sunline(SZ:300348)2020-04-24 16:00Business Performance - The company reported its first overseas business profitability in 2019, marking a successful entry into Southeast Asia's banking sector, breaking the dominance of Western technology giants [9]. - The company's operating revenue for 2019 was CNY 1,311,125,161.56, representing a 20.56% increase from CNY 1,087,496,802.95 in 2018 [28]. - The net profit attributable to shareholders for 2019 was CNY 137,926,045.87, a significant increase of 144.32% compared to CNY 56,454,112.92 in 2018 [28]. - The net cash flow from operating activities was CNY 108,827,939.16, a remarkable increase of 504.75% compared to CNY 17,995,400.04 in 2018 [28]. - The total assets at the end of 2019 amounted to CNY 2,194,793,196.87, reflecting a 20.39% increase from CNY 1,823,052,637.57 at the end of 2018 [28]. - The net assets attributable to shareholders increased by 20.86% to CNY 1,487,329,627.34 from CNY 1,230,671,814.67 in 2018 [28]. - The basic earnings per share for 2019 were CNY 0.3028, up 147.39% from CNY 0.1224 in 2018 [28]. - The diluted earnings per share increased by 158.96% to CNY 0.2947 from CNY 0.1138 in the previous year [28]. - The weighted average return on equity for 2019 was 10.16%, an increase of 5.66% compared to 4.50% in 2018 [28]. - The company reported a quarterly revenue of CNY 576,919,045.31 in Q4 2019, contributing significantly to the annual growth [32]. Profit Distribution - The profit distribution plan approved by the board proposes a cash dividend of 0.12 RMB per 10 shares, with a capital reserve conversion of 5 shares for every 10 shares held [5]. - The total number of shares for the profit distribution plan is based on 481,810,269 shares [5]. - The company reported a distributable profit of ¥89,578,894.82 for the year [185]. - The total cash dividend distributed, including other methods, accounted for 100.00% of the profit distribution [185]. - In 2019, the cash dividend amount was ¥5,781,723.23, representing 4.19% of the net profit attributable to ordinary shareholders [188]. Innovation and R&D - The company emphasizes continuous innovation as a core principle, which has been integral to its success in the financial technology sector [9]. - The company has made significant advancements in big data, positioning itself as a leader in the industry [8]. - The company's R&D investment exceeded 10% of its revenue in 2019, reinforcing its technological and product advantages in the financial technology sector [58]. - The company is committed to maintaining long-term core competitiveness through significant R&D investments and continuous innovation [99]. - R&D investment in 2019 amounted to ¥198,733,630.98, representing 15.16% of operating revenue, an increase from 13.31% in 2018 [101]. - The number of R&D personnel increased to 974 in 2019, accounting for 23.35% of the total workforce, down from 25.85% in 2018 [101]. Market Expansion - The company has successfully completed a zero-to-one process in overseas markets over three years, establishing itself as a leader in providing Chinese core solutions [9]. - In 2019, the company achieved overseas revenue of 150.29 million yuan, representing a year-on-year growth of 134.56%, marking a significant milestone in its international expansion strategy [62]. - The company has expanded its overseas business since 2015, establishing a presence in Hong Kong, acquiring companies in Malaysia and Singapore, and increasing its stake in Indonesia to 70% [169][171]. - The company has positioned itself to meet the growing demand for banking information systems in Southeast Asia, with large commercial banks requiring investments exceeding $20 million for information technology upgrades [171]. Risk Management - The company acknowledges potential risks in market competition, talent retention, and product development, urging investors to consider these factors [5]. - The company has maintained a talent retention policy, with over 90% of its workforce being technical and R&D personnel, to mitigate risks associated with talent turnover [173]. - The company faces competition from both traditional financial technology firms and emerging internet companies, necessitating ongoing innovation and technological advancement [172]. Strategic Partnerships - The company has formed a strategic partnership with Tencent Cloud to launch a new generation distributed financial service framework, enhancing system construction models for financial clients [166]. - The company is a member of the Huawei Kunpeng Intelligent Data Alliance, collaborating on the development of a financial data warehouse solution to support clients' data management needs [51]. Financial Health - The net cash flow from financing activities decreased by 126.67% in 2019 compared to 2018, mainly due to increased repayment efforts [129]. - The company's cash and cash equivalents amounted to ¥629,291,507.61, representing 28.67% of total assets, a decrease of 1.39% from the beginning of the year [134]. - Accounts receivable increased to ¥911,922,444.92, accounting for 41.55% of total assets, an increase of 3.17% compared to the beginning of the year [134]. Product Development - The company has developed a comprehensive data governance system for the People's Bank of China, enhancing data quality and security across core areas [51]. - The company has pioneered internet banking transformation solutions, enabling traditional banks to adapt to the fast-paced digital landscape [54]. - The company is focusing on developing a distributed service platform and an open banking service platform to enhance market competitiveness [100]. Acquisitions - The company acquired an 85% stake in COMET WAVE for ¥2,350,203.52, contributing ¥3,836,972.45 in revenue since acquisition [88]. - The company also acquired 100% of Tianyang Dayou for ¥3,507,000.00, which reported a net loss of ¥494,495.56 [91].