Nsfocus(SZ:300369)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,671,091,024.50, representing a 24.24% increase compared to CNY 1,345,040,751.20 in 2018[21] - The net profit attributable to shareholders of the listed company was CNY 226,510,778.11, a growth of 34.77% from CNY 168,070,150.66 in the previous year[21] - The net cash flow from operating activities reached CNY 346,015,579.01, marking a significant increase of 304.79% compared to CNY 85,480,342.50 in 2018[21] - The basic earnings per share for 2019 was CNY 0.28, up 33.33% from CNY 0.21 in 2018[21] - Total assets at the end of 2019 amounted to CNY 4,082,277,759.29, reflecting a 6.53% increase from CNY 3,831,930,529.20 at the end of 2018[21] - The net assets attributable to shareholders of the listed company were CNY 3,383,111,965.57, an increase of 8.82% from CNY 3,108,855,355.32 in 2018[21] - The company reported a diluted earnings per share of CNY 0.28, consistent with the basic earnings per share[21] - The weighted average return on equity was 6.99%, an increase from 5.61% in the previous year[21] - The company achieved operating revenue of ¥1,671,091,024.50, representing a year-on-year growth of 24.24%[69] - Net profit attributable to shareholders reached ¥226,510,778.11, with a year-on-year increase of 34.77%[69] - The net profit after deducting non-recurring gains and losses was ¥183,752,082.59, reflecting a growth of 50.31% year-on-year[69] - The company's total revenue for 2019 was 1,669,855,141.32 CNY, representing a year-on-year increase of 24.31% compared to 2018[78] Cash Dividends - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares to all shareholders[6] - The company distributed a cash dividend of 0.60 yuan per 10 shares, totaling 47,887,059.66 yuan, which represents 21.14% of the net profit attributable to shareholders for 2019[135] - The net profit attributable to shareholders for 2019 was 226,510,778.11 yuan, with distributable profits available for shareholders amounting to 1,078,465,737.48 yuan[136] - The cash dividend payout ratio for 2018 was 28.58%, with a total cash dividend of 48,031,672.05 yuan[139] - The total cash dividend for 2019 accounted for 100% of the profit distribution total[136] - The company has maintained a consistent cash dividend distribution policy over the past three years, with cash dividends of 48,188,225.76 yuan in 2017, 48,031,672.05 yuan in 2018, and 47,887,059.66 yuan in 2019[139] - The company's cash dividend policy has been confirmed to align with its articles of association and relevant regulations[136] Market Position and Strategy - The company maintained a leading market share in several security products, including the Anti-DDoS System (ADS), which ranked first in the Greater China region according to Frost & Sullivan[36] - The company has invested in emerging security fields such as industrial control security and cloud security, anticipating increased demand in these areas in 2020[40] - The company launched the Intelligent Security Operation Platform (ISOP), which has been widely adopted across various industries, enhancing its security management capabilities[41] - The company has established a leading market share in the cybersecurity industry, participating in numerous national security projects and standards[61] - The company is committed to continuous innovation and has increased R&D investment to meet evolving security demands[64] - The company plans to enhance its market strategy and internal operations to expand its security operations business and increase market share in the information security industry[124] - In product development, the company will focus on market opportunities in areas such as data security and cloud security, applying advanced technologies like big data analysis and artificial intelligence[124] Research and Development - The company has published several industry reports in 2019, including the "2019 DDoS Attack Situation Report" and "2019 IoT Security Annual Report," showcasing its commitment to ongoing research in security trends[43] - The company completed several R&D projects, including the TVM-V3.0.1 platform and the WVSS-V6.0.3.2 system, with all projects achieving 100% completion[94] - Research and development (R&D) expenses rose by 14.90% to CNY 311,291,935.65, with R&D investment accounting for 20.20% of total revenue[91] - The number of R&D personnel increased to 811, representing 27.58% of the total workforce[91] - The company is actively researching and applying cutting-edge technologies such as big data analysis and artificial intelligence to improve its security products[53] Operational Challenges - The company experienced a quarterly revenue of CNY 805,519,980.71 in Q4 2019, contributing significantly to the annual growth[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -33,118,250.77 CNY, compared to -15,290,681.30 CNY in the previous period, indicating a decline[24] - The net cash flow from operating activities was -119,402,216.01 CNY, a significant decrease from 24,875,121.98 CNY in the prior period[24] - The company’s cash flow from operating activities showed a significant negative shift, indicating potential liquidity challenges[24] - The COVID-19 pandemic has impacted the company's operations, with clients delaying resumption of work, which may affect financial performance[130] Assets and Liabilities - The company's intangible assets increased by 22.99% compared to the beginning of the period, primarily due to the capitalization of software copyrights[51] - The company's inventory rose by 32.95% compared to the beginning of the period, driven by increased raw material purchases and costs associated with unverified construction projects[51] - The company’s total liabilities decreased, with short-term borrowings showing a significant reduction, indicating improved liquidity management[100] - The company’s short-term borrowings decreased by 2.91%, from 239,000,628.25 CNY at the beginning of the year to 134,706,906.97 CNY at year-end, representing 3.30% of total assets[100] - The company’s fixed assets decreased by 0.54%, from 119,474,294.63 CNY at the beginning of the year to 104,903,176.28 CNY at year-end, accounting for 2.57% of total assets[100] Shareholder and Investor Relations - The company emphasizes shareholder rights and actively returns value to investors through cash dividends, ensuring timely and accurate information disclosure[195] - The company has not experienced any violations of the commitments made by the investors[145] - The company has not faced any major litigation or arbitration matters during the reporting period[162] - The company has not experienced any penalties or rectification situations during the reporting period[163] Corporate Governance - The company appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the auditor for the 2019 fiscal year, with an audit fee of 1.3 million RMB[158] - The financial statement format was revised in accordance with the Ministry of Finance's guidelines, but it did not impact the company's total assets, total liabilities, net profit, or other comprehensive income[153] - The company adopted new financial instrument standards effective January 1, 2019, with no significant impact on accounting policies for financial liabilities[149] Employee and Social Responsibility - The company offers supplementary medical and accident insurance for employees, enhancing medical coverage beyond statutory benefits[196] - Strategic partnerships with universities like Harbin Institute of Technology and Northeast University are established to foster talent in the information security industry[196] - The company has not initiated any targeted poverty alleviation efforts in the reporting year and has no subsequent plans[199] - The company and its subsidiaries are not classified as key pollutant discharge units by environmental protection authorities[200]