Leascend(SZ:300051)2021-06-20 16:00Financial Performance - The company reported a net profit of negative value for the last three accounting years after deducting non-recurring gains and losses, indicating a need for measures to enhance resource utilization and revenue generation [6]. - 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 loss attributable to shareholders was ¥68,802,674, representing a 73.26% improvement from a loss of ¥257,255,734 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]. - The basic and diluted earnings per share improved to -¥0.19 in 2020 from -¥0.70 in 2019, a 72.86% increase [30]. - The company's overall operating revenue decreased by 23.11% year-on-year, totaling 221,676,657.80 CNY, with a gross margin of 52.16% [68]. - The revenue from game products decreased by 15.13% year-on-year, amounting to 53,330,342.57 CNY, with a gross margin of 84.50% [68]. - The revenue from the software product sales segment decreased by 44.55% year-on-year, totaling 10,424,014.65 CNY, with a gross margin of 70.18% [68]. Business Strategy and Development - The company plans to expand its game business and mobile communication resale business to increase revenue, while optimizing cost control and human resource structure [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 to achieve differentiated growth [14]. - The company is focused on expanding its market presence and profitability through strategic partnerships and product diversification in the internet and gaming sectors [45]. - The company plans to enhance its mobile office client and develop a mobile intelligent website building platform to meet the needs of mobile e-commerce [46]. - The company aims to expand its mobile game business and mobile communication resale business by leveraging its R&D advantages and existing telecommunications licenses [47]. - The company is committed to integrating existing platform resources to further develop its mobile game and telecom resale businesses, aiming for synergy across the internet industry [144]. - The company plans to continue developing its CRM product, which is currently in the market introduction phase [111]. Risk Management and Compliance - The company has identified six significant non-financial internal control deficiencies during the reporting period, which need to be addressed [5]. - The company is addressing the risk of reliance on core technical personnel by implementing a mature talent reserve mechanism and adjusting incentive measures [12]. - The company is committed to complying with regulatory requirements in the telecommunications sector while enhancing network security measures [14]. - The company has established a comprehensive information security management system to mitigate risks related to internet, system, and data security [9]. - The company reported a non-standard audit report with a section indicating "significant uncertainty related to going concern," which the board is actively addressing [192]. - The board emphasized the importance of resolving the issues raised in the audit report to mitigate their impact on the company's operations and investor interests [193]. Intellectual Property and Innovation - The company has established a comprehensive intellectual property management system to protect its rights and actively apply for product copyrights [18]. - The company focuses 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 computing and mobile office solutions, to meet the evolving needs of its clients, ensuring seamless integration across multiple devices [41]. - The company has introduced innovative products like "Three Five Business Card Chain" and "Knock Knock Here" to enhance customer engagement and operational management for businesses [39]. Market Environment and Competition - 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, driven by government support for the new generation of information technology, with significant growth in demand for software services [40]. - The overall industry environment is favorable due to government support for new information technology and the expansion of the internet market [140]. Financial Management and Fundraising - The total amount of raised funds is 48,296.61 million CNY, with 46,946.61 million CNY already utilized, representing a utilization rate of 97.22% [106]. - The company has a remaining balance of 1,350 million CNY in the fundraising account, which has not been utilized [106]. - The company has committed to invest 5,904 million CNY in the upgrade of the enterprise mail system, with 3,200.12 million CNY already invested, achieving 100% of the planned investment [107]. - The company has a total of 1,600 million CNY in funds that have been repurposed, accounting for 33.59% of the total raised funds [106]. - The company has reported a total of 72,245.05 million in fundraising projects, with a shortfall of 1,845 million [111]. Shareholder Commitments and Governance - The company has committed to avoiding any substantial competition with its controlling shareholder's other businesses [159]. - The company has established a management system for related party transactions to ensure compliance with relevant regulations and protect the interests of minority shareholders [160]. - The company has committed to not reducing shareholdings during the implementation period of the transaction announced in February 2020, with compliance confirmed [153]. - The company has confirmed normal performance in shareholding plans and transactions as of June 2020 [152]. - The company has committed to fulfilling legal procedures and disclosure obligations for any necessary adjustments in the future [158].