COL(SZ:300364)2020-04-26 16:00Financial Performance - The company's operating revenue for 2019 was ¥705,377,023.73, a decrease of 20.34% compared to ¥885,489,948.35 in 2018[19]. - The net profit attributable to shareholders for 2019 was -¥603,290,627.06, showing an improvement of 60.01% from -¥1,508,461,329.35 in 2018[19]. - The net cash flow from operating activities was ¥34,218,596.53, a significant increase of 138.28% compared to -¥89,389,368.35 in 2018[19]. - The total assets at the end of 2019 were ¥1,802,583,811.25, down 30.42% from ¥2,590,576,031.24 at the end of 2018[19]. - The net assets attributable to shareholders decreased by 35.04% to ¥1,415,848,334.22 from ¥2,179,595,711.01 in 2018[19]. - The basic earnings per share for 2019 was -¥0.7853, improving by 60.56% from -¥1.9912 in 2018[19]. - The company achieved operating revenue of 705.38 million yuan in 2019, a decrease of 20.34% compared to the previous year, primarily due to a significant decline in advertising and game distribution revenue[50]. - The company's net profit attributable to ordinary shareholders for 2019 was -603,290,627.06 RMB, resulting in a cash dividend payout ratio of 0.00%[117]. - The company reported a total share count of 727,295,310 after a reduction of 44,702,940 shares due to a buyback and cancellation[171]. Revenue and Market Trends - The digital publishing industry is experiencing growth driven by increasing demand for digital copyright reading products and services, correlating with macroeconomic trends[3]. - The digital reading industry in China reached a market size of CNY 28.88 billion in 2019, reflecting a growth rate of 13.5%[35]. - The number of digital reading users in China reached 740 million in 2019, with a year-on-year growth of 1.4%[35]. - The number of online literature users in China grew to 470 million in 2019, marking an 8.3% increase year-on-year[35]. - The overseas market for digital reading is projected to grow, with global digital reading users expected to reach 1.119 billion by 2023[37]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[120]. - User data showed a total of 10 million active users, with a year-over-year increase of 20%[121]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[120]. Investment and R&D - The company is investing heavily in R&D, with a budget allocation of 150 million RMB for new technology development[120]. - R&D investment for 2019 was 113,987,320.20 CNY, accounting for 16.16% of total revenue, an increase from 13.88% in 2018[83]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 300 million RMB earmarked for potential deals[120]. - The company is investing in new technology development, allocating 100 million RMB towards R&D initiatives in the upcoming year[199]. Intellectual Property and Legal Matters - The company has established a comprehensive copyright protection system, ensuring legal and administrative safeguards for digital content[30]. - The company has engaged in nearly 10,000 litigation cases related to copyright protection, significantly impacting the industry[48]. - The company is actively pursuing legal actions to protect its intellectual property rights, with ongoing cases in various stages of litigation[141]. - The company is involved in multiple copyright disputes, with claims totaling approximately RMB 28.97 million from Tianjin Zhongwen Online against Hangzhou Sky Network Technology Co., Ltd. for 60 works[146]. Corporate Governance and Compliance - The company is committed to ensuring compliance with evolving regulatory requirements in the internet and gaming sectors to avoid penalties[7]. - The company has established measures to ensure accountability for its directors and senior management regarding their commitments made in the IPO prospectus[122]. - The company has not encountered any issues with the use and disclosure of raised funds[105]. - The company has committed to timely and accurate information disclosure in accordance with the rules of the Shenzhen Stock Exchange[125]. Strategic Focus and Future Plans - The company aims to enhance its "Literature+" strategy by signing quality authors and expanding digital reading business, focusing on long-term growth in content and user base[114]. - The company plans to expand its overseas business through CRAZY MAPLE STUDIO, INC., focusing on new reading demands[114]. - The company is focused on expanding its digital publishing business and enhancing its IP film and television operations[187]. - The management team emphasized the importance of maintaining a strong cash flow, currently at 200 million RMB, to support future growth initiatives[198]. Social Responsibility and Community Engagement - The company has established the Honghui Education Development Foundation, which has expanded its public welfare projects to 26 counties, benefiting nearly 100,000 rural students[162]. - The company provided free access to nearly 100 classic reading e-books for 50 million students on the national primary and secondary school online cloud platform[164]. - The company has trained over 5,000 teachers and directly funded nearly 10,000 students through its public welfare initiatives[162]. - The company plans to continue strengthening ties with beneficiaries and organizing activities to understand their needs better and fulfill its social responsibilities[165].