Nsfocus(SZ:300369)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,010,044,336.08, representing a 20.28% increase compared to CNY 1,671,091,024.50 in 2019[18]. - The net profit attributable to shareholders for 2020 was CNY 301,128,591.09, a 32.94% increase from CNY 226,510,778.11 in 2019[18]. - The net profit after deducting non-recurring gains and losses was CNY 258,162,527.08, which is a 40.50% increase compared to CNY 183,752,082.59 in 2019[18]. - The net cash flow from operating activities for 2020 was CNY 446,115,488.46, up 28.93% from CNY 346,015,579.01 in 2019[18]. - The basic earnings per share for 2020 was CNY 0.38, reflecting a 35.71% increase from CNY 0.28 in 2019[18]. - The total assets at the end of 2020 were CNY 4,373,868,083.68, a 7.14% increase from CNY 4,082,277,759.29 at the end of 2019[18]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,496,691,687.45, which is a 3.36% increase from CNY 3,383,111,965.57 at the end of 2019[18]. - The weighted average return on equity for 2020 was 8.68%, an increase of 1.69% from 6.99% in 2019[18]. - The company reported a comprehensive diluted earnings per share of CNY 0.3772 after accounting for changes in share capital[18]. - The company reported a net profit attributable to shareholders of RMB 301,128,591.09 for the year 2020[149]. Cash Flow and Investments - The net cash flow from operating activities for 2020 was ¥446,115,488.46, an increase of 28.93% year-on-year[100]. - The net cash flow from investment activities decreased by 261.48% in 2020, primarily due to increased purchases of financial products[100]. - The net cash flow from financing activities decreased by 37.84% in 2020, mainly due to reduced external loans and share repurchases[100]. - The company reported an investment income of ¥39,960,623.60, accounting for 11.99% of total profit[102]. - The total investment amount for the reporting period was CNY 2,500,000, a significant decrease of 93.10% compared to CNY 36,240,000 in the previous year[111]. - The company reported a surplus of CNY 44,091.82 from fundraising, attributed to interest income and fees, which will be used to supplement working capital[124]. Revenue Breakdown - Revenue from security products was 1,341.18 million yuan, a 22.21% increase year-on-year; revenue from security services was 643.34 million yuan, up 18.09%[64]. - Revenue from the information security sector was ¥2,009,113,621.75, accounting for 99.95% of total revenue, with a year-on-year growth of 20.32%[77]. - Revenue from security products was ¥1,341,182,435.33, making up 66.72% of total revenue, and increased by 22.21% compared to the previous year[81]. - The North China region saw a significant revenue decline of 45.44%, with revenue dropping to ¥308,794,803.49 from ¥565,930,348.54[77]. - The Southwest region experienced a remarkable growth of 174.41%, with revenue increasing to ¥284,234,617.18 from ¥103,581,639.96[77]. Research and Development - The company has established eight laboratories focusing on various aspects of cybersecurity, enhancing its research capabilities in cloud computing and IoT security[31]. - The company emphasizes independent research and development, with a focus on customer needs and technological innovation[33]. - Research and development expenses for 2020 amounted to ¥357,200,258.01, representing a 14.75% increase compared to 2019[94]. - The company invested ¥365,434,139.82 in R&D in 2020, which is 18.18% of its operating revenue[96]. - The number of R&D personnel increased to 928 in 2020, representing 27.28% of the total workforce[96]. Market Position and Strategy - The company maintains a leading market share of 14.8% in the Asia-Pacific intrusion detection and prevention hardware market, ranking first among Chinese manufacturers[36]. - The company's Web Application Firewall (WAF) achieved the highest market share in China according to IDC's 2020 report[37]. - The company has signed multiple benchmark projects with global telecom operators and Fortune 500 companies for its Anti-DDoS System (ADS), maintaining the number one market share in Greater China for six consecutive years[37]. - The company is focusing on research and development in the new infrastructure sector, including cloud security and 5G security solutions[70]. - The company is strengthening its partner ecosystem and channel cooperation to enhance market reach[64]. Corporate Governance and Compliance - The company has no significant discrepancies between financial reports prepared under international and Chinese accounting standards[22][23]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[160]. - The company did not face any delisting situations after the annual report disclosure[166]. - There were no significant litigation or arbitration matters during the reporting period[167]. - The company did not experience any penalties or rectification situations during the reporting period[168]. Social Responsibility and Community Engagement - The company actively fulfills its social responsibilities and maintains shareholder rights, providing timely and accurate information disclosure[194]. - The company donated network information security materials to Wuhan People's Hospital and provided comprehensive information security services during the pandemic[199]. - The company offered free technical support to all hospitals in epidemic areas and assisted in equipment inspection and upgrades[199]. - The company provided 24/7 free emergency response services to the healthcare sector, ensuring cybersecurity during the pandemic[199]. - The company proposed a "Five Defenses" security solution for the healthcare industry, focusing on health information platforms and remote medical services[199]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.78 per 10 shares (including tax) to all shareholders[4]. - The cash dividend distribution plan for 2020 is set at RMB 0.78 per 10 shares, totaling approximately RMB 60,386,807.29[152]. - The cash dividend amount represents 100% of the total distributable profit for the year, which is RMB 1,213,639,216.86[149]. - The total cash dividend, including other methods, amounts to RMB 189,621,879.17, fully utilizing the distributable profits[149]. - The cash dividends for the last three years have shown a consistent payout trend, with a total cash dividend of RMB 156,305,539.00 distributed over the period[153].