Prevail(SZ:300710)2021-04-26 16:00Financial Performance - The net profit after deducting non-recurring gains and losses for 2020 was -6.7661 million RMB, primarily due to the complex domestic and international market competition and the impact of the COVID-19 pandemic[6]. - The company's operating revenue for 2020 was ¥513,041,674.52, representing a 37.97% increase compared to ¥371,857,123.99 in 2019[22]. - The net profit attributable to shareholders in 2020 was ¥60,409,762.24, a significant increase of 393.73% from ¥12,235,496.26 in 2019[22]. - The basic earnings per share for 2020 was ¥0.8804, up 393.77% from ¥0.1783 in 2019[22]. - The total assets at the end of 2020 reached ¥1,035,069,807.82, a 10.93% increase from ¥933,120,475.20 at the end of 2019[22]. - The net assets attributable to shareholders increased by 9.84% to ¥643,909,945.59 at the end of 2020 from ¥586,244,743.35 at the end of 2019[22]. - The company reported a net cash flow from operating activities of -¥21,523,831.76 in 2020, a decline of 118.22% compared to ¥118,130,767.70 in 2019[22]. - The weighted average return on equity for 2020 was 9.82%, an increase of 7.72 percentage points from 2.10% in 2019[22]. - The company's revenue after deducting other business income was ¥494,629,480.23 in 2020, compared to ¥360,581,073.21 in 2019[23]. - The net profit after deducting non-recurring gains and losses was -¥6,766,097.01 in 2020, a slight increase of -5.31% from -¥6,425,125.91 in 2019[22]. Dividend Distribution - The company plans to distribute a cash dividend of 0.5 RMB per 10 shares (including tax) based on a total of 68,614,000 shares[7]. - The cash dividend amount for 2020 represented 5.68% of the net profit attributable to the parent company, which was RMB 60,409,762.24[112]. - The total distributable profit for the year was RMB 215,873,184.58, with the cash dividend accounting for 100% of the profit distribution[110]. - The cash dividend for 2020 was a 25% increase compared to the previous two years[110]. - The company has a dividend distribution policy in place for 2020-2022, as approved by the shareholders' meeting[108]. Market Opportunities and Risks - The company identifies significant growth opportunities in 5G infrastructure construction, which is closely related to future developments in autonomous driving, artificial intelligence, and big data centers[6]. - The company acknowledges risks related to intensified market competition, potential bad debts from accounts receivable, and human resource challenges[7]. - The company recognizes the risk of intensified market competition and aims to leverage technological advancements to capture new market opportunities[101]. Operational Strategy - The company is focused on the integration of broadcasting and mobile communication, which is expected to accelerate the development of smart broadcasting and media convergence[6]. - The company plans to leverage its comprehensive product line and technological capabilities to further penetrate both domestic and international markets in the coming years[32]. - The company plans to optimize its sales network, targeting domestic operators and exploring vertical industry networks to capture potential market opportunities[98]. - The company will implement a refined production plan to improve efficiency and control costs, aiming for higher product quality[99]. Research and Development - The company has maintained a strong focus on R&D, continuously innovating in optical transmission and data communication technologies to meet market demands[32]. - The company has a strong R&D team with 178 technical personnel, accounting for 22.62% of the total workforce, and holds 24 patents as of December 2020[42]. - The company completed the R&D of OTN series products, which are currently participating in bidding tests for China Mobile[50]. Subsidiaries and Partnerships - The company’s subsidiary, Xinwang Zhuoxin, provides value-added telecom services, focusing on music, esports, and education content, establishing partnerships with major telecom operators[35]. - The company has established partnerships with major players like Nokia Bell and ZTE, enhancing its market presence and operational capabilities[52][53]. - The company transferred 37.99% equity in Chenxiao Technology, retaining 15% ownership, which will no longer be included in the consolidated financial statements[124]. Financial Management - The company has implemented an ERP system to enhance operational efficiency and risk management across various departments[45]. - The company has entrusted financial management with a total amount of 69,789.50 million CNY, with no overdue amounts reported[142]. - The company has a commitment to ensure that cash dividends represent at least 20% of profit distribution in the future[110]. Governance and Compliance - The company has established a complete governance structure, ensuring effective operation in accordance with relevant laws and regulations[184]. - The company emphasizes compliance with laws and regulations, ensuring fair and timely information disclosure to all shareholders[145]. - The company has committed to strictly adhere to the stock liquidity restrictions and voluntary lock-up commitments for shares held prior to the public offering[116]. Shareholder Information - Major shareholders include Xu Mengfei with 24.68% and Xu Quanhai with 19.41% of shares[157]. - The total number of shares after the release of restricted shares is 68,614,000, with a total of 35,090,000 restricted shares released on October 19, 2020[151][154]. - The company has a total of 7,115 ordinary shareholders at the end of the reporting period[156]. Employee and Management Structure - The total number of employees in the company is 787, with 373 in the parent company and 414 in major subsidiaries[178]. - The company has established a salary management system that includes basic salary, performance salary, and welfare subsidies[180]. - The management team is composed of individuals with extensive backgrounds in their respective fields, enhancing the company's strategic capabilities[171].