XMGF(SZ:300770)2021-04-27 16:00Financial Performance - The company achieved a total operating revenue of 1,220.69 million yuan in 2020, representing a year-on-year growth of 22.56%[4] - Operating profit reached 576.90 million yuan, with a year-on-year increase of 44.85%[4] - Net profit attributable to shareholders was 574.93 million yuan, marking a year-on-year growth of 45.30%[4] - The company's operating revenue for 2020 was CNY 1,220,689,478.56, representing a 22.56% increase compared to CNY 995,995,779.68 in 2019[38] - The net profit attributable to shareholders for 2020 was CNY 574,933,872.63, a 45.30% increase from CNY 395,682,794.75 in 2019[38] - The net profit after deducting non-recurring gains and losses was CNY 531,321,564.57, up 40.01% from CNY 379,478,541.45 in 2019[38] - The basic earnings per share for 2020 was CNY 2.49, a 33.16% increase from CNY 1.87 in 2019[38] - The total assets at the end of 2020 were CNY 3,275,244,571.62, a 20.71% increase from CNY 2,713,310,268.61 at the end of 2019[38] - The net assets attributable to shareholders at the end of 2020 were CNY 2,646,216,863.83, up 21.16% from CNY 2,183,989,221.28 at the end of 2019[38] - The net cash flow from operating activities for 2020 was CNY 524,888,063.78, a 13.55% increase from CNY 462,252,958.42 in 2019[38] User Growth and Market Expansion - The company expanded its user base to 230 million users by the end of 2020, establishing itself as a super entrance with massive data[8] - The effective users of the IPTV basic service reached 18.4 million, a year-on-year increase of 5.68%, with a penetration rate of 47.3% among fixed broadband users in Guangdong Province[69] - The cloud audio-visual series APP had 210 million effective users nationwide by the end of 2020, a growth of 53.25% year-on-year, while the effective smart terminals served reached 10 million, up 99%[73] - Revenue from Guangdong Province accounted for 87.99% of total revenue, with a year-over-year growth of 23.09%[83] Strategic Initiatives - The company plans to focus on dual-screen development, balancing internet TV and mobile video services to meet diverse user needs[13] - A new media center will be established to create a matrix of high-value internet products, emphasizing the development of head content and blockbuster products[14] - The company aims to innovate its organizational structure and mechanisms to adapt to competitive demands and enhance resource integration[14] - The company initiated a new business layout in commercial operations, focusing on advertising monetization and exploring new value growth points through big data mining and member operations[77] - The company has established a new brand "喜粤TV" and adjusted its main business segments into four categories: IPTV basic services, internet audio-visual services, content copyright business, and commercial operations[68] Financial Management and Investments - The company plans to distribute a cash dividend of CNY 8 per 10 shares to all shareholders, based on a total of 230,466,888 shares after deducting repurchased shares[22] - The company reported a quarterly revenue of CNY 312,979,557.82 in Q4 2020, with a net profit of CNY 119,798,225.86 attributable to shareholders[41] - The company reported a significant decrease in other business costs, down 55.68% to 5,139,416.09 CNY[86] - Research and development expenses totaled 38,263,826.23 CNY, representing 3.13% of total revenue[95] - The company plans to enhance its research and development investments and strengthen its technological foundation to support its strategic goals[126] Risks and Challenges - The company faces risks related to concentrated revenue sources, primarily from Guangdong IPTV, which could impact overall business scale and profitability[130] - The company is subject to risks from changes in industry policies and regulations that could adversely affect its operations[127] - The company benefits from tax incentives as a cultural enterprise, but future changes in tax policies could impact its financial performance[131] Shareholder Engagement and Governance - The company has been actively engaging with institutional investors to discuss its operational performance and strategic plans[135] - The company committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, which started in April 2019, and this commitment is being fulfilled normally[145] - The company will announce any reduction of shares that reaches 1% of the total shares within 2 trading days of the occurrence[151] - The company has established mechanisms to prevent copyright disputes, which could adversely affect its business operations[132] Future Outlook - The company aims to transform from a Guangdong-based IPTV business to a nationwide internet new media platform over the next three years[126] - The company plans to review its shareholder return plan at least every three years, considering factors such as current profitability, cash flow, and funding needs[163]