ZFINFO(SZ:300659)2020-03-31 16:00Fundraising and Financial Plans - The company plans to raise a total of up to 713 million yuan through a non-public offering of A-shares, with the number of shares not exceeding 26.566 million, accounting for 20% of the total share capital before the issuance[7]. - The total amount for share repurchase will not exceed the net proceeds from the initial public offering[101]. - The company has received feedback on its non-public issuance of A-shares, which was approved by the board and shareholders[141]. - The total amount of funds raised in the initial public offering (IPO) was CNY 225.67 million, with CNY 216.32 million utilized by the end of 2019[70]. - The company plans to enhance operational efficiency and profitability through the effective management of raised funds[102]. Profit Distribution and Dividends - The profit distribution plan approved by the board is to distribute a cash dividend of 2 yuan (including tax) for every 10 shares, with a capital reserve conversion of 6 shares for every 10 shares[9]. - The cash dividend amount represents 21.26% of the net profit attributable to ordinary shareholders, which is 124,904,746.50 yuan for 2019[91]. - The cash dividend for 2019 is 100% of the total profit distribution amount, indicating a strong commitment to returning value to shareholders[90]. - The company has consistently maintained a cash dividend policy, with the total cash dividends over the past three years being 20,693,750 yuan in 2017, 13,283,300 yuan in 2018, and 26,553,256 yuan in 2019[91]. - The company’s cash dividend distribution plan for 2019 is subject to approval at the annual general meeting[91]. Research and Development - The company has established research centers in Beijing, Jinan, Nanjing, and Hangzhou, focusing on industry technology and product R&D, and has increased R&D investment to maintain competitive advantages[6]. - The company has committed to increasing investments in product R&D, customer service, and talent support to enhance market competitiveness[4]. - In 2019, the company's R&D expenses amounted to ¥106,597,264.64, representing a 51.39% increase from ¥70,412,918.77 in 2018[59]. - The number of R&D personnel increased to 380 in 2019, accounting for 38.62% of the total workforce, compared to 36.67% in 2018[59]. - The company plans to enhance its product offerings in cloud computing and big data, focusing on security technologies and integrated management systems[59]. Financial Performance - The company's operating revenue for 2019 was CNY 602,819,863.90, representing a 69.32% increase compared to CNY 356,026,444.24 in 2018[19]. - The net profit attributable to shareholders for 2019 was CNY 124,904,746.50, a significant increase of 194.34% from CNY 42,435,171.41 in 2018[19]. - The net cash flow from operating activities reached CNY 84,137,039.74, marking a remarkable increase of 723.18% compared to CNY 10,221,008.26 in 2018[19]. - The total assets at the end of 2019 amounted to CNY 745,271,093.71, which is a 25.61% increase from CNY 593,302,013.96 at the end of 2018[19]. - The company reported a basic earnings per share of CNY 0.95 for 2019, up 196.88% from CNY 0.32 in 2018[19]. Market and Industry Trends - The network security market in China is projected to reach USD 8.75 billion (approximately CNY 816 billion) in 2020, reflecting a year-on-year growth of 24.00%[28]. - The company is focused on developing network security products and services, with a comprehensive range of offerings including confidentiality protection and information security services[27]. - The company is actively developing new products to meet customer needs, particularly in the areas of intelligent inspection tools and confidentiality education training products[41]. - The company is focusing on the domestic security and confidentiality field, leveraging national cybersecurity strategies to enhance its competitive edge[33]. - The company aims to expand its market share in the "信创" (Xinchuang) industry, with rapid growth expected for its products based on domestic platforms[40]. Operational Challenges - The company acknowledges the seasonal risk in sales, with lower sales in the first half of the year and a significant portion of revenue realized in the second half, potentially leading to seasonal losses[4]. - The outbreak of COVID-19 has temporarily impacted the company's operational plans, and the company is taking measures to mitigate adverse effects[8]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and is actively taking steps to minimize negative effects[8]. - The company anticipates seasonal fluctuations in sales, with lower revenue typically recorded in the first half of the year[84]. - The company experienced significant seasonal fluctuations, with lower sales in the first half of the year due to budget management practices of major clients[48]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board and management, ensuring accountability for any misrepresentation[3]. - The company will ensure compliance with relevant laws and regulations regarding related party transactions[102]. - The governance structure of the company complies with relevant laws and regulations, ensuring independent operation from the controlling shareholder[178]. - The company actively engages with investors to ensure transparency and fair access to information[179]. - The company has maintained its management structure with no significant changes in the board and supervisory roles during the reporting period[164]. Shareholder Information - Major shareholder Wei Dongxiao plans to reduce his shareholding by no more than 10% of his total shares each year within two years after the lock-up period ends[95]. - Chen Zhijiang intends to reduce his shareholding by no more than 25% of his total shares each year within the same two-year period[95]. - The company has a total of 10 major shareholders, with the top 10 holding significant stakes, including 4.94% by Xiamen Zhongfu Puyi Investment Partnership[152]. - The total number of shareholders at the end of the reporting period was 5,189[151]. - The company’s board members are subject to a 75% lock-up on their shares during their tenure[147]. Social Responsibility - The company actively participated in social responsibility initiatives, contributing a total of 519,900 CNY for poverty alleviation efforts[136]. - The company plans to continue its commitment to social responsibility and contribute to the national poverty alleviation campaign[137]. - The company provided 20 million CNY in capital increase to its wholly-owned subsidiary, Zhongfu Safety Technology Co., Ltd., to support its rapid development[140]. - The company has not reported any issues or other circumstances regarding the use and disclosure of raised funds[74]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[104].