Sansheng Education(SZ:300282)2022-04-28 16:00Financial 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, reflecting a significant decline due to the impact of COVID-19 and impairment provisions[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 loss of CNY 100.98 million, a decline of 294.30%[4]. - The company recognized goodwill impairment of CNY 599.96 million related to the acquisition of Hengfeng Information, significantly impacting net profit[5]. - 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 -¥711,161,583.97 in 2020, a decrease of 563.14% compared to ¥153,552,778.04 in 2019[21]. - The total assets at the end of 2020 were ¥1,971,924,850.84, down 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 at the end of 2020 from ¥2,482,480,292.42 at the end of 2019[21]. - The basic earnings per share for 2020 was -¥1.91, a decline of 6,466.67% from ¥0.03 in 2019[21]. - The company reported a significant increase in non-recurring losses, with total non-recurring gains and losses amounting to ¥23,673,040.55 in 2020[28]. - The company experienced a quarterly revenue increase in Q4 2020, reaching ¥118,318,693.26, compared to ¥62,430,126.79 in Q1 2020[25]. - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits over the last three accounting years[21]. - The company reported a significant drop in the weighted average return on net assets to -33.63% in 2020 from 0.49% in 2019[21]. - The company reported a significant asset impairment loss of approximately ¥673 million, accounting for 93.84% of total profit[72]. Business Operations - The company's core business remains focused on smart education equipment and services, with stable operations in other business segments despite the losses from Hengfeng Information[6]. - The company's intelligent education equipment business is primarily driven by large infrared touch screens, with major clients including Seewo, Honghe, Samsung, and Foxconn[32]. - The international education service segment has established 14 international curriculum centers across the country, focusing on programs like AP, A-level, and GAC[32]. - The smart education service business has served over 3,000 schools nationwide, covering approximately 7.5 million students annually[33]. - The company launched two new campuses in Changde and Hohhot, expanding its business coverage despite the pandemic[46]. - The company focused on three product lines: large platform, big data, and smart classroom, to enhance product competitiveness[48]. - The company actively engaged in online teaching and recruitment to mitigate the impact of the pandemic on its operations[46]. - The company plans to deepen its market presence in advantageous regions such as Guangdong and Yunnan, leveraging local education projects[8]. - The company is exploring new profit models in response to market trends and the pandemic's impact[88]. - The company aims to enhance its smart education services by concentrating on three product lines: large platforms, big data, and smart classrooms[100]. Market Trends and Future Outlook - The overall education budget for 2021 was reduced by 4.78% to CNY 134.21 billion, reflecting the impact of the pandemic on funding[36]. - The company anticipates a recovery in education spending and family education expenses as the macroeconomic environment improves post-COVID-19[96]. - The education informationization industry is shifting towards "Internet + Education" service models, increasing the demand for software capabilities and technological advancements[98]. - The company expects stable growth in the international education market as the number of students studying abroad and international schools increases[98]. - In 2021, the company plans to open over 2 new international course centers and optimize existing campus resources to increase student enrollment[100]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[114]. - The company has committed to achieving net profits of no less than RMB 1,230 million, 1,610 million, 2,070 million, 2,670 million, and 3,420 million for the years 2021 to 2025, respectively[120]. - The company provided a positive outlook for 2021, projecting a revenue growth of 30% based on new product launches and market expansion strategies[199]. Research and Development - The company holds nearly 200 patents in infrared technology, with an additional 60 pending applications, showcasing its R&D strength[39]. - Research and development expenses for 2020 amounted to CNY 45,257,872.74, representing 12.67% of total revenue, an increase from 10.67% in 2019[65]. - Investment in R&D increased by 30% in 2020, focusing on developing new educational technologies and platforms[115]. - The company aims to improve operational efficiency by implementing advanced analytics, which is projected to reduce costs by 10% over the next fiscal year[199]. Talent and Human Resources - The company faced challenges in retaining talent due to high turnover rates and rising human resource costs, which could impact future R&D capabilities[104]. - The international education service business is in a rapid expansion phase, requiring the attraction of skilled personnel to manage high operational costs[104]. - The company plans to strengthen its core team and enhance talent retention through various strategies[104]. - The company is committed to maintaining talent retention and enhancing team cohesion to avoid core talent loss[101]. Legal and Compliance - The company is currently involved in a legal arbitration case with a claim amounting to 72.67 million yuan, with the hearing scheduled for March 30, 2021[131]. - Another ongoing case involves a claim of 1 million yuan related to patent infringement, with proceedings still in progress[132]. - The company has not faced any penalties or rectification issues during the reporting period[133]. Shareholder and Equity Information - The company’s consolidated net profit for 2020 was -713,656,327.29 CNY, resulting in a distributable profit of -509,802,753.21 CNY by the end of the year[112]. - The parent company's net profit for 2020 was -698,355,609.04 CNY, leading to a distributable profit of -685,787,070.57 CNY[109]. - The company did not propose any profit distribution or capital reserve transfer to share capital for the year 2020[112]. - The company has a total of 17,752 common shareholders at the end of the reporting period[178]. - The largest shareholder, Fujian Zhuofeng Investment Partnership, holds 27.20% of the shares, totaling 101,800,318 shares[178]. - The company’s board approved the repurchase of restricted stock on April 24, 2020, and the shareholders approved it on May 19, 2020[170]. Corporate Governance - The company maintains a stable governance structure with no significant changes in control or ownership during the reporting period[183]. - The company’s board of directors and senior management experienced several changes, including the resignation of independent director Cheng Shen and the appointment of new positions[191]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[124].