LONGSHINE(SZ:300682)2020-04-03 16:00Revenue and Profit Performance - Longshine Technology Group reported a total revenue of RMB 1.2 billion for the fiscal year 2019, representing a year-over-year increase of 15% compared to RMB 1.04 billion in 2018[32]. - The company achieved a net profit of RMB 150 million in 2019, which is a 20% increase from RMB 125 million in the previous year[32]. - The company expects a revenue growth forecast of 20% for 2020, projecting total revenue to reach RMB 1.44 billion[32]. - The company reported a gross margin of 35% in 2019, maintaining a stable margin compared to 34% in 2018[32]. - The company's operating revenue for 2019 was ¥2,968,330,140.42, an increase of 11.10% compared to the previous year[40]. - Net profit attributable to shareholders was ¥1,020,167,786.95, representing a significant increase of 444.40% year-on-year[40]. - The company reported a net profit of ¥504,217,817.71 in Q4 2019, marking a strong recovery from previous quarters[43]. - The company reported a total revenue of 3,030,748,279.01 CNY for the period[122]. Business Strategy and Market Expansion - The company aims to accelerate the development of new industrial internet businesses in areas such as public services, smart homes, digital cities, and new foreign trade[11]. - Longshine plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2022[32]. - The company is focused on expanding its business in the industrial internet sector, leveraging new information technologies[53]. - The company will continue to explore new business forms and models, including big data services and comprehensive energy services, to create new market opportunities[142]. - The company plans to replicate successful domestic mobile payment products and operational capabilities in overseas markets, particularly in Southeast Asia[145]. Research and Development - The company maintains a research and development expense ratio of around 10% of total revenue, ensuring a leading edge in technology and business innovation[16]. - The company is investing RMB 200 million in R&D for new product development, focusing on IoT and big data technologies[32]. - R&D investment has consistently accounted for over 10% of total revenue, leading to multiple patents and a comprehensive technology system covering cloud computing, big data, and AI[65]. - The number of R&D personnel increased to 2,272, accounting for 60.38% of the workforce, up from 50.10% in 2018[98]. Talent Management and Organizational Structure - The company is committed to optimizing its business structure and enhancing personnel training to mitigate the impact of rising labor costs on profitability[17]. - The company emphasizes the importance of retaining high-quality talent and has implemented competitive compensation and promotion mechanisms to ensure talent stability[21]. - The company's management team has extensive experience in the industry, ensuring stable operations and a mature project management system[71]. Financial Management and Cash Flow - The company reported a significant increase in R&D expenses, totaling ¥325,585,237.58, which is 10.97% of the operating income, up from 7.01% in the previous year[98]. - Cash and cash equivalents increased by 42.27% due to enhanced profitability and significant cash flow growth from asset restructuring[60]. - Operating cash inflow totaled CNY 3,107,020,517.62, an increase of 10.11% compared to CNY 2,821,691,225.88 in 2018[102]. - Net cash flow from operating activities surged by 2,696.13% to CNY 559,833,505.69 from CNY 20,021,717.75 in the previous year[102]. Dividend Policy - The profit distribution plan approved by the board is to distribute a cash dividend of 1 RMB per 10 shares (including tax) and to increase capital by 5 shares for every 10 shares held[22]. - The total cash dividend amount for the year 2019 is 68,046,889.10 CNY, which accounts for 7.72% of the distributable profit[158]. - The distributable profit for 2019 is reported at 881,644,835.97 CNY, with a net profit attributable to shareholders of 1,020,167,786.95 CNY[160]. - The cash dividend for 2018 was 34,969,389.82 CNY, which represented 18.66% of the net profit attributable to shareholders[162]. Acquisitions and Partnerships - The company completed a major asset restructuring with Bangdao Technology and Yishiteng Technology, enhancing its operational capabilities in the industrial internet sector[59]. - Longshine has initiated a strategic partnership with State Grid to enhance its service offerings, aiming for a 10% increase in service efficiency[32]. - The company made a significant equity investment of ¥800,000,000.00 in Bangdao Technology, acquiring a 50% stake[119]. Risks and Challenges - The company acknowledges the risk of revenue growth slowing down due to the impact of the COVID-19 pandemic on project implementation and business promotion[22]. - The company faces risks of negative net profits in the first quarter and the first half of the year due to strong seasonal fluctuations in its operating performance[80]. - The company recognizes the impact of the COVID-19 pandemic on the economy and aims to leverage technology to provide non-contact services and improve customer experience[139].