CSII(SZ:300663)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,038,673,858.08, representing an increase of 11.22% compared to ¥933,872,009.88 in 2019[30]. - The net profit attributable to shareholders for 2020 was ¥60,530,057.93, a growth of 22.26% from ¥49,509,331.14 in 2019[30]. - The net profit after deducting non-recurring gains and losses was ¥57,956,573.08, which is a 25.20% increase from ¥46,289,779.14 in 2019[30]. - The total assets at the end of 2020 amounted to ¥2,232,867,517.65, reflecting a 50.48% increase from ¥1,483,845,481.10 at the end of 2019[30]. - The net assets attributable to shareholders were ¥1,095,158,667.04, up 45.92% from ¥750,499,575.62 in 2019[30]. - The company reported a basic earnings per share of ¥0.20, which is a 25.00% increase from ¥0.160 in 2019[30]. - The company experienced a significant decline in net cash flow from operating activities, reporting -¥72,628,017.69 in 2020 compared to -¥23,628,851.23 in 2019, a decrease of 207.37%[30]. - The company provided government subsidies amounting to ¥2,626,554.43 in 2020, which is an increase from ¥1,714,388.59 in 2019[36]. - The company's total operating revenue for 2020 was approximately ¥1.04 billion, representing an increase of 11.22% compared to ¥933.87 million in 2019[99]. - The revenue from non-banking financial institutions surged by 185.19%, reaching ¥93.03 million, up from ¥32.62 million in the previous year[99]. - The electronic channel and middle platform revenue accounted for 48.64% of total revenue, showing a slight decrease of 3.89% from the previous year[99]. - The gross profit margin for the software and information industry was 42.71%, reflecting a slight increase of 0.46% compared to the previous year[104]. Market Expansion and Strategy - The company is focusing on expanding its market presence and enhancing its technological capabilities in the financial services sector[19]. - The company is exploring new strategies for market expansion, including potential mergers and acquisitions to strengthen its competitive position[19]. - The company has established a cooperative ecosystem with major players like Huawei, Ant Group, Tencent, and Suning to empower the digital transformation of the industry[69]. - The company is actively exploring more 5G messaging financial service scenarios to enhance its offerings in the digital transformation landscape[88]. - The company plans to expand its market presence in North America and Southeast Asia, promoting domestic database solutions[171]. - The company has established centralized development centers in five cities to enhance product development capabilities, focusing on rapid and high-quality market delivery[96]. - The company has launched a series of innovative products, including the 5G digital bank and integrated online-offline distributed core system, which are expected to drive new growth points for performance[82]. Risks and Challenges - The company faces risks from increasing market competition due to the growing demand for IT services in the banking sector, which may lead to intensified competition[7]. - There is a risk of rising labor costs as the company expands its workforce and faces increased competition for skilled professionals[7]. - The company has seen an increase in accounts receivable, necessitating stricter management and collection efforts to maintain asset quality[173]. - The company faces risks from increasing market competition and rising labor costs, which it plans to mitigate through improved management and cost control[172][173]. Research and Development - The company has developed proprietary application development platforms, such as PowerEngine, to enhance its service offerings[20]. - The company has a total of 651 R&D personnel, representing 12.36% of the workforce, an increase from 548 in 2019[124]. - Research and development expenses for 2020 were CNY 116,797,501.59, reflecting a 2.64% increase compared to the previous year[120]. - The company’s R&D investment amounted to CNY 131,071,057.37, which is 12.62% of total operating revenue, down from 14.58% in 2019[124]. Cash Flow and Investments - The total cash inflow from operating activities in 2020 was approximately ¥989.81 million, an increase of 7.39% compared to ¥921.66 million in 2019[131]. - The net cash flow from operating activities decreased by 207.37% to approximately -¥72.63 million, primarily due to increased cash payments to employees[131]. - The net cash flow from investing activities decreased by 308.59% to approximately -¥242.15 million, mainly due to payments for project costs by the Suzhou subsidiary[132]. - The net cash flow from financing activities increased by 630.89% to approximately ¥529.41 million, driven by cash received from private placements and loans[132]. - The company's cash and cash equivalents increased by approximately ¥213.35 million, a 217.02% increase compared to a decrease of ¥182.32 million in 2019[131]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.3 RMB per 10 shares to all shareholders, based on a total of 310,992,278 shares[11]. - The company reported a cash dividend of 0.3 RMB per 10 shares, totaling 9,329,768.34 RMB, which represents 15.41% of the net profit attributable to ordinary shareholders[185]. - The total distributable profit for the year was 261,068,416.07 RMB, with cash dividends accounting for 100% of the profit distribution[185]. - The company has a profit distribution policy that prioritizes cash dividends, with a minimum of 20% of profits allocated for distribution during growth phases with significant capital expenditures[179]. Technological Innovations - The company emphasizes the integration of traditional finance with internet technologies, aiming to leverage innovations like cloud computing and big data[20]. - The company's distributed transaction database is the only one in Asia to receive both TPC-C and TPC-H international certifications[55]. - The smart banking device "Xiao Lan" can replace human tellers without requiring any counter modifications, significantly reducing renovation costs[55]. - The company's products are designed to meet high concurrency, high throughput, and low latency requirements, essential for large-scale data processing[55]. - The "GOLDILOCKS distributed database" received authoritative certification, achieving a self-research rate of 98.3% in source code, and passed the technical appraisal by the China Software Testing Center[75]. Compliance and Governance - The company is committed to complying with the Shenzhen Stock Exchange's disclosure requirements for software and information technology service businesses[112]. - The actual controller and shareholders fulfilled their commitments during the reporting period, with specific commitments related to share transfer restrictions being completed[188]. - The company has a share transfer restriction commitment for 36 months from the date of listing, which has been fulfilled[188]. - The company’s commitments are in line with the relevant laws and regulations of the Shenzhen Stock Exchange[200].