CENTURY(SZ:300078)2020-05-19 16:00Financial Performance - The company achieved operating revenue of 1,573.99 million yuan, a year-on-year increase of 21.58%[51]. - The net profit attributable to shareholders was 147.61 million yuan, up 2.88% compared to the previous year[51]. - The company's operating revenue for 2019 was ¥1,573,993,606.47, representing a 21.58% increase compared to ¥1,294,633,555.55 in 2018[16]. - The net profit attributable to shareholders for 2019 was ¥147,607,911.10, a 2.88% increase from ¥143,472,605.91 in 2018[16]. - The net cash flow from operating activities improved significantly to ¥4,016,052.21 in 2019, compared to a negative cash flow of ¥2,250,476.51 in 2018, marking a 278.45% increase[16]. - Total assets at the end of 2019 reached ¥4,224,616,751.91, a 23.38% increase from ¥3,424,095,703.68 at the end of 2018[16]. - The net assets attributable to shareholders increased by 31.93% to ¥2,891,926,589.19 at the end of 2019 from ¥2,191,940,887.06 at the end of 2018[16]. - The company reported a basic earnings per share of ¥0.18 for 2019, unchanged from 2018[16]. - The company reported a goodwill of 679.43 million RMB, which is 16.08% of total assets, reflecting a decrease of 4.25% due to the exclusion of Hangzhou Langgan Technology Co., Ltd. from the consolidation scope[98]. - The total distributable profit for the year is RMB 137,964,083.98, based on the lower of the consolidated and parent company reports[140]. Research and Development - The company is actively involved in the research and development of new technologies to improve its product line and service offerings[10]. - The company's R&D investment totaled 161.20 million yuan, accounting for 10.24% of its operating revenue, indicating a strong commitment to innovation[40]. - R&D expenses amounted to 138.08 million yuan, representing 8.77% of operating revenue, indicating a continuous enhancement of the company's core competitiveness[56]. - The company achieved 100% completion on several key R&D projects, including wearable health monitoring devices and AI applications in healthcare[90]. - The company continues to invest in the independent research and development of artificial intelligence technology, solidifying its leading position in the medical AI field with the ThinkGo cognitive engine[43]. - The company has developed a total of 82 software copyrights in 2019, indicating a strong focus on expanding its software solutions in the healthcare sector[47]. - The company is focusing on the development of an AI-assisted clinical decision support system, with a project completion rate of 40%[92]. - The company is developing an intelligent medication dispenser, which is expected to enhance its position in the AI healthcare sector, with a project completion rate of 70%[92]. Market Strategy and Expansion - The company is focusing on expanding its market presence and enhancing its product offerings in the RFID and IoT sectors[10]. - The company aims to become a global leader in smart medical and IoT application solutions, leveraging five core technologies including IoT and AI[25]. - The company has established partnerships with various hospitals and healthcare institutions to implement its software solutions, which may enhance market penetration and user adoption[46]. - The company is expanding its business growth opportunities by extending its advantages into community healthcare construction[128]. - The company plans to raise funds through a convertible bond issuance to invest in AI healthcare innovation, marketing system expansion, and new product development[130]. - The company is positioned to capitalize on the growing demand for medical information interoperability, especially post-COVID-19[125]. - The company plans to transition its business model from system sales to operational service models, focusing on continuous service revenue[128]. - The company is focusing on the development of smart medical solutions that enhance patient management from hospital to home[128]. Technology and Innovation - The company is committed to leveraging big data and cloud computing to optimize its operational efficiency[10]. - The company has an industry-leading EAS and RFID integrated platform technology, covering supply chain management, retail, manufacturing, and smart city applications, particularly excelling in digital retail and RFID applications[43]. - The company launched innovative IoT-based medical traceability management products, significantly reducing labor costs for hospitals[57]. - The company has developed clinical single-disease auxiliary robots through deep learning, improving doctors' clinical diagnosis and treatment levels[43]. - The company’s intelligent medical sensors, including an AI stethoscope, represent significant breakthroughs in the application of IoT in healthcare[61]. - The company launched the AIoT-driven business intelligence platform V-Prime™, enhancing store operations and driving digital transformation[62]. - The company has developed RFID smart fresh storage and logistics solutions to address pain points in fresh e-commerce, supporting the growth of offline stores with technologies like electronic price tags and smart payments[62]. Financial Management and Shareholder Relations - The company has established a dedicated investor relations team to enhance communication with shareholders[14]. - The company emphasizes shareholder rights protection and maintains a stable profit distribution policy[184]. - The independent directors have fulfilled their responsibilities in the decision-making process regarding profit distribution[139]. - The company ensures that minority shareholders have adequate opportunities to express their opinions and that their rights are protected[139]. - The company has maintained a consistent cash dividend policy over the past three years, with each year distributing RMB 0.18 per 10 shares[141]. - The proposed cash dividend for 2019 is RMB 0.18 per 10 shares, totaling RMB 15,649,406.39, which represents 10.60% of the net profit attributable to shareholders[142]. - The company successfully raised approximately 572.99 million yuan through a non-public offering of A-shares, enhancing its financial strength and market position[71]. - The funds raised will be allocated to IoT smart medical traceability management projects and medical big data application R&D, aimed at improving operational efficiency and decision-making capabilities[71]. Compliance and Governance - The company’s financial report has been confirmed as true, accurate, and complete by its board and management[4]. - The company has not reported any significant changes in non-main business activities during the reporting period[96]. - The company has not experienced any bankruptcy reorganization or major penalties during the reporting period[165][167]. - The company has committed to ensuring that any financial burdens from the lawsuit will be covered by its shareholders, protecting the company's interests[192]. - The company has a long-term commitment to fulfill various obligations related to employee housing fund contributions and tax responsibilities[146]. - The company has adopted new accounting policies effective January 1, 2019, impacting the financial statements significantly[151]. Industry Outlook - The smart medical industry in China had an IT expenditure of RMB 49.18 billion in 2018, projected to reach RMB 79.16 billion by 2023, indicating a strong growth outlook[117]. - The medical informationization industry in China is characterized by low market concentration, with the top seven companies accounting for only 28.8% of the market share[118]. - The smart medical industry is expected to see increased market concentration as technology and service requirements evolve, favoring companies with comprehensive industry chain advantages[118]. - The RFID market size in China is approximately 110 billion RMB, with a market growth rate showing an upward trend despite a slight decline in 2019[123]. - The company is recognized as a leading provider of comprehensive smart medical solutions and is the first in the domestic market to offer international standard information construction services to overseas hospitals[120].