*ST左江(300799) - 2020 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2020 was ¥200,721,987.01, representing a decrease of 8.25% compared to ¥218,765,020.18 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥93,641,617.62, an increase of 5.56% from ¥88,708,333.17 in 2019[18]. - The net cash flow from operating activities was ¥131,822,972.24, a significant improvement from a negative cash flow of ¥104,613,705.48 in 2019[18]. - The total assets at the end of 2020 amounted to ¥804,960,378.10, reflecting a growth of 10.83% from ¥726,325,192.19 at the end of 2019[18]. - The net assets attributable to shareholders increased by 12.84% to ¥703,569,163.97 from ¥623,527,546.35 in 2019[18]. - The basic earnings per share for 2020 were ¥0.92, down 16.36% from ¥1.10 in 2019[18]. - The weighted average return on net assets was 14.11%, a decrease of 14.21% compared to 28.32% in 2019[18]. - The total profit for 2020 was 105.18 million yuan, an increase of 4.66% compared to the previous year[46]. - The net profit attributable to ordinary shareholders was 87.16 million yuan, a slight decrease of 0.50% year-on-year[46]. - The company's product sales revenue from information security products reached ¥198,642,314.13, reflecting a decrease of 8.73% compared to the previous year[60][69]. Revenue and Market Trends - Total revenue for the year reached 200 million RMB, with a significant increase in Q4 revenue to 127.59 million RMB, representing a growth of 164.6% compared to Q1[21]. - Revenue from the information security sector was ¥199,303,429.90, accounting for 99.29% of total revenue, down 8.43% from ¥217,652,252.40 in 2019[51]. - The revenue from other business segments increased by 27.48%, reaching ¥1,418,557.11 in 2020 compared to ¥1,112,767.78 in 2019[51]. - The company’s cloud security revenue accounted for over 10% of the audited consolidated financial statements for the most recent fiscal year[49]. - The domestic network security market is projected to grow from a hundred billion market to a trillion market, driven by increasing digital transformation and security needs[35]. Research and Development - R&D expenses accounted for 18.58% of the annual operating revenue, reflecting the company's commitment to innovation[47]. - The company is committed to ongoing research and development in new products and technologies to enhance market competitiveness[6]. - The company has obtained 4 authorized patents and is in the process of applying for 13 additional patents as of the end of 2020[40]. - The company is focused on the development of network security products, including various security platforms and dedicated chips, to meet the growing market demand[28]. - The company has developed several core technologies, including high-speed quintuplet authentication technology and fanless cooling technology, enhancing product reliability[62][67]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly, reaching 79.72 million RMB in Q4, compared to a negative cash flow of 18.38 million RMB in Q1[21]. - Operating cash inflow surged by 383.63% to ¥306,736,136.80, primarily due to increased sales collections[87]. - Total cash and cash equivalents increased by 254.91% to ¥211,883,027.68, reflecting improved liquidity[87]. - The proportion of cash and cash equivalents to total assets increased by 24.68% to 41.55% due to the redemption of financial products and sales collections[91]. Dividend Policy - The company plans to distribute a cash dividend of ¥1.35 per 10 shares, based on a total of 102,080,000 shares[6]. - The cash dividend payout ratio for 2020 was 14.72% of the net profit attributable to shareholders, compared to 15.33% in 2019[128]. - The company distributed cash dividends of 13,780,800 RMB (including tax) to shareholders, with a cash dividend of 1.35 RMB per 10 shares[126]. - The cash dividend for 2019 was 2.00 RMB per 10 shares, amounting to 13.6 million RMB, with a capital reserve conversion of 5 shares for every 10 shares held[128]. Corporate Governance and Compliance - The company emphasizes the importance of domestic chip and software usage in its information security products to align with national security requirements[111]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[129]. - The company is committed to adhering to its shareholding restrictions and voluntary lock-up commitments post-IPO[130]. - The company has established strict compliance with share transfer restrictions and voluntary lock-up commitments[132]. - The company emphasizes transparency in its management and governance practices[200]. Risk Management - The company has outlined potential risks and corresponding mitigation strategies in its future development outlook[6]. - The company faces risks related to rising labor costs due to rapid expansion and increasing average wage levels in the labor market[119]. - The company is actively managing risks related to order fluctuations and has strategies in place to mitigate potential impacts on profitability[120]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial performance[120]. Subsidiaries and Expansion - The company established a subsidiary in Chengdu to specialize in the research and development of network security dedicated chips, enhancing its technological capabilities[34]. - The company established a wholly-owned subsidiary, Chengdu Beishang Technology Co., Ltd., with a registered capital of CNY 50 million, which was later increased to CNY 102 million by the end of 2020[141]. - The company also set up a controlling subsidiary, Chengdu Beizhong Technology Co., Ltd., with a registered capital of RMB 10 million, holding 80% of the shares[174]. Social Responsibility - The company actively participates in social responsibility initiatives, including employment promotion and environmental protection efforts[172]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[172]. - The company plans to continue its commitment to corporate social responsibility in 2021[172].