RONGJI SOFTWARE(002474)2023-04-10 16:00Financial Performance - Fujian Rongji Software Co., Ltd. reported no cash dividends, stock bonuses, or capital increases from reserves for the year 2022[5]. - The company's operating revenue for 2022 was ¥665,730,486.71, a decrease of 7.18% compared to ¥717,210,056.03 in 2021[26]. - The net profit attributable to shareholders for 2022 was ¥13,309,400.56, down 55.54% from ¥29,938,215.68 in 2021[26]. - The basic earnings per share for 2022 was ¥0.0214, a decline of 55.51% compared to ¥0.0481 in 2021[26]. - Total assets at the end of 2022 were ¥2,725,265,559.19, a decrease of 6.50% from ¥2,914,840,484.16 at the end of 2021[26]. - The net profit after deducting non-recurring gains and losses for 2022 was -¥1,091,603.61, a decline of 109.23% from ¥11,821,380.15 in 2021[26]. - The company reported a quarterly revenue of ¥282,078,532.70 in Q4 2022, which was the highest among the four quarters[30]. - The net profit attributable to shareholders in Q4 2022 was -¥4,946,527.95, indicating a loss for that quarter[30]. - The company received government subsidies amounting to ¥14,879,537.03 in 2022, which was consistent with its normal business operations[32]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as the net profit for the most recent year was negative after deducting non-recurring gains and losses[26]. Business Operations - The company operates in five main business areas: e-government, collaborative management, information security, big data, and the Internet of Things[19]. - The company emphasizes the development of innovative technologies in line with national strategies, particularly in IT infrastructure and standards[19]. - The company is involved in major national e-government projects, including the Jin Guan Project, which supports customs services and information resources[19]. - The company has developed the iTask mobile collaborative management platform to enhance remote work capabilities and organizational flexibility[19]. - The report indicates a focus on artificial intelligence applications in government services, smart ports, and energy management[19]. - The company is a leading service provider in the digital government and collaborative management sectors, actively participating in major national digital projects[44]. - The company has developed over 50 proprietary intellectual property rights in the field of trusted innovation (信创) for government applications, showcasing its commitment to technological independence[45]. - The company is focusing on integrating new technologies such as big data, blockchain, and artificial intelligence into government services, enhancing its competitive advantage in the digital governance sector[44]. Market Trends - In 2022, China's software and information technology service industry achieved a total software business revenue of 1,081.26 billion yuan, representing a year-on-year growth of 11.2%[38]. - The revenue from software products reached 265.83 billion yuan, while information technology service revenue was 701.28 billion yuan, with respective year-on-year growth rates of 9.9% and 11.7%[38]. - The number of enterprises in the software and information technology service industry exceeded 35,000 in 2022, indicating a robust market expansion[38]. - The digital economy is expected to continue growing, driven by government policies and the increasing demand for digital transformation across industries[42]. - Future market opportunities are anticipated in areas such as smart city construction and government informationization, which will stimulate further growth in the software industry[127]. Research and Development - The company holds 59 patents and 614 software copyrights, showcasing its strong innovation capabilities[71]. - The company is currently developing a new generation of smart government big data service platforms, with a capitalized R&D amount of ¥20,858,479.80[96]. - The company has committed to increasing R&D investments to promote product upgrades and meet customer demands[120]. - The number of R&D personnel increased by 29.41% to 550, now constituting 61.94% of the total workforce[95]. - R&D investment amounted to ¥91,042,283.71, representing 13.68% of operating revenue, a decrease from 14.66% in the previous year[95]. Strategic Initiatives - The strategic plan for the "14th Five-Year Plan" emphasizes the importance of self-reliance in core technologies, which aligns with the company's focus on innovation and market expansion in the trusted innovation sector[42]. - The company aims to expand its trusted innovation business across various sectors, including public services, environmental protection, and energy, indicating a broad market potential[45]. - The company aims to enhance its competitive edge in the electronic government sector through improved operational service systems and product line expansion[92]. - The company plans to leverage advancements in cloud computing, big data, and artificial intelligence to enhance its service offerings and market reach[127]. Governance and Compliance - The company adheres to strict governance practices, ensuring compliance with relevant laws and regulations to protect investor rights[141]. - The company maintains independence from its controlling shareholder, with no related party transactions during the reporting period[142]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[143]. - The company has established a complete financial accounting system and independent financial decision-making processes, ensuring no interference from shareholders[155]. - The company has a commitment to social responsibility, balancing the interests of stakeholders including shareholders, suppliers, and employees[147]. Employee Engagement - The total number of employees at the end of the reporting period was 888, with 287 in the parent company and 601 in major subsidiaries[182]. - The total employee compensation during the reporting period was 9.3132 million yuan, accounting for 3.07% of the company's operating costs[184]. - The company emphasizes employee training, offering various programs to enhance skills and management capabilities[185]. - The employee stock ownership plan includes 379 employees holding a total of 12,353,201 shares, representing 1.99% of the company's total equity[190]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%, aiming for a total revenue between 1.32 billion RMB and 1.344 billion RMB[165]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[165]. - The company aims to enhance its operational efficiency through the implementation of innovative management systems[163]. - The company plans to increase its workforce by 15% in 2023 to support growth initiatives and enhance service delivery[165].