a risk warning for its stock trading [20]. - The net loss attributable to shareholders was ¥93,777,162, representing a 63.55% improvement from a loss of ¥257,255,734 in 2019 [30]. - The basic earnings per share improved to -¥0.26 in 2020 from -¥0.70 in 2019, a 62.86% increase [30]. - The total profit for the period was -¥95,865,168.80, while the net profit attributable to the parent company was -¥93,777,162.86, reflecting an increase of 62.28% and 63.55% respectively, mainly due to a decrease in goodwill impairment for the subsidiary [53]. - The company reported a negative net profit after deducting non-recurring gains and losses for the last three accounting years, indicating ongoing financial challenges [31]. - The company’s operating revenue for 2020 was ¥221,676,657.80, a decrease of 23.11% compared to ¥288,308,607.71 in 2019 [30]. - The net cash flow from operating activities decreased by 62.94% to ¥19,408,981.80 from ¥52,377,893.30 in the previous year [30]. - The total assets at the end of 2020 were ¥699,891,894, down 13.44% from ¥808,535,974 at the end of 2019 [30]. - The net assets attributable to shareholders decreased by 21.82% to ¥244,788,215 from ¥313,096,456 in 2019 [30]. Business Strategy and Development - The company plans to expand its game business and mobile communication resale business to increase revenue [6]. - The company is actively developing new game products and updating existing ones to maintain competitiveness in the gaming market [16]. - The company aims to diversify its operations by integrating its mobile resale business with various smart products [14]. - The company is focusing on providing SaaS solutions for SMEs, enhancing cloud office applications like enterprise email and OA systems, and has developed products such as "35 Cloud Portal" and "35 Business Management" to improve operational efficiency [39]. - The company aims to innovate its product offerings, including cloud services and intelligent terminal products, to create a comprehensive cloud office solution that allows users to manage tasks seamlessly across multiple devices [41]. - The company is committed to enhancing its market competitiveness and profitability by exploring synergies between its gaming and virtual operator businesses, aiming for a comprehensive development in the internet industry [45]. - The company plans to enhance its enterprise service products, including the development of a mobile office client and an upgraded intelligent website building platform [46]. - The company aims to expand its mobile game business and mobile communication resale business, leveraging its R&D advantages to introduce various game products [47]. - The company is actively expanding its gaming business through its subsidiary, Daoxi Technology, which is focusing on mobile game development and leveraging partnerships with platforms like Tencent to enhance market competitiveness [44]. Compliance and Internal Control - The company has identified six significant non-financial internal control deficiencies during the reporting period, which need to be addressed [5]. - The company is committed to complying with regulatory requirements in the telecommunications sector while enhancing its network security measures [14]. - The company has established a comprehensive information security management system to mitigate risks related to data security and system stability [9]. - The company has established a comprehensive intellectual property management system to protect its rights and actively apply for product copyrights [18]. - The company has made commitments regarding the authenticity, accuracy, and completeness of the information provided, with compliance confirmed as of February 2020 [155]. - The company has confirmed that there are no significant changes in its operational commitments as of the reporting period [155]. - The company has committed to fulfilling information disclosure obligations in case of any changes in shareholding [158]. - The company has established management systems for related party transactions to ensure compliance with relevant regulations and protect the interests of minority shareholders [162]. Market Competition and Challenges - The company is facing significant market competition in the software operation service industry, necessitating a focus on product development and user experience [8]. - The company has seen a continuous expansion in the internet service market, supported by national policies promoting the digital economy and the integration of new technologies like 5G, which is expected to drive growth in cloud computing and big data [40]. - The company has experienced a significant reduction in non-operating income, with a total of -¥9,279,795.48 in 2020 compared to an income of ¥8,053,213.77 in 2019 [36]. - The company has reported a non-standard audit report with a section indicating significant uncertainties related to going concern, which the board is actively addressing [194]. Investments and Acquisitions - The company acquired 100% equity of Shenzhen Xinnan Technology Co., Ltd. for 130,000.00 on March 30, 2020, with a revenue of 24,162,222.67 and a net profit of 19,061,708.35 from the acquired entity [76]. - The company completed the acquisition of Shenzhen Xinman Technology Co., Ltd. on March 30, 2020, with a total acquisition cost of CNY 130 million and recognized revenue of CNY 24,162,222.67 from the acquired entity [199]. - The company has invested 15.5 million yuan in Sanwu New Energy, which is still in the early investment phase and has not yet reached expected operational status [130]. - The company plans to acquire 100% equity of Wanrui (Shanghai) E-commerce Co., Ltd. through a combination of issuing shares and cash payment, while also raising matching funds through a private placement [179]. Shareholder Commitments and Governance - The company has committed to not reducing shareholdings during the commitment period, which began on July 25, 2009, and has been strictly adhered to until the reporting period [156]. - The company has reported that all commitments made by major shareholders have been strictly adhered to as of the reporting period [155]. - The company has committed to maintaining the independence of its operations, assets, and finances post-equity change [161]. - The company has established an independent financial department and accounting system to ensure financial independence [161]. - The company will avoid engaging in any business that competes with the listed company to protect shareholder interests [161]. - The company has committed to using raised funds strictly for operational purposes and will not engage in high-risk investments [187]. Future Outlook and Plans - The company aims to improve cash flow, optimize asset structure, and allocate resources to support core business development for sustainable growth [134]. - The company plans to implement new leasing standards starting January 1, 2021, in accordance with the revised accounting standards issued by the Ministry of Finance [198]. - The company will continue to deepen its strategic development in the gaming industry through its wholly-owned subsidiary, Daoxi Technology [144]. - The company plans to focus on core business areas to align with long-term interests and avoid harming shareholder interests [134]. - The company has no current plans for significant adjustments to its board of directors or senior management following the recent equity changes [159].