KINGSUN(SZ:300235)2021-04-26 16:00Online Education Growth - In 2020, the online education sector experienced explosive growth due to the COVID-19 pandemic, with significant user demand for online courses being met by the company[3]. - The company provided free access to its online teaching services and resources during the pandemic, enhancing its market penetration in the online education space[3]. - The online education market is experiencing explosive growth, with 265 million students transitioning to online courses due to the pandemic, leading to a substantial release of user demand[119]. - The online education market in China is projected to reach RMB 453.8 billion by 2020, driven by increasing user acceptance and the growing awareness of online payment for education[123]. - The online education market in third and fourth-tier cities is still in the early stages of development, presenting significant growth potential as user trust in online brands is cultivated[115]. Company Strategy and Ecosystem - The company is focused on building a comprehensive ecosystem through five key areas: product ecosystem development, intellectual property, operational platform, marketing channels, and talent acquisition[4]. - The company aims to strengthen its innovation capabilities and develop a rich array of teaching resources across multiple subjects and versions, including Chinese, English, and Mathematics[4]. - The company plans to implement a nationwide development strategy that leverages partnerships with leading enterprises in the education sector, such as Huawei and Alibaba, to maximize resource value and achieve cross-regional expansion[4]. - The company emphasizes a commitment to high-quality education and user-centric product development as its strategic direction[5]. - The company aims to build a multi-dimensional product ecosystem that integrates resources, platforms, and applications to create a comprehensive educational application ecosystem[129]. Financial Performance - The company's operating revenue for 2020 was ¥122,322,181.37, an increase of 12.21% compared to ¥109,014,398.01 in 2019[20]. - The net profit attributable to shareholders for 2020 was ¥31,193,368.73, a decrease of 3.09% from ¥32,187,455.63 in 2019[20]. - The net profit after deducting non-recurring gains and losses was ¥25,764,283.94, which represents a 31.59% increase from ¥19,579,416.11 in 2019[20]. - The total assets at the end of 2020 were ¥678,658,437.04, reflecting a 3.45% increase from ¥655,996,153.98 at the end of 2019[20]. - The company's total net assets attributable to shareholders increased by 3.64% to ¥649,420,166.17 at the end of 2020 from ¥626,606,170.21 at the end of 2019[20]. Product Development and Innovation - The company has established a resource management and operation platform that integrates artificial intelligence, big data, and cloud computing for educational applications[4]. - The company is actively expanding into online education, leveraging its strengths in synchronous learning and resource development[30]. - The company’s product development is centered on autonomous R&D, which is crucial for capturing market opportunities and gaining recognition from educators and parents[38]. - The company launched new products, including the "AI Interactive English Course" and "Mathematical Thinking Tutoring Course," enhancing its product ecosystem[88]. - The company completed the development and launch of the LinKid AI interactive courses, achieving full coverage for K6 users[139]. Market Expansion and Collaboration - The company is actively collaborating with major enterprises like Ping An, Huawei, Tencent, and Xiaomi to enhance its digital education content and marketing strategies[65]. - The company has identified significant market opportunities in underdeveloped regions, particularly in central and western China, where educational software services have not yet penetrated widely[41]. - The marketing strategy includes collaboration with major companies like Huawei, Tencent, and Alibaba to enhance service offerings and expand market reach over the next three years[130]. - The company aims to enhance user online learning experience and satisfaction to achieve online promotion, moving away from traditional offline marketing methods[112]. - The company recognizes the need to address challenges in online education, such as keeping up with teaching progress and maintaining classroom engagement[115]. Talent and Organizational Development - The company has a stable user base exceeding 60 million beneficiaries across over 100 cities in 30 provinces, focusing on high economic capability areas for market expansion[49]. - The company is focusing on talent acquisition and professional development, establishing clear goals and standards for specialized talent recruitment[140]. - The company has implemented a talent development system and housing support initiatives to enhance employee retention and competitiveness[68]. - The company is addressing the risk of talent loss by improving its talent acquisition and incentive mechanisms to retain core personnel[146]. - The company has a low turnover rate among middle and senior management, contributing to its stable and rapid development[50]. Dividend and Profit Distribution - The profit distribution plan for 2020 includes a cash dividend of 0.55 RMB per 10 shares, based on a total of 167,831,090 shares[9]. - The cash dividend for 2020 represents 29.59% of the consolidated net profit attributable to ordinary shareholders, which is RMB 31,193,368.73[157]. - The total distributable profit for the year 2020 was RMB 173,310,153.22, with the entire amount allocated for cash dividends[153]. - The company has maintained a consistent cash dividend policy, aligning with its long-term development strategy and shareholder return plans[152]. - The cash dividend distribution plan for 2020 is subject to approval at the annual general meeting[154]. Research and Development - Research and development expenses amounted to ¥26,905,680.97, which is 21.41% of total revenue, indicating a focus on innovation[88]. - The company has established a post-doctoral innovation practice base and a professional R&D team, enhancing its technological research capabilities and innovation[50]. - The number of R&D personnel increased to 111, representing 56.63% of the total workforce, reflecting a commitment to technological advancement[89]. - Continued investment in AI technology will focus on developing next-generation intelligent education products, leveraging the company's existing expertise in the K12 education sector[133]. - The company is committed to continuous R&D investment to maintain its competitive edge in the synchronous education sector[144]. Compliance and Governance - The company actively fulfills its corporate social responsibility by ensuring compliance with legal and regulatory requirements[200]. - The company ensures timely and accurate information disclosure to protect investor interests[200]. - The company has made commitments to avoid competition and not to occupy company funds by its major shareholders[162]. - The company has not reported any penalties or rectification situations during the reporting period[173]. - The company has not faced any delisting situations or bankruptcy reorganization matters during the reporting period[171].