SINOSUN(SZ:300333)2021-04-22 16:00Financial Performance - The company reported a net profit attributable to shareholders of -20.04 million yuan, a significant decline compared to the previous year, primarily due to the impact of the pandemic on sales and a 46.63% increase in R&D expenses to 85.51 million yuan[6]. - The company's revenue for 2020 was ¥213,764,371.81, a decrease of 10.81% compared to ¥239,673,516.43 in 2019[26]. - The net profit attributable to shareholders in 2020 was -¥20,035,532.47, representing a decline of 258.25% from ¥12,660,717.05 in 2019[26]. - The company experienced significant losses in the fourth quarter, with a net profit of -¥21,876,554.99[29]. - The company’s net assets attributable to shareholders decreased by 4.76% to ¥804,155,205.07 at the end of 2020[26]. - The company reported a basic earnings per share of -¥0.0596 in 2020, down 258.09% from ¥0.0377 in 2019[26]. - The company reported a net profit decline, with a total loss of approximately 27.52 million RMB for the year[124]. - The cash dividend distribution plan for 2020 reflects the company's financial challenges, as indicated by the negative net profit[127]. Research and Development - The company conducted impairment testing on underperforming R&D projects, resulting in an asset impairment provision of 23.82 million yuan[6]. - Increased expenses in R&D, management, and sales are putting pressure on operating performance, with these costs rising significantly as a percentage of revenue[10]. - The company has established a comprehensive R&D management process, achieving CMMI-4 certification, which enhances its competitiveness in software development[37]. - The company operates several R&D centers in Shenzhen, Wuhan, Xi'an, and Beijing, ensuring efficient and collaborative R&D processes across departments and regions[38]. - R&D expenses increased significantly to CNY 85.51 million, up 46.63% year-on-year, due to increased investment in R&D projects[58]. - The company has developed a new paper texture anti-counterfeiting technology, filling a technological gap in the industry[50]. - The company is exploring and adjusting R&D strategies in response to the dynamic changes in market demand for financial information security[106]. - The company has achieved batch production of the financial bill anti-counterfeiting product, which is now sold in multiple commercial banks nationwide[106]. Market Position and Strategy - The company's traditional electronic payment password system business remains stable, while the new Yinqitong system has been implemented in banks, contributing to performance during the reporting period[8]. - The company focuses on financial technology, specializing in mobile payment security products and anti-counterfeiting technologies for financial documents[36]. - The company plans to continue developing new technologies and products in the financial technology sector[36]. - The company is actively pursuing innovation and technology development to adapt to changes in the financial industry and enhance its competitive position[13]. - The company is actively promoting the application of paper texture anti-counterfeiting technology in smart banking and financial bill anti-counterfeiting fields[106]. - The company emphasizes the importance of operational consulting services for financial institutions, leveraging its expertise in the financial information security sector[116]. Financial Health and Solvency - The company has a low debt-to-asset ratio of 7.3%, indicating strong solvency and no significant risk to its ongoing operations[8]. - The net cash flow from operating activities increased by 150.52% to ¥20,153,614.22 in 2020, compared to ¥8,044,858.22 in 2019[26]. - The total assets at the end of 2020 were ¥871,604,271.45, a decrease of 1.81% from ¥887,661,901.23 at the end of 2019[26]. - The company’s cash flow from operating activities showed a significant improvement, reflecting better management of working capital[85]. - The net increase in cash and cash equivalents was ¥17,756,827.28, a significant improvement from a decrease of ¥202,856,807.34 in the previous year, marking a 108.75% change[86]. Shareholder and Governance - The board approved a profit distribution plan with no cash dividends or bonus shares, indicating a focus on reinvestment rather than immediate shareholder returns[13]. - The company has maintained compliance with its commitments regarding share transfer restrictions for its executives[130]. - The company has a structured approach to performance evaluation and compensation, aligning incentives with company performance[196]. - The company has a diverse board with members holding various international experiences, including positions in Deloitte and GIC Special Investments[188][189]. - The company has undergone changes in its board composition, with several independent directors leaving and new members being elected on May 15, 2020[186]. Legal and Compliance - There were no significant lawsuits, arbitrations, or penalties during the reporting period, indicating a stable legal and compliance environment[139][140]. - The company has not reported any non-standard audit reports for the current period[132]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[131]. Employee and Workforce - The total number of employees in the company is 357, with 261 being technical personnel[198]. - The company has a competitive salary management system to attract and retain talent, ensuring alignment with market salary levels[199]. - The company emphasizes training programs aligned with its development strategy and employee needs[200].