GSAFETY(SZ:300523)2020-04-22 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,564,941,700.64, representing a 51.62% increase compared to ¥1,032,129,341.35 in 2018[16]. - The net profit attributable to shareholders for 2019 was ¥123,531,034.17, a decrease of 8.88% from ¥135,568,090.76 in 2018[16]. - The total assets at the end of 2019 amounted to ¥2,662,705,648.21, a 25.15% increase from ¥2,127,601,471.96 at the end of 2018[16]. - The weighted average return on equity for 2019 was 8.64%, down from 14.65% in 2018[16]. - Total revenue for 2019 reached ¥1,564,941,700.64, representing a year-on-year increase of 51.62% compared to ¥1,032,129,341.35 in 2018[82]. - The company reported a net profit attributable to ordinary shareholders of RMB 123,531,034.17 for the year 2019[155]. - The total cash dividend distributed to shareholders for 2019 is RMB 23,729,039.08, which represents 19.21% of the net profit[159]. Business Segments and Expansion - The company has established four main business segments: public safety and emergency platforms, urban safety, overseas public safety, and fire safety[27]. - The company is actively expanding its business layout to include industrial safety, environmental safety, and safety education services[27]. - The company operates in 31 provinces in China and has expanded its market presence to nearly 300 cities and counties, as well as overseas regions including Latin America, Africa, and Southeast Asia[27]. - The overseas public safety business offers integrated public safety emergency platforms and solutions to developing countries, enhancing their public safety and social security levels[32]. - The company is expanding its market presence in overseas public safety projects, with new contracts in Latin America, Southeast Asia, and other regions[71]. Research and Development - The company invested ¥150,784,853.84 in R&D in 2019, maintaining stable investment levels compared to 2018[61]. - The company has over 510 software copyrights and more than 200 authorized patents, including over 40 invention patents as of December 31, 2019[61]. - The company established three major R&D bases in Beijing, Wuhan, and Hefei, enhancing its technological development capabilities[63]. - The company completed the R&D of the Smart Safety City platform series products, which is expected to enhance its business expansion in urban safety[99]. - The company is focusing on integrating new technologies such as cloud computing and artificial intelligence into public safety, enhancing its core competitiveness[60]. Financial Management and Compliance - The company emphasizes the importance of accurate financial reporting and has confirmed the integrity of its annual report by its board and management[2]. - The company has appointed Rongcheng Accounting Firm for its auditing needs, ensuring compliance and transparency in financial practices[14]. - The company has established a dedicated intellectual property management team to mitigate risks associated with intellectual property disputes[148]. - The company has committed to ensuring the integrity and accuracy of its public disclosures to maintain investor trust[181]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[189]. Risks and Challenges - The company has outlined potential risks in its future business plans and operational goals, urging investors to be aware of these risks[3]. - The company faces risks related to industry policy adjustments, which could impact profitability due to reliance on government funding and policy direction[144]. - The company is implementing measures to manage the risks associated with increasing accounts receivable due to longer project execution and acceptance cycles[147]. Shareholder Relations and Dividends - The company plans to distribute a cash dividend of 1.02 RMB per 10 shares to all shareholders, based on a total of 232,637,638 shares[3]. - The company has maintained a consistent cash dividend distribution over the past three years, with 2018 and 2017 distributions being RMB 31,018,351.80 and RMB 18,720,000.00 respectively[159]. - The company has a significant amount of undistributed profits, which will be carried forward to future years[155]. Corporate Governance and Related Party Transactions - The company will ensure fair and reasonable terms for any necessary related party transactions, adhering to written agreements[162]. - The company has established long-term commitments to avoid substantial competition with its subsidiaries[162]. - The company will prioritize transferring business opportunities to its subsidiaries to prevent conflicts of interest[163]. - The company guarantees to compensate for any losses incurred due to violations of commitments made regarding related party transactions[162]. Market Position and Competition - The company is positioned in the intersection of the software and information technology services industry and the public safety industry, making it a unique player in the A-share market[136]. - The company faces competition from three types of enterprises in the domestic market, but maintains a relative advantage due to its comprehensive understanding and experience in public safety and emergency services[137]. - In the overseas market, the company competes with domestic and international firms, offering better pricing and customized services for developing countries[138]. Future Outlook and Strategy - Over the next five years, the company aims to build a comprehensive "big safety" industry system covering various safety fields, including public health and environmental safety[139]. - The company aims to expand into new market areas such as industrial safety, environmental safety, and public health emergency services, forming a "4+4" business line for sustained growth[140]. - The company plans to maintain significant R&D investment to sustain its industry advantage and market expansion[138].