*ST三盛(300282) - 2020 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2020 was CNY 357.24 million, a decrease of 47.61% year-on-year[4]. - The net profit for 2020 was a loss of CNY 713.66 million, representing a decline of 294.30% year-on-year[4]. - The subsidiary Hengfeng Information Technology Co., Ltd. reported an operating revenue of CNY 54.41 million, down 84.35% year-on-year, with a net profit loss of CNY 100.98 million[4]. - The company's operating revenue for 2020 was ¥357,243,565.01, a decrease of 47.61% compared to ¥681,842,978.17 in 2019[21]. - The net profit attributable to shareholders in 2020 was -¥713,656,327.29, representing a decline of 6,018.72% from ¥12,057,617.26 in 2019[21]. - The net cash flow from operating activities was ¥88,838,416.03, down 42.14% from ¥153,552,778.04 in the previous year[21]. - The total assets at the end of 2020 were ¥1,971,924,850.84, a decrease of 33.08% from ¥2,946,598,527.39 at the end of 2019[21]. - The net assets attributable to shareholders decreased by 29.62% to ¥1,747,238,886.72 from ¥2,482,480,292.42 in 2019[21]. - The basic earnings per share for 2020 was -¥1.91, a decline of 6,466.67% compared to ¥0.03 in 2019[21]. - The weighted average return on equity was -33.63% in 2020, down 34.12% from 0.49% in 2019[21]. - The company reported a quarterly operating revenue of ¥118,318,693.26 in Q4 2020, showing an increase from previous quarters[24]. - The net profit attributable to shareholders in Q4 2020 was -¥656,850,956.08, significantly impacting the annual results[24]. Impairment and Provisions - The company recognized an impairment loss on goodwill amounting to CNY 599.96 million due to the acquisition of Hengfeng Information[5]. - As of December 31, 2020, the overdue amount for the equity repurchase agreement was CNY 72.67 million, leading to a provision for bad debts of CNY 28.55 million[5]. - The company reported a significant asset impairment loss of approximately 673.00 million, accounting for 93.84% of total profit[71]. - The company reported a goodwill impairment loss of RMB 2,443.46 million related to the acquisition of Zhongyu Bella, with a recoverable amount of RMB 19,100 million against a book value of RMB 23,891.09 million[122]. Business Strategy and Market Focus - The company plans to focus on the "Internet + Education" platform and has established a presence in regions like Guangdong and Yunnan to enhance market penetration[8]. - The company aims to stabilize its existing business while expanding into new markets and products[8]. - The core competitiveness of Hengfeng Information lies in its technological research and development in the field of educational informationization, with approximately 150 software copyrights[7]. - The company is exploring new profit models in response to industry changes and the pandemic's impact on operations[87]. - The company plans to expand its international education services by opening more international curriculum centers, with an expectation to establish over 2 new campuses in 2021[98]. - The company is targeting the high school education sector, including international high schools and vocational high schools, to accelerate project implementation through self-construction and acquisitions[99]. - The company plans to shift its focus from hardware integration to an "Internet + Education" service model, adapting to market trends[87]. Research and Development - Research and development expenses increased by 23.96% to CNY 34,201,963.93, indicating a focus on enhancing market competitiveness[62]. - R&D investment for 2020 was CNY 45,257,872.74, representing 12.67% of total revenue, up from 10.67% in 2019[64]. - The company plans to continue increasing R&D investment to launch more competitive educational intelligent solutions and related products[101]. Cash Flow and Financial Position - Operating cash inflow decreased by 34.87% to approximately 554.23 million from 851.01 million in the previous year, primarily due to a decrease in sales revenue[66]. - Operating cash outflow decreased by 33.27% to approximately 465.39 million from 697.46 million, mainly due to reduced procurement expenses[66]. - The net increase in cash and cash equivalents was negative at approximately -111.16 million, compared to a positive increase of 575.19 million in the previous year, marking a decline of 119.33%[67]. - The company reported a total of ¥103,195,850.94 in financial assets, with a significant portion being ¥78,000,000 in non-current financial assets[78]. - The company has not experienced any significant changes in the measurement attributes of its major assets during the reporting period[78]. Shareholder and Equity Information - The company has a capital reserve balance of 1,874,578,098.79 CNY as of the end of 2020[107]. - The company has not declared any cash dividends for the reporting period due to negative distributable profits[107]. - The company reported a net profit of -713,656,327.29 CNY for the year 2020, resulting in a distributable profit of -509,802,753.21 CNY as of December 31, 2020[107]. - The company has committed to achieving net profits of RMB 1,230 million, RMB 1,610 million, RMB 2,070 million, RMB 2,670 million, and RMB 3,420 million for the years 2021 to 2025, respectively[120]. Legal and Compliance Matters - The company is currently involved in multiple legal proceedings, including a case with a claim amount of 7,267.37 million yuan, which is pending arbitration[131]. - Another ongoing case involves a claim of 1,000 million yuan related to patent infringement, with the court proceedings still in progress[132]. - The company has also initiated a case regarding the infringement of trade secrets, with a claim amount of 300 million yuan, which is currently under review[132]. - The company reported no penalties or rectification measures during the reporting period[133]. Subsidiaries and Acquisitions - The company had a total of 14 subsidiaries as of December 31, 2020, with one new subsidiary added during the year[58]. - The acquisition of Beijing Zhongyu Bella International Education Technology Co., Ltd. has expanded the company's international education service business, aligning with its strategic focus on the education sector[120]. - The company completed the acquisition of 51% equity in Zhongyu Bella, with the equity stakes distributed among various partners[119]. Market Conditions and Challenges - The company faces intensified market competition due to the entry of major internet companies providing free applications in the online education sector[100]. - The impact of the COVID-19 pandemic has caused delays in project progress, leading to a significant deviation from expected future revenues[87]. - The overall international education market is expected to grow steadily, driven by an increase in the number of students studying abroad and the expansion of international schools[97].