Prevail(SZ:300710)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 371,857,123.99, representing an increase of 8.24% compared to CNY 343,538,236.97 in 2018[20]. - The net profit attributable to shareholders for 2019 was CNY 12,235,496.26, a decrease of 15.28% from CNY 14,443,020.43 in 2018[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -6,425,125.91, a decline of 314.28% compared to CNY 2,998,510.77 in 2018[20]. - The net cash flow from operating activities increased significantly to CNY 118,130,767.70, up 750.14% from CNY 13,895,462.55 in 2018[20]. - The total assets at the end of 2019 were CNY 933,120,475.20, an increase of 19.57% from CNY 780,369,149.32 at the end of 2018[20]. - The net assets attributable to shareholders at the end of 2019 were CNY 586,244,743.35, a slight increase of 1.64% from CNY 576,774,499.96 at the end of 2018[20]. - The basic earnings per share for 2019 were CNY 0.1783, down 15.30% from CNY 0.2105 in 2018[20]. - The weighted average return on equity for 2019 was 2.10%, a decrease of 0.40% from 2.50% in 2018[20]. - The quarterly operating revenue showed a decline in Q4 2019 to CNY 83,565,568.64, compared to CNY 102,232,005.63 in Q1 2019[22]. - The net profit attributable to shareholders in Q4 2019 was CNY -7,708,935.99, indicating a significant loss compared to profits in the earlier quarters[22]. Dividend Policy - The company plans to distribute a cash dividend of 0.4 RMB per 10 shares to all shareholders, based on a total of 68,614,000 shares[5]. - The company has not issued any bonus shares, maintaining a focus on cash dividends for shareholders[5]. - In 2019, the cash dividend amount was CNY 2,744,560, representing 22.43% of the net profit attributable to ordinary shareholders[110]. - In 2018, the cash dividend amount was CNY 2,744,560, which accounted for 19.00% of the net profit attributable to ordinary shareholders[110]. - In 2017, the cash dividend amount was CNY 13,722,800, making up 29.33% of the net profit attributable to ordinary shareholders[110]. Risks and Compliance - The company acknowledges risks such as intensified market competition and potential bad debts from accounts receivable[5]. - The report emphasizes the importance of accurate and complete financial reporting, with management affirming the integrity of the annual report[4]. - The company is committed to ensuring compliance with legal responsibilities regarding the accuracy of its financial disclosures[4]. - The report outlines the company's future operational plans and goals, highlighting potential investment risks[5]. Market Expansion and Technology Development - The company is focused on expanding its market presence and developing new technologies in the optical equipment sector[11]. - The company is actively pursuing strategies for market expansion and technological innovation in the optical equipment industry[11]. - The company has undergone a dual-channel network transformation, enhancing its interactive service capabilities for users[11]. - The company has expanded its product offerings in the broadcasting network equipment and data communication systems sector, serving over 20 provincial platforms in China and entering international markets including Vietnam, Indonesia, and the United States[30]. - The company is transitioning towards the large communication industry by expanding its customer base from broadcasting operators to major telecom operators, focusing on 5G-related solutions[51]. - The company plans to launch WiFi6 products in the second quarter of 2020, targeting the growing demand for high-speed internet and 5G integration[49]. - The company is focusing on the development of 10G PON and WiFi6 products, with the 10G PON product successfully passing China Unicom's bidding tests and securing bulk orders from regions including South Korea and Brazil[48]. Acquisitions and Investments - The company completed an investment in 51% equity of Yingmai Communication, which has become a subsidiary, enhancing its product range in broadband access terminals and wireless communication devices[34]. - The company completed an investment in 52.99% equity of Chenxiao Technology, which became a subsidiary, enhancing its product offerings in MPLS-TP technology[35]. - The company acquired a 51% stake in Yingmai Communication for 20,400,000.00 CNY and a 52.99% stake in Chenxiao Technology for 105,417,700.00 CNY during the reporting period[78]. - The company completed acquisitions of 51% of Yingmai Communication and 52.99% of Chenxiao Technology, enhancing its capabilities in broadband access and wireless communication equipment[50]. Research and Development - The R&D team consists of 226 personnel, accounting for 23.11% of the total workforce, emphasizing the company's commitment to innovation[40]. - The company has 47 patents and 79 software copyrights, showcasing its technological capabilities in the industry[40]. - Research and development expenses amounted to CNY 29.53 million, representing a 69.96% increase from CNY 17.37 million in the previous year, driven by the consolidation of subsidiaries[65]. - The company is focusing on talent acquisition and technology reserves to strengthen its R&D team and attract high-end technical and management talent[99]. Shareholder Information - The total number of shares is 68,614,000, with 51.14% (35,090,000 shares) being restricted shares and 48.86% (33,524,000 shares) being unrestricted shares[145]. - The number of shareholders increased from 10,025 to 11,026 during the reporting period, indicating a growth in shareholder base[147]. - Major shareholders include Xu Mengfei with 24.68% (16,934,000 shares) and Xu Quanhai with 19.41% (13,316,000 shares), both of whom are natural persons and related[147]. - The company has not issued any new shares or conducted any share buybacks during the reporting period[145]. - The company’s controlling shareholders are Xu Quanhai and Xu Mengfei, who hold significant stakes and are related[150]. Internal Control and Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective operation[172]. - The audit committee held 4 meetings to review financial reports, operational controls, and fundraising usage, confirming the internal control system meets regulatory requirements[182]. - No significant internal control deficiencies were found during the reporting period, with 0 major defects in financial reporting[186]. - The company’s internal control evaluation report was disclosed on April 29, 2020, covering 100% of total assets and revenue in the evaluation scope[186]. Employee Information - Total number of employees is 978, with 401 in the parent company and 577 in major subsidiaries[166]. - Employee composition includes 581 production staff, 56 sales staff, 226 technical staff, 17 financial staff, and 98 administrative staff[166]. - The company has established a comprehensive employee compensation system, including basic salary, performance pay, and benefits[168]. - In 2019, the company implemented a training plan focusing on management, technical research, sales, financial management, and operational skills[169].