JLU COMMUNICATION(SZ:300597)2020-04-23 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.21 RMB per 10 shares to all shareholders, based on a total of 240,000,000 shares [4]. - The board of directors has approved a profit distribution plan, with no bonus shares to be issued [4]. - The company has not adjusted its cash dividend policy during the reporting period, ensuring protection of minority shareholders' rights [137]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during profit distributions [139]. - The cash dividend for 2018 was 0.19 yuan per 10 shares, totaling 4,560,000.00 yuan, representing 10.39% of the net profit [143]. - The cash dividend for 2017 was 0.17 yuan per 10 shares, totaling 4,080,000.00 yuan, which was 9.74% of the net profit [143]. - The company’s net profit for 2019 was 41,810,470.54 yuan, with 38,970,413.51 yuan available for distribution after statutory reserves [141]. - In 2019, the company distributed a cash dividend of 0.21 yuan per 10 shares, totaling 5,040,000.00 yuan, which is 100% of the distributable profit [137]. Financial Performance - The company's operating revenue for 2019 was CNY 503,366,353.38, representing a 17.12% increase compared to CNY 429,796,113.12 in 2018 [18]. - The net profit attributable to shareholders for 2019 was CNY 41,946,889.95, a decrease of 4.41% from CNY 43,882,085.71 in 2018 [18]. - The net cash flow from operating activities increased by 55.66% to CNY 22,943,148.83 in 2019, up from CNY 14,739,236.49 in 2018 [18]. - The total assets at the end of 2019 were CNY 1,092,554,139.09, a 4.57% increase from CNY 1,044,820,120.17 at the end of 2018 [18]. - The basic earnings per share for 2019 was CNY 0.17, down 5.56% from CNY 0.18 in 2018 [18]. - The weighted average return on net assets for 2019 was 5.35%, a decrease from 5.87% in 2018 [18]. - The company reported a total of CNY 1,146,348.15 in non-recurring gains and losses for 2019, significantly lower than CNY 4,233,156.30 in 2018 [24]. - The company achieved operating revenue of CNY 503.37 million in 2019, an increase of CNY 73.57 million or 17.12% compared to CNY 429.80 million in 2018 [54]. - The net profit for 2019 was CNY 41.81 million, a decrease of CNY 0.21 million or 4.72% from CNY 43.88 million in the previous year [54]. - The company’s asset total reached CNY 1,092.55 million, reflecting a growth of 4.57% from the beginning of the period [56]. - The company’s debt-to-asset ratio stood at 26.46% at the end of the reporting period [56]. Market Expansion and Strategy - The company aims to expand its design business and undertake larger, high-concentration design projects, integrating design with procurement and construction [26]. - The company plans to expand its market presence both domestically and internationally, enhancing its service quality and project scale [26]. - The company maintains a stable performance driven by the acceleration of digitalization during the "13th Five-Year Plan" period, expanding its market share through quality design consulting services and entering new markets such as smart cities and overseas markets [30]. - The company is positioned to benefit from the 5G investment cycle, with significant opportunities arising from the global ICT industry's transition into a new phase driven by 5G and diversified traffic demands [30]. - The company's strategic evolution from a single operator focus to a "main and two wings" model enhances its role as a comprehensive consulting advisor, facilitating its expansion into overseas markets [31]. - The construction of smart cities is identified as a critical strategic direction, with nearly all provinces and municipalities in China initiating smart city projects to improve urban efficiency and competitiveness [35]. - The company has established a wholly-owned subsidiary in the Philippines to expand its overseas communication services, primarily offering Full Turnkey (FTK) solutions for operators [32]. - The company is actively pursuing opportunities in the digital economy, with the domestic connection scale projected to exceed 10 billion by 2020, indicating a massive market for digital services [36]. - The company aims to enhance the next-generation high-speed optical fiber network, targeting a fixed broadband household penetration rate of 70% as per the "Broadband China" strategy, indicating significant growth potential in the broadband market [37]. - The company is focusing on diversifying its client base and expanding its market share through a multi-regional marketing strategy [41]. - The company is positioned to benefit from increasing government support for infrastructure development, particularly in underdeveloped regions [40]. - The company is actively involved in 5G network design projects, including winning bids for major contracts with China Unicom and China Mobile [57]. - The company has established a subsidiary in the Philippines, contributing to its overseas market expansion and aligning with the "Belt and Road" initiative [41]. Research and Development - The company has a robust R&D, quality control, and management system, covering all processes from bidding to project delivery and revenue recognition [29]. - The company is actively involved in the research and development of new technologies to support the transition towards smart city solutions and integrated engineering services [47]. - The company completed 11 R&D projects in 2019, focusing on advanced technologies for 4G networks and IoT applications [77]. - Research and development (R&D) investment amounted to CNY 15,622,736.00 in 2019, accounting for 3.10% of operating revenue, a decrease from 3.60% in 2018 [81]. - The company expanded its R&D personnel to 321, which is 23.40% of the total workforce, up from 22.00% in 2017 [81]. - The company has completed research on key technologies for narrowband IoT (NB-IoT) and 5G network planning, ensuring a leading position in technology [80]. - The company plans to enhance its market competitiveness by increasing R&D investment and accelerating the conversion of R&D results to meet diverse customer needs [80]. - The company invests tens of millions annually in technology R&D, focusing on next-generation internet technologies and cloud computing applications [126]. - The company holds 40 patents and 67 copyrights, participating in the formulation of 8 national standards and 6 industry standards, enhancing its competitive edge [127]. Operational Efficiency and Cost Management - The company has a complete procurement approval system aimed at maximizing cost-benefit ratios and ensuring production needs are met [29]. - The company has developed stable relationships with domestic and foreign telecom operators and government clients, allowing for effective project implementation [29]. - The company has achieved certifications for quality management, environmental management, and occupational health and safety, ensuring compliance with national standards [48]. - The company has a core management team of 7 members with advanced degrees, ensuring efficient operations and sustainable development [49]. - The company has a strong market position with 40 patents and 67 software copyrights, serving major clients like China Mobile and China Telecom, and expanding its service offerings to non-operator businesses [41]. - The company has established a competitive welfare system and continuously optimizes employee care to provide a better working environment [195]. - The company has implemented a robust internal control system and governance structure to protect shareholder and creditor rights [194]. - The company has established various communication channels with investors, including online performance briefings and investor relations platforms [194]. Risk Management - The company has outlined potential risks and corresponding countermeasures in the section discussing future development prospects [4]. - The company faces risks from increasing market competition and rising human resource costs, which could impact profit margins [128]. - The company is committed to maintaining high service quality and effective cost control to mitigate the risk of declining gross margins [130]. - The company will continue to explore overseas markets and enhance communication with government departments to support smart city initiatives [130]. - The company plans to strengthen communication with clients and follow up on contract progress to shorten payment cycles [132]. - The company has established a commitment to protect investors' interests by providing alternative commitments if original commitments are not fulfilled [161]. - The company has committed to ensuring that any related party transactions comply with legal and regulatory requirements [151]. Compliance and Governance - The company has established a policy to disclose reasons if the board does not propose a cash profit distribution plan after a profitable fiscal year [149]. - The company has committed to maintaining compliance with applicable laws and regulations in its financial reporting and disclosures [161]. - The company emphasizes compliance with information disclosure obligations and fair trading principles to protect the interests of public shareholders [153]. - The company has made long-term commitments to ensure the accuracy of documents related to its initial public offering, with compensation for any losses caused by misleading information [161]. - The company has not engaged in any significant related party transactions during the reporting period [181]. - The company has not experienced any bankruptcy restructuring matters during the reporting period [176]. - The company has not encountered any violations regarding the use of funds by major shareholders or related parties during the reporting period [194]. Community Engagement and Social Responsibility - The company donated 200,000 yuan to improve the infrastructure of a primary school in Baodian Township, Songyuan City, Jilin Province, enhancing the learning environment for students [197]. - The company has actively participated in targeted poverty alleviation efforts, focusing on impoverished areas and responding to national initiatives [196]. - The total amount invested in improving educational resources in impoverished areas was 200,000 yuan [198]. - There are no subsequent plans for targeted poverty alleviation reported [199].