SHGBIT(603918)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,004,251,309.09, representing a 6.31% increase from CNY 944,647,882.71 in 2019[27]. - The net profit attributable to shareholders for 2020 was CNY 88,541,987.98, a 38.91% increase compared to CNY 63,742,775.27 in 2019[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 72,490,192.09, up 27.04% from CNY 57,059,955.42 in 2019[27]. - The net cash flow from operating activities for 2020 was CNY 116,401,138.03, a significant recovery from a negative cash flow of CNY -20,769,627.85 in 2019[27]. - The total assets at the end of 2020 were CNY 1,379,918,490.56, reflecting a 4.35% increase from CNY 1,322,431,918.07 at the end of 2019[30]. - The net assets attributable to shareholders at the end of 2020 were CNY 722,959,555.44, which is a 13.00% increase from CNY 639,771,298.50 at the end of 2019[30]. - The company's basic earnings per share increased by 35.71% to CNY 0.38 compared to CNY 0.28 in 2019[31]. - The company's total revenue for the year was CNY 1,004.25 million, representing a year-on-year growth of 6.31%[31]. - The net profit attributable to shareholders grew by 38.91% year-on-year, reaching CNY 38.91 million, while the net profit after deducting non-recurring gains and losses increased by 27.04%[31]. Revenue Growth - Revenue from the smart legal and smart education sectors increased by 33.23% and 36.01% respectively compared to the previous year[31]. - Revenue from big data and cloud platform services surged by 72.51% year-on-year[31]. - Revenue from big data and cloud platform services reached 151.97 million yuan, up 72.51% compared to the previous year[93]. - The revenue from the smart law sector reached RMB 306,423,581.77, with a growth of 33.23% year-on-year[114]. - The smart education sector generated revenue of RMB 108,230,833.60, marking a 36.01% increase from the previous year[114]. Dividend and Capital Plans - The company plans to distribute a cash dividend of CNY 1.58 per 10 shares, totaling CNY 44,505,077.86, which accounts for 50.26% of the net profit attributable to shareholders[7]. - The company intends to increase its total share capital from 281,677,708 shares to 366,181,020 shares through a capital reserve transfer of 3 shares for every 10 shares held[7]. Operational Efficiency - The company implemented a remote working system to mitigate the impact of COVID-19, which helped in maintaining operational continuity[31]. - The cash collection ratio improved from 1.01% to 1.06% during the reporting period[31]. - The company has implemented key projects in various sectors, including government, judiciary, education, healthcare, and finance, enhancing its service capabilities[94]. - The company reported a significant increase in human resource costs due to investments in high-end talent and R&D, which may impact profitability[175]. Research and Development - The company invested 63.41 million yuan in research and development in 2020, with a total of 149 software copyrights, 6 utility model patents, and 3 invention patents held by the company and its subsidiaries[103]. - The total amount of R&D investment was 63.41 million yuan, accounting for 6.31% of operating revenue[124]. - The capitalized R&D investment accounted for 26.59% of total R&D investment, indicating a faster increase compared to the previous year[125]. Market Expansion and Innovation - The company is focusing on expanding its service offerings in various sectors, including government, judiciary, education, healthcare, and finance, through innovative solutions[41]. - The company is committed to technological innovation, focusing on smart execution systems to improve efficiency and address challenges in the judicial sector[103]. - The company aims to improve its service capabilities by integrating new technologies such as cloud computing, big data, and artificial intelligence into its offerings[163]. - The company is actively seeking external mergers and acquisitions to upgrade its business system and increase new profit growth points[169]. Risk Management - The company has outlined various risks and countermeasures in its report, emphasizing the importance of investor awareness regarding potential investment risks[11]. - The company faces risks from increasing accounts receivable, which may lead to bad debt risks and impact financial conditions if not managed properly[171]. - The company acknowledges the risk of intensified market competition in the information technology services sector and plans to enhance its competitive edge through innovation and market expansion[170]. Governance and Compliance - The company has established a long-term commitment to transparency and accountability, allowing regulatory bodies and the public to supervise compliance with these commitments[189]. - The company guarantees that the prospectus for its initial public offering does not contain false records or misleading statements, and if any losses occur due to such issues, the controller will compensate investors[187]. - The company has committed to not producing or developing any competing products or businesses, ensuring no direct or indirect competition with its subsidiaries[196].