CSII(SZ:300663)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was ¥933,872,009.88, representing a 23.98% increase from ¥753,221,267.15 in 2018[28]. - The net profit attributable to shareholders for 2019 was ¥49,509,331.14, up 16.28% from ¥42,576,019.79 in 2018[28]. - The net cash flow from operating activities improved by 52.75%, reaching -¥23,628,851.23 compared to -¥50,006,057.54 in 2018[28]. - The total assets at the end of 2019 were ¥1,483,845,481.10, a 5.51% increase from ¥1,406,411,116.94 at the end of 2018[28]. - The net assets attributable to shareholders increased by 4.09% to ¥750,499,575.62 from ¥721,015,683.99 in 2018[28]. - The basic earnings per share for 2019 was ¥0.16, reflecting a 14.29% increase from ¥0.14 in 2018[28]. - The company reported a quarterly revenue of ¥459,559,733.34 in Q4 2019, the highest among the four quarters[30]. - The company experienced a net profit of ¥110,228,606.77 in Q4 2019, a significant recovery from losses in the first three quarters[30]. - The weighted average return on equity for 2019 was 6.47%, an increase from 6.09% in 2018[28]. - The total non-recurring gains and losses for 2019 amounted to ¥3,219,552.00, down from ¥4,737,993.57 in 2018[33]. Cash Dividend Policy - The company reported a profit distribution plan, proposing a cash dividend of 0.25 RMB per 10 shares based on a total of 300,425,156 shares[9]. - The company distributed a cash dividend of 0.25 RMB per 10 shares, totaling 7,510,628.90 RMB, which represents 100% of the distributable profit[135]. - The total number of shares for the cash dividend distribution is 300,425,156[135]. - In 2019, the cash dividend amounted to 7,510,628.90 RMB, accounting for 15.17% of the net profit attributable to ordinary shareholders[136]. - The cash dividend for 2018 was 7,051,238.50 RMB, which was 16.56% of the net profit attributable to ordinary shareholders[136]. - The cash dividend for 2017 was 6,697,430.95 RMB, representing 16.71% of the net profit attributable to ordinary shareholders[138]. - The company has consistently maintained a cash dividend policy over the past three years, with increasing amounts distributed each year[136]. - The company aims to maintain a balance between shareholder returns and sustainable development, particularly in the context of significant investment plans[188]. - The company emphasizes a continuous and stable profit distribution policy, aiming for cash dividends to account for at least 15% of the distributable profit each year[188]. - In profit distribution, cash dividends should take priority over stock dividends, with a minimum of 80% of the profit distribution allocated to cash dividends during mature development stages without significant capital expenditures[190]. Market Competition and Risks - The company faces risks from increasing market competition as demand for IT services from banks grows, leading to a larger market scale and more competitors[6]. - Rising labor costs are a concern due to increased personnel and higher living costs in urban areas, impacting the company's operations[7]. - The company acknowledges potential risks from intensified competition and rising human resource costs in its future business plans[5]. - The company has identified risks including intensified market competition, rising labor costs, and increasing accounts receivable, and plans to strengthen management and control measures[124]. Technology and Innovation - The report highlights the company's commitment to developing new technologies and products to enhance its market position[17]. - The financial technology sector is identified as a key area for the company's future development, leveraging mobile payments and cloud computing[17]. - The company is investing heavily in financial technology innovations such as high-end distributed databases, blockchain, and big data analytics[54]. - The company has focused on comprehensive financial technology innovation products, including new generation network information security and big data department establishment[56]. - The distributed memory database product has achieved breakthrough technology in high concurrency and real-time transaction processing, positioning the company as a leader in the domestic market[56]. - The company is actively expanding its blockchain applications in various financial scenarios, establishing partnerships with major internet companies and financial institutions[60]. - The company aims to increase investment in new technologies such as big data, cloud computing, blockchain, mobile finance, and digital currency[124]. Growth and Expansion - The company is focused on expanding its market presence and exploring potential mergers and acquisitions to drive growth[17]. - The company anticipates continued growth in the coming years, driven by its established brand advantage and the increasing demand for online banking services[41]. - The company plans to expand its market presence and invest in new product development to enhance growth prospects[68]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2021[158]. - A strategic acquisition is in progress, which is expected to enhance the company's service offerings and increase market competitiveness[154]. Research and Development - The company has a talent pool of nearly 4,000 professionals, with over 90% of employees involved in R&D, technology, and project implementation[52]. - Research and development expenses reached CNY 113,794,154.92, a 21.00% increase from CNY 94,048,597.88 in the previous year[81]. - The number of R&D personnel increased to 548, representing 12.84% of the total workforce, up from 10.09% in the previous year[83]. - R&D investment amounted to CNY 136,166,368.45, accounting for 14.58% of operating revenue, compared to 13.37% in the previous year[83]. Operational Efficiency - The company aims to reduce operational costs by 15% through efficiency improvements in the next year[156]. - The company will continue to enhance software development capabilities and accelerate new product R&D to meet the explosive growth demands of financial institutions[124]. - The company aims to enhance its overall service capability and continuous delivery capability through organizational adjustments and refined management practices[123]. Corporate Governance - The board of directors plays a crucial role in decision-making for major operational and investment decisions, ensuring effective governance[124]. - The supervisory board is responsible for overseeing the implementation of the company's profit distribution policy and shareholder return plan[200]. - The management is required to submit a detailed explanation to the board if no cash dividend proposal is made, including reasons and future usage plans for retained earnings[198]. Financial Management - The company will ensure that any cash dividend distribution does not adversely affect its ongoing operations and financial stability[190]. - The company has not proposed any cash dividend distribution plan for the current reporting period despite having positive distributable profits[140]. - The company has not issued any bonus shares or capital reserve transfers in the current reporting period[135]. - The company has not made any significant equity investments during the reporting period, with total investments amounting to ¥0.00, a 100% decrease from ¥35,875,280.00 in the previous year[95].