YLZ(SZ:300096)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was approximately CNY 948.72 million, representing a 30.00% increase compared to CNY 729.81 million in 2018[16]. - The net profit attributable to shareholders for 2019 was CNY 10.51 million, a decrease of 28.36% from CNY 14.66 million in the previous year[16]. - The net cash flow from operating activities increased by 11.84% to CNY 63.49 million, up from CNY 56.77 million in 2018[16]. - The total assets at the end of 2019 were CNY 1,723.57 million, a decrease of 9.99% from CNY 1,914.96 million at the end of 2018[16]. - The basic earnings per share for 2019 was CNY 0.024, down 29.41% from CNY 0.034 in 2018[16]. - The company reported a significant increase in non-recurring gains, totaling CNY 18.72 million in 2019, compared to CNY 8.25 million in 2018[22]. - The company experienced a net loss of CNY 20.83 million in Q1 2019, followed by a profit of CNY 5.03 million in Q2, and a profit of CNY 16.96 million in Q3[18]. - The total liabilities decreased to CNY 989.06 million at the end of 2019, down from CNY 1,174.31 million at the end of 2018[16]. - The weighted average return on equity for 2019 was 1.44%, down from 2.00% in 2018[16]. - The company achieved a revenue of 948.72 million yuan in 2019, representing a year-on-year increase of 30.00%[41]. - Operating costs for the year were 459.68 million yuan, up 33.64% compared to the previous year[41]. - The revenue from the livelihood service sector was ¥897.43 million, accounting for 94.59% of total revenue, with a year-on-year growth of 34.01%[53]. - Custom software and IC products generated ¥609.70 million, representing 64.27% of total revenue, with a significant increase of 69.66% compared to the previous year[53]. - The company reported a significant decline in revenue from financing services, down 22.02% to ¥42.46 million[53]. - The company’s operating costs for the livelihood information service sector were ¥438.53 million, with a year-on-year increase of 35.20%[58]. - The company’s revenue from the technology service segment decreased by 19.60% to ¥98.48 million[58]. Dividend Distribution - The company plans to distribute a cash dividend of 0.05 CNY per 10 shares to all shareholders, based on a total of 430,000,000 shares[4]. - The total cash dividend distributed was 2,150,000 yuan, representing 20.46% of the net profit attributable to shareholders[116]. - The cash dividend per 10 shares was set at 0.05 yuan (including tax) for the year 2019[116]. - The company has maintained a cash dividend payout ratio of 100% of the distributable profit for the reporting period[116]. - The company did not propose any stock bonus or capital reserve transfer for the reporting period[115]. - The company has consistently distributed cash dividends of 2,150,000 yuan for the past three years, maintaining the same dividend per share[116]. - The remaining undistributed profits will be carried forward to the next fiscal year[116]. Operational Strategy and Market Presence - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, highlighting potential risks and countermeasures in its operational outlook[4]. - The report includes a detailed analysis of the company's operational performance and future development prospects, indicating a strategic focus on growth[4]. - The company has not committed to any specific performance forecasts, urging investors to recognize the difference between plans and commitments[4]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming year[16]. - The annual report outlines the company's strategic initiatives and potential market expansions, reflecting a proactive approach to growth[4]. - The company has a comprehensive structure of wholly-owned subsidiaries across various regions, enhancing its operational capabilities[8]. - The company has a diverse portfolio of subsidiaries involved in various sectors, including finance, healthcare, and technology, indicating a broad market presence[9]. - The company has maintained a leading position in the medical insurance sector, achieving several milestones such as the first provincial-level unified directory coding management system in 2004 and the first internet-based real-time settlement in 2017[26]. - The company has expanded its health medical business, focusing on health data services, smart hospitals, and community health services since 2017[27]. - The company is focused on expanding its market reach and enhancing its technological capabilities through ongoing product and technology development initiatives[96]. - The company aims to enhance its competitive advantage by rapidly responding to new industry demands and improving its service offerings[103]. - The company plans to strengthen its industry presence by exploring opportunities in healthcare, social security, and financial services, focusing on markets like medical insurance and smart IoT[104]. Research and Development - Research and development expenses increased by 30.50% to 137,592,625.26 RMB, primarily due to the rise in personnel costs[70]. - R&D investment for the year was 174,581,269.54 RMB, accounting for 18.40% of operating revenue, with 36,988,644.28 RMB capitalized[71]. - The number of R&D personnel increased to 1,302, representing 49.11% of the total workforce[71]. - The company has developed a facial recognition anti-fraud system for medical insurance, which helps reduce the probability of fund misuse[27]. - The company has developed various innovative products in the medical insurance sector, including identity verification and fraud detection systems[42]. - The company emphasizes talent management and has accelerated the recruitment of high-quality personnel to support its strategic development[38]. - The company has established a comprehensive after-sales service system to enhance its brand image and address operational challenges as its product and service offerings expand[105]. Governance and Compliance - The report confirms that all board members attended the meeting to review the annual report, ensuring accountability for the report's accuracy and completeness[3]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible personnel, ensuring transparency[3]. - The company has established independent governance structures, including a shareholders' meeting and board of directors[123]. - The company is committed to avoiding any competitive business activities that may directly or indirectly compete with its operations[123]. - The company has taken measures to ensure that its assets are entirely under its control and not used to guarantee debts of other enterprises[121]. - The company has a clear policy to minimize related party transactions with other enterprises under personal control[122]. - The company has a commitment to independent tax payment practices[121]. - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[129]. Subsidiaries and Investments - The company established 9 new subsidiaries during the reporting period, including Shaanxi Yilianzhong Jinna Information Technology Co., Ltd. and Hunan Yilianzhong Xinwei Information Technology Co., Ltd.[65]. - The company disposed of two subsidiaries, losing control over them, and also deregistered one subsidiary during the reporting period[135]. - The overall performance of subsidiaries indicates a mixed financial outlook, with some reporting losses while others show growth potential in their respective markets[92]. - The company is positioned as the total integrator for the Sanming medical reform and the general contractor for the provincial medical insurance informationization, which is expected to enhance its market presence[97]. - The company’s investment in new subsidiaries is expected to enhance its overall operational capabilities and profitability[95]. Shareholder Information - The controlling shareholder, Zhang Xi, transferred 36,775,000 shares, representing 8.552% of the total share capital, to optimize the shareholding structure[166]. - As of the report date, Zhang Xi holds a total of 86,065,867 shares, accounting for 20.02% of the company's total share capital[168]. - The controlling shareholder, Mr. Zhang Xi, pledged 36,775,000 shares on April 3, 2019, and later engaged in stock repurchase transactions involving 69,606,549 shares on September 20, 2019[169][170]. - The company’s board of directors accepted the resignation of independent director Ms. Zhan Yiwen on November 25, 2019, due to personal reasons[176]. - The company’s controlling shareholder engaged in multiple stock pledge and repurchase transactions throughout 2019, indicating active management of shareholding structure[169][170][171][172]. Government Relations and Social Responsibility - The company actively fulfills its social responsibilities and maintains transparency in shareholder communications, ensuring rights for minority shareholders[162]. - The company and its subsidiaries complied with environmental protection laws and did not face any penalties for violations during the reporting period[165]. - The government has emphasized the importance of healthcare informationization, with policies promoting the integration of internet technology in healthcare services[100]. - The company is responding to the urgent financing needs of the healthcare industry, as traditional funding sources are becoming limited[102]. - Policies have been introduced to facilitate financing leasing for medical equipment, indicating a shift towards more flexible funding solutions in the healthcare sector[102].