SERVYOU(603171)2023-04-17 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,697,762,178.12, representing a 5.80% increase from ¥1,604,761,490.79 in 2021[1]. - Net profit attributable to shareholders for 2022 decreased by 37.64% to ¥143,900,227.74 from ¥230,774,877.27 in 2021[1]. - The net profit after deducting non-recurring gains and losses was ¥101,249,301.16, down 42.16% from ¥175,058,395.50 in the previous year[1]. - The net cash flow from operating activities was ¥89,773,422.73, a decrease of 41.68% compared to ¥153,922,327.25 in 2021[1]. - Basic earnings per share for 2022 were ¥0.35, down 41.67% from ¥0.60 in 2021[2]. - The weighted average return on equity decreased to 5.90% in 2022 from 11.00% in 2021, a decline of 5.10 percentage points[2]. - Total assets at the end of 2022 were ¥3,686,250,016.85, an increase of 5.37% from ¥3,498,535,914.64 at the end of 2021[1]. - The net assets attributable to shareholders increased by 0.91% to ¥2,451,840,782.30 at the end of 2022 from ¥2,429,707,554.56 at the end of 2021[1]. - The total profit amounted to 137 million RMB, a year-on-year decrease of 40.9%[106]. - The net profit attributable to shareholders was 144 million RMB, down 37.6% compared to the previous year[106]. Dividend Distribution - The company plans to distribute a cash dividend of 2.5 CNY per 10 shares, totaling 101,472,500 CNY, based on a total share capital of 405,890,000 shares as of December 31, 2022[7]. - The company has not implemented any form of profit distribution other than cash dividends for the reporting period[7]. Audit and Compliance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm[8]. - The company has disclosed its financial report's authenticity, accuracy, and completeness, ensuring no major omissions[5]. - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for providing guarantees[16]. - There are no significant risks that could materially affect the company's operations during the reporting period[18]. - The company has not faced any substantial risks that could impact its production and operations[18]. Business Operations and Strategy - The company achieved total operating revenue of 1,697.76 million yuan, a year-on-year increase of 5.8%[49]. - The B-end business generated revenue of 952.90 million yuan, up 10.2% year-on-year, with an overall gross margin of 73%, an increase of 4.4 percentage points[49]. - The company successfully won two core projects for the "Golden Tax Phase IV" initiative, enhancing its industry position[52]. - The active user base for the B-end business platform exceeded 7 million, representing a growth of 21.6% since the beginning of the year[60]. - The company’s small and medium-sized enterprise (SME) customer group achieved an annual recurring revenue (ARR) of 490 million yuan, a year-on-year increase of 6.1%[61]. - The average revenue per user (ARPU) for the SME customer group increased by 11.4% to 815 yuan[61]. - The company has implemented a strategic upgrade from traditional SaaS subscription models to service-oriented SaaS models, optimizing revenue quality[58]. - The company is actively participating in the digital governance service project for the Ministry of Human Resources and Social Security, expanding its market presence[57]. - The company is focused on expanding its digital government services, aligning with national strategies for digital economy development[79]. - The company aims to leverage big data applications to improve governance capabilities and enhance service delivery efficiency[79]. - The company aims to enhance its SaaS services for small and medium-sized enterprises (SMEs) by integrating tax and accounting applications, focusing on high-value product promotion and compliance[145]. - The company plans to improve service competitiveness through efficiency upgrades and diversified service offerings, targeting traditional users to increase renewal rates[146]. User Engagement and Market Position - Active user count decreased by 4.2% to 1.15 million, while paid user count fell by 4.8% to 600,000[63]. - High-value users surged by 164.4% to 34,000, maintaining a user renewal rate of 85%[63]. - The tax agency customer segment achieved a 31% growth in paid users, reaching 3.8 million, and ARR increased by 11.3% to 420 million yuan[66]. - The ARPU for the tax agency segment decreased by 15.2% to 111 yuan, with a renewal rate exceeding 100%[66]. - The innovative business segment generated revenue of 120 million yuan, marking a 32.7% increase year-over-year[69]. - The company has accumulated over 7 million active users in the tax-related field, with more than 4 million paying users, establishing a strong market position and brand image[95]. Technological Advancements - The company has completed the construction of a cloud-based electronic tax bureau system based on domestic software and hardware, marking a significant technological breakthrough[57]. - The company has built the largest digital knowledge and AI system in the financial and tax digital service sector in China[101]. - The company’s intelligent cloud platform supports over 1,000 business applications and thousands of service nodes, achieving an overall availability of 99.99%[104]. - The company’s AI-based user data mining has an accuracy rate of 83% and a customer intention conversion rate of 50%[105]. - The company is set to leverage opportunities from the Golden Tax Phase IV project, which is expected to drive demand for digital tax services among SMEs[158]. Market Trends and Future Outlook - The number of registered market entities in China reached 169 million by the end of 2022, with an average annual growth rate of 12% since 2012, indicating a vast market demand for financial and tax digitalization services[82]. - The company is positioned as a leading provider of financial and tax SaaS services, with a mission to "create financial and tax value" and a focus on integrating business, finance, and taxation[91]. - The company’s B-end business is expected to enter a high-value era due to the increasing demand for professional financial and tax digitalization services among small and medium-sized enterprises[82]. - The company’s digital infrastructure and policies are expected to support the digital transformation of enterprises, with the enterprise-level SaaS market in China projected to exceed 100 billion yuan by 2022[84]. Risk Management and Compliance - The company has established a research institute with over 300 tax experts to monitor tax policy changes and ensure timely updates to SaaS product offerings[192]. - The company is expanding its services to related sectors such as social security and medical insurance to mitigate risks from tightening government budgets[193]. - The company emphasizes the importance of IT systems and controls for accurate financial reporting, identifying them as key audit matters[187]. - The company has implemented a comprehensive cybersecurity framework to protect against potential risks such as data breaches and hacker attacks[192]. - The company recognizes the growing demand for compliance and consulting services among SMEs due to enhanced tax risk detection capabilities[158]. Shareholder Information - The largest shareholder, Ningbo Sichi Equity Investment Partnership, holds 223,095,730 shares, representing 54.96% of total shares[123]. - Zhang Zhenchao, the second-largest shareholder, directly holds 92,300,000 shares, accounting for 22.74% of total shares[125]. - UBS AG increased its holdings by 4,445,164 shares, now holding a total of 4,519,356 shares, which is 1.11% of total shares[123]. - The company has no controlling shareholder situation, with Zhang Zhenchao being the actual controller of Sichi Investment[129]. - The company has not disclosed any related party relationships among the top ten shareholders[124].