Financial Performance - The company achieved a net profit attributable to shareholders of RMB 688,298,268.44 in 2021, representing a 31.58% increase from RMB 523,083,902.76 in 2020[5]. - Total operating revenue for 2021 was RMB 3,450,935,749.33, marking a 28.00% increase compared to RMB 2,696,095,416.32 in 2020[21]. - The basic earnings per share for 2021 was RMB 0.89, up 30.88% from RMB 0.68 in 2020[23]. - The company's total assets increased by 24.91% to RMB 8,587,708,564.75 at the end of 2021, compared to RMB 6,874,899,063.96 at the end of 2020[21]. - The net assets attributable to shareholders rose by 20.34% to RMB 3,615,253,837.70 at the end of 2021, compared to RMB 3,004,155,569.26 at the end of 2020[21]. - The cash flow from operating activities showed a significant decrease of 58.38%, amounting to RMB 334,549,043.62 in 2021, down from RMB 803,856,496.42 in 2020[21]. - The weighted average return on equity increased to 20.88% in 2021, compared to 18.90% in 2020, reflecting a growth of 1.98 percentage points[23]. - The company reported a significant increase in inventory, leading to a decrease in net cash flow from operating activities compared to the same period last year[26]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 1.0 per 10 shares to all shareholders, based on the total share capital as of the dividend record date[5]. - The company achieved a net profit attributable to shareholders of the listed company reached CNY 688.30 million, an increase of 31.58% compared to the previous year[31]. - The company has maintained a high R&D investment ratio of over 20%, enhancing its technological leadership and innovation capabilities[41]. Research and Development - The company has established a comprehensive service system covering the entire product lifecycle, enhancing customer satisfaction and service quality[42]. - The company is actively developing new generation rail and urban rail communication products, laying the foundation for market expansion[40]. - The company's total R&D expenses for 2021 amounted to ¥775,435,751.76, representing 22.47% of total revenue, indicating a strong commitment to innovation and technology development[56][59]. - The company is focusing on research and development of new technologies to enhance product offerings and maintain competitive advantage[95]. Market Expansion and Strategy - The company aims to enhance its market share in military communication by focusing on systematization, networking, and diversified product offerings[72]. - The company plans to leverage advanced communication technologies, including quantum communication and cognitive communication, to improve military communication capabilities[72]. - The company is committed to expanding its presence in the civil wireless communication sector, particularly in railway and urban rail transit communications, with significant investments planned[73]. - The company is expanding its market share in the railway and urban rail transit sectors while maintaining its original market share in civil communication products[78]. Governance and Compliance - The company has held three shareholder meetings and seven board meetings during the reporting period, ensuring compliance with governance regulations[83][85]. - The company maintains independence from its controlling shareholder, ensuring no adverse effects on governance structure or shareholder interests[84]. - The company has not faced any penalties from securities regulatory authorities in the past three years, indicating compliance with regulations[106]. - The company has confirmed that there are no major non-operating fund occupations by controlling shareholders or related parties during the reporting period[148]. Risks and Challenges - The company faces risks related to R&D investment, including the potential for high costs and long development cycles without guaranteed revenue[79]. - The company is addressing the risk of intensified market competition due to the increasing number of competitors in the military-civilian integration sector[80]. - The company is working to mitigate production cost increases caused by fluctuations in the prices of upstream chips and components[80]. Related Party Transactions - The total amount of related party transactions during the reporting period was RMB 29,255.18 million, with no significant adverse impact on the company's independence, financial status, or operating results[156]. - The company purchased materials from Tianjin Tongguang Group Co., Ltd. for RMB 7,821.10 million, which was 41.59% higher than the market price[155]. - The company engaged in transactions with Tianjin Jinguang Technology Co., Ltd. for RMB 4,319.03 million, representing a 22.97% premium over market pricing[155]. Employee and Operational Efficiency - The company has implemented a dynamic salary management policy to enhance employee motivation and performance[121]. - The company has established a comprehensive training system to enhance the skills and performance of its core talent[122]. - The company achieved a significant increase in employee satisfaction, with a score of 97.65% in the latest internal survey[92]. Environmental and Social Responsibility - The company has established a complete environmental management system and obtained ISO14001 certification[133]. - The company was recognized as a "National Green Factory" and included in the 2021 Green Manufacturing List by the Ministry of Industry and Information Technology[135]. - The company spent approximately 230,000 yuan on poverty alleviation and agricultural assistance, benefiting local farmers and enhancing employee welfare[138].

Financial Performance - The company achieved a net profit attributable to shareholders of RMB 523,083,902.76 in 2020, representing a 51.48% increase from RMB 345,316,672.44 in 2019[4]. - Total operating revenue for 2020 was RMB 2,696,095,416.32, a 25.95% increase compared to RMB 2,140,653,347.67 in 2019[18]. - The net cash flow from operating activities reached RMB 803,856,496.42, marking a significant increase of 263.35% from RMB 221,236,494.68 in 2019[18]. - Basic earnings per share rose to RMB 0.68 in 2020, up 51.11% from RMB 0.45 in 2019[20]. - The company's total assets increased by 25.81% to RMB 6,874,899,063.96 at the end of 2020, compared to RMB 5,464,685,186.98 at the end of 2019[18]. - The weighted average return on net assets improved to 18.90% in 2020, an increase of 4.53 percentage points from 14.37% in 2019[20]. - The net assets attributable to shareholders reached RMB 3,004,155,569.26 at the end of 2020, reflecting a 17.43% increase from RMB 2,558,271,666.50 at the end of 2019[18]. - The company reported a net profit excluding non-recurring gains and losses of RMB 501,244,605.01, which is a 55.14% increase from RMB 323,101,063.01 in 2019[18]. Cash Flow and Investments - The company achieved a significant increase in accounts receivable financing, with a year-end balance of ¥566,650,881.06, reflecting improved financial management[25]. - The company’s investment activities resulted in a net cash outflow of CNY 219.52 million, primarily due to increased equity investments[43]. - The company reported a total cash inflow from financing activities of CNY 271,248,373.01, down from CNY 420,773,210.29 in the previous year, indicating a decline of about 35.5%[166]. - The total cash and cash equivalents at the end of the period reached CNY 742,294,744.20, up from CNY 450,207,486.65, showing a net increase of CNY 292,087,257.55[166]. Research and Development - The company has increased its R&D investment, maintaining a high ratio of R&D spending to support technological leadership and innovation[28]. - Research and development expenses amounted to CNY 577,940,155.40, reflecting a 22.09% increase year-on-year[32]. - The company reported a 30% increase in R&D spending, totaling $100 million in 2020, to support technological advancements[115]. Market and Business Strategy - The company is focusing on military and civilian wireless communication sectors, with strategic plans for technological innovation and market expansion[26]. - The company is actively developing next-generation railway wireless communication products based on 5G-R technology, aiming to capture market opportunities[27]. - The company expanded its military communication business, with multiple new orders increasing in the market, particularly in ground wireless communication products[30]. - In the civil communication sector, the company signed contracts for railway wireless communication equipment with various railway authorities, successfully entering the 4G private network market[30]. Shareholder and Governance - The company plans to distribute a cash dividend of RMB 1.0 per 10 shares to all shareholders, based on the total share capital as of the dividend record date[4]. - The company has committed to actively fulfilling its promises and accepting supervision from regulatory agencies and the public[65]. - The company will not transfer or manage its shares for six months following the signing of the commitment letter[64]. - The company has committed to ensuring that its operations do not compete directly or indirectly with its subsidiary, Seven One Two, and will supervise compliance with this commitment[66]. Compliance and Audit - The company has maintained good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[73]. - The internal control audit was also conducted by Lixin Accounting Firm, with a fee of 530,000 RMB[72]. - The audit report does not cover other information included in the annual report, and no significant misstatements were identified in that information[148]. Environmental and Social Responsibility - The company has established a complete environmental management system and obtained ISO 14001 certification[91]. - The company has committed to increasing its environmental protection investments and enhancing employee awareness of energy conservation and carbon reduction[91]. - The company allocated RMB 11.816 million for poverty alleviation efforts in Tianjin[86]. Employee and Talent Management - The company has implemented a three-year action plan for talent development, focusing on cultivating leadership and specialized skills[90]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 10.6369 million yuan, while independent directors received a total of 480,000 yuan[123]. - The company is committed to enhancing its compensation policies to attract and retain talent, thereby increasing core competitiveness[126]. Financial Position - The total liabilities reached ¥3,870,743,494.70 in 2020, compared to ¥2,906,413,520.48 in 2019, marking an increase of 33.2%[155]. - Shareholders' equity totaled ¥3,004,155,569.26 in 2020, up from ¥2,558,271,666.50 in 2019, indicating a growth of 17.4%[155]. - The company’s retained earnings increased to ¥1,147,262,408.71 in 2020, up from ¥754,413,817.83 in 2019, representing a growth of 52.1%[155].