Forms Syntron(SZ:300468)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 573,983,631.21, representing a 9.21% increase from CNY 525,558,672.81 in 2019[18]. - The net profit attributable to shareholders decreased by 22.53% to CNY 74,555,031.45 in 2020, down from CNY 96,238,638.56 in 2019[18]. - The net cash flow from operating activities significantly dropped by 90.50% to CNY 11,337,301.62 in 2020, compared to CNY 119,278,918.09 in 2019[18]. - The company's total revenue for 2020 was CNY 573,983,631.21, representing a year-on-year increase of 9.21%[43]. - Domestic revenue accounted for CNY 211,647,222.67, a slight increase of 2.31%, while overseas revenue reached CNY 362,336,408.54, up by 13.70%[43]. - The gross profit margin for the software and information services sector was 47.69%, a decrease of 1.66% compared to the previous year[43]. - The company reported a net profit attributable to shareholders of CNY 74,534,031.45 for the year, with significant seasonal fluctuations in revenue and profit distribution[43][54]. Research and Development - The company maintained a research and development investment of CNY 79,675,000, accounting for 13.88% of its operating revenue[27]. - The R&D investment in distributed architecture, microservices platform, and blockchain technology comprised 86.52% of the total R&D expenditure[27]. - The company launched a distributed PaaS platform and microservices SaaS platform aimed at the financial industry, enhancing its technological capabilities for "Bank 4.0"[27]. - Research and development expenses totaled CNY 79,675,041.77, accounting for 13.88% of total revenue, with 110 new software copyrights and product registrations added[55]. - The company has implemented annual training plans for various departments, focusing on enhancing employees' professional skills and overall quality[178]. Market Expansion and Strategy - The company is expanding its global footprint, which introduces uncertainties related to international political and economic stability, as well as currency fluctuations[7]. - The company is actively expanding into the Southeast Asian market, particularly through its wholly-owned subsidiary in Thailand, in line with the Belt and Road Initiative[26]. - The company aims to leverage new technologies such as AI, big data, and 5G applications to enhance its product offerings and market presence[26]. - The company is focused on expanding its business in the Hong Kong and Macau markets, as well as Southeast Asia, to achieve growth[77]. - The company aims to accelerate the investment progress of fundraising projects to achieve expected benefits as soon as possible, focusing on projects related to core banking software and services[105]. Risk Management - The company faces significant risks due to high dependency on financial institutions, particularly in the context of potential economic fluctuations and changes in the management systems of these institutions[5]. - The company has identified risks related to talent retention and rising labor costs, which are significant given that personnel expenses constitute the largest portion of its operational costs[6]. - The company is experiencing intense market competition, which may lead to pricing pressures and impact its operational performance if not managed effectively[5]. - The company has established a response team to address uncertainties arising from the COVID-19 pandemic, which has affected global operations and may continue to pose risks[7]. - The company's future profitability may be uncertain due to the long implementation cycles of projects and potential changes in macroeconomic conditions[7]. Profit Distribution - The company plans to distribute a total cash dividend of RMB 28,329,905.50, which translates to RMB 1 per 10 shares, based on a total share capital of 283,299,055 shares as of December 31, 2020[8]. - The cash dividend distribution represents 100% of the total profit distribution amount, with no stock dividends or capital increases planned for the current year[82]. - The company emphasizes a stable and continuous profit distribution policy, prioritizing cash dividends[92]. - The company aims to ensure that cash dividends distributed each year are not less than 20% of the distributable profits achieved that year[93]. - In 2020, the cash dividend amount was 28,329,905.50, representing 38.00% of the net profit attributable to ordinary shareholders[88]. Corporate Governance - The company has maintained independence from its controlling shareholder in business, personnel, assets, and finance, with no guarantees provided to the controlling shareholder[186]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate information is available to all investors[184]. - The independent directors attended all board meetings and provided valuable professional advice, enhancing decision-making processes[190]. - The company has established a comprehensive performance evaluation system for senior management, ensuring transparency and fairness in the compensation scheme[193]. - There were no significant internal control deficiencies identified during the reporting period, with all financial and non-financial report deficiencies recorded as zero[194][195]. Employee Management - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to CNY 3.484 million[173]. - The company employed a total of 2,255 staff, with 1,996 being technical personnel, representing approximately 88.5% of the workforce[176]. - The company has a competitive salary policy that includes a basic salary and performance bonuses, aimed at attracting and retaining core talent[177]. - The company has 28 sales personnel, which is about 1.2% of the total workforce[176]. - The company has not granted any equity incentives to directors and senior management during the reporting period[175].