ZFINFO(300659)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was ¥992,734,319.13, representing a year-over-year increase of 64.68% compared to ¥602,819,863.90 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥241,744,800.46, a significant increase of 93.54% from ¥124,904,746.50 in 2019[18]. - The total revenue for 2020 reached ¥992.73 million, representing a 64.68% increase compared to ¥602.82 million in 2019[79]. - The company's basic earnings per share for 2020 was ¥1.12, an increase of 89.83% compared to ¥0.59 in 2019[18]. - The overall gross margin decreased due to a higher proportion of hardware sales, while net profit margin improved due to scale effects and a reduction in expense ratio to 41.23%, down 8.17 percentage points from 49.40% in 2019[71]. Revenue Breakdown - Revenue from data security products reached ¥40,136,030.81, accounting for 4.05% of the company's total operating income for 2020[5]. - Revenue from network security products totaled ¥577,331,033.22, up 54.95% compared to the previous year[60]. - Revenue from government and public institutions accounted for 68.16% of total revenue, totaling ¥676,133,184.45[68]. - The company's revenue from special industries, central enterprises, and financial sectors reached ¥156,083,155.84, a year-on-year increase of 167.19%, with a revenue share increase of 6.04 percentage points[69]. - The company's information security services revenue increased by 93.91% to ¥332.83 million, up from ¥171.64 million in 2019[79]. Cash Flow and Assets - The net cash flow from operating activities reached ¥172,743,561.01, marking a 105.31% increase from ¥84,137,039.74 in the previous year[18]. - The total assets at the end of 2020 amounted to ¥1,927,143,704.88, up 158.58% from ¥745,271,093.71 at the end of 2019[18]. - The company has seen a 105.62% increase in cash and cash equivalents compared to the beginning of the period, attributed to increased sales collections and funds from a private placement[51]. - The company reported a significant decrease in cash and cash equivalents as a percentage of total assets, dropping by 10.35 percentage points to 40.21%[109]. - The company’s financial assets included trading financial assets of ¥430,626,235.62, reflecting a significant increase due to cash management of idle funds[111]. Research and Development - The company is focusing on R&D in data protection and security solutions, aiming to transition from "core security" to "comprehensive security"[64]. - The company has established a research and development team of 725 personnel, focusing on core technologies in data security, including data collection, analysis, protection, and visualization[133]. - Research and development expenses increased by 56.11% to ¥166,405,623.84, reflecting the company's commitment to enhancing R&D investment[99]. - The company is focusing on R&D in areas such as security protection, network security supervision, and data security, with several key projects in progress[100]. - The company plans to enhance core competitiveness through increased investment in technology research and innovation[154]. Market Position and Strategy - The company aims to achieve a comprehensive security industry layout and become a recognized leader in digital security by 2025[131]. - The cybersecurity industry in China is projected to grow at a compound annual growth rate of 16.80% from 2020 to 2024, outpacing global market growth[45]. - The company has established a strategic partnership with the Chinese Academy of Sciences to enhance its research and development capabilities in cybersecurity[44]. - The company has developed core technical capabilities in data protection and monitoring, focusing on sensitive data security solutions[44]. - The company is actively expanding its market presence in data inspection and sensitive data monitoring within the energy and financial sectors[69]. Dividend and Profit Distribution - The profit distribution plan approved by the board proposes a cash dividend of ¥2.5 per 10 shares, based on a total of ¥226,689,141[7]. - The total cash dividend amount for 2020 is 56,672,285.25 CNY, which represents 23.44% of the consolidated net profit attributable to ordinary shareholders[146]. - The company has maintained a cash dividend payout ratio of at least 20% during its growth phase, with significant capital expenditure plans[141]. - The company’s total distributable profit for 2020 is 133,121,264.15 CNY[141]. - The company’s cash dividend distribution plan aligns with its profit distribution management measures[142]. Compliance and Governance - The company will ensure compliance with financial regulations and avoid any actions that could harm the interests of shareholders or the company itself[152]. - The company has committed to not providing technical information or trade secrets to competitors, ensuring a competitive edge in its main business[150]. - The company will prioritize the interests of its shareholders and ensure that any related party transactions are conducted fairly and transparently[152]. - The company has maintained a continuous audit service relationship with Da Hua Accounting Firm for 7 years[160]. - The company has not faced any penalties or rectification issues during the reporting period[165]. Social Responsibility - The company actively participated in social responsibility by donating funds and essential supplies during the COVID-19 pandemic[200]. - The company emphasizes the importance of product quality and aims to provide high-quality products and services to society[200]. - The company adheres to labor laws and provides equal job opportunities and competitive compensation for employees[200]. - The company focuses on improving employee health, safety, and satisfaction by enhancing the work environment and conditions[200]. - The company maintains transparent and timely information disclosure in compliance with relevant laws and regulations[200].