Star-net(002396)2022-09-23 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2020, representing a year-on-year increase of 15%[19] - The net profit attributable to shareholders was 150 million RMB, an increase of 20% compared to the previous year[19] - The company's operating revenue for 2020 was ¥10,304,234,309.56, representing an increase of 11.21% compared to ¥9,265,767,751.41 in 2019[26] - The net profit attributable to shareholders for 2020 was ¥424,722,314.82, a decrease of 29.93% from ¥593,928,755.53 in 2019[26] - The basic earnings per share for 2020 was ¥0.7282, a decline of 29.93% compared to ¥1.0183 in 2019[26] - The weighted average return on equity for 2020 was 10.03%, down from 15.05% in 2019, reflecting a decrease of 5.33%[26] - The company reported a total of 30.30 million yuan in non-recurring gains and losses for the year, a significant decrease from 125.37 million yuan in 2018[36] - The net profit attributable to shareholders decreased by 29.93% to RMB 424,722,314.82 compared to the previous year[52] - The company achieved a net profit of 111.19 million yuan for the period, exceeding the original profit forecast of 76.92 million yuan[157] Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2022[19] - The company is actively investing in 5G technology development and expanding its market presence in Europe[57] - The company aims to increase its market share in overseas markets, particularly in North America, Eastern Europe, Northern Europe, Southeast Asia, and Africa[108] - The company plans to focus on the smart community sector by targeting real estate developers for smart home projects[108] - The company plans to enhance its innovation capabilities and product competitiveness in the smart network sector, focusing on new infrastructure and digital transformation opportunities[107] Research and Development - The company has invested 100 million RMB in R&D for AI and IoT technologies, aiming to enhance product offerings[19] - In 2020, the company's R&D investment totaled 1.368 billion yuan, accounting for 13.27% of its annual revenue, with 288 patents applied for during the year[45] - The number of R&D personnel increased by 7.51% to 4,409 in 2020, while the proportion of R&D personnel to total employees decreased to 46.31%[77] - The company will invest in R&D for 5G products and expand the application of vehicle networking products[108] - The company plans to increase investment in R&D to address the challenges of technology upgrades and market demand changes[110] Risks and Challenges - The company identified risks including supply chain disruptions and increased competition, with mitigation strategies outlined in the report[7] - The company anticipates risks from macroeconomic fluctuations and trade tensions, and will adjust its operational strategies accordingly[109] - The supply chain risk for core components, particularly chips from companies like Broadcom and Qualcomm, is a concern, and the company aims to explore alternative solutions[114] - The company is addressing high customer concentration and seasonal sales patterns by enhancing understanding of industry needs and accelerating R&D[113] Cash Flow and Dividends - The cash dividend proposed is 1 RMB per 10 shares, with a total payout of approximately 58.3 million RMB[7] - The company reported a cash dividend of 1.10 CNY per 10 shares, totaling 64,160,830.58 CNY distributed to shareholders[124] - The cash dividend distribution plan for 2020 is based on a total share count of 583,280,278 shares as of December 31, 2020[130] - The cash dividends for 2020 represent 100% of the total distributable profit[130] - The company has maintained a stable dividend policy over the years, reflecting its commitment to returning value to shareholders[129] Subsidiaries and Acquisitions - A strategic acquisition of a local tech firm was completed for 50 million RMB to bolster technological capabilities[19] - The company established a new subsidiary, Ruijie USA, with a 51% ownership and a registered capital of $5 million[68] - The subsidiary Ruijie Networks contributed a net profit of 310.42 million yuan, accounting for over 10% of the company's net profit[104] Operational Efficiency - The company’s cash flow from operating activities showed a significant difference from net profit, indicating potential operational inefficiencies[82] - The company aims to improve its financial performance and operational efficiency in the upcoming fiscal year, with specific targets to be outlined in future communications[164] Financial Position - The total assets at the end of 2020 were ¥8,715,629,599.90, an increase of 13.92% from ¥7,650,633,765.03 at the end of 2019[30] - The company's total investment for the reporting period was CNY 9,276,000.00, a decrease of 1.41% from CNY 9,408,602.00 in the previous year[94] - Total current assets amounted to approximately CNY 5.98 billion, with cash and cash equivalents at CNY 2.05 billion and accounts receivable at CNY 1.83 billion[162] - Total assets reached approximately CNY 7.65 billion, while total liabilities were around CNY 2.81 billion, resulting in total equity of approximately CNY 4.84 billion[171] Compliance and Governance - The company has committed to not seeking control over the listed company through agreements with other shareholders[149] - The company strictly adheres to the agreements regarding related party transactions, ensuring no harm to the legitimate rights and interests of the listed company[148] - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[160]