Join-Cheer(002279)2022-04-22 16:00Financial Performance - The company's operating revenue for 2021 was ¥2,708,605,612.09, a decrease of 4.00% compared to ¥2,821,408,719.24 in 2020[26]. - The net profit attributable to shareholders was -¥131,715,984.95 in 2021, compared to a profit of ¥71,626,575.82 in 2020[26]. - The net cash flow from operating activities was ¥202,118,789.53, an increase of 2.84% from ¥196,546,348.04 in 2020[26]. - The total assets at the end of 2021 were ¥2,627,825,741.48, a decrease of 1.47% from ¥2,667,022,974.11 at the end of 2020[26]. - The net assets attributable to shareholders decreased by 13.09% to ¥915,588,484.65 at the end of 2021 from ¥1,053,445,186.39 at the end of 2020[26]. - The company reported a basic earnings per share of -¥0.1853 in 2021, down from ¥0.1007 in 2020[26]. - The weighted average return on equity was -13.38% in 2021, a decline of 20.50% from 7.12% in 2020[26]. - The company reported a net loss attributable to shareholders of CNY -41,757,579.93 for the year 2021[70]. - The total cost of sales for 2021 was CNY 1,860,667,705.33, down 11.05% from the previous year[77]. - The company's R&D investment amounted to ¥269,986,918.74 in 2021, a decrease of 8.14% compared to ¥293,923,353.34 in 2020, representing 9.97% of operating revenue[85]. Business Strategy and Focus - The company plans to focus on core business areas and enhance technological innovation to mitigate risks from macroeconomic fluctuations and policy changes[6]. - The company is committed to deepening its presence in advantageous industries while exploring opportunities in emerging sectors[7]. - The company plans to focus on expanding its digital communication and e-government services in the upcoming year[70]. - The company aims to optimize and upgrade its products and solutions, particularly enhancing the capabilities of the Niwa platform for product development and delivery[111]. - The company is committed to becoming a leading management software supplier and big data service provider in China[111]. - The company will focus on expanding local markets by enhancing management software and deepening industry penetration in sectors such as finance, transportation, education, and energy manufacturing[112]. Risk Management - The company acknowledges potential risks from macroeconomic fluctuations and the impact of the ongoing COVID-19 pandemic on client demand[5]. - The company has established a customer credit rating system to strengthen accounts receivable recovery mechanisms and mitigate collection risks[8]. - The company reported a significant reliance on accounts receivable from its digital media agency business, which poses a risk of overdue collections[8]. - The company is actively monitoring the legal proceedings related to the Shanghai Yitong case, which may affect its financial position due to uncertainties in compensation recovery[11]. - The company has implemented a performance-based compensation policy to align employee goals with company objectives[147]. Product Development and Innovation - The company has launched the Nuwa platform, enhancing its product development foundation and supporting modular transformation of applications[40]. - The company is actively exploring next-generation financial intelligent platform products, with successful projects in intelligent review and plans for continuous innovation in data risk control and value empowerment[47]. - The company has obtained 47 new software copyrights and 7 invention patents during the reporting period, bringing the total to 1,060 software copyrights and 44 patents[63]. - The company completed 200 product adaptations for domestic innovation and transformation, ensuring compatibility across various platforms and systems[64]. - The company has invested approximately ¥4.19 million in the construction of the Niwa Government Affairs R&D Center, with a total actual investment of ¥134.14 million[102]. Governance and Compliance - The company maintains complete independence from its controlling shareholder, Beijing Jiuqi Technology Investment Co., Ltd., in terms of assets, personnel, finance, organization, and business operations[122]. - The company has established an independent product research and development, sales procurement, and technical service operation system[122]. - The company is focused on enhancing its internal controls and compliance following the regulatory scrutiny it faced[132]. - The company has committed to enhancing its governance structure and internal control systems moving forward[162]. - The company has implemented a remuneration management system for its directors and senior management, linking compensation to performance evaluations[134]. Employee and Talent Development - The total number of employees at the end of the reporting period was 2,476, with 1,318 in the parent company and 1,158 in major subsidiaries[146]. - Employee compensation totaled 643.33 million CNY, accounting for 24.19% of the company's total costs, indicating a sensitivity of profit to changes in employee compensation[147]. - The company is actively engaged in training programs to enhance the skills of management and technical staff, including partnerships with several universities for talent development[148]. - The company has established a comprehensive training plan aimed at improving operational efficiency and risk control[148]. Social Responsibility and Community Engagement - The company actively fulfills its corporate social responsibility, contributing to social development through various initiatives[166]. - The company engaged in charitable activities, including donations to universities and support for disaster relief efforts[167]. - The company has collaborated with the State Council's Poverty Alleviation Office on multiple projects, including the construction of a national poverty decision support system and a big data platform for Inner Mongolia[169]. - The company is focusing on digital construction to support rural revitalization efforts following the completion of national poverty alleviation goals[169]. Legal and Regulatory Matters - The company faced administrative regulatory measures from the China Securities Regulatory Commission due to inaccurate information disclosure, leading to a warning letter issued on January 8, 2022[193]. - The company has implemented a series of corrective measures, including revising internal control systems and enhancing management responsibilities following the Shanghai Yitong incident[196]. - The company established a special task force to address the Shanghai Yitong incident, ensuring compliance with judicial processes and maintaining communication with investors[196]. - The company is enhancing its internal control systems and has introduced a "red line" policy to emphasize legal compliance among management[197].