NOVA TECH(SZ:300921)2021-04-20 16:00Profit Distribution and Financial Performance - The company reported a profit distribution plan of 8 RMB per 10 shares (including tax) and a capital reserve increase of 8 shares per 10 shares[5]. - The total number of shares for the profit distribution plan is based on 72,919,650 shares[5]. - The total cash dividend amount for the year 2020 was 58,335,720 CNY, which accounted for 76.69% of the net profit attributable to ordinary shareholders[149]. - For every 10 shares, the company plans to distribute a cash dividend of 8 CNY (including tax) and increase capital stock by 8 shares[145]. - The company did not distribute any bonus shares in the current year, and all undistributed profits will be carried forward to future years[145]. - The company has maintained a stable profit distribution policy, ensuring continuous and stable returns to investors[140]. - The company’s total distributable profit for the year was 177,099,656.50 CNY[144]. - The company did not distribute dividends in 2019, while in 2018, it distributed cash dividends totaling 25,000,000 CNY, accounting for 45.39% of the net profit[147]. - The company reported a net profit attributable to shareholders of CNY 76.07 million, an increase of 5.80% year-on-year, with basic earnings per share rising to CNY 1.39, up 6.11%[68]. Financial Reporting and Transparency - The company is committed to ensuring the accuracy and completeness of the financial report, with key personnel affirming its integrity[4]. - The company’s financial report is disclosed through multiple media outlets, ensuring transparency[16]. - The company’s website provides additional information and updates for stakeholders[14]. - The accounting firm responsible for the audit is Lixin Certified Public Accountants[18]. - The company has appointed China Merchants Securities as its sponsor for continuous supervision[19]. Business Operations and Market Position - The company operates in the telecommunications sector, providing both basic and value-added services[10]. - The company has a registered address in Shenzhen, indicating its operational base in a key economic area[14]. - The company has been focusing on the development of SDN and SD-WAN technologies to meet customer demands for network communication services[31]. - The main business of the company remains unchanged, focusing on providing dedicated network services[33]. - The company has a diversified product layout in research and development, including data center hosting services and cloud communication products[32]. - The company operates primarily through direct sales, effectively reducing related business costs[36]. - The company is currently in a phase of expanding its scale effects, continuously attracting new customers and retaining existing ones[37]. - The specialized network service industry is experiencing a growing market size due to the rapid development of cloud computing, leading to increased demand for data transmission[50]. - The company focuses on optimizing local network costs and increasing backbone network reuse to enhance gross profit margins and profitability[40]. - The company has established a strong customer retention model, as enterprise clients are reluctant to switch service providers due to high migration costs[38]. Research and Development - The company has increased investment in key R&D areas such as SDN and SD-WAN, enhancing its technical service capabilities and receiving the "2020 Excellent Service Award" for SD-WAN projects[69]. - The company’s R&D expenses increased by 4.26% to ¥33,303,220.25, focusing on SDN technology and the iterative upgrade of SD-WAN service products[90][91]. - The number of R&D personnel increased to 152 in 2020, accounting for 44.57% of the total workforce, up from 40.41% in 2019[93]. - The company holds 26 software copyrights, reflecting its commitment to research and development in network optimization and security enhancement technologies[64]. Cash Flow and Financial Health - Net cash flow from operating activities increased by 43.99% to ¥103,349,708.96 in 2020[20]. - Total assets at the end of 2020 reached ¥880,622,031.65, a significant increase of 211.71% compared to the end of 2019[20]. - The net assets attributable to shareholders increased by 299.90% to ¥805,146,955.54 at the end of 2020[20]. - Cash and cash equivalents increased by 635.77% compared to the beginning of the year, primarily due to funds raised from the public offering of shares[58]. - The proportion of monetary funds to total assets rose to 78.90% by the end of 2020, up from 33.43% at the beginning of the year, due to the influx of funds from stock issuance[102]. - Accounts receivable decreased by 24.28% to ¥84,789,335.44, reflecting a reduction in its proportion of total assets from 33.91% to 9.63%[103]. Market Trends and Future Outlook - The demand for private and public cloud connections is expected to increase, highlighting the growing market need for secure and manageable network services[55]. - The market for enterprise-level information transmission networks is expected to grow significantly due to the increasing demand for cloud services and diverse terminal applications[118]. - The company aims to provide high-bandwidth, visual, manageable, and low-cost information transmission solutions to enhance cloud services and smart terminal connectivity[117]. - The trend towards edge computing is being recognized as essential for meeting the demands of various industries, including manufacturing and healthcare[120]. - The company is positioned to benefit from the rapid development of digital infrastructure, driven by national policies supporting the digital economy[115]. Shareholder Commitments and Governance - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing[150]. - The company will comply with the regulations set by the China Securities Regulatory Commission regarding share reduction by major shareholders and executives[151]. - The commitments made by the controlling shareholders include adherence to relevant stock exchange rules and regulations[150]. - The company has established a clear framework for managing share transfers and reductions to ensure market stability[151]. - The commitments are aimed at protecting investor interests and maintaining shareholder confidence in the company's governance[150]. Stock Repurchase and Price Stabilization - The company plans to implement stock repurchase measures if the stock price falls below the latest audited net asset value for 20 consecutive trading days[167]. - The total amount used for stock repurchase should not exceed 30% of the net profit attributable to shareholders from the previous fiscal year[162]. - The company will require newly appointed directors and senior management to adhere to the same commitments made by existing directors and senior management at the time of the IPO[166]. - The company will disclose the implementation status of stock price stabilization measures in regular reports[164]. - The stock repurchase plan requires approval from at least two-thirds of the voting rights at the shareholders' meeting[165]. Fundraising and Investment Projects - The company issued 18.23 million new shares, resulting in a total share capital of 72.92 million shares post-issuance[186]. - The fundraising will focus on core business areas, including the construction of a network service platform and a research and development center[186]. - The company aims to strengthen market expansion and improve its business network, leveraging its brand and service advantages to deepen customer relationships[186]. - The company will conduct regular internal audits and cooperate with regulatory banks to ensure proper use of raised funds[186]. - The company acknowledges that the new fundraising projects may initially dilute earnings per share due to the time required for construction and production ramp-up[189].