Foxit Software(SH:688095)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥468.60 million, representing a year-over-year increase of 27.01% compared to ¥368.95 million in 2019[23]. - The net profit attributable to shareholders for 2020 was approximately ¥115.29 million, a significant increase of 55.51% from ¥74.14 million in 2019[23]. - The cash flow from operating activities for 2020 was approximately ¥138.94 million, up 21.72% from ¥114.15 million in 2019[23]. - The total assets at the end of 2020 reached approximately ¥3.17 billion, reflecting a 583.15% increase from ¥464.30 million at the end of 2019[23]. - The company's net assets attributable to shareholders at the end of 2020 were approximately ¥3.00 billion, an increase of 815.95% from ¥327.61 million at the end of 2019[23]. - The basic earnings per share for 2020 were ¥2.95, representing a 43.54% increase from ¥2.05 in 2019[24]. - The company reported a total of ¥30.51 million in non-recurring gains for 2020, compared to ¥14.15 million in 2019[28]. - The fourth quarter of 2020 saw an operating revenue of approximately ¥127.24 million, with a net profit of approximately ¥22.69 million attributable to shareholders[26]. Dividend Policy - The company plans to distribute a cash dividend of 8 RMB per 10 shares, totaling 38,512,000 RMB, which represents 33.40% of the net profit attributable to shareholders for the year 2020[6]. - The proposed cash dividend for 2020 is 8 RMB per 10 shares, totaling 38,512,000 RMB, which represents 33.40% of the net profit attributable to ordinary shareholders[157]. - In 2019, the company distributed cash dividends of RMB 5.00 per 10 shares, amounting to RMB 18,050,000, which was 24.35% of the net profit attributable to ordinary shareholders[157]. - For the year 2018, the cash dividend was RMB 10.00 per 10 shares, totaling RMB 36,100,000, representing 93.80% of the net profit attributable to ordinary shareholders[157]. - The company has adhered to its dividend distribution principles and policies, ensuring compliance and transparency in decision-making processes[154]. - The proposed dividend distribution plan for 2020 has been approved by the board and requires shareholder meeting approval for implementation[156]. - The company has committed to maintaining the rights of minority shareholders during the dividend distribution process[154]. Research and Development - The R&D expenditure as a percentage of operating revenue was 16.08% in 2020, up from 15.36% in 2019[24]. - The company achieved a total R&D investment of ¥75,368,099.31 in the reporting period, representing a 33.03% increase compared to ¥56,653,238.10 in the previous year[66]. - R&D investment accounted for 16.08% of total revenue, up from 15.36% in the previous year, indicating a slight increase of 0.72 percentage points[66]. - The company obtained 4 new patents and 1 software copyright during the reporting period, bringing the total number of patents to 116[64][65]. - The company has a total of 268 R&D personnel, accounting for 48.29% of the total workforce, an increase from 214 personnel in the previous period[70]. - Research and development expenses increased by 33.03% to CNY 75.37 million, indicating a focus on innovation[107]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[23]. - The company has established a marketing network in major economies including the US, Japan, Europe, and Australia, with dedicated marketing teams in Beijing and Fuzhou for domestic market expansion[42]. - The company plans to actively promote the development of new technologies such as intelligent document processing and expand its service subscription model[55]. - The company aims to become the leading global brand in PDF solutions, emphasizing innovation and efficiency in document handling[92]. - The company plans to expand into emerging markets such as Russia, Brazil, and India while continuing to invest in existing markets like the US and Europe[96]. - The company is actively pursuing global market expansion by restructuring its sales strategy and integrating channel resources for improved sales efficiency[87]. Product Development and Innovation - The company has transformed its main products from free offerings to customized and standardized products, leveraging a complete set of core technologies related to document generation, conversion, display, editing, and management[34]. - The core products include Foxit Phantom PDF, Foxit Phantom PDF Online, Foxit Reader, and Foxit PDF Reader Mobile, which are designed for various platforms and provide a comprehensive range of PDF document processing capabilities[35]. - The company offers a software development platform, FoxitPDF SDK, allowing developers to integrate PDF functionalities into their applications across multiple platforms, enhancing usability and efficiency[36]. - The PDF enterprise document automation solutions developed by the company enable batch processing of large volumes of PDF documents, improving efficiency and optimizing workflows for enterprise clients[37]. - The company emphasizes continuous innovation in product development to meet diverse customer needs and enhance user experience across different platforms[35]. - The company launched the online PDF editor during the pandemic, marking its entry into the cloud service sector[86]. - The release of the advanced PDF editor version 10.0 introduced new features such as form filling and barcode support, enhancing operational efficiency during the pandemic[86]. Legal Matters - The company is involved in a significant lawsuit against Zhuhai Kingsoft Office Software Co., Ltd. regarding a contract dispute over the "OFFICE document format to PDF document format" technology, claiming damages of 300,000 RMB[189]. - The total amount involved in the lawsuit is 100 million RMB[190]. - The company has filed an appeal to the Supreme People's Court against the judgment made by the Beijing Intellectual Property Court on April 22, 2020[190]. - The company initiated litigation in November 2018, alleging that Kingsoft's WPS Office software infringed on its PDF technology rights[193]. - The company is actively pursuing its legal rights to protect its intellectual property and technology[193]. Corporate Governance - The company has not proposed any stock dividends or capital reserve transfers for the year 2020[6]. - The company has confirmed that there are no issues with the authenticity, accuracy, and completeness of the annual report by the majority of the board members[9]. - The company has established a commitment to uphold the interests of shareholders and ensure compliance with relevant regulations regarding share transfers and dividends[158]. - The controlling shareholders committed to not transferring or managing their shares for 36 months post-IPO, with an automatic extension of the lock-up period if stock prices fall below the issue price for 20 consecutive trading days[162]. - The actual controller pledged to avoid engaging in competitive businesses during their tenure and to ensure that any business opportunities are prioritized for the company[169].