Yonyou(SH:600588)2022-03-18 16:00Financial Performance - The company reported a distributable profit of CNY 2,343,732,171 as of December 31, 2021, proposing a cash dividend of CNY 1 per 10 shares[3]. - The company's operating revenue for 2021 was CNY 8,931,797,941, representing a 4.7% increase compared to CNY 8,528,442,665 in 2020[19]. - Net profit attributable to shareholders decreased by 28.2% to CNY 707,762,887 from CNY 985,456,991 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 405,095,203, down 55.3% from CNY 905,897,931 in 2020[19]. - The net cash flow from operating activities was CNY 1,303,626,688, a decrease of 19.2% compared to CNY 1,613,351,433 in 2020[19]. - The total assets at the end of 2021 were CNY 17,329,343,770, reflecting a 2.1% increase from CNY 16,966,625,631 in 2020[19]. - Basic earnings per share for 2021 were CNY 0.22, down 26.7% from CNY 0.30 in 2020[20]. - The weighted average return on equity decreased to 10.19% from 14.74% in the previous year, a reduction of 4.55 percentage points[20]. - In Q4 2021, the company reported a net profit of CNY 580,820,917, a significant recovery from losses in the earlier quarters[24]. - The company's total revenue for the reporting period reached 893.18 million RMB, a year-on-year increase of 4.7%, with cloud service and software business revenue at 864.10 million RMB, up 15.7%[32]. Cloud Services and Technology - The company is focused on expanding its cloud ERP products, including offerings like Yonyou NC Cloud and Yonyou U8 Cloud[10]. - The company aims to enhance its digital services through platforms like YonBIP, integrating various business services[10]. - The company has established a dedicated customer management organization for strategic projects, referred to as Account Business Unit (ABU)[10]. - The company has made significant advancements in cloud technology, including the development of YKS and YMS middleware technologies, enhancing its platform capabilities[35]. - The company has launched new products and services, including U9 Cloud, targeting medium and large manufacturing enterprises with integrated solutions[36]. - The company’s U9 Cloud ERP targets medium to large manufacturing enterprises, integrating functionalities such as production management, supply chain, and financial accounting, along with services like PLM and AIoT[52]. - The company’s cloud services for small and micro enterprises, offered through its subsidiary, focus on digital financial and business management, with key products including Hao Accounting and T+Cloud[53]. - The company’s government services, provided by its subsidiary, focus on modernizing governance capabilities, offering solutions for budget management and social fund supervision, with revenue primarily from product licensing and consulting services[54]. - The company’s YonBIP platform leverages advanced technologies such as AI and blockchain, supporting a wide range of SaaS services and facilitating digital transformation for clients[56]. Research and Development - Research and development investment amounted to 2.35 million RMB, a 40.7% increase year-on-year, representing 26.4% of revenue, up 6.8 percentage points from the previous year[32]. - The company has a competitive edge through a robust R&D system, with multiple research centers and a commitment to increasing investment in cloud service technology[57]. - The company employed 7,693 R&D personnel, accounting for 36.6% of total staff[73]. - Total R&D expenditure amounted to CNY 2,353,765,886, representing 26.4% of total revenue[72]. Market Expansion and Customer Base - The company aims to build a globally leading enterprise cloud service platform, targeting 10 million customers and 100,000 partners[49]. - The company has successfully increased large orders over 5 million RMB by 45% year-on-year, enhancing its market position in large enterprises[34]. - The company has expanded its strategic ecosystem with over 2,200 business partners, including 970 ISV partners and more than 10,000 partners in the YonStore cloud market[38]. - The company’s cloud service business for small and micro enterprises saw a user growth of 201%, reaching 397,000 cumulative paid enterprise users[43]. - The company achieved a revenue of 587,004 million CNY in the large enterprise cloud services and software business, representing a year-on-year growth of 17.0%, with cloud service revenue increasing by 45.4% to 373,463 million CNY[39]. Governance and Compliance - The company has received a standard unqualified audit report from Ernst & Young Hua Ming[2]. - The board of directors confirmed that all members attended the board meeting, ensuring the integrity of the annual report[2]. - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management team[2]. - The company has held multiple shareholder meetings, ensuring compliance with regulations and transparency in decision-making processes[102][104]. - The company has not reported any significant deficiencies in internal controls during the reporting period[149]. - The company has not received any administrative penalties related to environmental issues during the reporting period[154]. Strategic Initiatives and Future Outlook - The company plans to enhance product development focusing on customer value and user experience, with a priority on public cloud solutions[93]. - The company aims to strengthen its "Enterprise Digitalization YonBIP" brand and expand its customer base in economically developed regions of China, particularly in Shenzhen and overseas markets[97]. - The company plans to deepen partnerships with existing ecosystem partners and develop new channels to drive customer business innovation[100]. - The company is committed to enhancing its cloud service business and creating a globally leading enterprise cloud service platform[100]. - The company is exploring potential acquisitions to enhance its product offerings and market presence[111]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries reached 20,998, with 7,693 in technical positions and 3,325 in sales[134][136]. - The company has invested tens of millions in employee training and development through its training programs[138]. - The employee compensation structure includes monthly base salary, quarterly performance bonuses, and annual performance bonuses linked to individual and company performance[137]. - The company has implemented a performance evaluation system for senior management, linking their performance to annual bonuses[148]. Shareholder and Equity Management - The company proposed to repurchase shares through centralized bidding, reflecting a strategic move to enhance shareholder value[119]. - The company has repurchased 17,698,377 shares, accounting for 0.5411% of the shares involved in the equity incentive plan[197]. - The planned repurchase amount was 800 million RMB, representing 0.59% of the total share capital[197]. - The company’s total shares at the end of the year were 13,689,972, indicating a reduction in overall shareholding[107].