Boss Soft(SZ:300525)2020-04-26 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.1 RMB per 10 shares to all shareholders, based on a total of 214,085,219 shares[7]. - The cash dividend represents 22.04% of the net profit attributable to ordinary shareholders, which is RMB 106,833,899.34 for the year 2019[147]. - The company will increase its share capital by 3 shares for every 10 shares held, resulting in a new total share capital of 278,310,785 shares after the distribution[146]. - The company has maintained a cash dividend payout ratio of 100% of the total profit distribution amount for the year[146]. - The cash dividend for 2018 was RMB 2.00 per 10 shares, totaling RMB 25,927,200.00, which accounted for 30.38% of the net profit[147]. - The cash dividend for 2017 was RMB 2.10 per 10 shares, totaling RMB 15,126,720.00, representing 27.66% of the net profit[147]. - The company is in a growth phase and has significant capital expenditure plans, with a minimum cash dividend ratio of 20% required during profit distribution[146]. Financial Performance - The company's operating revenue for 2019 was ¥898,768,211.80, representing a 60.90% increase compared to ¥558,594,681.40 in 2018[26]. - The net profit attributable to shareholders for 2019 was ¥106,833,899.34, a 25.17% increase from ¥85,349,226.11 in 2018[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥99,022,802.26, up 21.76% from ¥81,323,906.13 in 2018[26]. - The net cash flow from operating activities for 2019 was ¥114,937,171.25, an increase of 25.37% compared to ¥91,681,083.51 in 2018[26]. - The total assets at the end of 2019 were ¥1,809,451,674.47, a 69.31% increase from ¥1,068,697,372.59 at the end of 2018[26]. - The net assets attributable to shareholders at the end of 2019 were ¥1,215,505,317.13, a 99.34% increase from ¥609,759,056.90 at the end of 2018[26]. - The basic earnings per share for 2019 was ¥0.5470, reflecting a 19.72% increase from ¥0.4569 in 2018[26]. - The diluted earnings per share for 2019 was ¥0.5338, up 16.88% from ¥0.4567 in 2018[26]. Business Operations and Strategy - The company operates in the high-tech industry, focusing on software development and related services[20]. - The company aims to expand its market presence and explore new business areas to drive growth[7]. - The company is actively pursuing strategic partnerships and potential acquisitions to bolster its market position[7]. - The company has established a comprehensive electronic service platform for government and enterprise services, enhancing operational efficiency[7]. - The company has developed a unified public payment platform to enhance connectivity between various systems, supporting a one-stop online service for the public[39]. - The company has expanded its SaaS services across three major business areas, focusing on public payment services and electronic transaction services in public procurement[40]. - The company has established a comprehensive management platform for government procurement, covering various software products to enhance procurement efficiency[39]. Research and Development - The company is committed to enhancing its product offerings through continuous research and development efforts[7]. - R&D expenses amounted to 132.01 million CNY, representing 14.69% of operating revenue, with a year-over-year increase of 52.50%[56]. - The number of R&D personnel rose to 1,120 in 2019, representing 38.20% of the total workforce[89]. - The company will increase R&D investment to upgrade products and improve user experience, particularly in fiscal electronic invoices and public procurement solutions[126]. Market Risks and Challenges - The company faces various risks including market competition, policy risks, and technology development risks, which may impact future performance[7]. - The company acknowledges the risks associated with new business and market expansion, including potential misjudgments and team inadequacies, and plans to make cautious decisions[136]. - The company emphasizes the importance of core technology and personnel retention, implementing measures to protect intellectual property and stabilize key staff through incentives[134]. - The company faces intensified market competition as more software firms enter the fiscal electronic invoice and public procurement sectors[131]. Acquisitions and Restructuring - The company plans to acquire 78.00% equity in Guangdong Ruilian through a cash transaction, which is referred to as "this restructuring"[172]. - The acquisition is expected to enhance the company's market position and expand its operational capabilities[162]. - The company has committed to maintaining confidentiality during the restructuring process and has not engaged in insider trading[154]. - The restructuring is anticipated to create synergies and improve overall performance metrics for Bosi Software[156]. Internal Controls and Governance - The company emphasizes enhancing internal controls and operational management through adjustments in organizational structure and regular training[60]. - The company is committed to improving investor relations and ensuring the quality of information disclosure to maintain a stable relationship with investors[60]. - The company has established a commitment to disclose related party transactions in accordance with relevant laws and regulations[172]. - The company has a long-term commitment to comply with all legal and regulatory requirements regarding related party transactions[172]. Cash Management and Financial Strategy - The company plans to use up to 80 million yuan of idle raised funds to temporarily supplement working capital for daily operations, with a usage period not exceeding 12 months[110]. - The company has a stock price stabilization plan that includes repurchasing shares if the stock price falls below the net asset value per share for 20 consecutive trading days[181]. - The company has established a compensation mechanism for shareholders to address potential dilution of immediate returns due to new share issuance[178]. - The company will not seek any benefits beyond those stipulated in related agreements with its subsidiaries[168].